New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1847-06-30
Political ECONOMY mo. v.
cURRrscY-BASKs.


United States was relieved by Congress
1t should be borne in mind, that, before the final
decision Of this question in Congress the Legisls.
tores Of the States Of Massachusetts Pennsy lvsns
Virginia and Kentucky. had expressed opinions
against the renewal of the charter. and had in.
structed their Representatives. in Congress to vote
against H. The public mind generally was also.
BY Newspaper publications, not little excited
against the Bank and its supporters Those who
belonged to the Democratic party, then in power
who were in favor Of renewing the charter, among
whom was William H. Crawford Chairman Of the
Committee who reported the Bill in the Senate,
were accused. Dot only Of spostscy. but OF being
bribed and corrupted by the Bank or its agents
The influence Of the State Banks, had also been
brought 70 bear on the question then before Con
gress. and when il is considered that the number
OF these Banks bad at that time increased TO nearly
ninety, located in most OF the States. with az.
gregste capital Of more than forty millions Of dol
lars their Influence could have had no ncopsidera
bic weight with this union Of views and interests
against the sbk IL is not strange that the charter
should be suffered to expire. (Pnkin.
Ia the war with Great Britain, which soon fol.
lowed. the United States were obliged TO rely on
the State Banks not only for the collection and
distribution OF their revenues but for great pro-
porrion Of their loans to carry on the war The
amount Of Treasury notes issued during and on &C
count Of the war was ESQ 1873 1874, and these notes
although bearing an interest Of FIVE and two hfths
per cent per aDnum, were deprecated twenty
FIVE per cent below specie and Boston Bank notes.
H.. ,rT ah
few days before the news Of peace arrived at five
per cent below the rates Of the New. York Banks
which did not pay specie. The increased issues
Of Bank paper. with the pressure Of the war upon
American commerce, induced. compelled the
Banks South and West Of New England in Sep.
tember 1914 TO stop paying specie for their bills
These circumstances rendered it impossible for the
General Government 70 procure loans for the prose
cution Of the war, except upon term utterly ru.
nous.
A National Bank seemed to present the only
remedy for the financial endorsements of the
country. The Secretary the Treasury therefore,
(Mr. A. J. Dallas, father of the present Vice Pres
ident,) early in the session OF Congress. which
met In September 1914; presented a plan for a
National Bank, with a capital Of fifty millions.
bill was sfterward submitted to the House,
substantially on Mr. Dsllsss plan. All parties in
Congress seemed then in favor Of National B snk.
with the exception Of few, who still entertained
Constitutional objections. The bill amended by
reducing the capital to thirty millions, and in other
particulars did not meet the views Of the Treasury
Department majority Of the House, and was
negatived.
Another bill was passed by the Senate and sent
To the House in accordance with the plan Of the
Secretary OF the Treasury. and containing a clause
empowering the Bank to suspend specie pay ments
in certain cases during the war and one year after
Every attempt to amend the bill in the House, So
ss to make it a specie-paying Bank, was unsuc
cessiul. On taking the final question, the votes
stood Ayes 81, Noes 20, and the Speaker Mr..
Cheves being opposed to the Bill, gave his vote
ia the negative in consequence Of which, the votes
being equal, the bill was lost
The Speaker however expressed an opinion that
aNational B snk bill might be framed which would
unite a majority in its favor and the next day the
bill was reconsdered and referred to a select Com
mittee W bo soon after reported the same, reducing
the capital to thirty millionsto consist Of FIVE in
specie fifteen in Treasury Notes and ten millions
in Government Stock, with reservation Of a right
in the United States. to subscribe additional
Ave millions. in four per cent stock. Other i'm
portant amendments were also proposed by the
Committee. particularly in striking out the clauses
relating to a compulsory loan and the power of
suspending specie payments These amendments
were substantially agreed to, in the House, and the
bill passed BY large majority, 100 to "a, and
O.. ~. III
body refused to postpone to eect the bill 20 TO
II. 1t will be recolleeted that there was Demo
cratic majority in both Houses.
This bill. it is well known. was returned by
President Madison with his objections. These
objections, however were not founded upon the
question Of constitutional powers question which
the President expressly waived. as being fnHy
settled. but because in his opinion. it was not cal
culated to answer the purposes Of revivng public
credit Of providing national medium of circuls
ton. and Of aiding the revenue, and by sfordine to
the public more durable loans A National Bank
however seemed the only resource left to restore
public credit and enable Government to prosecute
the war, the Senate therefore Immediately passed
another bill Us To l6 Substantially in accordance
with the views of the Secretary of the Treasury
and which was sent TO the House on the 18th Of
February 1915. and would no doubt have then
passed. but for the arrival of the news of peace
II was ON motion of Mr.. Lowndes although he was
friendly to such an institution postponed indef.
nitely by majority of one rots az to 7S) on the
18th Of February.
At the next Session. when another Congress
convened, President Madison snd the Secretary of
the Treasury. both concurred in recommending
National Bank. aud the late Bank of the United
States was Incorporated by act Of Congress. March
5. Isle, to endure twenty years with capital of
thirty i've millions OF dollars of which the United
States subscribed seven millions, in FIVE per cent
stock. The history of this institution Is so gene
rally familiar that forbesr to enter into details
on the subject
Three State Banks only, as before stated, were
10 operation at the adoption Of the Constitution in
1889. with an aggregate capital OF about two mil. I
loss Of dollars On the first Of January 1911, how.
ever. their number had increased to eighty eight |
with capital Of s42,6lo,Ooo; making the whole |
,sakng capital of the country at that period. in
ading thar Of the first Bank of the United States.