The Cadiz Democratic sentinel. [volume] (Cadiz, Ohio) 1854-1864, 1855-05-02
MESSAGE

FROM THE PRESIDENT OF THE UNITED STATES
Returaing tie Bank BaEsViL h,s objections, Gt
II the Senate:
The bill TO "modify and continue" the act onti-
tied ian act to incorporate the subscribers OF the
Bank OF the United States" presented TO me on
tire 4th of July instant Having considered it with
that solemn regard to the principles OF the Consilu
tion which the day was calculated to inspire and
come TO the conclusion that il ought not to become
a law herewith return it TO the Senate, in which it
originated, with my objections.
A Bank of the United STATES is in many respects,
convenient for the Government and useful to the
people Entertaining this opinion, and deeply i'm
pressed with the belief that some of the powers and
privileges possessed by the existing Bank are unan.
ihorzed by the Constitution sUbveTsve of the rights
of the States and dangerous to the liberties of the
people, felt it my duty, at an early period OF my
administrator to call the attention OF Congress to
the practcability of organizing an institution
bining all its advantages and obviatlng these ohIec
tions. sincerely regret that, in the act before re
/ can perceive none OF those notifications of the
Bank character which are necessary, in my opinion
TO make it compatible with justice, wi tn sound po
licy, or with the Constitution of our country.
The present corporate body, denominated the
President Directors and Company of the Bank of
the United States will have existed, at the time this
act is intended to take effect twenty years. 1t en-
Joys an exclusive privilege OF banking under the
authority Of the General Government monopoly
of its favor and support, and, as necessary onse
aupnce, almost monopoly OF the foreign and dones.
tic exchange. The powers, privileges and iayors
bestowed upon it, in the original character, by i'll
creasing the value ofhe stock far above its par val
ne, operated as gratuity OF many millions to the
stockholders
An apology may be found for the failure to guard
against this result in the consideration that the eff
feet of the original act of Incorporation could not
be certainly oreseen at the time OF its passage The
act before proposes another grauiy to the hold
Crs of the same stock, and, Ill many cases, to the
same men, of at least seven millions more. This
donation finds no apology in any uncertainty rs to
the effect of the act On all hands il is conceded
thut its passnge will increase at least twenty or hr
ty per cent more, the market price OF the stock,
subject TO the payment of the annuity OF $200,Ov0 per
year secured by the act; thus adding, in a moment,
one fourth to It's par value II is not our own cit-
Zens only who to receive the bounty OF our Gov
ernment More than eight millions of the stock of
this Bank are held by foreigners. BY this act, the
American Republic proposes virtually to make them
q present of some millions OF dollars For these
grhtuities to foreigners and to some OF our own op
pelent citizens the act secures no equiv lent what
ever They are the certain gains of the present
stockholders under the operation of this act, af-
ter making full allowance for the payment OF the
bonus,
Every monopoly, and all exclusive privileges, are
granted at the expense OF the pabIic which ought
receive fair equivalent. The nany millions which
this ct proposes tobestow the sockh0derso OF the
existing Bank, must come, directly or Indirectly,
out OF tie earnings OF the American people. 1t is
due to tnem therefore, it their Government sell mo-
nopohes and exclusive privileges that they sh )uld
at least exact (or them nuch as they are worth in
open market. The value of the monopoly in this
case may be correctly uscertaincd. The twenty
eight milliOnsoI stock would probably be at an adj
vance of fifty per cent and command in market at
least forty.tw0 million of dollars subject to the pres
ent bonus. Tne present value OF the monopoly.
there fore, is seventeen sOf dollars, and t,is
to act proposes to sell for three millions, payable in
fifteen annual instalment Of the 9200,0 900 each
1t is not conceivable how the present stockholders
can have any claim to the special favor of the Gov
ernment. The present corporation has enjoyed its
monopoly during the period stipulated in the origi-
nal contract. 1--we must nave such corporation,
why should not the Government sell out the whole
stock, and thus secure to the people the full market
value of the privileges gr8nted! Why should not
Congress create and sell twenty eight millions OF
stock incorporating the purchasers with all the
powers and privileges secured in this act and put,
ting the premium upon the sales into the Treasury
But this act does not permit competition in the
D lrchase ofthis monopoly 1t seems to be predica
t,d on the idea, that the presen 50ckhod
ers have prescriptiye right, not only to the favor
bat to the bounty of Govern ment. 1t appears that
more than fourth part of stock is held By foreign
erS and the residue is held by few hundred OF our
own citizens, chiefly OF the richest class: for their
benefit does this act exclude the whole Americ IN
uenple from competition in the purchase OF this mo-
nJpoy, and dispose of it is worth This seems the
less eccusabe because OF our citizens not now
stockholders petiti0ned that the door OF competition
might be opened, and offered to take charter on
terms much more favorable to the government and
country.
But this proposition, although made by men whose
aggregate wealth Is believed to be equal to all the
private stock in the existing Bank, has been set a.
side, and the bounty OF our Government Is proposed
TO be again bestowed on the few who have been for
tunate enough to secure the stock, and, at this
ment, WELD the power OF the existing lnsItutlon;-
cannot perceive the justice policy OF this course
flour Government must sell monopolies, it would
seem to be its duty to take nothing less than their
full value; and if gratuites must be made once in
fifteen or twenty years, let them not be bestowed on
the subject of foreign government, nor upon des-
ignated and favored class Of men in own country.
1t is but justice and good policy, far as the nature
OF the will admit, % conine our avors to our
own fellow citizens, and let each in his turn enjoy
an opportunity to profit by bounty the hear
l.gs Of the act before me upon these points, find
ample reasons why it should not become a law.
1t has been urged as argument in favor OF re-
charering the present Bank that the calling in its
loans will produce great embarrassment and distress
The time allowed to close its concerns, is ample,
and lift has been well managed, its pressure will be
light, and heavy only In case It's management has
been bad.--lf, therefore, it shall produce distress,
the fault will be its own, andt would furnish
son against renewing q power which has been so
obviously abused. But, will there ever be time
when this reason will be less powerful? 10 ac-
kncWleuSe ls loTce, Is 10 AUNT luL INC DaHh ought
TO be perpe !ual and as consequence, the present
stockhoders and those inheriting their rights
cesssors, be established privileged orler, clothed
both with great political power and enjoying inn
mon pecuniary advantages from their connection
with the government.
The notifications of the existing charater, pro.
posed by this act, not sucn. in my view, as max
it consistent with the rights OF States or the lber
ties of the people The qualification of the right o.
the Bank to hold real estute, the limitation of it:
power to establish branches, and the powers reserv
ed to Congress to forbid the circulation of small
notes. are restrictions comparatively of little value
or importance. All the Objectionable principles o.
the existing corporations and most OF its odious tea
lures; are retained without aIlevaton.
The fourth section provides that the notes bills
of the said corporation although the same be the
faces thereof respectively made payable at one place
only shall nevertheless, be received by the saiC
corporation at the Bank, or at any OF the Offices O
discount and deposite thereof if rendered in iquida
zion or payment of any balance or balances due tt
said corporation or to such office of discount and de
post from any 9th incorporated Bank" Til
provision secures to the State Banks legal privi
Ieges in the Bank OF United States which is wihelt
from all private citizens. II n State Bank in Phil
adelphia, owe the bank of the United States ant
have notes issued by the ST. Loas Branch it can pay
the debt with those notes, but if merchant, ,mechan
ic, or other private citizen be In like
he cannot by law pay his debt with those notes
but must sell them at discount, or send them t(
st. Louis to be casted This boon, conceded t
the State Banks, thoughnot unjustin ITSELF is mos
oiious, because It does not measure out equal jus
tice to the high and the low, the rich and tue poor
To the extent Of its practical effect, it is bont
of union among the banking establishments ofth
nation, erecting them into an interest, seperat
from that of the people, its necessary tendency i
20 unite TIL Bnuk OF the United States and the Stat