Cleveland daily leader. [volume] ([Cleveland, Ohio]) 1865-1873, 1866-02-01
currency and The proper management

the national system of banking are SUBJ
iests Of unsurpassed interest 70 the bust
ness men Of the lsnd-ths history and
character Of tAe Bank Of the United
States fren the date Of is organization
70 is suppression BY President jackson,
win be intsnasting to readers In
treating tie subject We shall aim to state
actA IsaxiRs AsOdu and opinions 70 be
supplisd BY 0thsrs. For much valuable
information On this subject we are in
debtsd 70 The fbls political work Of Mr.. A
W. Young sntitlsd sFhe American
Satesman.H -
A United States Bank bill was intro
6aesA inbo the First Congress, at its third
session, which commenced at P~hiladelphis
in Dsesnber, ITe0, and was probably sug-
Ssstea BY the Secretary Of the Treasury
Alexander HsnilteR. Mr.. Hamilton ex-
pressed . conviction that "a national
tbank Is an institution Of primary inn
/" porssHee 70 the prosperous a~dministra-
9tisn Of the finances and would be of
Sfhe greatest utilityin the operations con-
"nected with the support of the public
q credit.n The measure was discussed
at great length BY the able Statesmen of
that period. Finally, the bill having
passed the Senate the House, on the 9th
Of FEBRUARY, Tree, adopted it by a vote of
SO TO 20, after 6 continuous debate of Rino
days. The votes sgainst it were with but
enc exception, east by members frem the
South. The Cabinet were divided in
opinion . to the Oonstitutionality of the
measure, Nsssrs. Hamilton and Knox
SECRETARIES Of the Treasury and Of. War,
fayOring, and Messrs. JsfersOn and Ran
dolph, Secretary Of State and Attorney
General opposing. Alter much consider
alton, President Warrington gave his az
ecutize sanction to the measure. The
capital stock was limited to $4,000, 600,
Of which q, COO, 600 was to be subscribed
By the government. There were TO be
sAOpe ShArsA Of $500 each, persons and
osr porationato be restricted to the hold
ing Of L,eoa shares. One-fourth of the
public stock vas 70 be paid in specie, and
thrss-fourShs IN United States stocks.
o~ns-feurthof the capital was to be paid at
the tine Of subscribing, and the remainder
IN three ssmi-anzual instslnerts. The
corporation wa forbidden to hold over
Sls,OOs,oOo Of property, including its
esuital; nor was it allowed 70 contract
debts, exclusive Of deposits, exceeding
s1o,oeaDo0. The bank was prohibited
from purchasing additional Government
stocks, though II might sail what it had.
1t could deal emily in exchange specie and
bullion, and was restricted to six per
centrum Of interest per snnum. It was
desieasd to be . bank of deposit and dis
CONT; It's circulation to be redeemed in
specie, and its notes to be received in all
payments to tbs Government. 1t could
not losa to the United States = sum ex7
cesding $ie0, 600; 10 e stste exceeding
$4,000; nor 10 my foreign power any
sum without the consent Of Congress It
vss to b located at Philadelphia, with
power 50 sstAbiiAh branches, for purposes
Of discount and deposit only, enyWhere
within tie nation. The charter was to
run tHsnfy years during which period no
Othss banking corporation was to be char
tered by Congress.
~ mHnN-.LL. ID --aHIH.N.. L#.a -na Il
In Is1f@hs hank charter Of l7so hsT-
ing expired in 1910, and reissue hav-
ing bean refused by oOngress--the state
Of the finances, g described byMr. Camp
ben, Secretary Of the Treasury, was very
z~nfSvorsble. The AsOal year pro miseda
deficit Ofsboutsls OOO, 900. Onthis subject
Nr. Young ssys: @Aost Of the banks,
"except those Of England, had sus-
spsndsd speeds payments, caused, in part,
aby the drain Of specie to pay for foreign
goods, ehieHy British, which had been
brought irto the country cisndestinsly,
and under false color." About this
time MBr Czmpbell voluntarily retired
from the treasury, and was succeeded by
Alexander Dallas, Of Philadelphia who
proposed q national bank, with . capitol
Of $50, Ooo, 600 100000 in specie and
the remainder ia Government stocks. This
peS3sct met the favcr Of President Msdi-
son, who, asa member Of Congress, had
violently opposed the issue Of the bank
charter Of 1870. Rh change Of ssntiment
was due to the great crisis upon the cOun-
try in lslA The Government was to
subscribe twc-snhs Of the capital, appoint
part Of the dirsetOEh and have power to
authorizs suspension Of specie payment;
the bank 20 be obligated to loan the Gov
ernmsut Ssc,eOo, Gee. Nj. Calhoun and
sthsr SRepablicans /" offered the most VIC
lent opposition. and finally proposed to
substitute 3 bank with q capital Of $s0,ooO,-
600, ss,ooe,oeo efspecie and SO Ooo, coo Of
treasury notes, the Government to hold no
stock and hare ne oontrsL This plan car
rssd % the arst reading in the House, re-
esiving tbs support Of the 'Federalist
Subsequently Secretary Dallas expressed
adversely 70 the Issue of 50 large
an amount Of treasury notes, aftsr which
he uFSdsralists" changed trent and de-
sszssa the bin on it. third reading, the
vofs standing Is 70 loT. Secretary Dali
So shan ~aa thea 1szsaaasAalzto ana
Edoptsd b. The Senate. It INST violent
Dpuosiaon In the House where the vote
stoOd 81 for and 90 against. It was, how
eysr. defeated by the somewhat remarks
bic action Of SPsskar Ckeses. who voted
IN ths asgetive sbus making q ste, and
thsn gave the casting vote against the
A compromise bin was finally
agreed upon and sdeptsdby both branches
Of Congress, but was vetoed by the PFesi.
dent on the soth Of January, 1915. It
PROVIDED for s capital Of $40, 100000, So
900, 900 spsois, SIS, eco, 900 in treasury
notsa, and $1,000, 900 in Government
stocks; no compulsory loan sndno power
u suspend President Madison did not
interposs his veto for. ANY constitutional
reason; but beeause It did mot appear to
abe calculated to answer the purposes of
arsvfYfng the public credit and-so.fOFth.
An1ther bin on the Dallas plan was intro
dnesd into the Senate by Mr.. Barbour.
and adopted but w4 indefinitely post
poned in ths House BY n msiority, isa
In Isle the question Of . United States