The times. [volume] (Richmond, Va.) 1890-1903, 1895-06-04

very state and condition which II was
their care to guard us against. We VIII
give a brief account OF how THIS came
about. and It was all due to the great
and predomlnatIng influence OF General
washington's Secretary OF the Treasury.
General Alexander Hamilton.
Our Government was framed and
launched upon the right lines. and while
State banks existed before the Consti-
tuition was adopted. and were left by 1t
as IT found them, they greatly increased
as soon as the people found out that
by leaving them as they, were, the
trainers Of the Constitution intended 20
encourage them. Hamilton had little or
no faith in the idea which was involved
in our financial theory. He did not be
Iievo I'm much local government. He
was a monarchist at heart. and believed
IN a strong. central government. that
could compel its citizens to do whatever
the ruler thought best for their interests,
just as II would take care of them in
case they were assailed from without.
Hamilton knew that one Of the most pow
erful beverages a government could have
for enforcing its Will amongst its people
is mastery and control of that country's
finances. When he came into Washing
toms Cabinet, as Secretary of the Treas
ury. II was with towering reputation
for financial ability. The nations finances
were in a deplorable state. and Congress
called upon him for suggestions for their
Improvement. lie submitted two reports
upon the finances. one Of which set out
very deliberately plan for a national
bank.
Hamilton admitted in this report that
he had taken the Bank of England FOR
his model. which. though private cor
poration. owned by private stockholders.
had been so long the fiscal agent of the
British Government that 1t had come to
be regarded all over the world as part
of the Government. and backed by H..
His plan provided that the capital stock
was to be ten millions of dollars, and
the Government of the United States was
to subscribe to one-hfth Of this. Sub
scriptions 10 the capital stock were TO
be paid onc-fourth in coin and the other
threo-fourths in 6 per cent. bonds of the
United States. The notes that the bank
put out were to be receivable in payment
Of all dues to the United States.
Now. here was a case in which the
bank. named by the act Of Congress
creating it "the Bank OF the United
States" was authorized TO go before the
world proclaiining that the United States
authorized it to be known that it was
a partner In the enterprise to the amount
Of one-fifth of its capital stock; that all
Of its capital, except a trifling percent
age. was paid up in the Government obli-
cations. and that its notes were all 10 be
received in payment Of all dues to the
Government. This was. in effect. Great
ing currency based upon the credit Of
the National Government. 1t was a
total negation of the declared
purpose OF the trainers of the
Constitution Il end forever all cir
culating paper that rested upon Gov
eminent credit. and it was the institution
OF a currency issuer totally antagonistic
TO the ideas of the trainers Of the Con-
stitution. that whatever paper currency
we should have should rest upon private
instead of public credit.
The influence of Hamilton and his
school put the plan through Congress
against the most formidable opposition.
headed by Mr.. jefferson. The opposition
turned principally upon the idea that
Congress had no power to charter cor
poration, but every suggestion we have
made was included wi hin the scope Of
the argument made against it.
We shall continue the account OF this
matter tomorrow.