SENATE.] Bank of the United States. [MAY 26, 1832. other advances are needed quite as fast as this is paid off, banks are as well conducted as those of other States. But as every successive crop creates a new occasion and a she has a common interest in the continuance of a useful new desire to sell bills. I leave it to Western gentlemen institution. She has an interest in the wise and successto judge how far this state of things goes to show that the ful administration of the Government in all its depart continuance of the bank is important to the agriculture and ments. She is interested that the general currency of the commerce of the West. I leave it to them to contemplate country should be maintained in a safe and healthy state. the consequences of withdrawing this amount of capital She derives a benefit with others (I believe it a great befrom their country. I pray them, also, to inquire what is nefit) from the facility of exchanges in internal commerce, to be their circulating medium, when the notes of the which the bank affords. This is the sum of her motives. bank are called in. Do they see before them neither diffi- For these reasons, she is willing that the bank should be culty nor danger in this part of the case? Are they quite continued. But if the matter should be otherwise deter confident that, in the absence of the bills and notes of the mined, however much she might regret it on general and Bank of the United States, they need have no fears of a public grounds, she certainly does not apprehend from bad currency, depreciated paper, and the long train of such a result inconveniences to her own citizens, such as ills that follow, according to all human experience, those may and must fall, so far as I can see, on some others. inauspicious leaders? I ask them, also, to judge how far Mr. President, I will take leave of the subject for the it is wise to settle this question now, so as to give time for present, with a remark which I think is due from me. For making this vast change, if it is to be made at all. The some years past, I have not been inattentive to the genepresent charter is to continue but four years. If it be not ral operations of the bank, or to their influence on the renewed, this debt must be called in within that period. public interests and the convenient administration of the Not a new note can be taken to the bank, for a dollar of Government; and I take the occasion to say, with sincerity it, after that time. The whole circulation of bank notes, and cheerfulness, that, during that period, its affairs have too, must be withdrawn. Is it not plain, then, that it is been conducted, in my opinion, with fidelity, as well to high time to know how this important matter is to be ad- wards the Government as towards its own stockholders, justed? The country could not stand a sudden recall of all and that it has sought the accomplishment of the public this capital, and an abrupt withdrawal of this circulation. purposes designed by its institution, with distinguished How, indeed, the West could stand the change, even if it ability and distinguished success. were begun now, and conducted as gradually and as gently Adjourned. as possible, I confess I can hardly see. The very commencement of the process of recall, however slight, would be felt in the prices of the very first crop, partly from the immediate effect of withdrawing even a small part of The resolution offered yesterday by Mr. CHAMBERS, inthe capital, and partly from the certainty of future pres-structing the Committee on the Judiciary to inquire if sure from withdrawing the rest. Indeed, gentlemen must any further measures are necessary to enforce the judg prepare themselves, I think, for some effect on the prices ment or decrees of the Supreme Court, was taken up and of lands and commodities by the postponement of this agreed to. question, should it take place, as well as for embarrassmants, in other respects. That postponement will, at best, not diminish the uncertainty which hangs over the fate of the measure. Seeing the hostility which exists to renewing the charter, and the extent of that hostility if the measure cannot now be carried, not only a prudent Mr. MOORE offered as an amendment to the bill an regard to its own interests, but the highest duty to the additional section, providing that it should not be lawful country, ought to lead the bank to prepare for the termi- to establish a branch in any State without the assent of nation of its career. It has not before it one day too many that State; that the capital of such branch shall be subject to enable it to wind up, without distressing the public, to taxation, in like manner with that of the State bank; such vast concerns. If it were certain that the charter and that, if the bank does not declare what is the amount was to be renewed, a postponement would be of little im- of such capital, it may be lawful for the State to assume any portance. But this is uncertain; and a postponement particular sum as the amount of the capital. Mr. M. did would render it more uncertain. A motion to postpone, not wish, at present, to press the consideration of this should such be made, will be mainly supported by those amendment, and he moved that it be printed. He would who, either on constitutional grounds, or some other take this occasion to return his thanks to the Senator from grounds, are, and always will be, against the renewal. A Massachusetts for his proposed amendment to the bill, by postponement, under such circumstances, and such aus- which the State of Alabama would be entitled to another pices, cannot but create far stronger doubts than now branch in the northern part of the State. A branch was exist of the final renewal of the charter. It is now two much needed in that part of the State, and had been ap years and a half since the President invited the attention plied for. Whatever might be his final vote on this bill, of Congress to this subject. That invitation has been he hoped the amendment suggested by the Senator from more than once repeated. Every where the subject has Massachusetts would be adopted. SATURDAY, MAY 26. BANK OF THE UNITED STATES. The Senate then resumed the consideration of the bill to modify and continue the act to incorporate the subscribers to the Bank of the United States. been considered; every where it has been discussed. The Mr. DALLAS presumed there would be no objection public interest now requires our decision upon it, and the to the motion to print, provided it did not delay the dispublic voice demands that decision. I trust, sir, we shall cussion of the bill. make it, and make it wisely. The motion to print was agreed to. Mr. President, the motives which prescribe my own Mr. WEBSTER said he would propose an amendment line of conduct on this occasion are not drawn from any to the sixth section of the bill as reported. By that clause local considerations. The State, in whose representation it was provided that, after the 10th April, 1836, it should I bear a part, has as little interest, peculiar to itself, in the not be lawful for the directors to establish in any State continuance of this corporation, as any State in the Union. more than two branches where one now existed, nor more She does not need the aid of its capital, because the state than one altogether, where at present there was none, of her commerce and manufactures does not call for the He would propose to strike out all after the word "State," employment of more capital than she possesses. She and to insert, in lieu thereof, that it would not be lawful does not need it, in any peculiar degree, certainly as any for the directors to "establish or retain more than two restraint or corrective on her own paper currency. Her offices of discount or deposite in any State." The privi MAY 26, 1832.] Bank of the United States. [SENATE. lege, Mr. W. added, which was sought by the northern submit some reasons why the question of renewing the bank part of Alabama, could meet with future attention. The question was put on the amendment, when it was adopted. charter should not be decided at this time. He did not object to discussion. It was through discussion that the people were reached. Congressional debates excited and fixed their Mr. WEBSTER proceeded to say that yesterday he attention, often imparted to them information, and aided had alluded to a modification contained in the seventh sec-them in reflecting back their wishes and sentiments upon tion, which regarded the bonus to be paid by the bank their representatives. He applauded the President for havfor its exclusive privileges. That section provided that ing brought this subject before the Congress and the people, the bonus should be paid in three annual instalments, of in his three annual messages; he was well satisfied that the $500,000 each. He would move that it be amended, so directors of the bank had moved their application at the that the bank should pay, by way of a bonus, an annuity present time: he had no objection even to the present disor yearly sum of $150,000, each and every year during its cussion, except that it detained him from his family, and term of fifteen years. consumed time which he wished to employ on subjects of Mr. SMITH asked what benefits the bank gained for more immediate and pressing importance to his constituthe payment of this sum. That it would have certain ex-ents; but he took a clear and broad distinction between clusive privileges, he knew, and the use of the Govern-discussion and decision; and as discussion should always ment deposites was probably also calculated upon; but it precede decision, and leave as much time for consideration should be observed that those deposites would differ ma- afterwards as possible, he was opposed to decision now. terially from their former amount. Should the reduction There was certainly no necessity for it. The bank charon duties take place, as was supposed, by the repeal of ter had four years yet to run, and two years after that to conten millions, under a new tariff, the deposites would con- tinue in force for winding up its affairs; in all, six years besequently be so much less. And he thought the payment fore the dissolution of the corporation: and if he was to of $150,000 annually for the use of half the former depo- name the true appropriate time for Congress to make its sites, a heavy tax. decision, it would be in the two years which intervened between the expiration of the charter and the dissolution of the corporation; and this would remit the final decision to the Congress which would sit between 1836 and 1838. The stockholders had not applied for the recharter at this session. Their resolution, adopted in triennial meeting last September, authorized the president and directors to apply at any time before the next triennial meeting, which would be in September, 1834; so that, according to the resolution of the stockholders, there were yet two sessions of Congress to be held before the question need be decided. Mr. WEBSTER hoped the measure would have the Senator's approbation, when he would consider what the benefits really would be. It not only had exclusive privileges over other banks, but a provision was also intended to be embraced to augment the amount in bank ten millions; and from the interest of this, annually, together with the yearly payment of the one hundred and fifty thousand dollars, the Government would derive a respectable revenue. It was found that, if the bonus had been fixed at $100,000 a year, it would not equal the old bonus. Mr. MARCY inquired if there was not a proposition before the committee, from a very respectable quarter, to pay a bonus of three millions of dollars for the charter of a bank. Mr. WEBSTER answered that there was. Many reasons oppose the final action of Congress upon this subject at the present time. We are exhausted with the tedium, if not with the labors of a six months' session. Our hearts and minds must be at home, though our bodies Mr. BENTON objected to the payment of any bonus are here. Mentally and bodily we are unable to give the atwhatever, and, in lieu of that species of compensation, ex- tention and consideration to this question, which the magpressed his opinion that the proper compensation for the nitude of its principles, the extent and variety of its debank, provided this exclusive privilege was sold to it, tails, demand from us. Other subjects of more immediate would be to reduce the rate of interest on loans and dis- and pressing interest must be thrown aside, to make way counts. A reduction of interest would be felt by the peo- for it. The reduction of the price of the public lands, ple; the payment of a bonus would not be felt by them. for which the new States have been petitioning for so It would come into the treasury, and probably be lavished many years, and the modification of the tariff, the conimmediately on some scheme, possibly unconstitutional tinuance of which seems to be weakening the cement in its nature, and sectional in its application. He was which binds this Union together, must be postponed, and not in favor of any scheme for getting money into the possibly lost for the session, if we go on with the bank treasury at present. The difficulty lay the other way. question. Why has the tariff been dropped in the SeThe struggle now was to keep money out of the trea- nate? Every one recollects the haste with which that sury; to prevent the accumulation of a surplus; and the subject was taken up in this chamber; how it was pushed reception of this bonus would go to aggravate that diffi- to a certain point; and how suddenly and gently it has culty, by increasing that surplus. Kings might receive given way to the bank bill! Is there any union of intebonuses for selling exclusive privileges to monopoliz-rest--any conjunction of forces--any combined plan of acing companies. In that case his subjects would bear tion--any alliance, offensive or defensive, between the the loss, and he would receive the profit; but, in a repub- United States' Bank and the American system? Certainly lic, it was incomprehensible that the people should sell to they enter the field together, one here, the other yonder, a company the privileges of making money out of them- (pointing to the House of Representatives,) and leaving selves. He was opposed to the grant of an exclusive privi- a clear stage to each other, they press at once upon both lege; he was opposed to the sale of privileges; but if grant-wings, and announce a perfect non-interference, if not ed, or sold, he was in favor of receiving the price in the mutual aid, in the double victory which is to be achieved. way that would be most beneficial to the whole body of Why have the two bills reported by the Committee on the people; and, in this case, a reduction of interest would Manufactures, and for taking up which notices have been best accomplish that object. A bank, which had the be-given, why are they so suddenly, so easily, so gently, nefit of the credit and revenue of the United States to bank abandoned? Why is the land bill, reported by the same upon, could well afford to make loans and discounts for less committee, and a pledge given to call it up when the than six per centum. Five per centum would be high interest for such a bank; and he had no doubt, if time was allowed for the application, that applications enough would be made to take the charter upon these terms. Being on his feet, Mr. B. said he would again go on to Committee on Public Lands had made their counter report, also suffered to sleep on the table? The counter report is made; it is printed; it lies on every table; why not go on with the lands, when the settlement of the question of the amount of revenue to be derived from that source SENATE.] Bank of the United States. [MAY 26, 1832. precedes the tariff question, and must be settled before some, may decide it--which is pressed on for decision we know how much revenue should be raised from im- four years before it is necessary to decide it, and six years ports? before it ought to be decided. Why this sudden presAn unfinished investigation presented another reason sure? Is it to throw the bank bill into the hands of the for delaying the final action of Congress on this subject. President, to solve, by a practical reference, the disputed The House of Representatives had appointed a commit- problem of the Executive veto, and to place the Presitee to investigate the affairs of the bank; they had pro-dent under a cross fire from the opposite banks of the Poceeded to the limit of the time allotted them; had report- tomac river? He [Mr. B.] knew nothing about that veto, ed adversely to the bank, and especially against the re-but he knew something of human nature, and something newing of the charter at this session; and had urged the of the rights of the people under our representative form necessity of further examinations. Would the Senate of Government; and he would be free to say that a veto proceed while this unfinished investigation was depend- which would stop the encroachment of a minority of Coning in the House? Would they act so as to limit the in-gress upon the rights of its successors--which would arvestigation to the few weeks which were allowed the rest a frightful act of legislative usurpation--which would committee, when we have from four to six years on hand retrieve for the people the right of deliberation, and of in which to make it? The reports of this committee, to action--which would arrest the overwhelming progress the amount of some 15,000 copies, had been ordered by of a gigantic moneyed institution-which would prevent the two Houses of Congress, to be distributed among the Ohio from being deprived of five votes, Indiana from losing people. For what purpose? Certainly that the people four, Tennessee four, Illinois two, Alabama two, Kenmay read them, make up their minds upon their contents, tucky, Mississippi and Missouri one each-which would and communicate their sentiments to their representa- save six votes to New York and two to Pennsylvania; a tives. But these reports are not yet distributed; they are veto, in short, which would protect the rights of two milnot yet read by the people; and why order this distribu- lions of people, now unrepresented in Congress, would be tion without waiting for its effects, when there is so much an act of constitutional justice to the people, which ought time on hand? Why treat the people with this mockery to raise the President, and certainly would raise him, to a of a pretended consultation, while proceeding to act before they can read what we have ordered to be sent to them? Nay, more, the very documents upon which the reports are founded are yet unprinted! The Senate is actually pushed into this discussion, without having seen the evidence which was collected by the investigating committee, and which the Senate itself has ordered to be printed for the use of its members! higher degree of favor in the estimation of every republican citizen of the community than he now enjoyed. By passing on the charter now, Congress would lose all check and control over the institution for the four years it had yet to run. The pendency of the question was a rod over its head for these four years; to decide the question now, is to free it from all restraint, and turn it loose to play what part it pleased in all our affairs--elections, State, federal, and Presidential--that it pleased. The decision of this question, continued Mr. B., does not belong to this Congress, but to the Congress which Mr. B. turned to the example of England, and begged will be elected under the new census of 1830. It looked the republican Senate of the United States to take a les to him like usurpation for this Congress to seize upon a son from the monarchial Parliament of Great Britain. question of this magnitude, which need not be decided We copied their evil ways; why not their good ones' until the new and full representation of the people comes We copied our bank charter from theirs; why not imitate in, and, if decided, the decision of which is irrevocable, their improved example on the question of renewing the though it cannot take effect until 1836, that is to say, un-charter? Formerly it was the custom to renew the chartil three years after the new and full representation would ter half a dozen years before it was out; but in 1826 this be in power. What Congress is this? It is the appor- practice was denounced by the whig members, and has tionment of 1820, formed on a population of ten millions been totally discontinued. The charter of the Bank of of people. It is just going out of existence. A new England expires in 1833--it is now within nine months of Congress, apportioned upon a representation of thirteen its expiration, and is not yet renewed, and will not be remillions, is already provided for by law, and after the 4th newed without leaving open the question for the fullest of March next-within nine months from this day--will inquiry and latest deliberation. The question has been be in power, and entitled to their seats where we now sit. annually debated in Parliament for five or six years; the That Congress will contain thirty members more than the freest range is allowed to the discussion; the danger of present. Millions of people are now unrepresented, who such an institution, even in a monarchy, is loudly prowill be then represented. The West alone loses twenty claimed; and all parties agree--tories as well as whigs-votes!--in the West alone, a million of people lose their in leaving open the question for ultimate decision to the voice in the decision of this question! And why? What last moment. In the House of Commons, in January, 1831, excuse? What necessity? What plea for this sudden Sir Henry Parnell expressed his hope that the House haste which interrupts an unfinished investigation, sets would be called upon to institute a strict examination into aside the immediate business of the people, and usurps all the circumstances connected with the banking system the rights of our successors? No plea in the world, ex- in England before the question of the recharter was decept that a gigantic moneyed institution refuses to wait, cided; and the Chancellor of the Exchequer, Lord Aland must have her imperial wishes immediately gratified. thorp, fully concurred in his sentiments, and pledged If charters were to be granted, it should be with as little himself that his Majesty's ministers were in favor of ininvasion of the rights of posterity--with as little encroach-quiry, and would make no private arrangement with the ment upon the privileges of our successors, as possible. bank to forestall the free action of Parliament. Here, Once in ten years, and that at the commencement of each then, is a British ministry and a British Parliament keepfull representation under a new census, would be the most proper time. Mr. B. had nothing to do with motives. He neither preferred accusations, nor pronounced absolutions; but it was impossible to shut his eyes upon facts, and to close up his reason against the deduction of inevitable inferences. The Presidential election was at hand--it would come on in four months--and here was a question which, in the opinion of all, must affect that election-in the opinion of ing open the question of renewing the English charter to the last month, and all concurring in favor of strict examination and full inquiry, while we must be hurried into decision four years too soon, and without finishing the examination we have begun, or seeing the papers which we have ordered to be printed! An immense proportion of the stockholders in the present miscalled Bank of the United States are Englishmen. These Englishmen have to wait for the expiration of their charter in England, and MAY 26, 1832.] Bank of the United States. [SENATE. have to submit there to the strictest examination into their their natural capacities. They laid aside their artificial banking operations; but here they will not wait, and will not submit! creations and legal appellations; and, instead of electing directors and cashiers, they elected trustees and clerks; The impropriety of proceeding to decision at the pre- and these trustees and clerks, who, by the bye, were the sent time was too obvious and egregious to be overlooked same old officers of the bank, went on to settle up its afby the advocates of the bank. They have found it ne- fairs as a private concern. They executed their trust cessary to anticipate the objection, and to offer reasons to quietly and leisurely; they were many years about it; and rebut it. What are those reasons? Why, first, that conducted things so gently, and finished off so gradually, the President has brought this question to the notice of that no man can tell, without a reference to history, when Congress. Certainly he has, and that not once, but three they finished. Surely this bank, if not renewed, can times, and always for the same purpose--for the purpose wind up in the same way; and if it will not, the sooner of exciting inquiry and discussion--to carry the question the unfortunate debtors can get out of its clutches, the to the people, as well as to Congress; and in his last mes- better for themselves. If they have a disposition to press sage he declares expressly that he leaves the question, for their debtors, and distress the community, they can do it the present, to the enlightened consideration of Congress without the pretext of an unrenewed charter. and the people! Here is an invitation to consider before But it is said the debts to this bank are so great! Thirty we decide; an invitation for the people to consider as well as millions of dollars due from the West; half as much from Congress; and it is a total perversion of his recommenda- the South; nearly seventy millions in all! It is indeed a tion for Congress to decide, without considering, and es- frightful debt; and infinitely more burdensome than a pecially without leaving the people any opportunity to public debt of the same amount, for the interest is payable consider! He [Mr. B.] had attempted, on a former occa- every sixty days in advance, with accumulations from exsion, to excite discussion in conformity to the President's change and compound operations, which make it equal recommendation, but it was kept out by a vote of the to nine or ten per cent. We are rejoicing at emancipaSenate; and now he was called upon to decide without time tion from a national debt, at the moment that we have for discussion. Another reason given for deciding at this fallen into a bank debt, far greater than that of the revosession, is, that next session will be too short for so import-lutionary war, and infinitely more devouring upon our ant a subject! as if the present session was yet to last resources, from its multiplied and compound exactions longer than the next one will be! The next session will for interest, and its absorption of specie, and infinitely certainly be three months long, and may be four or five more galling to our spirits, from its direct bearing upon months long. If Congress chooses to meet, as it has the the property and persons of our citizens. It is said that right to do, and as many believe it ought to do, in October the bank must begin to diminish this debt if it has not an or November, the present session cannot last but three or immediate assurance of a renewed charter. Good! Nofour weeks, and we have our hands full of pressing and thing better could happen! The sooner it is diminished, immediate business--the public lands--the tariff--and the better for the freedom, the prosperity, and the happimany minor subjects. This answer will not do. The ness of the country. It has been created in a sudden and next session will be four times as long as the remainder of extraordinary manner. An immense proportion of it has this session; it will consist of the same members who are grown up since the President's demonstration against the now here; it must be precisely the same thing to the bank, bank in 1829, and for the undeniable purpose of creating as a moneyed institution, to have its application passed an interest in favor of a renewal by multiplying the numupon then as now; but, as a political institution, it may be ber of persons interested in the renewal. In the mean quite different; the Presidential election will then be over! time, the country is worse off than for many years past. the political effect of the veto may then be lost! and, there- The cry of pecuniary distress resounds from all quarters. fore, a decision just after the election can answer no pur- The pressure upon the money market is the theme of pose! a decision just before the election is the only thing every tongue. The bank itself is crippled and disabled which can accomplish the views of the combined forces from fulfilling the object of its creation. In a time of which have now taken the field! profound peace, it can give no aid to the merchants who A third reason given for present decision is, that the are in debt to the treasury! A payment of six millions of bank may begin to draw in its debts and wind up its af-public debt is deferred three months, because the revenue fairs, if the charter is not renewed. This is no reason at bonds could not be paid! And this is the condition of a all. It is less than none. Such a reason can only impose bank which is to aid the nation in time of war and peril! upon the most ignorant and uninformed. The bank has Every interest, public and private, requires this great two years, by its charter, to wind up its affairs after the debt to be diminished. The president of the bank, in a expiration of the charter, and may take as many years letter printed and laid upon the tables of the Senators, more as it pleases, by following the example of the old says there are no standing accommodations at bank; then, Bank of the United States, and converting its directors surely, indefinite time is not wanted to pay them. A large into trustees, to collect the debts and sell the effects of part of the Western debt is in domestic bills of exchange. the corporation. The application for the renewed char- These cannot be permanent debts, unless they are dister of the old bank was refused in the very last year of guised loans, to draw interest as a debt, and premium as its existence. Then, as now, an affected cry was raised bills of exchange. If real bills of exchange, they will be of pressure upon the debtors, and distress of the commu-paid at maturity, or be returned dishonored, and delivered nity, if the question was not decided a long time before- up to the pursuit of the law; if not real bills of exchange, hand; but the republican Congress of that period, like but disguised loans, they are usurious and void, a violation the whig Parliament of the present day in England, kept of the charter, an oppression upon the country, and open the question to the last moment; and when decided, ought to be detected and exposed. So far as the West none of the evils took place which had been predicted; is concerned, the sooner it can get rid of its thirty milnone of the dreadful pictures were realized which had lions of bank debt, the better. It would stop the exbeen conjured up by interested stockholders and terrified hausting drain of near three millions of bank interest; it debtors, to alarm and divert from their duty the Congress would relieve its flourishing towns from the grasp of a of 1811. The corporation was dissolved instanter; it power which can crush them at any moment. had not the two years to go upon, which this bank has Mr. B. said he had given reasons enough to show the after the expiration of its charter; it came to a sudden inexpediency of final action upon this question at preand final end, but without shock to the community, or in- sent; but he had another reason to give, of a nature enjury to itself. The stockholders resolved themselves into tirely different from those he had urged, and one which SENATE.] Bank of the United States. [MAY 26, 1832. was entitled to the consideration, not only of the people's Majesty's ministers, nor Parliament, would ever agree to representatives here, but of the people themselves at renew the charter of the Bank of England with their exhome. It was a reason which would address itself to that clusive privileges! Exclusive privileges, they said, were portion of the people, and their representatives, who out of fashion! Nor is it renewed to this day, though the were in favor of national banking, but not wedded to the charter is within nine months of its expiration! present British monarchial bank, miscalled Bank of the In the peculiar excellence of the Scottish plan, lies a United States. He alluded to the establishment of seve- few plain and obvious principles, closely related to repubral American banks, with moderate capitals, and without lican ideas. First. No exclusive privileges. Secondly. exclusive privileges, to be located in the different sections Three independent banks to check and control each other, of this Union, and to supersede and succeed the present and diffuse their benefits, instead of one to do as it pleas gigantic institution. This was the plan of Mr. Madison. ed, and monopolize the moneyed power. Thirdly. The He suggested it in his speech in the House of Represen- liability of each stockholder for the amount of his stock, tatives, in the year 1791, against the establishment of the on the failure of the bank to redeem its notes in specie. first United States' Bank, and recommended it to the con- Fourthly. The payment of a moderate interest to desideration of those who were determined to embark the posites. Upon these few plain principles, all of them United States in the banking career, he himself being op. founded in republican notions, equal rights, and equal posed to any banks; but if there was one, he insisted justice, the Scottish banks have advanced themselves to there ought to be several. The genius of our republican the first rank in Europe, have eclipsed the Bank of EngGovernment, the equal privileges of the people, the ex-land, and caused it to be condemned in its own country, tent of our country, the diversity of our pursuits, and our and have made themselves the model of all future bank. abhorrence of monopolies, would all require the multi-ing institutions in Great Britain. And now, it would be plication and diffusion of banks, if there was a single one. a curious political phenomenon, and might give rise to Mr. Madison complained of the proneness of our states- some interesting speculations on the advance of free prinmen to copy English examples, without considering the ciples in England, and their decline in America, if the difference between the genius of the English Government Scottish republican plan of banking should be rejected and our own. Theirs was a monarchy; ours a republic: here, while preferred there, and the British monarchial theirs preferred a single bank, with enormous power and plan, which is condemned there, should be perpetuated extensive privileges, because it favored the concentration here! and this double incongruity committed without ne of wealth and power in the hands of a few; ours (if it admitted of any bank) would require several, because it abhorred exclusive privileges, and required the diffusion of wealth and power, and the equal distribution of benefits, as well as burdens, to all parts of the Union. The sug gestion of Mr. Madison had appeared to him [Mr. B.] to be eminently just and proper from the time that he first read it; and he had been entirely confirmed in that opinion, and convinced of the advantage of several banks over one, (if there are to be any,) even in a monarchy, by tracing and comparing the history of the three Scottish banks with the single British bank. In reading this history, he had seen the advantage of checking powers in banking Governments as well as in political Governments. 'The three Scottish banks had held each other in check, had proceeded moderately in all their operations, conducted their business regularly and prudently, and always kept themselves in a condition to face their creditors; while the single English bank, having no check from rival institutions, ran riot in the wantonness of its own unbridled may permit. power, deluging the country, when it pleased, with paper, and filling it with speculation and extravagance; drawing in again when it pleased, and filling it with bankruptcy and pauperism; often transcending its limits, and twice 4. Each stockholder to be liable to the amount of his stopping payment, and once for a period of twenty years. stock on the failure of the bank to redeem its notes in There can be no question of the incomparable superiority specie. cessity, without excuse, without giving the people time to consider, and to communicate their sentiments to their constituents, when there is four, if not six years, for them to consider the subject before final decision is required! Following out the suggestion of Mr. Madison, and tak ing the Scottish plan for his basis, Mr. B. said he had sketched a skeleton plan for three moderate republican banks, in place of the present gigantic monarchial one; and would submit his plan for the consideration and im provement of those who advocated the establishment of a national bank, without being wedded to the one which we copied from England, and the original of which is now condemned in England. Mr. B. then read his plan as follows: Plan for three Banks. 1. Locations: One north of the Potomac; one south of that river; one at New Orleans; all with leave to es tablish branches, subject to taxation, where the States 2. Capital: Not to exceed five or six millions of dollars each. 3. No exclusive privileges. of the Scottish banking system over the English banking| 5. No bonus to be paid to the United States for their system, even in a monarchy; and this has been officially charters. In lieu of bonus, the interest which the bank announced to the Bank of England by the British minis- may take on its loans and discounts, to be reduced to five try, as far back as the year 1826, with the authentic de- per centum. claration that the English system of banking must be assimi- 6. United States to own no stock. 7. Foreigners to own none. 8. To make compensation to the United States for the use of public deposites. 9. To allow a moderate interest to other deposites. 10. To hold no real estate except for their necessary accommodation. 11. No member of Congress, or officer of the Federal Government, to be a stockholder or director. 12. No person to be a stockholder or director in any two of these banks at the same time. 13. To issue no note for a less amount than $20; nor to receive or pay out a State bank note of less amount. 14. Each to be on an equal footing with respect to the favors of the Federal Government. |