MAROH 2, 1832.]

Bank of the United States.

[H. OB R.

dent thinks it was a wrong interpretation, which would “ It had been a former practice; and that such practice is "greatly impair the usefulness of the bank; but, having without objection, is to be inferred from its long continubeen adopted, it was deemed inexpedient to depart from ance." Moreover, "it is an ordinary banking operation, it without a previous application to Congress." The ap- to which their general faculties are perfectly competent.' plication was made" to authorize the signature of notes This is a fair specimen of the logic of the three lawyers. by other officers than the president and cashier," and was And, Mr. Speaker, I confess the last argument is the promptly rejected. The president then states that, hav-widest and most overwhelming one that can possibly be ing made a "full exposition" to the Government of the used for a bank; for, if under their general faculties they inconveniences under which the bank labored, and per- can acquire power so as to legalize their acts, there is ceiving no prospect of avoiding them but by its own re-nothing (out of the line of honest transactions) they cansources, the institution found itself in a position where it not do, if they are not greatly belied. This opinion, with became necessary either to renounce the great purposes the assurance of the president that these checks were purof its creation, or to seek, amongst its other acknowledged posely made to resemble notes as near as possible, "to powers, the means of accomplishing them. Here it will secure uniformity of appearance to the rest of the paper be necessary to keep distinctly in view, that the great evil issued by the bank," and that, if received on account of complained of was the want of an authority to sign bills by the Government, " they effectually bind the bank, and other than the two principal officers of the bank, and that will be paid in the same manner as notes of similar denothe bills thus wanted were small bills for a "circulating minations signed by the president and cashier," satisfied medium," (not bills of exchange,) as the president ex- the treasurer only in part, for he replied to the president presses it; and which circulating medium was defeated that the receivers of public money might take them, inby the absolute and physical impossibility of preparing the asmuch as you state they will be paid in the same mannotes agreeably to the prevailing interpretation of the ner as notes signed by the president and cashier." charter." Now, with this idea present to the mind, let The first reflections that suggest themselves upon this us see what was done. The president continues: "To correspondence are these: if this was issuing "bills of exremedy this evil, the officers of the bank might have change," or "dealing in exchanges," in terms of the charadopted the use of a fac simile. But to this there was the ter, wherefore the necessity of going to Congress for anoinsuperable objection, that the signature was not, in fact, ther remedy? And as it has answered such a wonderful what it professed to be, the manual execution by the offi-purpose, and saved them from "renouncing the great cer in the accustomed form." In other words, it would purposes" of the bank, why not have adopted it at first not be signed by the president and cashier, as is indispen- by doing that which the charter itself, in terms, authoriz. sably required by the charter. So far so good. Woulded to be done? Wherefore the doubts of the directors, they have been as mindful of the charter in other respects? that "in adopting a new measure it was prudent to proBut we shall see presently. Careful as they were of this ceed with great caution?" Why necessary to consult the instrument in this particular, they violated a provision of highest legal authorities upon "the very object for which it which actually lay alongside of this very requisition. the bank was instituted?" Why say they were intended for Bent, then, upon a remedy which should effect a double a "circulating medium" if they are bills of exchange? Does purpose, that of curing the evil in their own way, and not every one know that bills of exchange can never be a treating Congress with contempt for rejecting their pro- circulating medium; that the charter and laws which reguposition, and without showing the right " ainong their late their creation require that their march should be in a acknowledged powers,” which they said they could find, direct line and quick step to their place of destination; for issuing these checks, they resolved upon doing it at that there must be demand and acceptance, or refusal and all hazards. Fearful, however, that it might make some notice, and whenever once paid they can never be reisstir in the community, they determined to have the mea-sued? Why the doubt of the Receiver of Public Moneys sure bolstered up, by what? Not an act of Congress. Not expressed to the Secretary of the Treasury? Why his a permission by the people through their representatives, doubt to the president of the bank? And why the partibut by the opinion of three distinguished lawyers! "In cular pains of the president to satisfy him that they were adopting (said the president) a new measure, it was made to resemble and to answer the purpose of bank notes thought most prudent to proceed with great caution, and as a medium to supply the deficiency which a physical imto obtain the sanction of the highest professional authori-possibility of signing small bills had produced? But to ties! The subject has, accordingly, been submitted to put this matter beyond all doubt, I have another correMr. Binney, Mr. Webster, and Mr. Wirt!" Merciful spondence between the president of the bank and the preheavens! the powers of this great Government in the keep-sent Secretary of the Treasury, as late as last month, in ing of lawyers! Rights acquired, charter enlarged, pow-which he expressly states "the branch drafts being in ers extended by legal opinions! The opinion of Congress practice substitutes for branch notes, are considered in not equal to the opinion of Mr. Binney, Mr. Webster, and all respects the same." So that I conclude they are not Mr. Wirt! Now, Mr. Speaker, if there was no other ground bills of exchange; and if not bills of exchange, the gentleof suspicion than this very case, against the bank, would you man from South Carolina, resting their legality solely upon not, from sheer curiosity, like to have a peep into their that power in the charter, a clear case of a violation of books, to see what they gave these very gentlemen for this that instrument is made out, saving and reserving always very opinion? They acquired a great power by it; it must, the powerful opinion of the aforesaid three gentlemen of therefore, have been a tremendous fee! But one thing I the bar. But, said the gentleman, these checks are said believe, if these gentlemen are like most lawyers, the to be contrary to the charter of the bank, not because bank can have that same opinion reversed whenever it they are drawn by the officers of branch banks, not besuits their interest, for the same fee, let it be great or cause they are drawn on the cashier of the mother bank, small. These advisers said they "were unable to discover but "because the bank has been so atrocious, so daring, any legal objection to the plan proposed; and, since it as to paint the paper on which these drafts are drawn." will facilitate the exchanges of the country, and secure the public and the bank from frauds, it seems as expedient as it is lawful." This conclusion is arrived at in a short argument of little more than half a page, in which not a reason in its favor is drawn from that instrument, but the right wholly justified from the necessity and convenience of the case, and the usages of other banks. In their own words:

In this argument I think every body will perceive that my charge of professional ingenuity against the gentleman's speech is not altogether gratuitous, for his must be a dull imagination that does not see the lawyer shadowed out in this mode of worrying a subject. Is the gentleman serious when he makes this round and bold declaration, that painting the bills blue "is the whole substance of the charge?"

H. OF R.]

Bank of the United States.

[MARCH 2, 1832.

If I thought the gentleman in earnest, I would give his ar- that there is a plea in the case, and a demurrer to that gument a serious consideration; but as it is, I will merely plea; that a demurrer is made merely to settle a princiask him why those bills of exchange were painted blue, ple, and decides no facts. Now, sir, what does all this or why painted at all. Did he ever see bills of exchange mean? Has the gentleman come to the point? Is not painted before. Or is it usual to paint bills of exchange? his reasoning calculated to divert this House from the Is it common to make bills of exchange "resemble bank plain and obvious nature of the case? What is it? The notes;" and, if not common, for what purpose were these bank loaned a man by the name of Owens $5,000, and, made after the similitude of the notes issued by the bank? instead of letting him have the hard money, or those bills If satisfactory answers are not given to these interrogato- that were equal to it, they paid him out depreciated Kenries, I must be excused for saying the bank had some de- tucky bank bills, one hundred dollars of which were only ceitful purpose in view-some design of a fraudulent na- worth fifty-four of good money; and not satisfied with ture was intended. this enormous profit, they made him promise to pay And, Mr. Speaker, let me tell you there was a cheat six per cent. interest on the whole amount of $5,000. in this thing, and that it succeeded; for so artfully were When the note fell due, they sued him and his securities; these checks made to resemble bank bills, that there is not these latter plead the above facts in the case, and reone man in ten thousand has ever noticed the difference, quired of the court to say whether it was not usury. and they have been insidiously circulating since July, 1827, The bank demurred to the plea; that is, they admitted like the wolf in sheep's clothing, until they have nearly the facts, but denied that such facts would amount to robbed the South and West, as will hereafter appear, of usury. The Supreme Court declares that such facts did all their gold and silver. Before I close this head, I beg amount to usury, and the bank lost its money. leave to read one clause, and the only one which can be found in the charter which relates to the issuing of bank bills. The only power they have for making bonds, bills, or notes, (and in the charter these two last are used as synonymous,) is derived from this section; none other, I boldly say it, can be found, viz.

Now, we all know that if the facts could have been disproved, the bank would have withdrawn its demurrer, and requested a trial by jury. This would have been granted in a moment; but knowing full well that the facts were true, she knew it would be useless, and she has acquiesced in the judgment. The very note to the case "That said corporation shall not make any bill obliga- which the gentleman read, and which is nothing more tory, or of credit, or other obligation under its seal, for than a gratuitous apology for the conduct of the bank, the payment of a sum less than five thousand dollars. And made in the great abundance of the reporter's kindness the bills or notes which may be issued by order of the for an institution situated in his own city, shows clearly said corporation, signed by the president and counter-the truth of the plea, and only palliates the fraud of the signed by the principal cashier or treasurer thereof, bank by saying that the bank had other bills like those promising the payment of money to any person or per- she loaned to Owens, and that she got full pay out of the sons, his, her, or their order, or to bearer, although not Kentucky bank. This might be the case or not, but I under the seal of the said corporation, shall be binding and rather expect he must have obtained his information from obligatory upon the same, in like manner, and with like the bank, and if so, it is not good testimony; but even if force and effect, as upon any private person or persons, it was, it only goes to show that banks can make debtors if issued by him, her, or them, in his, her, or their private or bleed when they have lost all life as to other creditors. natural capacity, and shall be assignable and negotiable in It will not do for gentlemen to try to evade the force of like manner as if they were so issued by such private per- this case; it is too stubborn, and I only adduced it by way son or persons; that is to say, those which shall be pay-of example to show the nature of their extortions upon able to any person or persons, his, her, or their order, the necessities of the people. What they have done to shall be assignable by endorsement, in like manner and poor Owens, they have done perhaps to thousands who with the like effect as foreign bills of exchange now are; and those which are payable to bearer shall be assignable and negotiable by delivery only: Provided, that all bills or notes so to be issued by said corporation (and if there had been any other kind they would surely here have been mentioned) shall be made payable on demand, other than bills or notes for the payment of a sum not less than one hundred dollars each, and payable to the order of some person or persons; which bills or notes it shall be lawful for said corporation to make payable at any time not exceeding sixty days from the date thereof."

have no doubt sunk, they and their suffering families. into the most abject and squalid poverty. I have stated that they lent out $900,000 of like money in Ohio, and nearly as much in Kentucky. I wish to know if this be true, and cannot well ascertain but by an examination into their affairs; and if found to be true, if there is one honest man in the world, much less in this boasted land of liberty, that will say this bank should be rechartered, then I confess I greatly mistake the human heart, and my opinions are to be trusted only under due and proper caution. But, says the gentleman, "this transaction happened ten Here then is the law, the whole law, and the only law years ago," and then continues, "this, it scems, is the that relates to the bank's power of making or issuing bills day when all the sins of the bank, for these sixteen years or notes; if there is any other, let it be produced. By past, are to be brought up in judgment. If the gentlethis, as I stated before, it will be seen that though the man had gone beyond the year 1819, he might have bank would not issue fac simile bills, because they would brought forward much higher charges than this." I could lack the manual execution of the president and cashier, not possibly have asked stronger concessions than these as required by the above section, yet they could autho- against the bank. The bank was chartered in April, rize other persons to sign the bills, whose signatures would 1816, and never went into operation till January, 1817. be actually a less compliance with the law than those of From the moment it started, it began to falter, and in the the fac simile! It is for the bank, and perhaps it belongs short term of two years, according to the gentleman's only to the ambidexterity of a bank, to reconcile such in- own admissions, high charges could have been brought consistency. against it. Indeed, such a confession has no merit in it, The second charge is usury on broken bank notes in for I have before me the record of a committee of this Kentucky and Ohio; they amounted to $900,000 in Ohio, House, who were sent to examine it in 1819, and which and nearly as much in Kentucky. (See 2 Peters's Re-affirms the fact that the bank had violated its charter, ports, p. 527, for an example of the cases.) and ought to be abolished. Of course, beyond 1819, I

This charge I fully explained in my introductory re- ought not to go, for up to that time its best friends had marks, when the resolution was presented. But the pronounced it infamous. In looking for objections against gentleman says he does not quite understand this charge, it now, all charitable accusers should date its misteeds

MARCH 2, 1832.]

Bank of the United States.

[H. or R.

and search for its delinquencies subsequent to the day of it; and unless a stop is put to it, in some way or other, I its condemnation, and when, for the best interests of the predict the Western people will be in the most deplorable country, it ought to have been executed. A pardon situation it is possible to conceive. There is another great saves and forgives all previous crimes. Then, it seems, hardship to which this debtor is liable, if he should not be in a very short time after it was released, it was found at able to furnish the produce; or, which is sometimes the its dirty tricks again; for if this lending something like case, if it is sacrificed in the sale of it at the time the draft two millions of dollars at fifty per cent. commenced ten becomes due, whereby it is protested for want of funds, years ago, it is obvious to every one that the bank was it returns upon him with the additional cost of ten per nothing profited by the trial it had received, and for cent. for non-payment. Now, sir, that is what is meant aught that appears from that day down to this, its path by domestic bills of exchange, disguised as loans, to take may be strewed with a thousand victims that may have more than six per cent.; for, mark, Mr. Speaker, the bank fallen an easy prey to her cold and unfeeling rapacity. does not purchase a bill of exchange by paying out cash What better time can be selected "to bring up in judg- for it, and receiving the usual rate of exchange, which vament the sins of sixteen years," than at a time when sheries from one-quarter to one per cent.; but it merely deliasks another term of twenty years to revel upon the vers up the poor debtor's note which was previously in wants of twelve millions of people? Having shown its ac- bank, and, what is worse, just as well secured as the knowledged misconduct for the first two years of its ex- domestic bill of exchange which they thus extort from him istence; having shown a gross act of fraud shortly there- in lieu thereof. And while they are thus exacting this per after; having brought to the view of the House the mur- cent. from him, they are discounting bills for others not murs and complaints of the country against this institution, in debt to them at the usual premium of one per cent. indicating a strong suspicion of at least improper con- The whole scene seems to present the picture of a helpduct; knowing, as this House does, that the Government less sufferer in the hands of a ruffian, who claims the merit has $7,000,000 at stake; knowing, too, how deeply the of charity for discharging his victim alive, after having torn community are concerned in this all-controlling establish- away half his limbs from his body. ment, and that, if once more chartered, all future inquiry The fourth charge is, non-user of the charter. In this, is closed, perhaps, forever: is it, I put it to the candor of that from 1819 to 1826, a period of seven years, the South the House, unreasonable to ask for an investigation, and and West branches issued no currency of any kind. The to warn the Legislature to pause before they rush into a gentleman admits the consequences of non-user of a chardecision, the mischiefs of which no future skill or pru- ter by an incorporated body; indeed, every tyro at the dence can repair? law knows this-but denies that it has any application to The third charge is the disguising of loans under the this case, for, says he, "it is not a condition in the charname of domestic bills of exchange, for the purpose of ter that the bank should issue bills from all its branches." taking more than at the rate of six per cent. The gen- I find the gentleman is not familiar with the charter. And tleman asked for an explanation of this charge on a former if I shall be able to show that it is a condition in the charoccasion, and, when given, said he believed it never could ter to issue bills at the branches, or to discontinue those be made but, implying, thereby, if it could be, such con- branches entirely when they will not issue bills, then I duct would certainly be reprehensible. This, at least, presume he will admit the bank has not complied with the then, is not one of those shadows that vanishes into thin true end and object of its institution, and consequently air, and consequently deserves to be investigated. I will comes under the penalty of non-user. This is a much now make a fuller statement; and I think I am authorized more serious charge than the gentleman is aware of; and, to say that there are gentlemen in this House from the to convince him of it, I will beg leave to read the followWest, and under my eye at present, who will confirm ing clause from the charter:

place or places they may deem safe and proper, to manage and transact the business proposed as aforesaid, other than for the purposes of discount, to be managed and transacted by such offices, under such agreements, and subject to such regulations, as they shall deem just and proper.”

every word I say. A person has a note in one of the It shall be lawful for the directors of the said corpoWestern branch banks, and if the bank determines to ex-ration to establish offices of discount and deposite wheretend no further credit, its custom is, when it sends out the soever they shall think fit, within the United States or the usual notice of the time the note falls due, to write across territories thereof, and to commit the management of the the notice, in red ink, these three fatal words, well un- said offices and the business thereof, respectively, to such derstood in that country--"Payment is expected." This persons, and under such regulations, as they shall deem notice, thus rubricated, becomes a death-warrant to the proper, not being contrary to law or the constitution of credit of that customer, unless he can raise the wind, as it the bank. Or, instead of establishing such offices, it shall is called, to pay it off, or can discount a domestic bill of be lawful for the directors of the said corporation, from exchange. This last is done in one of two ways. If he time to time, to employ any other bank, or banks, to be has a factor in New Orleans who is in the habit of receiv- first approved by the Secretary of the Treasury, at any ing and selling his produce, he draws upon him to pay it off at maturity. The bank charges two per centum for two months, the factor two and a half, and thus, if the draft is at sixty days, he pays at the rate of twenty-seven per centum. If, however, he has no factor, he is obliged to get some friend who has one to make the arrangement to get his draft accepted. For this accommodation he The balance of the clause points out the number of dipays his friend one and a half per cent., besides the two rectors, their qualifications, their manner of appointment, per cent. to the bank, and the two and a half per cent. to the mode of electing the president, and their tenure of ofthe acceptor; making, in this mode of arrangement, thirty-fice in the event of establishing an office of discount and six per cent. which he pays before he can get out of the deposite pursuant to the first part of the above clause, clutches of the bank for that time, twelve per cent. of instead of employing a State bank for the purposes of dewhich, in either case, goes to the bank; and so little con- posite only. Having a use for the foregoing extract at science have they, in order to make this, they will subject another part of my argument, I wish it to be borne in full a poor and unfortunate debtor to the other enormous bur- recollection. dens, and consequently to absolute beggary. For it must By the clause of law I have just read, it will be perbe obvious to every one that such a per cent. for money, ceived that the corporation has two, and but two, distinct under the melancholy depreciation of produce every where powers. First, to establish an office of discount and dein the South and West, will soon wind up the affairs of posite, not deposite alone; secondly, to employ a State such a borrower. No people under the heavens can bear bank for the purposes of deposite, and such other business

H. OF R.]

Bank of the United States.

[MARCH 2, 1832.

connected with deposites as may be required, but not for dispute. 3d. Such as is conveyed to it in satisfaction of the purpose of discount. Now, if by the first power they debts. It is unfortunate that the charter did not specify establish a branch, it is obliged, by the terms of the char- what disposition the bank should make of real property ter, to be an office of discount and deposite; and the mo- thus acquired. But it is perfectly obvious, if they intended ment they cease to discount, their authority to receive to confer the right of an unlimited use of real estate after deposites ceases, for they are by the law inseparable. It acquiring it in the course of its dealings, and in the disis the boast of the bank that its end and object is to equal-charge of its debts, it was wholly idle to have inserted the ize the currency and to accommodate the whole commu- immediate foregoing clauses in the section, as they seem nity, and that it is not to make one part of the country to be by minute restrictions.

supply the wants of another. If, then, it does not effect There is, however, another provision in this charter, in this, it surely does not answer the purpose of its institu- relation to personal property, which will entirely relieve tion. Now, when an office of discount and deposite is our doubts, especially when we bear in mind that the established, its purpose is as well defined as the mother charter would not establish two different rules as to the bank itself, and to all intents must perform that purpose manner of holding real and personal property. The within its sphere, as the parent bank is required to per-clause in relation to their holding personal property is in form her duty within her limits. This purpose is to dis- the following words, viz. "the said corporation shall not, count, and to discount is to furnish those very facilities directly or indirectly, deal or trade in any thing except which, in their money-lending capacity, they profess to bills of exchange, gold or silver bullion, or in the sale of possess, and which every body knows is the principal end goods really and truly pledged for money lent and not reof their institution, and, indeed, without which they would deemed in due time, or goods which shall be the proceeds not receive so vast a privilege. To stop discounts in the of its lands;” then the twelfth section declares "that if the branches, and continue the deposites, is a perversion of said corporation, or any person or persons, for or to the the law, and, to that extent, is not an honest user of their use of the same, shall deal or trade in buying or selling charter. Observe, Mr. Speaker, what would be the con- goods, wares, merchandise, or commodities whatsoever, sequence of such a course. Offices of deposite, only, contrary to the provisions of this act, all and every person would be fixed down by the side of the State banks, and, or persons, so offending, shall be punished," &c. Now, collecting the revenues of the country in State bank bills, taking these two clauses together, the intention is very they would have nothing to do but to call on the local in-manifest, they may take goods in pledge of payment stitutions, and drain off every dollar of their specie to the of debts, and dispose of them by a single and wholesale mother bank. Indeed, sir, in the seven years' famine of contract, or in parcels, as at auction, but they shall not the South and West, occasioned by the hoarding of the build upon such acquired goods a regular and continued branches which I have mentioned, they served only as commercial business. So with regard to real estate; they leeches upon the State banks, and as fast as they would may dispose of it by sale to reimburse them in their loans, fill themselves they dropped off to their parent monster but they shall not possess whole cities and counties for the for the purpose of emptying their distended contents into purpose of renting. Mr. Speaker, permit me to indulge her voracious stomach, whence it was disgorged upon Phi- in one reflection at this place, the application of which ladelphia and other Northern cities, to bloat their already will presently be made, and in a case which ought to overgrown wealth at the expense of the South, and for alarm every body, but more especially the Western peoanother very important purpose which I shall hereafter ple. We have always considered the condition of the show. This is not equalizing the currency, nor is it a just European people, and especially of Great Britain, as most and impartial distribution of those facilities it was intended deplorable, in consequence of their being tenants to great to confer. Nay, it was robbery of one section of country landlords. The scanty food they draw from the earth is at an enormous expense of rent; and if this country, inThe fifth charge is building houses to rent. The gen- stead of its present happy distribution of fee simple estates tleman said this idea was new to him, and that he would among the people, was in the hands of a few grandees, to be glad if I would show him from Coke or Blackstone be rented out at their will and pleasure, and for whatever how it can be lawful to purchase land, and not to build they might choose to exact, we would consider nothing so houses upon it, and lease it. I will show the gentleman detestable and ruinous to the prosperity of the country. from the charter, better authority than Coke and Black- Now, Mr. Speaker, this is not only the obvious tendency stone on this subject. Says the charter, "the land, tene- of the bank in point of fact, but it is in principle one of ments, and hereditaments, which it shall be lawful for the the very organic elements of its constitution. Money is said corporation to hold, shall be only such as shall be property, and in this hemisphere commands all kinds of requisite for its immediate accommodation in relation to the property, both real and personal; and if you would not convenient transactions of its business, and such as shall give a single corporation, or, more properly speaking, a have been bona fide mortgaged to it by way of security, few noble lords, the entire rental of lands of the United or conveyed to it in satisfaction of debts previously con- States, much less should you give them the entire control tracted in the course of its dealings, or purchased at sales of all the money in the country, which will finally draw to upon judgments which shall have been obtained for such itself all the lands of the country. In Great Britain, from debts." Every one must admit that the above clause had its immense population, and the great disproportion besome motive in view--was intended as a restriction, it tween its necessitous people and the quantity of land, the seems, to guard against some dangerous consequence that latter is more valuable than money, because it yields a an unlimited possession of real estate in such a vast mo- higher profit; consequently those few who hold the landneyed institution might produce. There are two inean- ed interest of that country, hold the entire destinies of that ings to be placed almost upon every thing--a right and a unfortunate people in their possession. They are, for all wrong one. Now, let us honestly inquire what was intended the purposes of moneyed contributions, the slaves of the by the above provision. I think I discover but three things. landlord, the true ar stocracy of Great Britain. Is it, Mr. 1st. They may acquire real estate for the immediate ac- Speaker, in the power of any one to draw a rational discommodation of the bank; and, as if this was not suffi- tinction between a moneyed and a landed aristocracy? Is ciently restrictive, it is added, such only as shall be requi- there any difference between a needy debtor and a desite and convenient for the transaction of its business. On pendant tenant? Are they not both equally cramped, this point there can be no difficulty. 2d. Such as shall be bona fide mortgaged by way of security. Here, too, there is no difficulty. But now commences the field of

for the benefit of another.

alike enslaved, similarly spirit-broken, and under the foot of a "hard master?" If the bank were to request, in their present application for a renewal of their charter,

MARCH 2, 1832.]

Bank of the United States.

[H. OF R.

to be permitted to buy up all the landed property in the and being, I suppose, a long time since he read the charUnion, for the purpose of erecting the British system of ter, it must have escaped his recollection how the hard landlord and tenant, every body would perceive the re- money foundation of that enormous structure was laid. volting character of the demand, and scout it accordingly; The third section of the charter requires "seven millions and yet they are asking for ten times worse, and are likely of dollars thereof in gold or silver coin of the United to obtain it! They are asking to make every man in States, or in gold coin of Spain, at a certain rate, &c., and America their debtor, instead of tenant, by which all his twenty-one millions of dollars in like gold or silver coin, or property is at their perfect control! Now, sir, for the in the funded debt of the United States." This made twentyapplication of these reflections to the case I promised. eight millions, which was that portion of the stock intendIn the town of Cincinnati, I discover, by the monthly ed for individual subscribers. The Government's seven statements of the bank itself, that it owns, besides its millions was to be paid in gold or silver coin, or in stock banking houses, valued at 23,500 dollars, nearly one mil- of the United States, bearing interest at the rate of lion and a quarter of real estate. This, let me premise, five per cent. per annum. The funded debt was consiis greatly under its true value, for it has been received by dered equal to gold and silver, bottomed, as it was, upon the bank in payment of its debts, at two-thirds of its ap- the credit of the Government; seven millions of the latter praised value, by the law of that State, and has since was, however, indispensable, and, of course, a correspondrisen in value, as I am told, something like fifty per cent.;ing amount of the former. The ninth section declared, so that, at this time, it is confidently believed that they "that as soon as the sum of eight million four hundred own three millions of real estate in Ohio. But, sir, taking thousand dollars in gold and silver coin, and in the public the estimate as contained in their report, at twelve hun- debt, shall have been actually received on account of subdred thousand dollars, let us make a few calculations, for scriptions to the capital of the said bank, (exclusive of the the consideration of reflecting men. This sum, divided subscription of the United States,") then the bank was by one thousand, which would be a fair average of bank authorized to go into operation. Now, it is very clear debts, would make twelve hundred debtors in that town, that this amount of eight million four hundred thousand who have been obliged to part with their homes, leaving dollars, exclusive of the Government's subscription, was out of view those thousands who have not yet arrived at the least amount of coin upon which the bank should that lamentable condition, but who are perhaps hurrying commence, and, therefore, constituted the true proportion to that catastrophe as fast as the lion claws of avarice can of coin in relation to its future issues, which, being limitdraw them. What a reflection! But this is not all-ed to its stock of thirty-five millions, was nearly one-fourth this same sum of twelve hundred thousand dollars would of the capital. If the bank could not be permitted to purchase twelve hundred tenements, severally worth a start without this amount, and that, too, in reference thousand dollars, and, renting only for one hundred dol- to the individual subscriptions, which was twenty-eight lars each, would produce an annual rental, in this city, of millions, surely it should never come below that amount two hundred thousand dollars, equal to ten per cent. in-after it gets into operation, and after seven millions more terest on their capital. No wonder that they are anxious of the Government's stock is added. If there was any to change their money-lending stock, at six per cent., good reason for such a provision a first, it must continue. into a leasing capital producing at least ten per cent. and There must have been some meaning in it, I apprehend, perhaps as high as thirty. I am aware that my calcula- or it would not be found in the charter. Every body will tions do not correspond with the actual fact, that what is perceive at once that a bank without some specie would true as to the particular divisor assumed, will be equally be soon without credit, indeed, would be broke, for spe true as to any other; for, whether higher or lower, the cie is the only true means of payment of debts, and the rent of twelve hundred thousand dollars worth of real whole and sole credit of banks. It is the measure of value property will be the same in twelve or twelve hundred to every thing, though it has very many substitutes, some tenements, and either is too much for any one institution of which are extremely precarious. Then what amount to hold in the United States, especially when we remember of specie shall always remain in bank, is a question of the fate of Cincinnati may be that of every town in America. some difficulty, and depends very much upon its business, If, then, they are not restrained within the true intent its stock, its credit, and its management. If it were said and meaning of their charter, what is to hinder them the Bank of the United States had no specie, it would from becoming the great landlords of this country? and startle every man in the nation who had any demands upon what will prevent them from changing their thirty-five it. If it were said it had but one hundred dollars, that millions of six per cent. stocks into three times that amount, under a false valuation, of real property yielding an income of fifteen per cent? In my humble opinion, nothing.*

The sixth charge is in the capital stock not having due proportions of coin.

The gentleman says, "I am wholly at a loss to understand this charge." Taking him, as I did, upon surprise,

would equally alarm its creditors! What amount, then, shall it have, to quiet all apprehension? I can give no better answer than to say, the charter required, at its beginning, it should have $8,400,000; and if at that time it was considered the proportion upon which public confidence might rely, there can be no good reason why it should not remain so. Now, sir, what is the fact as to the quantity of specie in the bank? By the monthly statements, it had on the 1st of January but $7,038,823, and Since the above speech was delivered, a gentleman of Ohio, of un- but $2,200 of funded debt; being, when added together, doubted respectability, writes from that State concerning the very many abuses and oppressions of the branch established at Cincinnati, $1,358,177 less than what the bank commenced with, and, among other things, states, "that you may form some idea of though the Government's stock has since been paid in. their speculations, I will mention the case of my late friend, Mr. —He was indebted to them for himself and others to the amount of 50 Now, sir, I maintain that this is not, under any sound inor 60,000 dollars, and possessed a large estate in the city. But by our terpretation of the charter, a due proportion of coin to laws, real estate could not be sold unless it brought two-thirds of its the capital stock. I go further, and say that this result appraised value, to be ascertained by a jury selected by the marshal.involves the principle, if not the actual fact, that the bank A judgment was obtained against him, which bound all his property. The bank agent could not get a jury to value so low as to enable him is broke. She has been compelled to use that portion of to take the whole; he would therefore take none. Situated thus, his her capital which was the prescribed security to the pubcredit destroyed, his whole estate locked up, which was not produc-lic of the bank's claims to confidence. It was the pledge tive, thrown out of business, and a large family to support, after years

of repeated efforts, he was finally compelled to make a compromise, of the bank's credit, and the starting point of its opera by which he gave up a part of his estate, and for which they allowed tions, below which, if it should come, there was no safety 50,000 dollars. This property, or the greater part of it, they have since, sold; and, estimating the residue of it at the same rates, it will as to its promises; for it must be obvious to all, if once produce a cicar profit of more than 50,000, allowed to range below this limit, it may just as well con