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tioned, that is, of uniform value, or nearly uniform, described, in the manner most advantageous to the the quantity that will remain at any given place union it was necessary, when the bank was organiz, depends upon the course of trarle; the quality de ed, to give, preference to those states against pends upon its solidity; it is only to be obtained whom there existed an unfavorable balance. It by buying or borrowing. The memorial to the would flow from them, in payment of their debts, Ohio legislature, or the report of a committee of (retaining, if they were prudent, whiat was required that body, (I do not know which, for I was not in for local purposes.) where it ought to go, that is, the house when it was quoted by the gentleman into the creditor states, and thus the creditor states from South Carolina,) complains, in substance, that be supplied. But, what was thrown by the bank such a currency was furnished to them. Tbat is into the creditor states would never find its way the amount of the complaint, for they say they to the debtor states, unless it were in the shape were tempted to employ it in purchasing from the of loans by them, which was not to be expected. cities to the eastward beyond what they ought to If an individual, having a sum of money to lend, have purchased. A very singular complaint, indeed, was disposed to lend it to one of two persons, each which charges upon others the consequences of of whom he was equally inclined to serve, and in their own imprudence? The complaint should be, both of whom he had confidence as to their ultimate that they did not keep what was given to them, or ability to repay, if in that case he could lend it at least a portion of it, and ise it, as they might only to one, and it so happened that one of thein have done, in the payment of their dues to the go. was indebted to the other, would he be most likely vernment. There is no doubt, however, that they to benefit both by lending it to the debtor; or by have approached, if they have not reached, the lending it to the creditor? The answer is obvious: true cause of their present embarrassments. This if lent to the debtor, he would be enabled to apply currency would not have wandered away, and left it towards payment of his debt, retaining what them destitute of the means of paying their debts, might be necessary for more urgent wants, the if their local circulation had not been overcharged creditor would receive his money, and both would with state bank paper, depreciated from its abun- derive some advantage; if lent to the creditor, none dance-too easily obtained-supplying the purposes of it would find its way to the debtor. A different of local exchange, and failing when it was wanted course would, perhaps, have been more for the infor the more extensive exchange to which the terest of the institution, as it is always better to United States' bank paper, from its uniform value, lend to the rich than to the poor; I mean better for was exactly adapted. The paper and credits af. the lender. But, if the object was to distribute an forded by the bank of the United States were thus uniform currency throughout the United States, banished by the local paper; they were sent off to there was no error. That such a currency has been perform the distant service of buying in the cities introduced, in sufficient quantities to answer allętbe at the eastward, and the people of Ohio kept noth. purposes of the government, cannot be controverte ing to pay their debts but the paper of the state ed. It is undeniably proved by the fact, that the banks. This was their own fauli, imputable to receipts and payments of the treasury are ever themselves alone. Time, economy, and the in. made in a currency of uniform value. Neither can dusiry of the state, employed in producing what it be controverted, that such a currency has been will buy money, or, in other words, what may be introduced into every quarter of the union, in subi. exchanged with those parts of the union where the cient quantity: If it has not remained in the places money has gone, will bring all right.
where it was introduced, that cannot be chargeable One of the charges made by the committee to the bank, for the bank had no power to prevent against the management of the bank of the United its migration or transfer. So far, therefore, as reStates, (and which this is the most fit place to spects this great object-an uniform currency--the notice,) is on account of the supposed excessiveness duty of the bank towards the public has been faith. of its loans in those states and cities against which fully and fully performed. there was a balance of trade-those which, to Nearly connected with this object, was, the effort simplify the idea, were debtors, particularly in to make the branch noles payable every where, Kentucky, Ohio, in Baltimore, and Philadelphia. without regard to the place of payment indicted The argument they employ to sustain this charge, upon the face of them. li would undoubtedly bave namely, that injustice was done to the states and been a great public convenience; but it was more cities which had the balance in their favor, or were than the public had stipulated for and more than creditors, has already been amply and conclusively the public had a right to expect. I think it easily refuted. It has been shewn, indeed it appears from demonstrable, that the system could not be acted the statement of the report itself, that these loans upon without great inconvenience and loss, and were in the highest degree beneficial to the creditor serious danger to the institution. It must be restates and cities, the money obtained by the bor. membered, however, that the practice
of the late rowers going directly thither, and enabling them bank of the United States, whose notes were only to obtain specie from the branches, to be employed payable or receivable at the place where they were in the manner most advantageous to themselves, made payable on their face, had been strongly, either by their banks or by individuals. “The though I agree unreasonably, reprobated. It must effect of these draughts upon the northern offices, be remembered, too, that many well informed men \'as, to compel the constant remittance of specie believed in the practicability of the plan first there, &c." (Report, p. 4) How, then, it can be adopted by the present bank, and probably nothsaid what those places were made tributary to ing but experience, the most authoritative of all Baltimore," I am altogether at a loss to understand. teachers, would have convinced them of their error.
But, considering the diffusion of an uniform Under these circuinstances the experiment was, currency throughout the United States, in sufti. perhaps, necessary to be made, in order that the cient quantities for public purposes, to have been, public might be fully satisfied. It was certainly as it is conceded to have been, an important public well meant and innocent. “The wants of the counobject, it will be easy to show that the imputed 'try, and the interest of the bank, (says the presierror is far from being censurable. To put in cir-dent, in his letter of the 4th of October, 1817,culation such an uniform currency, as bas been documenis, p. 28,) require an extensive circula.
tion of its paper; and it is the policy of the paren (apply, without expense, wherever, and whenever, board to encourage the indiscriminate use of the its wants or its service required. notes of the bank, reserving for imperious cir. Another convestion took place immediately alcumstances, and inevitable occasions, the exerter, highly advantageous to the government, and, 'cise of the legal right which it possesses, of I must be allowed to add, extremely unfavorable declining to receive or pay, except at the respec. to the bank. With $13,398,438 03, part of the tive places where payment is promised on the 824,746,641 26, which had ihus been appreciated, 'face of the notes." The experiment bas been and rendered available to the government, by the made; experience has condemned the attempt; assumption of the bank, the government, on the "'imperious circumstances” have compelled the 31st July, 1817, redeemed, at par, 13,338,433 dolbank to exercise the right it possesses; and I am lars 02 cents of the public debt, belonging to the glad to find that the report of the committee ap- bank, which had been paid in by the subscribers. proves the change, and admits that it was made in the report speaks, in terms of censure, of what the manner least exceptionable and inconvenient. it styles the “unfounded and unnecessary complaint, There must be an end now to the complaint that by the officers of the bank, against this very prudent has been made about this act of the bank. measure;” meaning the redemption of the debt.
I will now ask the attention of the committee That it was the right of the government to redeem, to another branch of the public management of the I do not deny. That the oficer at the head of the bank-that which regards its duties towards the treasury, whose first duty is to the government, government. Of the manner in which these duties was justified in the measure by a proper regard to bave been fulfilled, no one can be better qualified the interests of the government, I shall not at all to judge than the secretary of the treasury; no one question. I will admit, too, that as the governwould more proinptly feel the inconvenience of the Dent clearly had the right, and chose to exercise smallest failure, as they are all intimately connect.it, complaint by the officers of the bank was altoge. ed with the fiscal arrangements confided to his care. ther useless. But, that the operation was preHis testimony, therefore, ought to be of the greatest judicial to the interesis of the bank, and miglit weight with the committee, if, indeed, it be not reasonably cause some dissatisfaction in those to quite conclusive; for distrust and suspicion must whom the interests of the bank was confided, 1 have acquired a most unreasonable and excessive deem most prefectly evident, and altogether coninfluence in our deliberations, if they can incline sistent with the zeal for the real weifare of the us for a moment to question or doubt the state institution, in which some other parts of the report ments of that high and distinguished officer. In seem to suppose them to have been wanting. By a letter of the secretary, during the last session of the original plan, a large proportion of the capital congress, the words of which I cannot quote, but was to consist of public debi, bearing an interest, to wbich every member may refer on the files of with liberty to sell in small successive portions. the house, he expresses, according to my recollec- The value of such a possession, to a new institution, a general approbation of the conduct of the tion, which the report supposes ought to have bank, as baving exceeded his expectations. In his "proceedled gradually, growing with the growth, letter of the 4th December, 1818, to the select and strengthening with the strength of the nation," committee of this house, (Documents, p. 95,) he (page 7) it requires no great financial skill in states in detail how the specific duties of the bank estimate. It was a sure resource for obtaining the towards the government bave been performed. I means of extending their business, when that appeal to that letter to shew that they have always should becoine expedient, and in the mean time been faithfully performed.
was productive. li was redeemed at par, when But the manner in which the bank has performed the market price was considerably higher. BiH, its duties towards the government, the services it passing by this loss on the redemption, the mere has rendered to the government and nation, can circumstance of withdrawing at once witteen milnot be more plainly evinced than by a statement lions of stock, and throwing suddenly ipon the extracted froin the documents furnished by the bank thirteen millions of money, for which they select committee. The bank commenced its opera. were to find immédiate employment, must lave tions about the 1st January, 1817, excepting a loan materially, and most injuriously, interfered with to the government, of $500,000, made in Decem. their arrangements.—There can be no doubt that ber, 1816. The public deposites on the 31st Janu. it led directly to some of those measures (the ary, 1817, amounied to $1,147,772 97; in the fol extersion of loans on stock, for instance) which the lowing March they had risen to $11,615,017 62; report most strongly disapproves. Bui, be ihat as the 30th April, they were $11,345,796 75; and on it may, none can question the advantage of it in the 29th July, $24,746,641 26. This, sir, was the government. when the bank had been in operation but 6 months. By the redemption of the public debt, and payThat this immense amount of $24,746,641 26, was ments of the government, the public deposites in the saving of the revenue received during that time, October, 1817, were reduced to $7,743,899 74. no one will pretend. It was the accumulation of In October last, (1818) the governinent redeemeil revenue previously collected, distributed through- a moiety of the Louisiana debt, exceeding five mii. out the United States, in credits of state banks, lions of dollars, and this, too, was done through the variously depreciated, and of which the govern agency of the bank. ment could not be said to have the command be. Looking back to the period when the bank was cause they were local, and of course applicable only established, considering the state of things at the where they happened to be, and where the public moment when it came into exisience, considering service did not require their expenditure. By how short a time it had been in operation and the this single operation, twenty-four millions were difficulties it had to surronni, the effect is wonder. this converted by the bank from depreciated, local ful, and, to all unprejudiced minds, would seem currency, into specie, or, what was equivalent to to indicate a steady and faithful attention to all its specie, of universal circulation, and which the go. public duties. Sir, that institution has been : ser. vernment, through the agency of the bank, mig bilvant, I had almost said a slave, to the public; a
fait ful servant, always forward, even at some ex., well reasoned memorial fron Richmond, which pense to itself, and zealous to promote the public deserves the attentive perusal of every member of interests, in all their various and complicated rela- the house. If their interests have been injuriously tions. This is the spirit in which its affairs have affected, they have, on that account, a stronger been administered. It still continues to perform claim upon us. After we had goined so many ob. all its public duties, without firding just cause, jects of great national importance at their expense, in this respect, either of complaint or of reproach. would ii not be iniquitous, yes sir, a national I might add to this list of benefits, received by iniquity, now to deprive them, by i wanton rer the government and nation, the decided improv.cise of unjust power, of all the hopes of an equiva. ment that rapidly followed in the public credit of lent, founded upon the public faith pledged to the country, both at home and abroad. If gentle induce them to embark their property in this con. men doubt, let them consult the price current of cern! Can you restore then to the state in wbich stock here and in England.
you found them? Will you return that part of The only allegation, indeed, of any thing even the bonus which bas by this time become sue, and approacbing to a default in the public duty of the I presume been paid? Will you restore to them bank, is that contained in page 10 of the report, their stock and coin? Will you, finally, indemnify where it is stated, "that the amount done under the subscribers, and the purchasers, wbo bave that resolution (10 discount notes for those who bought upon the assurance of the charter, for the had revenue bonds to pay) was small, &c.” This losses they will sustain ? A gentleman from Vir. is certainly a mistake, as has been already shown ginia, a member of the committee, (Mr. Tyler,) from the letter of the secretary of the treasury, seems to have intended to anticipate some of those from the evidence of major Builer, and from the enquiries, by saying that the bank, after paying fact that there has been no complaint. Such has all its debts, could now return to every stock. been the inclination to censure, that you may rely holder "dollar for dollar.” A most honorable con. upon it no well founded cause would have been cession, undoubtedly, as it respects the manage. suffered to escape. It is a mistake that arese from ment of the bank, and one that goes far to answer the circumstance, acknowledged by a member of every complaint against it. For, if the public serthe committee, (Mr. M'Lane) that the enquiry was vice has been punctually performed, and the banks exparte. If they ! ad asked for information, they (afier dividing eighteen per cent. in two years and would have learned, that at every discount day the an half).could now wind up its concerns, and pay directors bad before them a list of the bonds that every stockholder "dollar for dolla:," no man wlio were coming due, and that they uniformly gave a has the slightest acquaintance with the matter C# D perference to those who were to pay them, us for deny, that it must liave been well managed. But as they could do so consistently with the interests how long would it require to gather the funds that of the bank, of which I beg leave still to say they have been scattered over the United States, so as were the exclusive judges.
to be able to restore them to the stockholders ? The next ohject of enquiry is, how the manage. Seven years have elapsed since the charter of the ment of the bank has been conducted in regard to late bank expired; its concerns were much less the interests of the stockholders. This is altogether extensive in amount, as well as in the space through independent of the question of violation of charter, which they were spread; it expired, too, under cir. which shall be considered separately hereafter. cumstances highly propitious for drawing in its
In the progress of an insitution like the bank, resources; and the management of its affairs has founded and established with a view to certain been uncommonly able and faithful. I believe they great public objects, perplexing ques:ions might, are not yet closed. How long, then, I repeat, would and would, occasionally present themselves. The it be, before this "dollar for dollarki would be interests of the public might, in some instances, restored to the stockholders? It is matter of con. be at variance with those of the stockholders jecture—but still, with so much of certainty beWhich were to yield ? jf, upon every such oc. longing to it, that no prudent man would give a casion, the directors had allowed a paramount in- stockholder any thing like “dollar for dollar" for fluence to the interests of the stockboiders, and his share of the proceeds. Sir, I cannot reflect had sacrificed the public objects to the profiis of upon the mighty wreck, without astonishmeat at the institution, the public would then have had the coolness wiih which even the possibility of some right to complain. But, if every public duiy it seems to be contemplated–The organization has been faithfully and fully performed, even destroyed, the fragments scattered over the whole beyond any reasonable expectation that could bave United States, no longer obedient to any power but been entertained, it is certainly a very singular en. the power of time and chance, which, like the winds quiry to be made by congress, whether the utmost and the waves, may drive them to the shore, or may has been done for the interest and profit of the drive them where they can never be reached or stockholders. That is an investigation that be collected. longs to the stockholders themselves, which they The first topic of complaint is the too great are competent to conduct, with the means in their liberality towards the state banks. As a charge of bands of correcting errors, and removing griev- error, it may not be wholly without foundation. ances, by changing their officers. And what is to But, it answers, fully and authoritatively, and I be the consequence, if congress should be of opi. hope that the sequel will shew, satisfactorily, one nion that the institution has not been well managed of the heaviest charges that has commonly been for the interests of the stockholders ? To alter made throughout the country against the bankthe charter-to take away the charter-or subject the charge, I mean, of having acted with oppres. it to the wasting and destructive process of a pro. sive rigor towards the state institutions. I am tracted judicial examination by scire facias? Have glad the committee have cleared away this ground the stockholders made any complaint ? Have they of accusation. At most, however, it proves only asked from vi any relief? Noi at all; on the con la mistuke; a mistake on the right side, and a mis trary, they implore us to abstain. You have upon take that was almost inevitable. To bring about your table a memorial to that effect from Bosion, the payment of specie, within any reasonable period, i memorial from New York, and an exceedingly and at the same time to avoid a severe pressure upon
the stale banks, and through them upon the com-ptions of what was politic, for the rule given to them munity, it was indispensably necessary to treat by the law, they had pursued a different system, those banks with the most indulgent liberality, they would have made themselves justly obnoxious wherever they manifested a sincere intention to to rensure and reproach. Now, sir, the resolution return to the payment of specie. This was the in question had tuo objects-1. The payment, in inducement to the compact of the 31st January, London, of the dividends to foreign stockholders: 1817. Without such indulgence, the paper of the 2. The payment al the par of exchange. The first Uuited States' bank, and that of the state banks, of these the report does not much object to. It could not have circulated together. A good and was done by the late bark of the United States, as a bad currency, or, if you please, a good and a to its own dividends. That bank also remitted to better currency, can never associate in circula- foreigners their interest upon the public debt of tion. They must associate upon terms of equality, the United States, I believe, free of charge. This or approaching to equality, or they cannot associate is powerful evidence that it was advantageous to at all. The continental money banished gold and the institution, for now that the whole history of silver. When assignats were used in France, the late bank is before us, its life and its death, I specie disappeared. When, by excessive issues, or suppose no one will deny that it was very fairly and from whatever oliser cause, the state bank paper skilfully managed. We have the example too, of was depreciated, coin was no longer ased. Where he government, in the instances of the French and it is now, from the same cause depreciated, (as in Dutch loans. Why was the interest stipulated to some parts of the western country) gold and silver, he paid abroad? Because it was favorable to the or notes of the bank of the United States, equiva. credit of the country, it enabled the government lent to gold and silver, are not to be found. "They to obtain loans which it could not otherwise have will not be found there until either the better cur had, or to obtain them upon better terms. The rency shall obtain the entire ascendancy, by banish. mere convenience to the stockholder, the freedom ing the state bank paper from circulation, or, bys from charges of receipt and remittance, when he removal of the causes that have occasioned de has his interest sent to liim, instead of being preciation, the latter shall be restored to an equality obliged to send af er it, is a consideration of great in value with the former, which is on every account moment- the same consideration which induces an most to be desired.
individual to invest his inoney near to where he The next subject of complaint and censure is the lives, though he might take a greater profit by inresolution of the 28th November, 1816, for paying vesting it further off
. Such an operation, however, the dividends of foreign stockholders in London, was inconvenient to the government, because it at the par of exchange. (Report, page 8-9.) I was not within the ordinary range of fiscal managesliall assume, for the purpose of treating this sub-ment; and, therefore, the government posposed to ject, a single maxim of justice, which every man exchange the foreign debt for a debt bearing inwill assení to as the only fair and reasonable rule terest, payable in the United States. As an induce. of human judgment. It is, that, where an act is ment, they offered to increase the annual interest right in i self, the motives or reasons are not to be one per cent. France accepted the offer; the Dutch enquired into as a ground of crimination. They refused it, estimating the convenience of receiving may strip the act of its claim to merit, but they their interest at home at more than the annual can never expose it to criminal imputation. Charity, one half of one per cent. Such an operation though indeed, common charity, between man and man, inconvenient and burdensome to the government, that which the infirmity of our nature demands is precisely adapted to the transactions of a bank, to be continually exercised towards each other, authorised by its charter to deal in exchange, and adopis and applies a much more comprehensive having established arrangements and credits for and benevolent rule-that, even where the act is that purpose. It can remit and pay abroad with wrong, yet it may be exemp: from censure, if the as much facility as it can pay at home. To my motives were just and good. Sır, without decid. mind, therefore, it seems that the measure, so far ing whether that resolution was right or wrong in as it regards the payment abroad, was not only itself, and admitting that it was one of those se justified hy experience, by example, and by sound neral and abstract subjects to which the resolution calculation, but that the negleci of it would have of the house did not direct their attention,” the re- betrayed ignorance and want of foresight. I might port condemns it as a measure adopted with a view instance, also, the Louisiana debt, which was taken to speculation, tbat is, upon what they suppose to by a single individual, or a single house, and sold be bad motives. It is true, they take, also, ano. at a profit, by stipulating to pay ihe interest abroad. ther ground, which I will examine presently, The second part of the resolution regards the rate namely, the possible loss to Americs: stock at which the bank would engage io remit, and at holders and government. But they do not deny, which the stockholder would siipulate to receive, and I think they most clearly admit that the direc. the remittance of his dividends. For, we must tors had a right to make the arrangement.
recolleci tinat it was a mutual contract, binding If it had been the policy of congress to prevent upon both parties. The bank would pay abroad foreigners from becoming stockholders in the bank, upon no other terms but those that were prescribed, they would have expressed it by a prohibition in ti cannot be denied that the directors bad a right the charter. The maiter was not overlooked; illo arrange the terms. Dealing in exchange is one was considered and discussed in this house, when of their legitimate powers, expressly given by the the law was passed. If it was the policy of con-charter; and, as there is nothing wliicir restricts gress to permit foreigners to become proprietors them to successive unconnected instances, there of the stock and certainly the refusal to prohibit can be no valid objection to such an exercise of amounted to an invitation--would the directors the authority as is now the subject of discussion. have been justified in adopting measures to thwart There can be no doubt, therefore, of their right and counteract that policy? It was their duty to !o "compel the American stock olders to coniri. execute the law in its spirit-to effectuate its inten-bute to the public loss” (Report, page 8,) mpon Lions-lo subserve, and not to defeat the policy of exchange operations; and there can he none of its the government, lf, substituting their own concep-lespediency and propriets, provided there was a
well grounded probability of profit instead of loss. "upon, according to the state of the market for billa., The directors had before them the experience of If this measure was right to be adopted at all, the past. From two tables before me, I can say it was right to be adopied at that time, and pre. that, from the year 1791 to the year 1817, inclusive, cisely for the reason assigned in the letter of Mr. the average of exchange has been greatly infavor of Donnel If foreigners were to become the owners this country. The first of these is a statement from of stock, it was for the interest of the American he treasury, of the annual gain and loss upon stockholder, as well as for the interest of the na. remittances for payment of the Dutch loan, from tion, that the rise should take place before they 1791 o 1809. The gain is $409,197 20; the loss became purchasers, rather than afterwards. This is $ 103,377 26 The clear gain upon the whole is a proposition that no one will be inclined to disof the remittances, is $305,820 14. 'The other is a pute, and of course it cannot, with any color of res. statement of tbe annual gain and loss by exchange, son he denied, that if measures were in the con. under the operations (if the commissioners of the templation of the directors, which would have , sinking fund. There is an uninterrupted annual tendency to enhance the value of the stock, they gain, amounting, altogether, to $482 361 20, with were bound in duty to adopt them, in the early only an apparent exception in the years 1815 and part of the institution, so that the American stock. 1816. The exception is only apparent, for it was holder might have the benefit of the rise, and not owing, not to the state of exchange, but to the the foreigner; and the nation have the advantage depreciation of the currency with which the bills of the increase of the exchangeable or market value were bought. At the very time, (and it is a con- of the stock. The prospect of the enhancement vincing proof,) exchange in Boston, where a sound of price was itself an equivalent to the American Currency was maintained, was at or about par. stockholder for any possible loss on exchange. But, Deduct those two years, ($129.640 66,) there is while I agree that paying the dividends in England still a total gain of 352,720 dolls 54 cts. Asfir as (which is not objected to,) was calculated to raise the past can afford us any light to look into the the price of the stock, for the reasons before stated, future, this exhibition might be relied upon. I am not satisfied that paying at the par of exchange was not of a year or years, but an unbroken series would necessarily have that effect. If it was likely of six and twenty years in succession. It was not to be advantageous to the bank, as I believe it was, of a period of uniform character, either favorable or was for the same rcason likely to be disadvantage. unfavorable. It embraced the infancy of our go- ous to the foreign stockholder. What the one vernment, the arrangement of our finances, years gained on exchange, the other would lose. The of prosperous commerce, and years when com- materials for calculation were as open to the one merce was oppressed by formidable rostrictions as to the other. The report seems to suppose, that and impositions abroad, and by prohibitions and it would raise the market in England, and that the embargoes at home. It embraced a long period of rise there would operate upon the market here. peace, and a short period of war, (a proportion The reasoning is incorrect-because it looks only which I hope our history may always present)-it at one side of the question. We may afirm, with embraced, in short, exactly such a variety of cir- equal truth, that, if it was disadvantageous to the cumstances as, in the ordinary course of events, American stockholder, it would depress the marmay be expected to lappen, and, for that very rea- ket here, and that depression would affect the son, exactly such a period as a prudent man would market in England. The market abroad, for our select for the basis of his calculation. Experience stocks, is regulated by our own, rather than our since, I am informed, has given its sanction to the own by the foreign; though, doubtless, they do
I do not know the fact, but I am told somewhat affect each other. The only question, there has been a gain upon exchange. The com. however, at last, is the one which I have before mittee of directors, who reported against the measiated, and, I hope, satisfactorily answered-was sure--who are complimented, and deservedly, too, there a reasonable prospect of gain from this arfor their able reasons, were, upon general grounds, rangement ? But the gentleman from Virginia, in favor of it, as the report will show; and gave who was one of the seleci committee, (Mr. Tyler,) very “able reasons," the same which finally decided, hus advanced an opinion, not the less extraordinary ibe board to adopt it, namely, "the effect which it and unexpected for the explanation of it given by "would have in reducing the rate of exchange, by the chairman. He thinks that even if there was a
inducing capitalists to invest their funds in the gain, it would not increase the dividends of the • stock, and thereby facilitating the resumption of American stockholder, because, if I understand
specie payments." They were deterred by then him correctly, the remittance would not be made existing circumstances, which are now proved to till afier the dividend; and the loss or gain would have been temporary; and probably, among others, not till then be ascertained. What does he sup. by the doubt whether a sound currency could or pose would become of the gain? Would it not go Pould be very speedily restored. The remittance into the general profits of the bank! He did not ofibe dividends they recommended, without quali- recollect, that, though the remittance would follow tication. We are to recollect, also, that one of the one dividend, it would precede another, through terms was a delay of six months. The January the whole term of the charter. It might with equal dividend was to be paid in the following July, and correctness be affirmed, and for the same reason, the July dividend in January. Supposing three that the dividend could not be diminished by : months necessary for making the remittance, there loss on exchange, and then, I suppose, we should would reinain three months, during which the bank arrive at a result exactly right, t at the dividends might have the use of the money, equal at least would neither be increased or diminished. A mo. to one and a half per cent. and during which, too, meut's reflection will convince bim of bis error. the bank would have the range for selecting the And now, sir, I may be allowed to ask, whether most favorable moment to buy exchange: Iis range this arrangement is not what every man would for selection would, indeed, be much more exten- have made in his own case? Is it not what every sive-it wouid be almost unlimited; for, as it was merchant does habitually, and every planter too? authorised to deal in exchanges, it wouid always Why, then, should we impute it to unwortby mo. have funds or credit abrond, to be supplied or drawn tives?