Abridgment of the Debates of Congress, from 1789 to 1856.

DEBATES OF CONGRESS. 505 JUNiE, 1834.] Local Bank Deposit Regulation Bill. [H. oF R. perpetual inactivity and subterfuge. Before not for him to offer any amendment of that it passed, however, he wished to point out a kind. His opinion had been already expressed. few errors and defects in its provisions, some The benefit arising from the employment of forof which its friends, if they regarded their own eign capital, he believed, was mutual. We principles and pledges, were bound to remedy. have the use of the money which we want, and He did not propose to treat the subject in detail, the lenders the interest which they want. As but to examine its main features. What the to foreign influence, he thought the danger members of the House desired, at this stage of imaginary. The action and reaction must be the session, was not an argument in form, most equal. When we have borrowed their money, logically prolix, but facts and hints, the mate- it is their interest we should prosper, and we rials for thought, out of which each man for have security against them for the peace. But himself would work out his own conclusion. it did appear to him that, if gentlemen In the first place, he thought the selection of intended to be true to themselves, if they banks, to be employed as depositories, might be meant to be thought earnest and sincere in made, and ought to be made by Congress. He their oftentimes-repeated denunciations of fordid not perceive any insuperable difficulty, and eign capital, now was the time to prove their nothing less should prevent it. The committee sincerity. If there was danger in the Bank of themselves admitted there could be no objec- the United States, where foreign stockholders tion to that mode, provided it be deemed prac- have no vote, how much more must there be ticable to make the selections in such a manner in State banks, many of which are under as to protect and preserve the public funds. no such restriction? Neither can we be asAnd why not practicable? Have we not the sured that the Secretary of the Treasury will same sources of information as the Secretary? make such a selection as to exclude banks with Where are the returns of the State banks? foreign capital; for in one of the banks already Cannot we invite further information; raise a selected, he was informed, a foreign nobleman committee; or take any other measure that -was one of the largest stockholders. In another may be requisite? Which do we distrust, our State the whole capital of a bank has been integrity or our discretion? Why must we raised by foreign loan; and, if he was rightly delegate this important power and duty to the informed, that loan was secured by a mortgage Secretary? Are we invited to stultify or to of the real estate of the stockholders. stigmatize ourselves? For his own part, said A provision which he did think ought to Mr. W., if there must be a selection, he would be inserted in the bill was one to distribute the not surrender the right of Congress to make it. amount of deposits, and limit the use of transHe feared giving it up might be construed into fer checks. If the use of the public treasure an.admission of the President's claim to the must be granted to the State banks gratuitously, custody of the public money. He did not mean, the banks of all the States should share the by any act of his, to lend the least sanction to benefit with something like equality. Why the doctrines of the protest, text or gloss. He should the banks in New York or elsewhere did not intend to discuss those doctrines. Time have an advantage in this respect? He menwould be wanting. On that topic, if the gen- tioned New York with no invidious feeling, tleman from Tennessee was not satisfied with but merely because the largest amount of revethe arguments of the distinguished Senator from nue being collected there, the banks of that Massachusetts, (Mr. WEBSTEn,) he must leave State would have the largest amount of dehim to discuss the matter with his own friend, posits, unless they were required to be distribthe gentleman from Virginia, (Mr. WISE.) uted. Why should Virginia, and Ohio, and Mr. WILDE next objected to the bill, that it North Carolina, and Georgia, be excluded from required no compensation from the State banks their fair proportion of that fund to which they for the use of the public money. The Bank contributed their fair proportion? He was not of the United States paid the nation for the prepared to say that a very exact distribution privileges it enjoyed. The bonus distributed could be effected, but a rule might be found, over the period of its charter was equivalent in the representative population of the States, to eighty or ninety thousand dollars annually, sufficiently near for justice and convenience. and now it is proposed to give gratuitously to As to transfer checks, if the abuse of them the State banks what the United States Bank were not limited, every bank employed would had only by paying for it. I be at the mercy of the Secretary, and an unSome gentlemen there, Mr. W. said, would be bounded field of favoritism and corruption surprised to learn that this bill contained no would be opened. security against the dangers of foreign capital Mr. W. would draw the attention of gentleand foreign influence. They had heard much men to another omission in the bill. It not only of the mischiefs arising from these causes in the failed to provide for any examination of the Bank of the United States, and he certainly State banks coextensive with that to which expected that one of the first propositions in they insisted the Bank of the United States the regulation of the State banks would have ought to submit, but it failed to provide for been the exclusion of all those any part of any examination by Congress at all. How whose capital was owned by foreigners. But gentlemen who maintained the power of a comthe bill contained no such provision. It was mittee of Congress to make a secret inquisito

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Title: Abridgment of the Debates of Congress, from 1789 to 1856.
Author: United States. Congress.
Canvas: Page 505
Publication: New York, [etc.]: D. Appleton and company [etc.]; 1857-61.
Subject terms: United States -- Politics and government

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Abridgment of the Debates of Congress, from 1789 to 1856.

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