■'R -;v -■ . ■i',:V<' ■. 
 
 A *?" I I O nv \Al <£. •b ■V T VA 
 
 A v:'to «.e-C, h 
 
 .R'A.f' > . ■ , • ' ' ■ 
 
 :;i^' .'/• , ' 
 
 JL'AUA-Y v>c*\ V at\\«N q\ H Hov k ^^a-\ 
 
 
 ...A. ^.'R. 
 
 ’ • ' .rj!# • ■ 
 
university op ILLINOIS 
 library 
 
 Class 
 
 Book 
 
 Volume 
 
 Ja O9-20M 
 
 V 
 
k In Senate^ 2lst March^ 1811. 
 
 I MR. PLATT^S SPEECH, 
 
 ON THE BILL FOR ESTABLISHING 
 
 I Mr. Chairman.^ 
 
 The general principles and policy of the bankiftg 
 system, have been so fully and ably discussed on this 
 floor, during this session, that I deem it unnecessary to 
 enter at large on that subject on the present occasion.—’ 
 f ]My remarks will be confined chiefly to the peculiar 
 r merits of the bill now before us. 
 
 ! Early in the present session, a report was made, shcw» 
 
 : ing t}:e amount of bank-capital in this slate ; and the hon- 
 ; orable member from the Southern District (Mr.De Witt 
 ' Clinton) has endeavored to prove, that the amount of 
 capital already authorized by law to be employed in the 
 established banks, is sufficient for an ample circulating 
 medium ; and that it is dangerous to increase that capi- 
 tal by incorporating new banks. 
 
 I deny the justice of his conclusion from that report. 
 The nominal amount of capital in the acts of incorpora- 
 tion, is very uncertain evidence of the real amount em- 
 ployed in banking operations. In many of the bcuiks, 
 only a small part of the stock subscribed, has been actu- 
 ally paid or invested ; and as well might it be contended 
 that ten millions of dollars are actually employed by the 
 manufacturing companies in this state ; because the acts 
 for their incorporation authorize them to go to that extent. 
 
 The legal right or capacity of employing capital in 
 ^ banks or manufactories, is one thing ; and the actual in- 
 • vestment of that capital is another thing. 
 
 ^ I deny, however, that the amount of capital in the 
 existing banks is the only criterion to decide on the 
 
expediency of establishing a new bank* Nor does 
 this question of expediency depend solely on the 
 number of banks already incorporated. It is not true, 
 sir, as has been contended, that the amount of paper 
 medium, or bank notes in circulation, will always de- 
 pend on the amount of bank capital j and to exempli- 
 fy this remark, I ask whether the late establishment 
 of a new bank in Albany, with a capital nearly equal 
 to that of both the old banks, will double the amount 
 of discounts or bank-loans in this city ? No, sir ; the 
 additional bank will participate in loans and profits 
 with the other banks. It will equalize and extend 
 discounts and accommodations among the citizens of 
 Albany. It will in a small degree increase the circu- 
 lating medium ; but that increase will bear no pro- 
 portion to the increase of capital. 
 
 It is as important that our banks be fairly and equal- 
 ly distributed among our principal commercial 
 towns ; as that a sufficient bank-capital should be 
 created. 
 
 During the present session of the legislature, the 
 following banks have been incorporated, viz. 
 
 Cafiital. 
 
 Union Bank, in New-York, - gl, 800, 000 
 
 Middle District Bank, consisting ofl 
 
 one branch at Poughkeepsie, and 500,000 
 
 one branch at Esopus, J 
 
 Mechanics and Farmers Bank, (x\lbany) 600,000 
 Bank of Newburgh - - 400,000 
 
 Bank of Troy ... 500,000 
 
 §3.800,000 
 
 What the legislature have done, I am bound to re- 
 .spect as the result of wisdom and sound policy : and 
 if 1 can shew that the claim of the Western District 
 for a bank, is as well founded as any other application 
 w hich has received the sanction of this legislature ; I 
 trust it will not fail of equal success. 
 
 Permit me to ask the attention of the Senate to the 
 pie .cnt di.=tribution of banks in this state ; and tli® 
 an.iount of capital allowed to each. 
 
08 ^ontmerc®. 
 
 The banks now established are as follows 
 
 its> Banks. 
 
 Capital. 
 
 •3 — New “York, 
 
 S 1,040, 000 
 
 Manhattan 
 
 2,000,000 
 
 Merchants* 
 
 1,250,000 
 
 Mechanics* 
 
 1,500,000 
 
 Union 
 
 i,soo,ooo 
 
 
 S7, 690, 0000 
 
 -Columbia 
 
 160,000 
 
 Hudson 
 
 300,00 0 
 
 Middle District 500,000 
 
 Newburgh 
 
 400,000 
 
 
 81,360,000 
 
 ■Albany 
 
 8270,000 
 
 Farmers* 
 
 300,000 
 
 Mohawk 
 
 260,000 
 
 State 
 
 460,000 
 
 Mechanics 
 
 0 
 
 and Farmers 
 
 V 600,000 
 
 T roy 
 
 500,000 
 
 
 82,390,000 
 
 Western District, 362,077 JK^'one. 
 
 By this statement it appears, that the population of 
 the Western District is about egual to that of the 
 Southern and Middle Districts united ; and more than 
 one third of the whole population of the state. 
 
 I will not contend that population is the only just 
 rule of apportionment. The city of New-York is our 
 center of commerce and great metropolis of dollars. — • 
 I readily admit that to be our principal theatre of 
 banking operations ; and that it has not more than its 
 due proportion of banks : but justice and policy de- 
 mand that the immense region of the W estern Dis- 
 trict should at least be accommodated with one bank. 
 
 It is mockery and insult to tell us that the exist- 
 ing banks have sutiicient capital, and can supply as 
 
inucli paper medium as is proper to be emitted. Tiie 
 banks of Albany) Troy, and Schenectady confine their 
 loans to a narrow circle of customers j and very rare- 
 ly if ever extend their accommodations to persons in 
 the Western District. A uniform rule is established 
 by them requiring an indorser in the immediate vi- 
 cinity of the bank : and very few gentlemen in the 
 AVestern District have iriends in Albany, Schenecta- 
 dy or Troy^ of whom they can ask the favor of becom- 
 ing their indorsers. Tliat is a request which can sel- 
 dom be made with propriety ; except by those who 
 are in a situation to reciprocate the favor. 
 
 With the exception of the cities of Nev/-York and 
 Albany, I assert that the Western District is more 
 cnliticd to a bank, than any other portion of the state 
 containing equal population. In all the counties bor- 
 derlng on the Hudson’s River between Albany and 
 Kew-York, the merchants during nine months in the 
 year, have easy and immediate access to New-York.— • 
 They can in a few days command money at the high- 
 est New-York prices fowthe produce of the country, 
 without the aid of banks. The fiirmer in that part of 
 the state is never obliged to sell his produce to the 
 country merchant. By means of the excellent and 
 immense navigation of that River, he can without 
 risque or trouble, send it to the New-York market on 
 his own account ; and receive the avails in a few days. 
 Banks are therefore almost useless to the trader and 
 the farmer in that part of the state j except during a 
 small portion of the year when the navigation is ob- 
 structed by ICC. In the Western District, an im- 
 mense surplus produce is remote from the navigable 
 waters of the Hudson : its progress to the Albany 
 and New-York markets is slow and dilatory at all sea- 
 sons of the year. The farmer cannot convoiiently 
 send his wheat or his beef and pork to either of those 
 great markets and receive the avails in cash on his 
 own account. He is gcneially under a necessity of 
 selling his produce to the country merchant at a re- 
 duced price ; and to receive the avails in goods, or to 
 sell on a long credit; because the merchants there, 
 however wealt!;y, cannot make prompt payment in 
 c-ash for produce to any considerable extent. Their 
 
chief remittances to New- York must ever be in pro- 
 duce ; and if the course of transportation be such 
 that they cannot receive the avails from the Nev,'-York 
 market, short of three or four months ; it must of 
 necessity result, that they cannot pay a fair and liberal 
 price in cash to the farmer. Experience confirms 
 tiie truth of these remarks. Farmers generally are 
 in want of money, at the close of every season. They 
 must raise it by a sale of their produce to the conn- 
 try merchant. If the merchant can have a bank-loan, 
 for 60 or 90 days, it enables him to pay a fair price 
 in cash to the farmer ; and he will be enabled to re- 
 ceive the avails of the produce from the New- York 
 market, in time to meet his bank engagement. With 
 the liberal aid of a bank, therefore, the farmer will 
 at all times command a fair price in cash for his pro- 
 duce ; but without such aid, he must be compelled 
 to sell on credit ; or to receive half its value from 
 speculators who fatten upon monopolies, and enricli 
 themselves at the expense of the farmer’s toils. 
 
 The plan proposed by this bill is the most liberal 
 and equal that has ever come before this legislature.— 
 It has been usual heretofore for speculators to asso- 
 ciate, and agree on a division of the stock among 
 themselves, and then to ask for an incorporation.- — 
 Almost all our banks have been established on that 
 plan, giving an immedidte and exclusive profit to 
 tiie associa.tes. This bill enacts tha.t Augustus Por- 
 ter of Niagara, John M. Canfield of Jefierson, 
 George Huntington, John C. Devereux, Benjamm 
 Walker, Charles C. Brodhead of Oneida, Windsor 
 Maynard of Herkimer, Abraham Dox of Ontario, 
 and Perry G. Childs of Madison, shall be commis-, 
 sioners for opening books in which all the inhabitants 
 of the Western District may subscribe for slock. — 
 After these subscriptions are made, the commission- 
 ers are to meet and average the shares equally a- 
 mong all the counties of the District, according to 
 population; and the commissiorrers are to divide the 
 stock in each county as they think reasonable, allow- 
 ing no more than fifty shares (at goO each) to any 
 subscriber. On this plan the stock womd be equally 
 diffused throughout the district.— -All would have a 
 A 2 
 
l omniori interest in supporting the credit of the bank ; 
 end its bLneiits and accoinmcclalions would be extended 
 to all. One branch of the bank is proposed to be 
 t stablished at Utica and another at Geneva, with a cap- 
 rial of S 500,000. 
 
 I ask the alLCiilion of the Senate, while I attempt to 
 rliow some local and pec\iliur reasons why this bank 
 vhould be established. 
 
 It is an alarniine; fact, that the trade of a large por- 
 tion of the Western District is now flowing to the Can- 
 ada markets, and unless liberal and spirited efibrts are 
 soon made to reclaim it, by im]noving the inland navi- 
 gation, and by every oth^r means in our power; the 
 commercial prospects of this state will be in a great 
 measure blasltd 
 
 The establishment of this bank will essentially aid 
 in preventing the western produce from being di- 
 verted to a foreign market. And let the merchants 
 of New-York and Albany consider, that vrherever 
 our produce goes, there our purchases of goods 
 must chiefly be made. A bank at Utica will always 
 enable the merchants in that vicinity to pay cash for 
 })rodLicc to any amount; and it would be decisive in 
 dtiverting a large portion of trade to Albany and New- 
 York, which for the want of a nearer and more am- 
 ple market, now flows down the St. Lawrence. It 
 often iiappens, that there is good sleighing to Utica 
 from every part of the Western District ; when there 
 is no sleighing from Udea to Albany. How impor- 
 '•ant., then, that there shoujd be always a .sufficient 
 banking capital at that point 1 The prosperity of the 
 merchant, and the value of the farmer’s hard earnings 
 essentially dcpeiul on it. 
 
 The circulating medium of the AVestern District 
 now consists in a great degree of New-England bank 
 nctcB, put in circulation tiierc by indirect violations 
 -and evasions of the law for restraining banking asso- 
 ciations. AVeare paying an enormous sum of inter- 
 est to bankers of other states, who smuggle into the 
 Western counties a species of bank paper which our 
 banks will not receive ; and which, of course, remains 
 there in ta,rdy circulation ;• distrusted by many ; and 
 subjecting us ail the hazards and impositions of 
 
tho&e foreign banks, without any real or substantia! 
 benefit. The establishment of an independent bank 
 in the Western district would drive all that spurious 
 foreign bank-paper out of the state. 
 
 The influx of gold and silver coin from Canada into 
 that part of the state is favorable to a bank; and will 
 enable it to afford liberal discounts without hazard of 
 increasing the paper medium to excess. 
 
 The Western District has already made more pro- 
 gress in manufactories than any other part of the state. 
 In the county of Oneida alone there are already incor- 
 porated, the 
 
 Oneida Manufacturing Company — Cotton, Wool and 
 Iron. 
 
 New-Hartford Manufacturing Society— Cotton and 
 Wool. 
 
 Oriskany Manufacturing Company— Cotton, Woo! 
 and Iron. 
 
 Oldenbarneveld Manufacturing Company— Wool and 
 Cotton. 
 
 White sborough Cloth Manufactory— —Cotton and 
 Wool. 
 
 Clinton Manufacturing Company— Cotton and Wool, 
 Oneida Glass Company. 
 
 Utica Glass Company. 
 
 Mount Vernon Glass Company. 
 
 Rome Glass and Iron Company. 
 
 These associations are formed by men of substan- 
 tial wealth; several of them are already in successful 
 operation, and every one of them has a fair prospect 
 of success ; if they can have the patronage of the 
 government so far as to enable them to avail them- 
 selves of their own resources. They ask no loans 
 from your treasury : They only want aid of a 
 bank to enable them to buy their stock, and to sell 
 their manufactured articles when the markets are 
 most favourable. Without bank accommodations, they 
 must often be compelled to buy dear and sell cheap.— 
 With such aid, they will prosper and enrich the state 
 as well as tlie stockholders ; without this fostering aid 
 they may fail of success. 
 
 The village of Utica is more important; and has a 
 larger commerce than Catskill, Esopus, ISewburgh or 
 
l*ou,e:hkecp5ie. It is a point at which the trade of 
 the Western District centers in a great degree. Its 
 remote distance from the great rnarkets, and from all 
 other i)anks, gives it a pre-eminent claim. We have 
 distributed banks in every other part of the state with 
 a liberal hand. In establisliing the Middle District 
 bank, the bounty of the legislature was so prolific as 
 to produce two banks at a birth : and we are now told 
 thcit the bastard offspring of the Manhattan company, 
 foisted upon us at Utica, is as much as we deserve. — 
 The Manhattan bank has a branch at Poughkeepsie as 
 well as at Utica; and yet we have heard no objection to 
 the establishment of an independent bank at Pough- 
 keepsie, on that account. The people of the Western 
 District want a bank which they can call their own ; 
 whose profits and prosperity may be connected- and 
 identified with their interest ; whose directors and 
 stockholders have a sympathy for, and an interest in, 
 relieving their pecuniary distress and embarrassment. 
 
 If gentlemen imagine that the Manhattan branch at 
 Utica was intended for the benefit of the Western Dis- 
 trict ; if they suppose it satisfies the wishes, and su^j- 
 plies the necessary capital for that part of the 
 state, they are grossly deceived. The stock of that 
 branch is owned almost exclusively by persons living 
 in the city of New-York. The deputy directors at 
 Utica have little or no interest in it. They have no 
 poAver of creating bank notes, nor of issuing a single 
 bill without the consent of their masters in New-York, 
 They may strut with all the mock dignity of puppets ; 
 but the master wire-men keep behind the curtain in 
 New- York. 
 
 The operations of the branch are always made sub- 
 servient to the views and interest of the New-Y’ork 
 directors. If they have any bank notes to put in cir- 
 culation beyond what their discounts in New-York 
 require ; then forsooth a package of bank notes is 
 vouchsafed to Utica, if an opportunity occurs for send- 
 ing it. 
 
 They deal out to us, men of the woods, a morsel 
 now and then, siifiicient to keep alive our hope, and 
 to preserve our dependence: but I asser.. without fear 
 of contradiction, that the supply of bank paper from. 
 
that source, is at all times so precarious that ucr pru- 
 dent man can rely on it for bank accommodation : 
 and that it is altogether inadequate to the reasonable 
 wants of that country. I assert another fact too, that 
 in reality it is intended as an office of deiiosit^ and not 
 as an office of discount.^ to any considerable degree. I 
 assert as a fact, it has often happened that when 
 checks have been presented at the Utica branch, the 
 ans^ver has been, we have no bank notes of any 
 kind ; you must receive payment in gold, or wait till 
 our bank paper arrives from New-York.” Was ever 
 such a bank heard of before ? Does it deserve the name 
 of a bank for discounts ? If I have mistated any fact, 
 let the two bank directors wdio are present (Mr. 
 Bloodgood and Mr._ Smith) correct me. I w^ait for 
 their answ^er. [Neither Mr. Bloodgood nor Mr. Smith 
 made any reply.] The main object is. to collect the 
 gold and silver of the western district to supply the 
 vaults of the Manhattan bank in New-York. In this 
 way they are draining the western country of specie ; 
 wdiich is flowing in a continued stream through that 
 channel, to enrich the capitalists of New-York ; who 
 feel little interest in our welfare, and no sympathy for 
 our distress. 
 
 . Besides, this branch is a mere tenant at will. It 
 may be withdrawn at the pleasure of the Manhattan 
 Directors. 
 
 The honourable member from the southern district 
 (Mr. De Witt Clinton) has informed us, that he believes 
 the branch at Utica is unprofitable to the stockholders ; 
 or at least, that they might employ their capital more 
 profitably in New-York. If this be so, we have good 
 ground to conclude that they will withdraw that 
 branch : and if such be their determination, it will 
 be an additional reason for substituting an independ- 
 ent bank, which may enable the Manhattan Company to 
 withdraw their capital, and wind up the concerns of that 
 branch without loss to themselves, or distress to the peo- 
 ple who are indebted to them. 
 
 The gentleman from the Southern District, (Mr. De 
 Witt Clinton) has asked with contemptuous exultation ; 
 “ is it an injury that the Manhattan company send 
 part of their capital to Utica ? Is it (says he) an act 
 
of injustice or oppression for a rich man in New- 
 York to loan his money in the western district 
 1 answer no, sir I But when this rich man in New- 
 York claims and insists upon the exclusive right of 
 loaning money to us : when he declares with legis- 
 lative sanction,- that we shall have as much or as lit- 
 tle money as he chooses ; and upon such terms only 
 as he thinks proper ; then sir, it is injustice ; it is 
 oppression ; ’tis odious tyranny j '^ds pecuniary des- 
 podsm. 
 
 My colleague from the western district, (Mr. Swift) 
 has declared that he believes the people of that district 
 are generally opposed to independent banks atUtica and 
 Geneva as contemplated by this bill. He has stated that 
 he believes thixie quarters of his constituents are oppos- 
 ed to this measure. 
 
 I know nothing of the private communications he may 
 have received. If he has any thing to shew as the 
 grounds of such belief ; I should be glad to hear it. 
 
 [Mr. Swift gave no further information.] 
 
 The people of the western district appear by their pe- 
 titions before us to be perfectly united in this object, 
 without distinction of party. Year after year have they 
 appeared as your humble suppliants. Never has a re- 
 monstrance been presented against the object of their 
 petition. Hitherto they have been sternly denied, on 
 the ground, that it was dangerous to increase the num- 
 ber of banks. 
 
 The gentleman from the southern district, (Mr. De 
 Witt Clinton) has attempted to alarm us by reading a 
 report of the disgraceful failure of the Penobscot bank. 
 I know sir, the banking system has been carried ta 
 great excess in some parts of New-England ; and I 
 hope we shall profit by their example. But, sir, I would 
 remind that gentleman, that rve are not at all descend- 
 ants from Penobscot. And if we were, it does not follow 
 that Ve are all knaves. It is said that a set of swindlers 
 at Penobscot got possession of a bank ; and ruined 
 themselves ; and defrauded the community. Granted, 
 sir ! but does it prove that the Western District of this 
 state is not entitled to, nor fit to be trusted with a single 
 bank ^ 
 
Within tlie last month, have by large majorities in 
 senate and assembly, incorporated six new banks, with 
 an aggregate eapital of three millions, eight hundred 
 thousand dollars I now ask on behalf of the western 
 distriet, for a bank, with five hundred thousand dollars 
 capital. In behalf of three hundred and sixty-two thou- 
 sand of your fellow-citizens ; in behalf of twenty-two 
 counties of this state, I appeal to your justice and impar- 
 tiality. 
 
 My colleagues from the western district, who op- 
 pose this bill, may, if they please, lick the crunibs 
 which fail from the rich man’s table. As the repre- 
 sentative of freemen, I disdain such mean conde- 
 scension. I shall never turn Swiss, and enter inio 
 foreign service. May my tongue lose its utterance, 
 if my voice be ever raised in opposition to what I 
 know to be for the best interest of those whom I repre- 
 sent. 
 
 I know that my constituents have equal rights ; and 
 merit equal favor, with any other portion of my fellow- 
 citizens. I know too, they are as intelligent as any other 
 part ol this community ; and I trust they will dj^cern the 
 difference between their real friends and their base fat- 
 terers. 
 
 Mr. Chairman, any man can profess any thing. 
 The decision on this bill, will test the sincerity of 
 those, who boast so loudly of their regard for the 
 equal rights of the People. Let our constituents judge 
 who have been their faithful representatives on this oc- 
 casion. 
 
 The next state-census will probably give to the 
 western district a majority of the members of the le- 
 gislature. I do not mean to intimate a threat; but I 
 appeal to the policy, as well as the justice of all who 
 tear me ; and ask whether it is wise and prudent to 
 deny to that large portion of the state, the small favor 
 which they now solicit ? I beseech gentlemen to be- 
 ware how they afford even a pretext for retaliation.-— 
 Let them consider that the banks which have been 
 showered down in such rich profusion in every other 
 part of the state, must shortly ask for a renewal of their 
 charters. M'is possible that injustice may be remer,iber- 
 ed. 
 
Sir, there is a yonrsg lion in the west. He is now 
 tame and gentle as the spaniel. He seems to lick the 
 hand that scourges him. But be assured he will soon 
 arrive at niaturity, and become conscious of his 
 strength. He will, 1 hope, be generous and noble; 
 but beware how you provoke his indignation by injury 
 and insult. 
 
 The question being taken, passed in the negative in 
 manner following, viz. 
 
 Affirmative. 
 
 Mr. COE, 
 HALL 
 
 PARIS, 
 PHELPS, 
 PL A I T, 
 
 HOPKINS, 
 
 LEWIS, 
 
 WILLIAMSES, 
 
 JVegative. 
 
 Mr. BLOODGOOD, 
 BREl T, 
 
 MTEAN, 
 
 REA, 
 
 SELDEN, 
 
 SMALLEY, 
 
 SMITH, 
 
 SWIFT, 
 
 TOWNSEND, 
 
 WHITE, 
 
 YATESe. 18 . 
 
 BROWN, 
 
 CARL, 
 
 CLINTON, 
 
 GILBERT, 
 
 HAIGHT, 
 
 HUMPHREY, 
 
 MARTIN, 
 
r