Mr. TEACKLE, Chairman. REPORT OF THE SELECT COMMITTEE RELATIVE TO THE Establishment of a State JBanki AND A National Currency. BY THE HOUSE OE DELEGATES, JANlJARY, 26 1835/ and referred to the Ccmmittee on Corporations aMi ^ ordered to be printed. The select committee to which was referred an order ta consider upon the propriety of establishing a State Bank; and to inquire into the expediency of assenting to the provi- sions of a bill reported in Congress, which contemplates the distribution of a National Currency, and the deposits of the ^ monyes of the United States to institutions under thedirec- ; tion of the several states; and the memorials of a great <: number of persons of different counties representing that "t/ie State has not Sidvanced in wealth and prosperity in proportion to the advantages she enjoys in her relative loca - tion, her incomparable water courses, her ^sheries and navi- gation — teeming forests, mineral riches, and a soil of the most fertile or improvable character^ ascribing as the princi ' pal cause of this retardation the undue proportion which the 2 mass of properly bears to the amount oj money in. circula- tion, and praying the establishment of a financial institu- tion to be founded upon the invested funds oJ the Tieasurjf for the supply oj revenue to the State, ami the convenience aud benefit of the people, has deliberated upon the several matters of these references, and having estimated the bene- ficial effects of the desired institution upon the great inter- ests of Agriculture, Manufactures and Commerce— and, in. fact, upon the common prosperity of all classes of commu- nity, has concluded to sustain ihe prayer of the memorial- ists; and, being satisfied of the intrinsic merits of the prin- ciple presented, to urge the policy of improving a produc- tive prerogative as demonstrated and enforced by a large portion of intelligent citizens in different sections of the State; and, inconl'ormity to that conclusion, to report a bill designed to effectuate the object prayed for, which con- templates the employment of the cash deposited, andother investments of the public capital. If South Garolina, Alabama, and Georgia have created Banks upon their public funds for the supply of revenue, and the improvement of those States — and if the success ol those institutions through a long course of years has realized the great advantages anticapated, and largely con- tributed to their prosperity, as will hereafter appear from official statements, why might not Maryland, with equal justice, improue her effective means, and productive preroga- tive^ for the common benefit and accommodation. The privilege of banking is certainly an attribute of so- vereignty of inHmte value-, and it is doubtless susceptible of vast improvement, as well in point of general revenue as with regard to the convenience of the people, and ihe creative influence of a constantly increasing circulation, in due degree to the necessary interchanges of society; — and, with respect indeed to the expediency of the measure in question, it might be successfully contended that with the cash deposit- ed, the present revenues, and a limited portion oJ the public credit, an amount of income might be derived, to meet the instalments of the State, to great improvements in contem- plation, to supply the means of educating the whole of the rising generation, and to provide for the colonization of the free colored pC' ple, without the necessity of selling the in- vestments in existing banks, or of continuing Ihe tax upon prop^rty^ or of resorling toother financial operations for all or either of those primary objects of desire. And should it be considered as expedient to pursue the policy of other States, in the introduction of means from 1 3 foreign capitalists, the present period of time is esteemed • to be the most aaspicious for such a purpose, as it is be- lieved that the State could borrow any desirable amount of capital at an annual charge of four per centum^ if not, in- deed, upon better terms. — And that capital being loaned at six, and the difference of two per centum^ being successive- ly invested semi-aunally, would proiluce an accumulation sufficient to redeem the whole, in less than twenty-four years. It hence is palpable, that, without resorting to direct taxa- tion, the reserved sources oj revmue in contemplation might be employed most beneficially in the promotion of the vari- ous projects oJ improvement which engage the consideration of the Legislature. But let it be supposed that the State should borrow from foreigners to an amount of not less than one million of dollars annually, throughout a series of ten years, at a rate of interest not exceeding three and one third of one per centum per annum, and that the principle should be redeemed at the pleasure of the Legislature — ^terras on which it has been ascertained that money could have been procured, the ope- ration would have been more beneficial even than that sug* gested in the foregoing estimate. That so large a capital as the entire amount proposed, would not be immediately required by the wants of trade and interchanges in this State may be admiUed; but, in the meantime, the redundant money might be invested in the productive stocks of other States, and be f withdrawn successively in due obedience to those demands which would proceed in jair progression from its employment as contem - plated by the operations of the public bank, in wiiich it has been shewn that from an accumulation of even tvvo p.^r centum semi-annually invested in a capiial drawing interest at the rale of six per centum per annum, with the interest accruing reinvested in succession, that a duplication of the original principal would be effected in less ihan twenty- four years — and it is equally demonstrable that the means derived from the supposed negotiation, if employed according to the ^ customary discount 071 bank credits'''' would produce a duplication in less than i^eventeen years — and, consequent- ly the whole amount, which might be borrowed, would be gained to the State, by it own operations, within the period specified from each successive negotiation. But the direct accession of the productive money would be small in comparison with the effective influence of its circulation upon a,l the iyUerest of our State and peopU. 4 And while we regard the gigantic movements of our rival sisters, Pennsylvania and New York, through the action ot a generous policy, in the distribution of successive millions; and their eager grasping after vast additions to their capi- tals ^ are we not admonished to be up and doing to avoid the loss of those advantages^ which, if improved by wise pro- visions, would tend immediately to our GEJVERAL GJlIJSr md MlELIORATIOjy.—''Knov;\edge is power"— and money is power — as the medium of acquiring knowledge — - and not only the source of intellectual, but of physical and moral power. With reference to the proposed financial establishment , many have supposed that an institution, founded solely upon public credit for the issuing inconvertible paper, and not a SPECIE PAYING BANK, was intended— than which a more gross misconception could not have been assumed — as, by authentic papers, it is clearly proved that the produc- tive capital of invested moneys in the treasury, consisting of cash deposited and of stocks held in different corpora- tions, immediately convertible into coin, or otherwise prompt- ly available, is of greater value than all the gold and silver in all the Banks of this State — and consequently, that ef- fective resources for the redemption of the issues of the public Bank, far exceeding the united means of all the pri- vate corporations, would be held by that institution — but from the operations of such establishments in other States, it could not be supposed that it would be necessary to dispose of the stock held in those corporations, or to dispense wuth the revenues arising from them, as the merit of the princi- ples in contemplation would prove sufficient for every pur- pose. As has been said on a previous occasion, it may be pre- tended that there is money enough, and, consequently, that ^here is no demand for additional means of accommodation, but will not the palpable existence of a most inconvenient scarcity in the interior of the state, sufficiently respond to the false allegation? It may be true that there is enough in the city banks, but for the useful purposes of circulation in the counties it might as well be in the middle of the ocean, as it is virtually beyond the reach ct a major part of the agricultural, manufacturing and trading inhabitants of the interior. Asa correct test of an adequate supply of circulating medium properly proportionate to the demands of industry and commerce in every civilized society, the opinion ex- pressed, upon that point, in a lucid view of the President 6 and Directors of the Bank of the State of South Carolina is here presented in the following words: — "We may, perhaps, assume it as a principle applicable to all stages of society, that the active capital of a country bears a fair and reasonable proportion to that which is fixed and permanent, whenever real can be readily sold or con- verted into active property at a fair valuation; or, whenever money can be obtained readily at a reasonable rate of in- terest on secure raoitgages of real estate. We consider this last as probably the best test which exist in this diffi. cult inquiry." And for the purpose of ^manifesting the beneficial effects and CREATIVE POWERS ot this improvement of the SOVEREIGN RIGHT, a further illustration from the same memoir is extracted in terms as follows: — "We have, fortunately, before us a memorable fact. When the bank of the State of South Carolina was esta- blished, Columbia was but a small village, with few im- provements and little comirierce. It was supposed when the JBranch of our Bank was established in this place, that one hunded thousand dollars could be used, and that two hundred thousand dollars might be tried. After the expe- rience of six years, alter the capital of this branch had been enlarged to nine hundred thousand dollars, the Board of Directors now declare that two, perhaps three millions of dollars could be safely and advantageously employed. With this creation of capital the improvement and com- merce of Columbia has steadily advanced. This has ex- cited and we hope will continue to excite universal atten- tion," The propriety of improving the principle of banking for the common benefit of the whole country has extensively en- gage the public attention ia England. And among the number of valuable essays, which have appeared in the discussion of that topic, an article ftom the pen of an emi- nent writer in the Quarterly review is most conspicuous. In the prosecution ot the subject, he speaks of the inju- rious operation of the present banking system in England, which is mainly that which produces a similar influence in the United States, upon the interests of land and labour; and of its tendency to accamulate the mass of circulating medi- um in the cities, in contradistinction to a public bank with branches in different parts of the country, as follows*. — "Hence the productive classes, and more especially the class engaged in agriculture, can no longer command that accommodatioii which they had been accustomed to re- s ^«ive. TliR oneratioR of productive indt^stry are thus im- peded by the WJtbdra^'^ai of that capital which used to feed th3T. To l^lis cause must also he ascribed the glut of r:0Dey is tbs city market, which has rendered it extreme- ly difficult to employ it to advantage, and has consequently reduced very greatly the rate of interest in the city, while money is scarce and dear in the country. Y/e consider it, then, as quite evident, that the owners of money are to the full as much interested as the owners of land, and the owners of labour, in resisting exclusive privileges which prevent or impede the formation of safe establish- ments for granting loans for the benefit of the State. Such institutions would instantly infuse new vigour into the industry of the nation, animate the drooping energies of thos\B who are engaged in the cultivation of the soil, and open a v>'ide field for the profitable employment ot the ca- pital of the country. And by giving a new direction, as well as a nev^^ impulse to industry, establishments of this nature would also prove the means of augmenting the na- tional revenues. LiCreased productiveness would necessa- rily be followed by an increased consumption of commodi- ties; I his would open a nev? source of revenue to the state. An i.ncrease of revenue ihus obtained would enable the Treasury to bring into action the latent resources of the country, and to promote the general prosperity. It would thus appear that there is no class — and with the solitary exception of the proprietorsof bank stock, there is no individual — who would not be benefited, either direct- ly or indirecdy, by the introduction and discreet extension of the great principle in question. Such institutions would cause the po8trate,and despairing, and oppressed classes to be once more visited by the encouragement of hope; the in- dustrious and frugal they would present with at least an op- portunity of emancipating themselves from the thraldom and misery into which they have sunk; to the owners of capital laid out in land or in other investments, they would be found the source of an improved revenue; and, finally, by multiplying the products of industry, they would yield an addittondl revenue to the state." It is understood that the odium excited by the inordinate privileges of the moneyed community largely contributed to the reform in England; and to a similar cause may be traced the raiser ies of the French Revolution — as the exemption from taxation enjoyed by the privileged orders of France^ was in effect, and actual substance, the same as the cession here of a sovereign right, to a ^favored few,^^ to tax th$ 7 many for their special and exclusive benefit. And tl^e pn- vileged order oj Corporators, in contenaplation of this view, constitute the moneyed Aristocracy or idle and luxurious who consume the fruits o] the laboring classes without con- • tributin^ to their production. And this brings us to the original proposition, and to the conclusion that, if banks be necessary for the convenience of commerce, andthe s&pport of industry, let them belong to the States^ and let the revenues der'ved from the volunta- ry contributions of the borrowers he justly distribut^id for THE COMMON BENEFIT OF ALL THE PEOPLE. Adverting to a former proceedinig, in reference to the as sumed sufficiency oftlie circulating medium, it is deemed proper on this occasion to be repeated, that nearly twenty years ago,the loans of banks in Maryland exceeded twenty mil- liohs of dollars, while her population wag less numerous, and the wants ef society were fewer than they now are. At the present time those accommodations are less than the half of the former period Now it is believed, and the opinion sustained by the experience of other States, that the institution which is proposed could diQuse its facilities to any desirable extent with infinite advantage to every in- terest and without any injury to the er.isting banks in which the State is concerned — and whdst those corporations are deriving income from the cUizeiiS of Baltimore, aud 3 or 4 of the counties, in th3 shape of discounts on loans, to the annual amount of five or six hundred tiiousand dollars, the bank of the State could receive etfective revenue iii other counties to a large extent; and if the sovereign right should be improved to the utmost exteiit of v\hich it is susceptible, it would yield an amount of revenue sufKcieut to enable the treasury lo carry into effect, the adopted systems of edu- cation, colonization and i.nprovement throughout the State. But some will say that "the fru t is not ripe — the time has not arrived for the establishment of a State Bank" — and why not? Do we not want means to improve the inielli- gence of the people and to give an impetus to industry? Andean it be believed that the Legislature will wantonly impose a direct tax upon land and labour to meet the deficit of revenue, while we possess a resource of incalculable value to supply the treasury hy voluntary contributions] and at the same time to extend the benefits of salutary circu- lation throughout the Stale, and to promote the interests of every community, and accelerate advancement of the gen^;- ral welfare? 8 The basis of the conclusion adopled by the committee^ is sustained by a variety of documentary testimonials, and well established facts. From the official returns ot the several Banks of this State, it appears that their loans and discounts are more than twelve to one of the specie in their vaults, while the productive capital in the treasury is of greater value than all the silver and gold in those Banks; and hence it would seem that an institution so strong in its first formation, and which would be so powerfully aided and fortified in its pro- gression, by the invigorationg effects of the public and pri- vate deposits, a sound currency and various incidental ope- rations, would not only nourish and augment the revenue of the state to a very beneficial extent, but essentially promote the common convenience and general welfare. The committee in support of its opinion upon the expe- diency of adopting this proposition, would again refer to* several ot the states in this regard, and more particular- ly as the strongest case in point, to the Bank of the State of South Carolina, which is founded upon the principal proposed, and which through a successful course of twenty years, has more than realized the expectations of its pro- jjctors, and while the neighboring corporations, under the action of private interests, or controlled by avarice or spe- culation, have widely diffused the baneful effects of privi- leged domination m their arbitrary pecuniary restrictions, and ali their consequent embarrassments, distress and ruin, the developments of the political sagacity of South Carolina have conduced to the adoption of similar establishments; and by their progressive operations have given assurances of the superior solidity of the principle, and of the incalcu- lable benefits in public income, and the nutritive influence of its circulations of which it has been clearly proved to be susceptible. Indeed the successful experience of those states has proved conclusively the superiority of an institu tion conducted by officers of the State who are paid for their services and made strictly reponsible to. conduct its concerns for the sole and exclusive use of the stale, over a privileged corporation, managed by directors who are main- ly governed by the desire of gain, and whose chief conside- ration is to obtain its means for speculation. The bank of the State of South Carolina was chartered in eighteen hundred and twelve, and commenced with but little more than one hundred thousand dollars, since which, from successive incidental additions, its actual capital has httn augmeiited to nearly twelve hundred thousand dollars, 9 Upon which it has given to the treasury, an average divi- dend of ten per centum annually, aad reserved a large sur- plus to cover any probable deficiency. The late annual communication of the Governor of that state to the Legislature, is confirmatory of the previous uniform success of its financidl institution. The experiment in Alabama, has been equally succe'ssful and satisfactory. The Bank of that state is entirely found- ed on public capital, to the exclusion of individual stock- holders; its gains in five years were nearly equal to its ori- ginal capital; it commenced in eighteen hundred and twen- tj^-five, with about two hundred thousand dollars, and by surplus profits and incideittal revenues it had increased to nearly fi\e hundred thousand dollars, in eighteen hundred and thirty, while its notes in circulation exceeded^ and its spe- cie funds were nearly double, the entire capital. — In his message, the Governor speaks of the continued success o( the State Bank. In Georgia, also "the experiment has been entirely sat- isfactory," and its operations have largely contributed to en- rich the resources of that state. A distinguished statesman, in commenting upon the sub- ject under consideration, has admitted that 'Hhere can be no question, if the abuses incident to the management of a bank on government account could be avoided, that the best way to raise a revenue would be from the erection of such a bank.'' And why might not the "abuses" anticipat- ed by that statesman be avoided — or why anticipate them at all? Is the cause to be found in the well known fact, that the losses on impost bonds, which are openly taken and collected by a single public officer, who is paid for his services, are far less than those on notes discounted, in se- cret conclave by directors of incorporations, who have no compensation beyond their privileges for speculatim^ Or, that while mal-administration, embezzlements, or defalca- tions, have ruined hundreds of those private banks, and wasted the capitals of as many more, not a cent of actual loss has accrued to any public institution of the character contained in the proposition, although such institution? have been in existence and operation, with full success, for years before such destroyed or deteriorated incorporationsi^ No, indeed, some other cause must be discovered for this gratituous apprehension — and none sufficient, as the com- mittee conceives, can be assigned. — And^while all must be 10 §warfj tl.at the practical success of the great improi'eirieut in contemplation will mainly depend upon the degree of ability and good faith with which the administration of it* affairs ^hall be conducted, to conclude that the requisite ta- lents ahd integrity could not be found in Maryland, would be [6 estimate our population very Ic ^vly — at a rate, in fact, of degradation, which is abhorrent to every patriotic and liberal conception. It has been heretofore assumed that the basis of money, and the medium of currency elected upon the basis, consti- tute the actual fulcritm upon which ig turned the essential lever of national industry, and the adjustment of that mediuru indue accordance to the wants of trade and interchanges, js esteemed to be tbe grand Arcanum^ and primary object , pf every patriot and economist — the principle in question, epubraces, truly, the constituent materials of this im-portant desideratum^ and to the elucidation of that principle, the views of the Committee have been mainly directed; and to- wards that end it would remark, that, among the errors and misconceptions w^hich prevail, in reference to this subjectj tliere is none which is more comm.on than the assumption that an alteration in the quantity of money will be necessa- rily (ollowed by a proporlionate change in the prices of all conimodities; and infinite mischiefs a(id miseries have been inflicted upon the world through thofee errors and miscon- ceptions, as propagated by numeroqs writers on this sci- ence. There would be m,ore of truth in that assumption if the trading universe consisted only of one community; but l^eing wisely distributed into continents and islands, empires, kingdoms and subdivisions, the surpl-ifs money of one sec-; \\oi\ will seek employment in foreign icommerce^ or find in- vestment in the stocks, or estates, of other countries. The most general effect of an increase, or a dmiinution of the currency, is a rise, or decline, in the exchangable value pf rertZ property; and generally^ to an extent, greatly e?:ceeding the degree, or ratio, of that increase, or diminu- tion, while personal chattels, or commodities of commerce.^ are less affected by fluctuations of the currency; and these variant, affects may be ascribed to actual causes, and esta- l)Iished principles, to wit: the permanent and immovable cha- racter of the one, and the wasting or transferable nature of the other. And as the products of the soil are enhanced in price in commercial marts, to the utmost maximum of com« petition, through the natural action of an abundant currency, go are imports, and the fabrics of the country, reduced to ^he minimum of trading profit from the operation of the ii ^anie cause. In j>roof of the prevalence of this prmciple,' and of the verity of these facts, it will suffice to refer to the state of England, or ihe nearer markets of our easterti ci- ties. But [oi all productions the food of tnan is less the subject ot such an influence; and that is owiflg to its bulky nature, aad perishable quality; as if an excess, Or a scarcity, exists, of corn, it will be relatively low, or high in price, without a cornmensurate regard to the abundance, or dearth of currency. Among the various expedients to supply the deficit of ver.ue it has not escaped the vie-.v of the Committee'; thai elfective means might be derived from an increase of the duties on sales by public auction, to the extent of fifty cents' on the hundred dollars, so as to equal the rates of Philadel- phia and New York; but that alternative might affect, inju- riously, the trade of Baltimore. The Committee, in coafirJ matiun of its first opinion, hereii) expressed, would adopt the })iinciple of a Siate Bank, as a measure of revenue, iri preference to direct taxation upon the propert)^ of the couil- try, or a resort to other expedients, which might distract the pubHc will, and prove fallacious in operation. In the construclio!) of the bill provision might b'e riiaide for the emissioD of i'acilities bearing a progressive late of ap- preciation, as exchequer bills or treasury notes, with a vievv to the convenience and interests of remitters in enterprizes of foreign commerce, foreign capitalists desirous of invest- ing money in this State, or of immigrating and settling iri it, or of erecting valuable works among us; as well as for the successive augm 'utation of the ef!ective means of the in- stitution, and the furtherance of the common welfare; and the committee is justified, in the opinions of prcictical tnen; in believing that while those emissions would prove of in- estimable advantage to the adventurous merchant, in avoid- ing the sacrifices which are incident to in excess of supply- in a distant port; thty would encourage the wealthy men of ■ i\lexico and South Am^erica, of ihe West Indies, of Ireland aod Britain, ui Switzerland, and the circles of Germany and Holland; also of France, and Spain, and Portugal, the States of Italy, and perhaps of Turkey, and some other countries, to invest their riches in Maryland, and operate to' produce a favorable preponderance to this State. And it may be fairly assumed that such iacilities would be prefeK red in the market of China to Spanish dollars, from the va- lue they would acquire in the British markets 5f Europe and India, or their factory at Canton—as experience Udti pfoted that the securities of the United Slates are but little below their consolidated debt, commonly called the three per C'^nU consols, and the state's stock, would soon be found equal to the debt of the United StateSj in the British and Dutch markets. The bill, as well, might provide for fouding the current notes at a reduced rate of interest, redeemable at the plea- sure of the Legislature, upon the principle of three per cents, of the United States; the afFct of which would not only en- hance the public credit, and present an available resource in every case of emergent need or exigency, but interpose a strong recuper-itive power to restore the treasures of the State, which have been wasted in former years, and operate most beneficially upon her latent or unimproved resources, to nourish the essential circulation of the body politic. In illustrating the proper merits of this provision, it may be stated, that the three per cents even of England are now worth considerably more than the limitation ivhich is con- templated for funding the issues of the State's Bank; and in elucidatmg the case of the superior value of that denomi- nation of stock, it may be alleged that they are preferred to other investments, by reason of the peculiarity of their foundation, which, in its nature, is durable, and in point of security, is co-equal with the whole State. As the fee in land is superior to any minor estate, so are permanent and fixed annuities more to be esteemed than those of a tem- porary or uncertain character. In either case, the man of wealth adheres to the principle of permanency, as he un« derstands that the invested capital may be re-converted into cash from a permament in preference to a limited or pre- carious property; and the facility of the transmutation, which, in effect, is the vital principle of redemption, is found in practice to be equally available and beneficial, as by its improvement in times of depression, the means of the State's Bank might be employed to redeem the funded ca- pital at the reduced rate of the market, while that capital might be increased in geasons of abundance for the greater extension of the public convenience and benefit. For the full protection of the public interest, it is required that the President and each of the directors, and each and every of the subordinate agents, officers, and servants, shall severally give bond, with sufficient security, for the due and faithful performance of their respective duties and obliga- tions. And for the greater assurance of the general con- fidence, it is also required that the States' Bank shall have IS in its vaultf?, not less than fivt hundred thousand doUan of legal COIN, before the issuing oj arty note^ hill, or other Uability—Sind it is made the duty of the president and di- rectors, so to conduct its operations, that abundant means shall be on hUnd at all times to PJIY IJV SPECIE OJV PRESEJYTATIOJ^, every probable demand on the insti • t a turn. It is not to be regarded as a corporation, but as an actual DEPARTMENT OF THE GOVERNMENT; and, in effect, a mere financial regulation. Always open to the critical view and the examination of the treasurer, and of any committee or deputation oj either branch of the Le- gislature. The followingr abstract has been extracted from the officia statements of the Banks referred to, recently reported to this house. Specie, Loans undDis- counts. Mechanics Bank of Balti- more, Union Bank of Maryland, Commercial and Farmers' Bank of Baltimore, Bank of Baltimore, Marine Bank o( Baltimore, Farmers' & Merchants' Bank of Baltimore, Franklin Bank of Baltimore, 44,951 57 138,080 67 124,296 69 106,607 00 73,052 74 45,452 65 75,328 22 737,408 54 2,444,026 28 681,417 87 1,567,896 77 371,100 43 575,466 16 633,723 73 607,769 54 7,011,039 78 Besides the above, there are the Farmer's Bank of Ma- r}land and a few rainoj- institutions, which might increase the totals of specie and loans perhaps one-fourth or more of each. Those not b^irg required by their charters to report to the Treasurer ot the Western Shore their statements have consequently not been presented. It is as well to be remarked, that the several statements exhibited under dates, varying from December 2, 1834, ta January 12, 1835, during whiq^/ interval of time very con- 14 siderable mutations have doubtless occurred; and it may bb' presumed, that the most favorable day was selected by each institution: from all which it may be inferred, that the ac- tual amount of specie in the Banks of this State, is far be- low the appareat aggregate of their several statements. Now, if il has been proved that corporations, embracing but a very small [)art of the community, with a specie capi- tal of $607,769 dollars, are enabled to extend their loans and discounts to SEVEN MILLIONS ELEVEN THOU'^ SAND AND THIRTY-NiNE DOLLARS and that only in the city of Baltimore, and a small portion of the interior, can it be denied that the State, with a productive capital in the treasury o' more than the DOUBLE of that amount^ and all the property of all the people, could dilfuse her accommo- dations to a much larger amount. The practicability of tlie operation is too plain to be denied; and this resource indeed is available to the extent of twenty millions in loans and discounts, at the least; with a progressive income from year to year — And we will suppose that one half of this amount should be distributed on commercial discounts, or personal accommodations, at six per centum per annum, and the other halt on real estate at five per cent — and that one<.eleventh part be deducted {or all expenses and contin- gencies, which is believed to be an ample allowance — there would then remain a clear annual profit, from this branch of the revenue, of one million of dollars. From this, de- duct the avails of the present investments in Bank Stock, as estimated in the Treasurer's report, and there would then remain an available oalance of $958,262. Which, sup- posing the existing revenne to be sufficient for the support of the government, and the discharge of all ordinary claims upon the treasury, would leave for appropriation the whole of the said available balance, from w^hich apply for litera- ture and education in all its branches, 1250,000, and the like sum for distribution to the counties, in relief of the present levy on assessable property, according to tlie principle of population — making together, for education, and in lieu of the heavy and oppressive taxation on real and personal property, the sum of §500^000, which, being de- ducted from the clear profits of the State's Bank, would still leave, to be distributed for various objects of improve- ment and amelioration, the sum of 5J46'5,261, which exceeds by nearly |100,000; the whole amount of public levies and allowances, as stated the last official return to the House of Delegates; and #iich would prove sufficient, if 15 jiot to cut canals and complete rail roads throughout the counties, to avoid the necessity of that odious compulsory labour which is now exacted, and to perfect the best ordi- nary highways in the known world — which, in their course, v/ould drain our lands, and essennally improve our climate in salubrity. The sceptic may say, and truly say, that this is all mere supposition — but it is, indeed, a supposition which experience has proved may be reduced to an extent ot "convenient and beneficial" practical operation com- mensurate to the degree of intellectual powers and corpo- real energies which may be employed in carrying into effect the contemplated principles. To achieve in practice these desirable improvements, it is provided in the bill, that no more than Jour per centum upon the capital of the public bank shall be semi annually extended to the credit of the Treasury, and that one-fourth of that extension shall be invested in succession, for the redemption of the State's debts, so that a clear balance of six per centun^ upon the capital, will annually accrue for every object of general charge, or munificence. The ex- cess to be successively added to the capital, under the title of THE GENERAL FUND, the avails of which to be distributed to the several COUNTIES, and the City of Baltimore, in the proportion of population according to the last preceding^ census, to be disposed of under the di- rection of the LEYY COURT or COMMISSIONERS, or MAYOR AND CITY COUNCIL, as the case may be, towiirds the defraying of the current charges of the said Counties, or C%, and for the support of education or public improvements^ in the discretion of the said Levy Courts, Commissioners, or Corporate Authorities, as afore- said. Now suppose that, from the specific provisions of the bill, the effective capital of the State Bank shall be made good for five millions of dollars — say $5,000,000 The semi- annual dividends of 4 percent, will amount in the year to 400,000 Of which reserving one fourth for a redeem- ing fund, 100,000 There would remain fbr the exigencies of the government, |300,000 But suppose that the semi-annuaf profits shall amount to six per centum^ (and this supposition is more than justified 16 by the experience of other states) there would remain an excess for THE GENERAL FUND, the avails of which to be distributed to the several counties and the city of Bal- timore, as follows— to wit: For Capital. For Avails. For the first year, 200,000 00 For the second year, 400,000 00 12,000 00 Fur the third year, 600,000 00 24,000 Oi) For the fourth year, 800,000 00 36,000 00 For the fifth year, 1,000,000 00 48,000 00 For the sixth year, 1,200,000 00 60,000 00 For the seventh year, 1,400,000 00 72,000 00 For the eighth year, 1,600,000 00 84,000 00 For the nimh year, 1,800,000 00 96,000 00 For the tenth year, 2,000,000 00 108 000 00 And so progressively that within the lapse of no very ex- tended period of time, the entire distribution anticipated in this report, might with confidence he expected to be realized. For illustration of the benefits to he derived from the employment of the State's Treasury notes, or exchequer bills, to be viewed in contrast with specie dollars. Suppose an adventure to INDIA or CHINA, arid state the following pro-Jormay to wit: For brokerages, packages, drayage,, and other petty charges, with freight and commission to the captain as per- custom-r-Insurance, to say nothing of the extra hazards of piracy and plunder in the employment of silver — altogether six per centum, 6 For gain on the daily appreciation of one cent, on the hundred dollars for the year, 3 95 Premium on exchange in India or China' — which may be estimated at 1 35 Making together a total of twelve per ceu fum over specie, 12 00 Which, of itseU, is a fair profit on an operation of that character, and eqaivalevt to a PROTECTING TARIFF IN FAVOR OF THE STATE to that amount, over and above the ordinary gain of the operation. The superior value of such facilities, in foreign markets, Kas been confirmed, hy authentic proof in the British Par- liament, shewing that the notes of the Bank oj the U. States 19 Carolina, in speaking of the beneficial effects of the public bank of that Stale, after the test of many successn^e years, to the entire approbation of its founders, says, **This should be satisfactory, and certainly ought to operate as a check to anj fanciful and untried scheme of improvement" — here it would not seem to be any longer a mere experinipnt. In a previous letter from the same Ex-President, to a member of the Legislature of Pennsylvania, he explains the mean- ing of an important provision in the Federal Compact, b} saying, the evil which produced this prohibitory clause was the practice of the states in making '^bills of credit," and in some instances appraised property a "legal tender " If the notes of the State Banks be not made a ^'le^al tender," they do not fall within the prohibitory clause. He refers to a number of the Federalist on that subject, which, he says, "with other cotemporary expositions, and the uninterrupted practice of the States in creating Banks, without making their notes a legal tender, would seem to be a bar to the question, if it were not inexpedient now to agitate it" — and "a virtual, and it is hoped, an adequate remedy may be found in the refusal of debased paper in any of the federal transactions." This testimonial, coming, as it does, from a source so high, and from an authority so compe- tent to determine, may be considered as conclusive upon a point, whichj to many, has appeared to present an insu- perable barrier. In further support of the doctrine advanced in this re- port, the committee would submit the following testimonials of public characters: Extracts of letters, received by the Chairman of the Con^^ mittee on Ways and Means, from Representatives in Con- gress, upon the STATE BANK question — to wit; 1st. From a Senator of the State of South Carolina, Washington, 4th Feb. 1832. Dear Sir,— I huve just received your letter, accompanied by a re- port, on the subject of State Banks. My business will not permit my going at large on the subject. You are right in sayin5 that "the Bank of the State of South Carolina, of which the State is the sole proprietor, has succeeded well." 20 From fhe ]%[^ §Q?pvr^or of South Carolina, now a Senatop in Congress. Washington, Feb. 11, 1832, My Dear Sir, — I received your esteemed letter, together with your re- port, qppn the subject of a State Bank in Maryland. The scheme proposed conforms very much with the character of pur bank, from which we have derived large annual profits since its establishment, nearly twenty years ago — and th& %Dhale focal concerns of cur Slate are passed through the, public Bank, which belongs to the State exclusively. South Carolina.— Governor James Hamilion, jr. trans- fnitted the usual message to the Liegislature on the 29i\\ Nov. congratulating that body on the f^bundant productive- ness Qf the State Bank. f ^om ^ member of the House of Representatives of the State of South Carolina, in Congress. Washington, Feb. 8th, 1832. Bear Sir, — ' I have not the means of giving you particular informa- tion regpecting the Bank of the State of Soutii Carolina; and can only say, in general terms, that the views presented i^n your report on that subject, are correct. From other autheniic information, and official documents^ it appears that the success of the State Bank of South Ca- rolina, has been continuous and uniform throughout a course of nearly twenty years; during which it had to encountgr the trying fluctuations of the money market, which brought the Bank of the United States to the very verge of disso- lution, and all the revolutions and vicissitudes of trade and commerce, from 1812 to the present time, including the disastrous years of 1819, '20, '25, and '26, from which it s^j^ms that the intrinsic merit ,and solidity of principlc,haye Jie^n the main pillars of its support. From a Repre^entg^tive of the State of Georgia, House of Representatives, Feb. 4th, 1832. Dear Sir, — 1 have received your report, and think the conclusion to which you come irregietible. You may not succeed now but the day is no| far distant when you will— apdj^ if it shall 17 yim ii( A PREMIUM in the port of CANTON for teinib tances to Europe — and it might be affirmed without the fedr of refutation, that if the issues of a corpbation without in- terest, and deperiding solely on its chartered, or fictitioii§ capital, are so esteemed, the securities af a swereigii ^tali'^ founded upon a specie basis of large amount, whose trea- sury HAS NEVER WITHHELD A LEGAL CLAIM FOR A SINGLE mIoment, and whose credit has never beei* impaired by THE SMALLEST IRREGULARITY; and which,in effect, are sus- tained by hundreds of millions of substantial and produc- tive properly, would be surely entitled to a higher scale of estimation. And when it is considered that the same se- curities are also convertible into a denomination of stocky which is most desired by the foreign capitalists, it could tiot be doubted that, when properly presented and understood by the intelligent exchangers, they would be largely acciept- ed for Briii'sh Sterling, the francs of France, Marcs Bahcdj and Guilder liills— and the more especially^ as, dver arid above the demand for investments for lorei^n holdei-s, there are always persons in England, or in Scotland, and iri Havre de-Grace, or in Amsterdam, or Hamburg, and iri other parts of the Enropean continent, prepared for emigrat- ing to this country, who would seek facilities of that ds- scription, and thus contribute to concentrate commerce iri the chief emporium of Maryland. And, furthermore^ the privilege of funding, as adverted to, would also attract the persons and property of distant regions, and affotd a re- source for the surplus means of individuals, and a safe iri* Vestment (or widows and orphans, or estates in trust, tvhich is common object of desire. And availing oi the right to purchase one or more of the . inonied institutions, so as to reduce the aggregate of that capitil; a.id, at the same time, to augment to the same ex- tent, the effective action of the people's bank, the expe- rience of others would justify the expectations of revenues^ and all the benefits which are intended to be illustrated. The extension of loans upon real estate, so that evei-jr proprietor may become a banker to a limited aaiountjis alsd one of the provisions of the bill. This principle, and the general operation ot its good el"- fects and tendency, are set forth in a report to the Legisla- ture, at December session, 1830. And the committee might adduce the evidence of innu- merable authors to demonstrate the truth; and to justify the bxpcdiency of this proposition. On perusing the eailj^ 3 liistory of our country, it will be found in every instance without exception, that wherever the cuhivation was aided by the facilities of loan offices, the progress of intiprove- ment was astonishingly rapid, 'not only in agriculture, but in commerce,' whilst, on the contrary, wherever those insti- tutions were not established, the land lay mostly unculti- vated — agriculture and commerce n^adeslow advances, and the needy inliabitants were kept in wretched indolence " The celebrated work of Sir James Steuart, on political economy, is strong in support of thi's position. In countries where a scarcity of the circulating medium prevails, credit, he says, must be little known; and those who have solid property, find it difficult to turn their commodities into mo- ney, without which industry cannot be carried on, and every improvement is disappointed. Under such circumstances it is proper to establish a bank which must issue upon land and othei securities. Of this nature are the banks of Scot- land, and to them the improvement ot that country is en- tirely owing, so says the learned author. Referring to a report in the Legislature of an eastern state, to demonstrate the advantages of such institutions to industry and trade, and the whole economy of national welfare, the committee might truly aver, that the currency which is proposed as a medium ot circulation, can only act as the representatives of coin and public credit. This sys- tem of credit has now become indispensable in all commer- cial countries; it is the most powerful agent in generating and accelerating' the prosperity of a nation; it essentially increases the active capital, which^ in turn, extends the pro- ductive labour, and in producing commodities for exporta- tion, tends to a favourable commercial balance. Together with the influence of our free institutions, an adequate supply of the circulating medium is all essential to develope the resources, and call into action the effective energies, of the body politic. A free government is pecu- liarly adapted to the^ prosperous existence of such institu- tions; and to make them productive of the greatest advan- ta^es, tiiey must be established upon 'liberal principles for the good of all, and not for the benefit of a privileged order or a favoured few. In writing to the Chairman of a former Committee on the subject, an enlightened member of the Convention which formed the Constituiion of the United States, and who sub- sequently presided as Chief Magistrate, says* — ^'Your expe- riment will be interesting, whether its results be a guiding ^1 a warning light." Tb€ Comptroller General of South 28 Alabama, by which it appears that it has given to the trea- sury, during the last year, upwards of eighty six thousand dollas. — [^See the above exhibit.] Subsequent statements have manifested the continuous success, in an increased ratio, of the BANK OF THE STATE OF ALA BAMA ;and although the official accounts for the last fiscal year have not been all received, sufficient information has appeared to prove that the Capital has been augmented dif- fuse the benefits of a high and valucdile prerogative to the whole people, a>ndnot to the profit of a favored few cr privi- leged order. It is, in fact» substantially a NATIONAL bank of DEPOSI TE anJ EXCHANGE, without ih^ fa- culty of discmintin.r or circulation, in connection \Yith a system of State Imlilulions for the keening and distribution of the Federal ilevemie under guards and guarantees com- mensurale with the wealth and credit of the States respective-' ly — to each of which it icould impart a rich resource, and alford the means of extensive acconimodations to their p. ople^ and of promoting ihcir improvements, and the general ame- lioration of every class and interest of Society. A d while such a svsiem would tend lo enlarge the specie basis, and adapt it to the common uses aiul d raa^ids of labor, and the minor concerns of the country, the JYational Currency would supply the facilities of commerce and interchanges in large transartions on terms convenient and economical. — And, although the making- of paper a legal fender in private contracts may be interdicted, the allowance of such a cur- rency in all payments to the National Treasury would seem to be sanctioned by the Constitution of the Union — the principle, indeed, has been admitted in a species of curren- cy main^y analogous to the oroposed emission, to wit — thQ Treasury notes; the States would doubtless, from policy and interest, extend its functions in the collection of their reve- nues, and make it convertible to Gold and Silver. From the operations of a practicable system, efficient only for dispensing good, and wwithout the objectionable principles and dangerous poviers oj the existing niomyed monopoly ^{Iw energies of the nation would be restore 1 lo their wonted vigor and elasticity — and the certain dissolu'ion of t/iat monopoly would be INSURED BY THE ^-TRONG CEN- TRIPEFAL POWER OF THE PUBLIC WILL— the direct effect of a measure so palpably replete with hmefds, would, indeed, be resistless and conclusive. Here follows a plan to establish the Monetary System, and regulate the Currency of the United Siates, according to the following bases and principles: 1. Five commissioners to be appointed by the President and Senate, to act in conjunction with other commissioner?; 29 io be appointed by the States, to constitute a Board of Cur- rencij, to sit at tlie sent of the General Government . 2. The board to devise and prepare a national currency in convenient dtnominations from JO to 1,000 dollars, to be apportioned among the States in the ratio of their electoral votci^ not exceeding one hundred thousand dollars for each Sena or and Representative in Congrees. 3. Each of the States, assenting to the system, to receive its contingent of the currency upon tlie p;iyment of one per centmn on the amount required, and contracting to pay ;n like manner, annually thereafter, and providing not less than onefourtii of that amount in the legal coin of the Uni- ted States, as a basis of its operations. 4. The assenting States to a[)[)oinl one commissioner lo the board, and one in addition for every ten of its electoral 'vdtes over three, de^lucting tlie number which may h-ive been appoined from such State by the President and Se- nate. 5. The principal institution of each of the States to iiave the custody and provide for the transmission and didniYse- ment of the public moneys, and jor exchrmges betv;een the States, under such conditions and regulations as t'le Con- gress may prescribe 6. The national currency to hz made receivable in all pay- ments to the United States at each and every of ike instiiiL- iions and at all their braw hes and departments^ without re- gard to its place of cu.ission or redemption. 7. The board to have and to exercise a visitorial and su- pervisory control over the institutions of the States in all their branches and ramifications; each to be visited and inspected by a deputation of the board, once in every six months at the least. 8. The assenting States to be severally and distinctly re- sponsible for their appropriate contingents of the currency^ and for the faithful admi7iist7'ation of their respective insti-* tuiions. 9. The commissioners to receive an adequate compensa- tion for their services, and fair allowance for itmerant charges; to appoint and pay their secretary and other naces- sary officers and servants; and to take security for their good conduct, and the due discharge of dieir proper duties. 10. The secretary to receive the per centage to be paid by the States, to make all needful disbursements under the direction of the board, and to account to Congress for any balance which might remain. 30 11. The proceedings of the board lo be open to the in- spection of either House of Congress, or to any committee thereof, and the right to raoaify, or repeal the act to be re- served, subject to the fulfilment of existin^^ engao^ements. 12. The board to consider all subjects connected with the curiency in relation to the interests of agriculture, ma- nufactures, and commerce, which might be charged upon it, and report thereon to Congress from time to time. States. Maine, Nev-v Hampshire, Massachusetts, Rhode Island, Connecticut, Vermontf New York, New Jersey, Pennsyivanifi, Delaware, Maryland, Virginia, North Carolina, South Carolina, Georgia, Kentucky, Tennes«ee, Ohio, Louisiana, Indiana, Mississippi, Illinois, Alabama, Missouri, ILLUSTRATION. Proportion of Nat. currency. 1,000,000' 700,000 1,400,000 300,000 800,000 700,000 4,200,000 800,000 3,000,000 300,000 1,000,000 2,300,000 1,500,000 1,100,000 1,100,000 1,500.000 1,500,000 - 2,100,000 500,000 900,000 400,000 500,000 700,000 400,000 28,800,000 Coin. 250,000 175,000 350,000 100,000 200,000 175,000 1,050,000 200,000 750,000 75,000 250,000 575,000 375,000 275,000 275,000 375,000 375,000 525,000 125,000 225,000 125,000 125,000 175,000 100,000 7,200,000 RECAPITULATION, National Currency, Federal Coin, $28,000,000 7,200,000 Effective capital. $36,000,000 31 To further elucidate the matter, the Committee will submit some brief remarks^in nuraerical ortler, with reference to the several points of the- proposition: — 1. The Commissioners as contemplated would constitute in affeet a Financial Congress, of infinite value — eminating chief!}' from the Spates, they could not be wielded by any department of the General Government to advance the views of any party — from ntdi an influence they ivould in- deed be free by their tenure of office — the nature of their operations — their guarded 'powers and prescribed dutitSy as provided by the bill which will appear in the sequel of this proceeding. 2. It is to b3 understood that the national currency is not intended for the common purposes of money^ but as zi\ auxilia- ry to the specie basis , r.na mainly to supply the facilities of Commerce^ cku(\ inter (hi'riges in large transac'ions in aid of the issues of the public institutions oj the several States — ^And although the hmit for the entire Union is apparentlv too much contracted, the proportion of Maryland being only one million of dollars, yelthe amount authorised is greater than the circulation of the Bank of the United States has ever been. If, however, it shull be decided by the supreme judiciary that the States cannot "emit bills of credi/' either in their sovereign character, or by delegation of individu- als, then it may become necessary to supply the vacuum which would result from such decision by a further crea- tion of the currency. 3. The required payment of one per centum by the States is intended only to cover charges, as the currency being merely a measure of value could not justly be made a sub- ject of Federal Revenue — with eq lal propriety might the States be taxed for Scales and Weighis — or Quarts and Gallons, or other Measures either of length or capacity — and even that percentage might be reduced by one half, af- ter tHe first year. The rtqusition of one fourdi in coin is esteemed sufficient; but, being the minimum^ if found in- sufficient^ the States vvGuld necessarily increase it to sus- tain their respective institutions. 4. The smallest State would be entitled to a representa- tive, and the largest to four, subject to the restrictions of the bill-and although the body might appear too numerous, yet that objection would disappear, when it should be con- sidered that a large portion of its members would be em- ployed in visiting and inspecting the institutions, whilst oth- 32 ers would be engagf-.d in considering the subj^'cts referred to them by either brauoli of Congress, beside the ordinary business of the board. 5. The custody of the Federal treasures could not certain- ly be mote safeiy placed than uuuer the guarantees of the States in their appropriate institut ions, ?ind the benefits to arise from the deposiies could not h'^ mrtTe justly disposed of thiin by such distribution, to the ivhole people. The u aas- inissions and disbursements could be surely effected, under the direction ot the Bocird of Cmrv:{\cy^ hy the public iiutltii ■ tions 'of the Stales, us well as by a private corporation and its branches. Th? practicability of the operation is proved in advance b}' the ease and safety of our revenue , sy>tem in contrast witli tLe frequent erabarrasments and losses oj suck corporations. 6„ The national currency would be receivable in all tlie States as aie the notes of the present mis-namc(? Bank of the United States. 7. The mode of exercising a visitorial and supervisory control over the institutions of the States and all their de- partments by a deputation of the board— so eminently cal- culated to inspire a compliance with the required conditions — uniformity of proceeding, and the most beneficial action, is fully and distinctly detailed in the bill. 8. Beside their responsbility for the custody, transmission and disbursement of the public moneys, the Slates are re- quired to be answerable in their sovereign chaiacters for the currency, and for its redemption on demand in silver Or gold, under conventional drrangements and sufficient gua. jantees, 9. The expenses of the board would be in truth but a small advance [ov a GREAT BENEFIT, and might justly be regarded in the light of seed sown for a RICH liAR- VEST. The Commissioners would properly .appoint their necessary officers, and take sufficientsecurity for theif good conduct. 10. The Secretary would receive the contributions; and, after defraying the expenses under the direction of the board, would account to Congress for any surplus, which would be considered in the graduation of the necessary per eentage. 11. The board being entirely a public department, its pro- ceedings would be open to Congress, and subject to any alteration or modification which experience might sug- gest. 33 ^ I2. Over and above the duties of the board, in the, cha- racter of a Financial Congress, it would be peculiarlj? adapted to investigate the great interests of Agriculture, Manufactures, and Commerce, in iheir various relations as connected with the main object of their Constitution, and to report thereon from time to time as might be required by either branch of the National Legislature. The project of a law was, consequently, reported as the organic act of the Code of Currency in conteniplaiion — as loliows, to wit: A bill to creatiB a National Currency, and to provide for the custody, tian.>mission, and disbursement of the moneys of United States. Be it enacted by the Senate and House of Representatives of the United States of tdmerica in Congress assembled. That whenever any five of the several States, by legislative enactments, shall huve assented to the provisions hereinafter contained, and certified their assumption of thf^. obligations therein enjoined upon them to the President of tbe tlnited Stales, it shall be the duty of the President to .nominate, and by and with the advice and consent of the Senate, to appoint five persons to act as commissioners, in conjunction with other commissioners to be appointed by the States, as hereinafter provided, to constitute a Board of Currency to sit at the seat of the General Government, and to serve for five years; the seat of the first named of the said persons to be vacated at the expiration of the first year; of the se- cond, at the expiration of the second year; of the third, at the expiration of ilie third year; of the fourth, at the expi- ration of the fourth year; and of the fifth, at the expiration 01 the fifth year, so that one of the said commissioners shall be appointed every year; Provided, That any o^ the said persons may be renominated and reappointed for five years as aforesaid; and if vacancies happen by resignation, or otherwise, or if the assent of any five of the several States shall be received during the recess of the Senate, the Pre- sident shall have power to fill up the same, or to appoint the commissioners, as the case may be, by granting commis- sions to expire at the end of the next session, and the said persons shall be severally subject to suspension by the board, and to removal by the President, for misconduct or neglect of duty, upon the concurrent vote of both Houses of Con- gress, and dnot otherwise. 34 § 2. That e&icli of the States, haTing assented and certi- fied as aforesaid, shall be entitled to appoint one person as commissioner to the Board of Currency, and one in addi- tion for every ten of its electoral votes over three, deduct- ing the nuD-ber which may have been appointed from such State on behalf ot the United States, to serve for five years^ as aforesaid; the seat of the first named of the said persons as they shall have been received from the States, to be va- cattd at the end of the first year, of the second at the end of the second year, and so on in succession, that the board may be divided, as nearly as may be, into fiVe classes, so that one-fifth shall be appointed every year; and the said persons shall be subject to suspension as aforesaid, and re- moval by the States, respectively, for misconduct or neglect of duty as aforesaid. § 3. That the said commissioners shall have power to' elect a president for one year, and annually thereafter; to appoint, pay, and remove their secretary and other neces- sary ofl^cers, or servants, and to take security for their good conduct and the due discharge of their proper duties and obligations. § 4 That each of the commissioners, and their presi- dent, secretary, and other officers and servants, before en- tering upon the exercise of their respective functions, shall severally take and subscrfbe an oath, before some person' competent to administer the same, for the honest and punc- tual discharge of their several and respective duties, under the provisions of this act §5. That it shall be thednty of the said conimissiorers to devise and prepare a national currency, to be printed on both sides, in convenient denominations for interchanges or remittance, not being less than ten dollars, nor exceeding, in the whole, twenty-eight millions and eight hundred thousand dollars, and to register and distribute the same upon appli- cation as hereinafter provided, to the several States, in the ratio of one hundred thousand dollar's lor each and every vote to which the States so applying, respectively, may be entitled in the election of President and Vice President of the United States, to be disposed of by the said States un- der such regulations a« they may exact, not inconsistent with this act, nor the rules and ordinances of the Board of Currenc} to be constituted in virtue thereof. § 6. That the said currency shall be redeemed, upon de- mand, at such places, lesjiectively, as may be expressed on- tlie lace thereof. 35 § 7. That the said currency shall be signed, in behalf of ithe United States, by Ihe president and secretary of the 'Board of Commissioners, to be appointed in virtue of this act, and countersigned by two of the principal officers of the financial institutions of ihe several States, respectively, in which the same shall be distributed and made redeem- able. § 8. That the currency shall be transferable by delivery and .endorsement of the Treasurer, or principal Treasury officer of the State to which the same shall be apportioned, and made receivable from any person who may be entitled to pay the same; and the said currency, wherever made re- deemable, shall be every where received in all payments to the United Stales. § 9. That if any person shall falsely make, forge, or counterfeit, or cause or procure to be falsely made, forged, , or counterfested, or willingly aid or assist in falsely making, forging, or counterfeiting any note, writing, or engraving, in imitation, or purporting to be a part of the currency to be created in virtue of this act, or shall falsely utier, or cause or procure to be falsely uttered, or willingly aid or assist in falsely uttering, any part of the said currency, or shall pass, utter, or publish, or attempt to pass, utter, or publish, as true, any false, forged, or counterfeit note, purporting to be a part thareof, knowing the same to be falsely forged or counterfeited, or shall pass, utter, or publish, or attempt to pass, utter, or publish, as true, any falsely altered note or currency as aforesaid, knowing the same to be falsely altered, every such person shall be deemed and adjudged guilty of felony; and, being convicted by due course of law, shall b« senlencod to imprisonment, and kept at hard labor for a pe- riod of not less than three nor more than ten years, and be fined not exceeding five thousand dollars. § 10. That twenty thousand dollars, to be paid out of any money in the Treasury not otherwise appropriated, be, and the same is hereby appropriated for defraying the expenses of preparing, engraving, printing, signing, and otherwise incident to the creation of the currency authorised by this act. § 11. That each of the States, having assented and cer- tified as aforesaid, shall be entitled to receive a portion of the currency hereby authorised to be created, not exceeding the limitation prescribed herein, upon the requisition of Us Executive, and the payment of one per centum on the amount required, with a contriKt duly executed by the 36 Treasurer or principal Treasury officer of ihe said S\^i^^ tb pay in like manner, annually thereafter, unless the sam^ shall be reduced by Congress, and then to pay the peif centage as thus reduced, and to provide a specie capital of not less than a fourth of the said portion of currency in the coin of the United States, oi such foreign coins as may be authorised by law, as a basis of its operations and a secu- rity for the public moneys which may be committed to the institutions of the said States respectively. § 12. That the currency to be created in virtue of this act, shall be receivable in all payments at each and every of the institutions of the several States in contemplation of this act, and at all their branches or departments, without regard to the proper place of its creation or redemption, for which piirpose it shall be the duty pt the said Stales to make provisions accordingly. § 13. That the fiscal institutions of the said States to be established with a view to the purposes of this act, shall have the custody and provide for the transmission and dis- bursement of the moneys of the United States, and for ex- changes between the states, under such conditions and reg- ulations as the Congress may prescribe; and the said states shall be severally, distinctly and irrevocably responsible tp the United ' States, for their proportions of the currency, which shall be made payable, by their enactment?, in the proper reveriues of and in all payments to the said states, ffnd convertible oh demand, at their respective institutions into coin as aforesaid; and in case the payment, or conver- sion into coin as aforesaid, shall be refused, at any of the ?aid institutions, the bearer shall be entitled to recover the amount demanded fporn such institution, in any court hav- ing jarisdiction thereof, with interest thereon, at the rate of ten per centum per annum from the date'^of such demand until paid and satisfied; and in case the person having the right to such demand shall fail to recover, in due course of law,'the amount thereof from such institution, or any part iher'ebf, it shall be lawful for such peason to receive therefor or for any deficiency or unsatisfied part of the said demand, H certificate or certificates of fuo'led stock, bearing mter- est at five per centum, from the first day of the calendar month next ensuing that on which the said claim shall be presented. And the stock thus to he issued, shall be trans- ferrable in the same manner as the funded stock of the Uni- ted States — the interest on the same and its reimbufSemenL shall be effected out of such fund as shall be established by W (nv that Durpose. And the faith of the United Stetcs is 37 hereby pledged to establish sufficient revenues and appro- priate tliem for effecting the purposes atoresaid: Provided, That it shall be lawful for the United States to reimburse, the stock thus created at any time after two years from the issuing theieof § 14. That each of the institutions of the assenting States as aforesaid, before they shall be employed as depositories of the public moneys, shall agree to receive them upon the following conditions, viz: Firsts to pass as specie, all sums deposited therein, to the credit of the Treasurer of the Uni- ted States, and to pay all checks, warrants or drafts, drawr^ on such deposites, in specie, if required by the holder there- of. Secondly, to give, whenever required by the Secretary of the Treasury, the necessary facilities for transferring the public funds from place to place, within the United States andi Territories thereof, and for distributing the same in pay-? nient to the pnblio creditors, without charging any comnnis- sion, or claiming any allowance on account of any difference of exchauge or otherwise. Thirdly, to furnish to tlie Se^;- retary of the Treasury, from time to time, as often as he may require, not exceeding once a week, statements of its con- dition and business, setting forth the amount of capital paid in, and of the debts due to the same, of the moneys deposit- ed therein, of the notes in circulation, and of the specie on hand, with such other information or details as may be re^ quired by the said Secretary: and shall also furnish to the Treasurer of the United States, a weekly statement of his account upon the books of the institution. § 15. That in case any of the said institutions employed as a depository of the public moneys, under the provisions of this act, shall fail to comply with any ot the duties enjoined upon them, or assumed by the state to which the same shall appertain; or if it shall appear, from the periodical state- ments of any ot ihe said institutions, or from personal in- spection ofils affairs, that such institution is an unsafe de- pository of the public moneys, the board shall proceed to state the facts to the Secretary of the Treasury, whose duty it shall be, with the approbation of Congress previously obtained, if in session, and if Congress be not in session, to discontinue such institution; and in case of the discontinu- ance of any of the said institutions in the recess of Congress, it shall be the duty of the Secretary of the Treasury to re- port to Congress, at the commencement of the next session, the facts and reasons which induced such discontinuance. § 16. That the Board ot Currency, by one or more of its commissioners, shajl have and exercise a visitorial and super- 38 ,vi8ory jeontrol over the .institutions of the se.yeral states, i^i the contemplation of this act, and all their branches and ramifications; and it yhall be the duty of the said board, b j deputation as aforesaid, to visit each and every of the said institutions, once in every six months at least, and thorough- ly to inspect the affairs of said institutions, to examine all the books, papers, notes, bonds, and other evidences of debt of ithe said instituiionsj to compaie their funds and property with the statements to be made by them according to the provisions of this act, and generally to make such inquiries ,and exemination as may be necessary to ascertain the actual condition of said institutions, and their ability to fulfil all en-- gagements made by them. § 1 7. That the said commissioners or either of them, shal 1 :have power to examine, upon oath, all the officers, servants, or agents of said institutions, or any of them, or any other person in relation to the affairs and condition of said institu- tions; which oath the said commissioners, or either of them are personally authorised to administer. § 18. That in case the said commissioners shall ascertain from such inspection and examination, or in any other man- ner, that any of said institutions have violated the provisions of this act, the said commissioners shall immediately report ithe facts ascertained from such inspection and examination, jor otherwise, t > the Secretary, who shall proceed torthwith, as shall peem expedient, to protect the public fiom loss or damage, according to the provisions of this act, or the ex- isting laws of the United States. § 19. That it shall be the duty of the said commissioners, in the month of December, in every year, to report to Con- gress the manner in which they shall have discharged the duties imposed upon them by this act, and to accompany their rej)ort, so to be made by them, by such other state- ments and abstracts as they may deem to be useful to the public interest. § 20. That the said commissioners shall not disclose the names of the debtors of any of the said institutions which maybe examined by them, nur any infoimation obtained in the course of such examination, unless required in a court of justice, or in some proceeding authorised by this act. § 21. That every officer, agent or clerk of the said insti- tutions, who shall make false statements or false entries in the books of such institutions, or shall exhibit false papers with intent to deceive the said commissioners as to the con- dition of such institution, shall be deemed and adjudged to be guilty of felony, and upon conviction thereof^ in due 39 Course of lav^, shall be sentenced to imprisonment aiirf kept at hard labor, for a term not less than .three nor more than ten years. §' 22. That it sfhali be the duty of the Board of Currency to devise and ordain all necessary rules and ordinances for the convenient transaction and good government of th^it* operations, and to secure the observance of this act and all its provisions by the several States thereunto assenting, and for the faithful performance of their several duties and obli- gations, and to require such statements, from time iQ time, as may be deemed essential to the due protection of the pub- lic interest, for which purpose the said commissioners shall have power and full aiilhority, by and in virtue of this act. § 23. That the Secretary shall receive the per centage to be paid by the states; make all needful disbursements thereof, under the direction of the Board, and account to Congress for any balance which may remain. § 24. That each of the members of the Board of Curren- cy shall be entitled to receive dollars per diem, for the time necessarily employed therein, and dollars for every tweaty miles of ftecessary travelling on the business of the board. § 25. That the District of Colombia and each of the Ter- ritories of the United States, shall be entitled to a contin- gent ol the currency to be created by this act, under such conditions and limitations as may be enacted for such pur- poses; and whenever any of the said Territories shall be ad- mitted into the (Jnion,thc same shall be entitled, as a state,' to all the benefits and immunities of this act, and the amount of the currency shall be commensuraiely increased' for that purpose. § 26. That it shall be the duty of the Board of Currency' to keep fair records of all their proceedings, and the same*^ ahall be open to the mspection of either House of Congress; or any committee thereof, and the right to modify or repeal this act, or any of its provisions, shall be reserved, subject to the just fulfilment of any unsatisfied engagements. § 27. That it shall be the duty of the board to consider all subjects connected with the currency in relation to the rnteres-ts of agriculture, manufactures, or commerce, which' may be charged upon tliem by either Hbuse ol Congress, and' report threon from time to time. § 28. That a majority of all the commissioners shall ht necessary to constitute a quorum for stransacting the gene- ral business of the board, but any six of the members, wi^h 40 their president, may transact the ordinary business, in con- formity to the rules and ordinances. § 29. That in case of sicknees or necessary absence of of the president, he shall designate a member of the board to act as president pro tempore, for ordinary business; and in default of such disignalion, the board, any seven mem- bers being present, nfiay elect a president pro tempore. From the foregoing it will be seen that a connection of in- stituti ms belonging to the States exclusively, ov such as they will becojne responsible for^ is contemplated. And it is not to be supposed that such lesponsibility would be assumed without an entire, or principal interest in the capitaly the ^General Fund' of the State's Bank. Sec. 25: ^^nd be it enaeted, That whenever an act shall have beea passed by the Congress of United States according to the principles of the proposal herewith re- ported, entitledf biil to create a national cur rency\ and to provide for the custody, transmission^ and disbursement of the moneys of the United States;'^ then, and in that case, it shall be the duty of the Governor and Council to certify to the President of the United States, the assent of this state to the provisions of the said act, and the assumption of the ob- ligations therein enjoined; and the said obligations are hereby assumed in* consideration of the benefits to be en- joyed by the people of this state from the distribution of the national currency^ and the public moneys to be deposited^ as contemplated by the said bill.