Edward Shippen to Biddle

(Confidential) . Louisville 6 Dec. 1831 Dear Sir

I have seen a letter from the Private Secretary of the President to a gentleman in this City, in answer to a communication addressed to the President on the Subject of a renewal of the Bank Charter. The substance of that letter is, that the Pres^ does not consider himself pledged against a renewal, and that if Congress passes a Bill with proper modifications of the Charter his approval will not be withheld.

I have taken some pains to ascertain the objections to the present Charter, and the modifications which it is thought will insure the Executive sanction. I give them to you with the only object of putting you in possession of the views held on this interesting subject by those who are deep in the secrets and favor of the President.

I^st Prohibit the establishment of more than two Branches in each State.

2. The Stock now owned by government to be sold to in-

dividuals, in a manner that will prevent a few persons from monopolizing it. The Sale of the Government Stock will satisfy many in the North, and remove the existing objection of the President to a partnership between the Gov. and a Corporation.

3^rd Limit the power or capacity of the Institution to hold real Estate. Say, the value of that description of property in possession of the Bank shall not at any time exceed 10 or 15 millions of dollars.

4. Take from the Corporation the power to loan money on a pledge of merchandize.

5. Give to the President and Directors of the Bank authority to appoint two individuals to sign all the notes issued (for the President & Cashier) and let all the paper emanate from the Mother Bank.

6. The existing provisions in relation to Government deposits, and Direction of the Bank, to be preserved.

7. Render the Corporation Suable in the Courts of the Several States by making the service of process on the President or Cashier of the Branch, & where the cause of action arose, a service on the Corporation.

It is believed that the modifications suggested will ensure the renewal of the Bank Charter. They are not calculated to impair the usefulness or efficiency of the Institution, and if proposed by the Corporation, they will really be adopted by Congress. By proposing the necessary modifications, the Bank will strengthen herself with the people, prevent an angry discussion in Congress, which might result in making the question of renewing the Charter a party test, and ensure the sanction of the Executive to the modifications solicited by the Bank, and adopted by Congress. I give you these suggestions and opinions only on account of the source from whence they emanate. They are urged with apparent zeal in favor of the Bank, and altho' I am forbidden to mention names I have no doubt it was expected I would communicate their ideas to you.

My own opinion is that the object is entirely political. The popularity of the President must fall in the West,¹ if his hostility to the Bank is continued. The letter of the Private Secretary urges the necessity of proper modifications, which cannot be suggested by the President, and from the tenor of that letter, and the anxiety manifested by the party here, I think they are desirous to have the Bank question settled by a renewal before the next Presidential canvass, with any modifications to free the Pres"" from the charge of an entire abandonment of his original opposition.