...A sale of so large an amount in the public market
could not be expected to produce more than the par
value; anil, it attempted under circumstances calculated
to shake public confidence in the stability of the insti-
tution would, in all probability, prove wholly abortive.
For these reasons, it is deemed advisable to effect a sale
to the bank itself—a measure believed to lie practicable
on terras satisfactory both to tlie United States, and that
in-stitution.
In submitting this proposition to the wisdom of con-
gress, it is not intended that its adoption should be
founded on any pledge for the renewal of the charter
of the bank, considering, however, the connection of
(lie proposition with (lie bank, and viewing the whole
subJect as a necessary part of the plans for the im-
provement and management of the revenue, and for
the support of public credit, the undersigned feels it
his duty to accompany it with a frank expression of his
opinions.
The act of congress to establish the treasury depart-
ment, makes it the duty of the secretary of the treasury
to digest and prepare plans tor tile support of public
credit, and for the improvement ami management of the
revenue. The duties enjoined, as well by this act, as
by the subsequent one of the 10th of May, 1800, re-
quiring; the secretary "to digest, prepare, and lay before
congress at the commencement of every session a re-
port on the subject of finance, containing estimates of
the public revenue, and; public expenditures, and plans
for improving r,r increasing the revenues, from time to
time, lor the purpose of giving information to congress,
in adopting modes for raising the money requisite to
meet the public expenditures," have been supposed to
include not merely the application of the resources of
the government; but the whole subject of the currency
and the means of preserving its soundness.
On this supposition, the first secretary of the trea-
tllry, in his memorable reports of January and Deceni-
fcer, 1790, recommended a national bank as "an insti-
tution of primary importance to the finances, and ot tlie
greatest utility in tlie operations connecteil with the
support of public credit," and various cninmiinications'
since made to congress, show that the same views were
entertained of their duties by others who have suc-
ceeded him in the department.
The performance of tlie duties thus enjoyedl by law
'upon the secretary ot the treasury Implies, however, no
commitment of any other department ot tlie govern.
•ment, each .being left free to act according to the mode
pointed out by the constitution.
The important charge co.ifi led to the treasury de-
partment, and on which the operations of (tie govern-
ment essentially depend, in the improvement and man-
agement of the revenue, anil the support of public credit:
and of transferring the public funds to .ill parts of the
United States, imperiously requires from the govern-
ment fill the facililies whicli it may cunslitutionally pro-
vide for thpca objects, and especially for regulating
and party is(tear in document)'ing a sound currency.
A(tear in doc.), 1781, the congress of the United
States, convened under the articles ot confederation, ap-
proved the plan ot a national bank, submitted to their
consideration by Mr. Morris, then superintcnitent of tlie
finances, and, on the .31st ot December (if the same year;
"from a conviction of Ihe support which the finances of
the United States would receive from the establishment
ot a nation il bank," p<ssed an ordinance inciirpnmting
aneli an institution under tlie name and sl)leof "Tlie
President, Directors, and Company of t!ie B ink ut Nonli
America." Tlie aid aft'oriled by that institution was ac-
knowledged to have been of essential consequence dur-
ing tlie remaining period ot" t!ie war, anil ils utility sub-
tequent to the peace of little less importance.
The authority ot the present government to create an
institution tor the same purposes cannot be less clear. It
has, moreover, the sanction ot the executive, legislative,
and judicial authorities, and of a majority of the people of
the •United Stales, from the organization of the govern-
ment to the present time. If public opinion cannot be'
considered tlie infallible ex pounder, it is among the'
soundest commeinators of (lie constitution. It is un-
doubtedly the wisest guide aixl only )tear in doc.)ck to'
those to whom the (tear in doc.)itution is
confided, an<l it is believed, that in free and enlightened'
states, the harmony, not less than the welfare, of the'
community is best promoted by receiving as settled, those'
great questions of public policy hi which the constituted
authorities have long concurred', and in wtiich they have'
been sustained by the uneqaquivocal expression. of the will
of the people.
Tlie indispensable necessity of such an institution for
the fiscal operations of the government in all its depart-
ments, for the regulation and preservation of a sound
currency, for the aid of coin m ercial transactions general-
ly, and even for the safety and utility ot the local banks,
is not doubted, and, as is believed, has been shewn in
the past experience of the government, and in the gene-
ral accommodation and operations at tlie present bank-
The present institution may indeed be considered as.
peculiarly (lie offspring of tliat necessity—springing from
the inconveniences which followed the loss of '.lie first.
bank of the United States, and the evils ami distresses.
incident to the excessive, am!, in some instances, fraudu-
lent issues ot (lie local banks (luring the war—the pro-
priety of cunlinuing it is to be considered, not more ill-
reference to tlie expediency of banking generally, than
in regard to the actual state of tilings, and to the multi-
plicity of state banks already in existence, and whicli can
neither be displaced nor in other manner controlled in
their issues of paper by the general government. This
is an evil not to be submitted to, and llie remedy at pre-
sent applied, while it preserves a sound currency for (lie
country at large, promotes tlie real interests of tlie local
ba'.iks by giving soundness to their paper.
If the necessity of a banking institution be conceded
or shewn, that which shall judiciously combine tlie pow-
(.r of tlie government with private enterprise, is believed
to be most efficaci.ius. The government would thus ob-
tain the benefit ot individual sagacity in llie general man-
agement ol the bank, and by means of its deposites and
share in the direction, possess the necessary power for
tlie prevention of abuse.
It is not intended to assert that the hank of the United
Slates, as at present organised, is perfect, or that the es-
sential objects ot such an institution might not be attain-
ed by means of an entirely new one, organised upon pro-
per principles, anil with salutary limitations, ll must be
a'lmilied, however, lliat tlie good management of the
present bank, the accommodation it has given the go-
vernment, and llie practical benefits il lias rendered tlie
cummunity—whether it may <ir may not have accomplish-
ed all tliat was expelled from it—and the advantages of
its present condition, are circumstances in its favor, en-
titled to great weight, anil give it strong claims upon the
consideration of congress, ill any future legislation upon
tlie subject.
To these may he added llie knowledge the present
bank has acquired of the business and wants of ill-; va-
rious porliuns of this extensive country, which, being tlie
result of lime and experience, is an advantage il roust
necessarily possess over any new institution.
It is to be observed, moreover, tliat the facilities of ca-
pital actually afforded by tlie present institution to llie
agricgrcutural commercial, anil manufactoring industry of
all parts ut tlie union could not be withdrawn even by
transferring Uiein to another inslitulion, without a seveie
slioek to eacli of those interests and to tlie relations of
society generally.
To similar considerations, il may be presumed, is to be
traced the uninion policy ot llie several states ol' llie
union, of rechartering their l»cal institutions, with sucli
mollifications as experience may have dictated, in preter-
ence to creating new ones.
Should any objection be felt or entertained on the
score of monopoly, it might be obviated by placing,
through the means of a sufficient premium, the present
institution upon the footing of a new one, and guarding
its future operations by such judicious checks and limita-
tions as experience may have shown to be necessary.