that profit will be 212 per cent. a year. If the charter be extended twenty years, the value of the privilege will be equal to an annuity of 212 per cent. on the capital, that is to say, 250,000 dollars, for twenty years; and such annuity being payable semi-annually, is worth almost 2,890,000 dollars. This, however, would be much more than any bank would give for a charter, as it would leave it nothing but the right of dividing at the rate of six percent. a year, which the stockholders have without a charter. It is believed, that they would not be willing to give even half that sum for the extension; and that about 1,250,000 dollars may be considered as the maximum, which could be obtained, if it was thought eligible to sell the renewal of the charter for a fixed sum of money.

It is, however, presumed, that the decision on the conditions, which may be annexed to an extension of the charter, will be directed by considerations of a much greater importance than the payment of such sum into the treasury. The object will, undoubtedly, be to give to the institution all the public utility of which it is susceptible, and to derive from it permanent and solid advantages, rather than mere temporary aid. Under these impressions, the following suggestions are respectfully submitted:

I. That the bank should pay interest to the United States, on the public deposits, whenever they shall exceed a certain sum, which might perhaps be fixed at about three millions of dollars.

II. That the bank should be bound, whenever required, to lend to the United States a sum not exceeding three-fifths of its capital, at a rate of interest not exceeding six per cent.; the amount of such loan or loans to be paid by the bank in instalments, not exceeding a certain sum, monthly, and to be reimbursed at the pleasure of the Government.

III. That the capital stock of the bank should be increased to thirty millions of dollars, in the following manner, viz:

1. Five millions of dollars to be subscribed by citizens of the United States, under such regulations as would make an equitable apportionment amongst the several States and territories.

2. Fifteen millions to be subscribed by such States as may desire it, and under such equitable apportionment amongst the several States as may be provided by law; and a branch to be established in each subscribing State, if applied for by the State.

3. The payments, either by individuals or States, to be either in specie or in public stock of the United States, at such rates as may be provided by law.

4. The subscribing States to pay their subscription in ten annual instalments, or sooner if it suits their convenience, but to receive dividends in proportion only to the amount of subscription actually paid; and their shares of bank stock not to be transferable.

IV. That some share should be given in the direction to the General and State Governments, the General Government appointing a few directors in the general direction, and the Government of each subscribing State appointing a few directors in the direction of the branch established in such State.

The result of that plan would be, 1st., that the United States, receiving an interest on the public deposites, might, without inconvenience, accumulate, during years of peace and prosperity, a treasure

sufficient to meet periods of war and calamity, and, thereby, avoid the necessity of adding, by increased taxes, to the distresses of such periods. Secondly, that they might rely on a loan of eighteen millions of dollars, on any sudden emergency. Thirdly, that the payment of the greater part of the proposed increase of capital, being made in ten annual instalments, that increase would be gradual, and not more rapid than may be required by the progressive state of the country. Fourthly, that the bank itself would form an additional bond of common interest and union, amongst the several States.

All which is respect fully submitted.

Report of House Committee, on Renewal of Charter of Bank of

United States

COMMUNICATED TO THE HOUSE OF REPRESENTATIVES, FEBRUARY 19, 1810. Eleventh Congress, 2d Session

[Source: American State Papers, Finance, Vol. 2, p. 406]

Mr. MONTGOMERY, from the committee to whom was referred the petition of the stockholders of the Bank of the United States, made the following report:

That, in proceeding to the consideration of the said petition, your committee instructed their chairman to address a letter to the Secretary of the Treasury, requesting him to furnish such information or observations as he might think proper, in relation to the subject matter thereof, as connected with the financial and commercial interests of the

United States. In reply to which, the Secretary, by his letter to the chairman, referred your committee to his former report on the said subject, made to the Senate of the United States, in obedience to the order of that House.

Your committee have been attended by agents of the petitioners, who, in addition to the matters contained in the petition, have suggested to your committee that the object of the petitioners was to obtain the renewal of the charter in its present form; that, for this renewal, the bank is willing to make compensation, either by loans, at a rate of interest, or by a sum of money to be agreed upon, or by an increase of the capital stock, by a number of shares to be taken and subscribed for by the United States, to an amount adequate to the compensation to be agreed upon for such renewal.

These agents also suggested, that they were fully authorized and empowered to offer and conclude the terms, specifically connected with those propositions.

Your committee not feeling themselves authorized to enter into such terms, and judging that the extent of those propositions would better apply to the details of a bill, than to the adoption of a principle to be first settled by the House, have, therefore, foreborne to inquire into the extent of the propositions, and, without expressing an approbation or rejection of these offers, or giving an opinion as to the plan and reasoning of the Secretary of the Treasury, your committee, in order that the opinion of the House on this great national question may be declared previous to entering into the details connected with the subject, recommend the following resolution:

Resolved, That it is proper to make provision for continuing the establishment of the bank of the United States, with offices of discount and deposite, under the regulations necessary for the beneficial administration of the national finances, during such time, and on such conditions, as may be defined by law.

Report of Secretary of Treasury (Albert Gallatin), on Bank of United States

COMMUNICATED TO THE HOUSE OF REPRESENTATIVES, JANUARY 24, 1811. Eleventh Congress, 3d Session

[Source: American State Papers, Finance, Vol. 2, pp. 468–470]

The Secretary of the Treasury, in obedience to the resolution of the House of Representatives, of the 16th instant, respectfully submits the following report:

The Secretary of the Treasury is directed, by the resolution aforesaid, to lay before the House

1. A list of the directors of the Bank of the United States, and of its several branches.

2. A statement of the stock held by foreigners, and in what countries; and of the stock held by citizens, and in what States and Territories.

3. The amount of specie, according to the last returns, in the vaults of the bank; distinguishing the part which belongs to the bank, the portion belonging to individuals, and to the United States.

It is enacted, by the sixteenth provision of the seventh section of the act to incorporate the subscribers to the Bank of the United States, that "The officer at the head of the Treasury Department of the United States shall be furnished, from time to time, as often as he may require, not exceeding once a week, with statements of the amount of the capital stock of the said corporation, and of the debts due to the same; of the moneys deposited therein; of the notes in circulation, and of the cash in hand; and shall have a right to inspect such general accounts in the books of the bank as shall relate to the said statements: Provided, That this shall not be construed to imply a right of inspecting the account of any private individual or individuals with the bank."

No other but general statements, such as are enumerated in that clause of the act, can be required by the Secretary of the Treasury, or have been furnished by the bank. And these include neither the names of the directors nor the names or place of residence of the stockholders. On the subject of directors, no statement whatever is ever made; and in relation to the capital stock, its gross amount, and the portion allotted to each branch, are the only particulars which can be required, or are exhibited in the statements transmitted to this office. It was ascertained, some years ago, from an authentic source, that near threefourths of the stock (about 1,800 shares) were held by foreigners; and the fact though not officially communicated to this department, was stated in the report respecting the bank, made to the Senate, on the second day of March, 1809. No subsequent or other information has been obtained on that subject; and, with very few exceptions, the names of the directors and stockholders, either abroad or in the United States, are unknown to the Secretary.

The specie in the vaults of the bank and its branches amounted, according to the last returns, to 5,009,567 dollars; the whole of which was, strictly speaking, the property of the bank, and, together with the debts due to that body, constituted the fund from which its own debts, including both bank notes and deposites, must be paid. The sum deposited by the Treasury into the bank and its branches, amounted, by the last return of the Treasurer, dated 21st instant, and marked A, herewith transmitted, to 1,930,000 dollars; and that deposited in other banks, to 875,462 dollars; making, together, the balance in the treasury on that day, 2,805,462 dollars. The total amount of deposites by Government, by other banks, and by individuals, into the Bank of the United States and its branches, appears, by the last received returns, to be 8,464,770 dollars. And the statements B, B2, and B3, herewith transmitted, and extracted from the latest returns received at this office from the bank and from the Treasurer, exhibit a general view of the situation of the bank, and of all the objects embraced by the third part of the resolution of the House.

It appears from these, that the debts due by the bank, and payable on demand, including both every species of deposites and bank notes,

amount to___

And that the resources of the bank to meet those demands, consist of the following items, viz:

1. Specie, bank notes of other banks, and balance due in account by other banks, payable to the bank on demand (including also 25,804 dollars in funded debt and drafts on collectors, which may be considered as specie,)

2. Loan to the United States, payable on giving three months' notice_.

3. Notes discounted at sixty days, and due by individuals (including 31,242 dollars overdrawn in Charleston)

Making an aggregate of--

-

$13, 673, 369

6, 322, 857 2,750,000

14, 609, 537

23,682, 394

The act to incorporate the subscribers to the Bank of the United States does not, itself, expire by any positive clause of limitation: but it is enacted by the third section of the act, that the subscribers shall be a corporation and body politic, and so continue until the 4th day of March 1811. It is presumed that some means will be devised, either by Government or by the bank, whereby the debts due to and from the corporation, may be collected after that day. So far as relates to the treasury deposites, no inconvenience can arise, as, in any event, the loan obtained from the institution is a sufficient pledge for their payment. But a doubt may arise, from the manner in which the act is expressed, whether, under the 10th section, the bank notes still in circulation will not continue to be receivable in all payments to the United States. The propriety of some provision which may remove any doubt on the subject, or otherwise prevent the inconvenience resulting from that construction of the act, is respectfully suggested.

All which is respectfully submitted.

TREASURY DEPARTMENT, January 23, 1811.

ALBERT GALLATIN.