Bills and notes discounted. B. Statement of the funds of the Bank of the United States, as exhibited by the latest bank returns received by the Secretary of the Treasury. Notes of other banks. Specie. Sundries. Due by banks. The last item (funded debt) stands on the treasury books at $23,066.23. (b.) Treasury drafts, not yet collected. (c.) Amount overdrawn by the late commissioner of loans, at Charleston. Whence the difference arises is not known. $2,750, 000 14, 338 $2, 764, 338 BANK NOTES. B 2. Statement of the debts due by the Bank of the United States, as exhibited in the latest bank returns, and the latest return of the Treasurer of the United States, received by the Secretary of the Treasury. On hand. In circulation. (a.) Taken from the Treasurer's cash return, of the 21st January, 1811. (b.) Including $291,751 25, belonging to the War and Navy Departments, and the Sinking Fund. B 3. General state of the Bank of the United States, and its Branches 509, 677.71 Balance of outstanding drafts on bank and branches___ Undivided surplus, applicable to last dividend, and to cover losses on buildings and debts-- $24, 183, 046. 54 Report of Secretary of Treasury (Albert Gallatin), on Renewal of Charter of Bank of United States SIR: COMMUNICATED TO THE SENATE, FEBRUARY 5, 1811. Eleventh Congress, 3d Session [Source: American State Papers, Finance, Vol. 2, p. 481] TREASURY DEPARTMENT, January 30, 1811. Have already, in a report to the Senate, of 2d March, 1809, expressed my opinion in favor of a renewal of the charter of the Bank of the United States, an opinion which remains unchanged, I can only add a few explanatory remarks in answer to the inquiries of the committee, as stated in your letter of yesterday. The banking system is now firmly established; and, in its ramifications, extends to every part of the United States. Under that system, the assistance of banks appears to me necessary for the punctual collection of the revenue, and for the safe keeping and transmission of public moneys. That the punctuality of payments is principally due to banks, is a fact generally acknowledged. It is, to a certain degree, enforced by the refusal of credit at the custom house, so long as a former revenue bond, actually due, remains unpaid. But I think, nevertheless, that, in order to ensure that precision in the collection, on which depends a corresponding discharge of the public engagements, it would, if no use was made of banks, be found necessary to abolish, altogether, the credit now given on the payment of duties a measure which would affect the commercial capital, and fall heavily on the consumers. That the public moneys are safer by being weekly deposited in banks, instead of accumulating in the hands of collectors, is self-evident. And their transmission, whenever this may be wanted, for the purpose of making payments in other places than those of collection, cannot, with any convenience, be effected, on a large scale, in an extensive country, except through the medium of banks, or of persons acting as bankers. The question, therefore, is, whether a bank, incorporated by the United States, or a number of banks, incorporated by the several States, be most convenient for those purposes. State banks may be used, and must, in case of a non-renewal of the charter, be used by the treasury. Preparatory arrangements have already been made to that effect; and it is believed that the ordinary business will be transacted, through their medium, with less convenience, and, in some respects, with perhaps less safety than at present, but without any insuperable difficulty. The difference, with respect to safety, results from the organization of the Bank of the United States, by which it is responsible for the money deposited in any of its branches, whilst each of the State banks, which may be employed, will be responsible only for the sums in its own hands. Thus, the Bank of the United States is now answerable for the moneys collected at New Orleans, and deposited there in its branch-a security which will be lost under a different arrangement. Nor will the United States have any other control over the manner in which the business of the banks may be conducted, than what may result from the power of withdrawing the public deposites; and they will lose that which a charter, or a dependence on the General Government for a charter, now gives over the Bank of the United States. The facility of obtaining such accommodations as may, at times be wanted, will, for the same reason, be lessened, and the national power will, to that extent, be impaired. It may be added, that, even for the ordinary business of receiving and transmitting public moneys, the use of a State bank may be forbidden by the State; and that loans to the United States are, by many of the charters, forbidden, without a special permission from the State. As it is not perceived, on the other hand, that a single advantage will accrue to the public from the change, no reason presents itself, on the ground of expediency, why an untried system should be substituted to one under which the treasury business has so long been conducted with perfect security to the United States, and great convenience not only to the officers, but also to all those who had payments of a public nature to make or to receive. It does not seem necessary to advert to the particular objections made against the present charter, as these may easily be obviated by proper alterations. What has been called a National Bank, or, in other words, a new Bank of the United States, instead of the existing one, may be obtained by such alterations. The capital may be ex |