sued. Banks are among the means most proper to accomplish this end; and the moderation of the rate at which their discounts are made, is a material ingredient towards it; with which their own interest, viewed on an enlarged and permanent scale, does not appear to clash. But, as the most obvious ideas are apt to have greater force than those which depend on complex and remote combinations, there would be danger that the persons whose funds must constitute the stock of the bank, would be diffident of the sufficiency of the profits to be expected, if the rate of loans and discounts were to be placed below the point to which they have been accustomed; and might, on this account, be indisposed to embarking in the plan. There is, it is true, one reflection, which, in regard to men actually engaged in trade, ought to be a security against this danger; it is this—that the accommodations which they might derive in the way of their business, at a low rate, would more than indemnify them for any difference in the dividend; supposing even that some diminution of it were to be the consequence. But, upon the whole, the hazard of contrary reasoning among the mass of moneyed men is a powerful argument against the experiment. The institutions of the kind already existing add to the difficulty of making it. Mature reflection, and a large capital, may, of themselves, lead to the desired end. The last thing which requires any explanatory remark is, the authority proposed to be given to the President to subscribe to the amount of two millions of dollars on account of the public. The main design of this is to enlarge the specie fund of the bank, and to enable it to give a more early extension to its operations. Though it is proposed to borrow with one hand what is lent with the other, yet the disbursement of what is borrowed will be progressive, and bank notes may be thrown into circulation instead of the gold and silver. Besides, there is to be an annual reimbursement of a part of the sum borrowed, which will finally operate as an actual investment of so much specie. In addition to the inducements to this measure, which result from the general interest of the Government to enlarge the sphere of the utility of the bank, there is this more particular consideration, to wit: that, as far as the dividend on the stock shall exceed the interest paid on the loan, there is a positive profit. The Secretary begs leave to conclude with this general observation that if the Bank of North America shall come forward with any propositions which have for their object the ingrafting upon that institution the characteristics which shall appear to the legislature necessary to the due extent and safety of a national bank, there are, in his judgment, weighty inducements to giving every reasonable facility to the measure. Not only the pretensions of that institution, from its original relation to the Government of the United States, and from the services it has rendered, are such as to claim a disposition favorable to it, if those who are interested in it are willing, on their part, to place it on a footing satisfactory to the Government, and equal to the purposes of a Bank of the United States, but its co-operation would materially accelerate the accomplishment of the great object; and the collision, which might otherwise arise, might, in a variety of ways, prove equally disagreeable and injurious. The incorporation or union here contemplated may be effected in different modes, under the auspices of an act of the United States, if it shall be desired by the Bank of North America, upon terms which shall appear expedient to the Government. All which is humbly submitted. TREASURY DEPARTMENT, ALEXANDER HAMILTON, Secretary of the Treasury. INDEX Adams, John Quincy, report on par of ex- change, 28; on Bank of U. S., 99, 100. 40; opposes Bank of U. S., 99, 100; Bibliography, 437. Articles of Confederation, on coinage, 13, Bimetallism, Hamilton's plan, 21, 24, 416, 453: on paper money, 58, 454. Auxiliary currency, use of 1893, 374. 595: failure of, 24, 49, 416; interna- Banking power by sections, 153, 169, 346, Board of Treasury, report to Continental Congress, 16. Bank-notes, see National Bank-notes, Bond-deposit system, 136, 138, 155; abroga- State Bank-notes. Bank of North America, incorporation of, Bank of the U. S., Hamilton's plan for, 62, First, charter of, 70, 456; constitutionality of, 65, 80, 98; influence on currency, Second, plan for, 80-82; Madison on, 81-82; charter, 82, 475; early mis- Bonds, United States, Chase's sales of, 180, 193; payments of, in notes proposed, Boutwell, George S., Secretary of Treas ury, 214-220; issues "greenback re- Branch banking, 89, 139, 143. British coins in use, 11; valued, 13. Bryan, William J., campaigns for "free silver," 386, 404. Buchanan, James, President, on banks, 166. Banks, statistics of, 75, 118, 119, 153, 336, Calhoun, John C., on national bank, 79–82, gold, 378, 380, 382, 383; urges retire- ment of greenbacks, 381, 384, 389; 374. 147. Clearing-house, system established, 156, New York, and silver, 344, 569. Coin, purchase law of 1862, 189, 502; re- Payment of bonds and notes in, 214, 286, 547. Coinage charge, 17, 21, 23, 25, 280, 554, 560. 1792, 22, 463; 1834, 40, 479; 1837, 41, Plans, Morris, 14; Jefferson, 15, 584; Statistics, 33, 50, 51, 52, 275, 296, 318. 173; provisions as to coins, 18, paper, construction favorable to sound 59. Counterfeit detectors, 159–160. opposes government notes, National Bank-notes, United States 141, 155. Currency certificates, authorized, 219, 331, Debt of the United States, see also Bonds, "Debtor Class," 216, 268, 306, 387. Deficits, see Treasury, Condition of. 502. Democrats (Jeffersonian), oppose Bank of 404. Denominations of notes, 77, 78, 83, 183, 190, legal tender cases, 259-273; broader Depository banks, 78, 113, 123; condition ་ |