The First and Second Banks of the United States Volume 5625 (Paperback)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated.1910 Excerpt: ... of leadership in a needed reform for its own individual profit. CRITICISM OF OTHER BANKING OPERATIONS. Other accusations involving illegal practices were: The charging of usury, sale of coin, trading in public securities, and speculation in real estate. The indictment on these points is in its final analysis of little importance, for, as a rule, the accusation under each heading referred to but a single action, which, if true, might well be regarded as exceptional. The bank had charged discount and exchange on domestic bills, thus obtaining in some cases more than the 6 per cent interest allowed by the charter. It was difficult, however, to prove that this device, which was openly used by state banks in many sections to evade the usury laws, had been intentionally employed by the bank for illegal purposes. The bank did endeavor to develop its business in exchange, even though discount operations were contracted. This was particularly so in the West. As there was a strong prejudice against charges for exchange, the bank had to suffer in public estimation for operations which of themselves were entirely justifiable. The bank was accused of selling coin when the charter limited it to dealings in bullion. In all, the sales of American gold coin amounted to $84,734; an excuse for this might be found in the fact that until 1834 gold coin was underrated at the mint and did not circulate as money." Another charge related to speculation in public stocks. In 1834 the Treasury wished to pay off a part "Sumner, Jackson (revised edition), p. 303. of the government indebtedness represented by the 3 per cent stock. The bank was consequently notified that deposits would be withdrawn, but the demand came at an unfortunate time. Previous withdrawals for the retirement of the...