es. It had up to that period dealt to but a very small extent
in exchanges, either foreign or domestic, and as late as 1823 its
operations in that line amounted to a little more than $7,000,000 per
annum. A very rapid augmentation soon after occurred, and in 1833 its
dealings in the exchanges amounted to upward of $100,000,000, including
the sales of its own drafts; and all these immense transactions were
effected without the employment of extraordinary means. The currency of
the country became sound, and the negotiations in the exchanges were
carried on at the lowest possible rates. The circulation was increased
to more than $22,000,000 and the notes of the bank were regarded as
equal to specie all over the country, thus showing almost conclusively
that it was the capacity to deal in exchanges, and not in local
discounts, which furnished these facilities and advantages. It may be
remarked, too, that notwithstanding the immense transactions of the bank
in the purchase of exchange, the losses sustained were merely nominal,
while in the line of discounts the suspended debt was enormous and
proved most disastrous to the bank and the country. Its power of local
discount has in fact proved to be a fruitful source of favoritism and
corruption, alike destructive to the public morals and to the general
weal.

The capital invested in banks of discount in the United States, created
by the States, at this time exceeds $350,000,000, and if the discounting
of local paper could have produced any beneficial effects the United
States ought to possess the soundest currency in the world; but the
reverse is lamentably the fact.

Is the measure now under consideration of the objectionable character
to which I have alluded? It is clearly so unless by the sixteenth
fundamental article of the eleventh section it is made otherwise. That
article is in the following words:

The directors of the said corporation shall establish one competent
office of discount and deposit in any State in which two thousand shares
shall have been subscribed or may be held, whenever, upon application of
the legislature of such State, Congress may by law require the same. And
the said directors may also establish one or more competent offices of
discount and deposit in any Territory or District of the United States,
and in any State with the assent of such State, and when established the
said office or offices shall be only withdrawn or removed by