Tiusitl are contracted ani not extended by the
over multiplyingthefe institutions.
Is the incre&fe of banks-likely to be ufeful to
the trade and circulation of the country ? ' Many
are eitabliflfcied—more are expe<fted. Great er
rors of opinion on this head will end in gre/at
losses of property, as well as confufion public
and private.
A bank.is doubtless ufeful, and alinoft indis
pensably so to a trading nation—For by such
means a man may make use of his credit as well
as his money. His means of trading are increal
ed in that proportion. He gains a new faculty
and this resource iricreafes internal circulation.
The removing many of the obstacles which Mag
nate the circulation of >the precious metals, is
more ufeful than an iucreafe of* their quantity.
A good bank is so much confided in, that it
may lafely circulate its notes to the ainouut of
two or three times its capital.
One great and principal resource for this fafe
ty and credit is, that all the money in a place
will be lodged in its vaults for fafe keeping—You
have then all the credit and all the advantage
of credit which there can be. Divide that spe
cie however between several banks, what follows !
It ieems to be underltood that two banks will be
found as goodragain as one. Ihe reverie perhaps
is true. A new bauk produces no new deposits of
specie. . 1 here is not a dollar more money added
to the circulation. A new bank divides the de
posits of specie, and of course diminishes the ad
vantages of ci edit. For it is manifeft that two
banks with finaJl capitals, will do less than one
bank with both capitals. The common demand
for specie may be such as to drain the small ca
pital to the lalt dollar, and in the critical events
which the changes of trade and politics are cun
itantly producing, such a small hank certainly
will be shut up, unlets it contracts its dealings
within fiich limits as to be lafe. Two banks in
one town will do this for fafety, and their mutu
al fears will narrow the circulation within what
one bank could support. Suppose for illuftrati
-011, a single bank in a town where three hundred
thousand dollars is the amount of the ordinary
specie deposit. The bank with a capital of as
much more, is exposed to the least hazard in its
dealings that the nature of things will permit.
It is altogether improbable that the whole specie
be called for at once. And this improbabi
liiy gives to the bank paper its utmofl circulati
on. The place has the whole advantage of its
ci edit as. well as money. Let us fee whether by
e.lablifhing three banks instead of one, the town
has more than the whole—Let each bank have
three, hundred thousand dollars capital Here
then is three times the former capital, and each
bank has but one third part of the deposits If
each bank goes on lending its bills, the circula
tion will be over-done three fold—of course the
bills will be returned, and each bank confined to
the limits of its part of the circulation. As it
will have only a third of the deposits, it will be
obliged in prudence to confine itfelf still more.
Tho one bank might not be exposed to any great
risk of having the whole specie taken off, each of
the three banks will be exposed to it every day •
and can guard against it only by contracting its
dealings in proportion to the risk. It may hap
pen any day that 100,000 dollars specie, the a
mount of deposit in each bank, lhall be demand
ed ; but it would be strange that 300,,000 should
be. The rifle is not divided between the three,
tho the profit is. Each runs the whole risk, and
i aS /- J ° ne , third . only of the Source against it.
Beiides the ordinary banking risks, each inftitu
non is in danger from the others—and this arti
ficial danger is perhaps equal to all the others.
Numerous independent banks are besides unfit
for extensive circulation, and as they occupy the
local circulation they neither give accommoda
tion forgreat distances nor permit ittobe given.
It may be said truly that two banks will „ff er
double the amount of loans, and that this facili
ty will induce many more persons to borrow
If however the notes when lent out cannot be
Kept out cii culating, they will be returned to the
*1! This will defeat the views
of the bank, by depriving it of the profit arifine
from the use of its credit as a capital. If an e> .
tra sum, that is double the amount of the notes
which one bank with the whole specie of the
place would chose to circulate, fliould be thrown
on the public, and kept circulating in consequence
ai,tlilio,lal b a«k, the nn (chief
la!l the community. Doubling the- a
mount of the circulating medium, will inevitabl v
depreciate the value of money. Debts will h
paid with less value. * " be
rile specie in the country, with rhp n-m. e
the baukof die United States, will probably be
found fuflic.ent for every-purpofe of trade and
e.rculation Adding what the bank, already efta
bhflied will circulate, it cannot be believer/ha
theie is any necessity for new banks. They c in
e ° lller than pernicious. They will f t '
perty afloat, and bring us in danger of f h
f.f.on and distress a, '/f,,! " h
The following Petition is no-ui biftrs Congress
To the honorable the Senate and Hpufe of Re
pefematives of the United States of America,
in Congress affenibled.
r T < H£ officers of the Maflachufetts line of the
American army, in behaif of ihemi'elves,
and the foldieis of the laid line, who were en
gaged to serve during the late war, beg leave re
fpec r tfully to represent,
That in consequence of; the refolmion of Con
gress, recommending to the several Hates to pro
vide payment for the troops railed in them re
fpeitively for ihcir services, until the expiration
of the year 1780, they received prornifibry notes
fiom the (late of Maflachufetts for the arrears of
pay due to them within thac period. And al
though the time has expired in which the prin
cipal of the said notes became due, they have re
ceived but an ineonfiderable part either of prin
cipal or inierelt, five years ofintereft being now
due 011 a certain description of them.
from the commencement of January, 1781, to I
the termination of the war, their accounts were |
fettled by a counnifljoner appointed from Con
giefs. This commiflioner ifl'ued certificates as
certaining the balances duetothem refpeiftively,
and declaratory of an interest of fix per centum
to be annually paid thereon.
Had it been poflible for them to have received
an attual payment at this important moment,
when they were to re-enter life, under the dif
• advantage of having the habits of their former
occupations impaired by their military pursuits,
then property and connections deranged and
loft, their families involved for a neceflary fup
poit, it would have proved more advantageous
to them than any subsequent relief, perhaps in
the power of government to afford them. Jn
ftead of this, they retired patiently from the
field, pofleffing only the evidences of their claims,
to contend with all the evils incident to their si
tuation ; in a confidence, strengthened Jby the
afiurance of their beloved General, that the time
would come when they ihould " receive ample
and complete justice."
From the imbecility of the Confederation no
funds have been eflablifhed to support the credit
of their certificates 3 and they have been left to
take their value from public opinion : The army
have consequently realized no more from these
evidences of their demands than the value so
(tamped on them by the public voice.
Under the government of the United States
they engaged in the service of America, the re
cords of this government contain the evidence
that they have served with faithfulnefs. And as
the people of America are now happy in a con
stitution, formed with a design, and endowed
with the powers, to " eftabjift justice," the
prayer and the objecft of this petition is, that
Congress will be pleased to consider the nature
and degree of compensation which your petiti
oners have received from their state and from
tl, eU n ion, a,K * la^e uch orc ler thereon as your
wisdom shall direct that the contract between
the country and the army may be faithfully and
honorably performed.
And as in duty bound J,hall ever pray.
( C °Py-) B. LINCOLN,
CONGRESS.
PHILADELPHIA
HOUSE OF REPRESENTATIVES
TUESDAY, February 7.
Ln committee of the whole, on the Fi/hery Bill.
M [continued.!
r M E n,an in this House is '"ore
of the if 3 " /c P toencou > age thefifheries
of the United States than I am : nor can any one
mo e fincerelywijh to encourage the bold, active
and enterprizing adventurers in that branch ot
our commerce to persevere in it, than I do : be
ng sensible of the importance of their traffic in
peace, and of their defence of their country,and
annoyance of their enemies in wa r but, s"r
much doubt whether Congress can <;i ve that en
couragement to tlie.fifoeries to whTch they are
entuied, and which policy would lead the gene
al government to give, were it not reltrided by
the constitution. *
I consider Sir, the constitution as intended to
remedy the defeats of the confederation to a cer
deuer df' ee ' 2 **'' °" ly ' 35 Would l«ure the in
rated ft.tr" ai, . d .S e " e « I welfare of the confede
!j • w,t iolu endangering (he fovereiVn
ty and independence of the individual ilate^l
deh glC ?'i lh^ re f ore ' was authorised to pay the
debts of the Union, and to regulate com merce
Proper and'd 3 ' PU ' P ° fC and pa ' tly to, » ,reve im
proper and dangerous commercial combinations,
362
. jeaJoufies and altercations betwe»n
but Congress was not e„rr U fted.with'Sj Am 5
non of exports which could admit of ™
' fition which might be didWd fc* " ?!^ 0 '
"° r M h S Conßrel ® P ern 'iited to lay arty
COllld by any poflibility operate n ' h,ch
Aates in genefa,. It &
drawback be not allowed on the fairr a* , a
ing fifh, there will be in fact a silK
portion "■
ports of each slate against the pnfifbjlitv f
iial rei?riiftion by
. .....feW,I,„ Con-grrfs
the exportation of rice, indigo, tobacco &?
any other artkle € xported frL any slate! btcaufe
this might be done to the injury ofthefta'te who
iUch duty would operate, aVto tje
and aggrand.fcme.u of some particular-ftati S
competitors more favored by the -eneral •»«,
ment, or poflefling more n,fl, l ence"in the debates
ofCongrefs : and that the states are alf„ ;,T
v Jnally retrained from laying fnch duties with'
out the consent ofCongrefs, to prevent
might producejealoufi.es, commercial combina2
thlr rhi Pft T' at ' en S th ' civil ;1'
that this reft net ion, ,f ,t be intended to prevent
partiality, therefore cannot extend to autborifc
diawbacks, which may be productive qf partial
X??r\"l A u thcir confct l uci »: jealousies ;
that if drawbacks be granted at all, they omjht
to be universally extended to every article which
is or can be exported from any of the states, hav
ing in its compofuion a dutiable ingredient ■ that
hence fliip?, and other veftfels, 4c. (hould hav e
drawbacks on the fails, cordage, iron, fre.Antit
inay also be said, that as to the duty on fait that
is amply repaid to the merchant by the price an
nexed to his fifh ; the sums laid 6ut in fait and
tifh together, form a capital on which he takes
care to have a fufficieut profit. Thofejnerchant»
employed in this traffic, if allowed a drawback
would have a preference toother merchants,who'
import largely, pay heavy duties, and have B0
other advantage than the usual advanct on their
goods. The exporter of any article, with adraw
back, most have an advantage over bis fallow-ci
tizens who purehafe thro' necessity many dutiable
article*, and are obliged to confuina> them with
out any other benefit than the use of them. 1
mention this, because it has been said (by Mv.
Ames) that having made the men of Marblehead
pay for fait, they have a right to demand themo
ney expended in that fait, on the exportation of
their fifh : for it would be as reasonable for the
man who had eat his fifh, on which his fait was
expended, or who had used any other article for
which he had paid a duty, to claim of Congress
a return of his money expended therein, as the
exporter of fifh ; the only differnce js, that if
both were paid the exact sum so expended by
them, the exporter of fifh would get twice paid ;
the purchaser or consumer of his fifh would pay
him for his fait therein, as if it were substantial
fifli, and the slate for it as mere fait : here then
is a field for partiality,difeontentand complaints,
which the constitution wifely guards against. It
canuot, therefore, be to any purpose to tell us
that a bounty, or allowance as it is now called,
is preferable to a drawback, as there is not so
great room for fraud in the one as the other :
nor can it be of importance to fliew that the filh
ermen have not the profit to which they are en
titled ; that their services in the last wardeferve
rewards, &c. their country fiiared with them the
glory of their gallant behaviour ; butthey alone
received the rewards they aimed at—the J2OO
/hips they took was a conipenfation for services,
and a reward for those exploits. It is true they
annoyed the enemy ; it is certain their prizes
fowetimes fed, armed and cloathed our irmies ;
but it is not said that they did not receive pay
ment for l'urnifliing those things.
But here we are a/ked, is it not of great conA.
quence to the United States, to employ those bold,
flcilful feainen in our service, that we may enjoy
the commercial ad vantage theygive us in peace,
and their powerful assistance in war ?—To this
I reply, that it ought firft to be proved that Con
gress has the power and authority to give the-n
the encouragement demanded ; andeveni"° n
greis have that power, it ought to be (hewn that
it can be extended to the benefit ot the failo^ so
some of the states, and not to those of every state.
It may be said that Congress may with as muc
propriety give bounties to our hunters in t
vveftern country, to raise up a nursery of fol" er
as a barrier against the Indians, and to pionio.e
the fur trade, as to give drawbacks and bountif
to the fifhermen of the eastern states with
to encourage fillieries, and to raise a n ,!r el 7 0
feainen for their defence against enen'ies v'lo m J
invade our eastern frontiers. Indeed, it e e
be the object in view, we might as well 2 ne 0 ,
ties to sturdy landsmen, to be ill readings a
conftauc training for war.
Indeed, Sir, 1 confefs I am not altogetliei
vinced, that if Congress have this power, 110
to be thus exerted ; because it is note eai
that thole liilieiuien would not be more pi 0
/