State of the Finances

3.  Proposition relating to the National circulating medium.

The delicacy of this subject is only equalled by its importance.  In presenting it, therefore, to the consideration of Congress, there is occasion for an implicit reliance upon the legislative indulgence.

By the Constitution of the United States, Congress is expressly vested with the power to coin money, to regulate the value of the domestic and foreign coins in circulation, and, as a necessary implication from positive provisions, to emit bills of credit;  while it is declared by the same instrument, that "no State shall coin money, or emit bills of credit."  Under this Constitutional authority the money of the United States has been established, by law, consisting of coins made with gold, silver, or copper.  All foreign gold and silver coins, at specified rates, were placed, in the first instance, upon the same footing with the coins of the United States;  but they ceased (with the exception of Spanish milled dollars, and parts of such dollars) to be a legal tender for the payment of debts and demands in the year 1809.

The Constitutional authority to emit bills of credit has also been exercised in a qualified and limited manner.  During the existence of the Bank of the United States the bills or notes of the corporation were declared, by law, to be receivable in all payments to the United States;  and the Treasury notes, which have been since issued for the services of the late war, have been endowed with the same quality.  But Congress has never recognised, by law, the notes of any other corporation;  nor has it ever authorized an issue of bills of credit to serve as a legal currency.  The acceptance of the notes of banks, which are not established by the Federal authority, in payments to the United States, has been properly left to the vigilance and discretion of the Executive Department;  while the circulation of the Treasury notes, employed either to borrow money, or to discharge debts, depends entirely (as it ought to depend) upon the option of the lenders and creditors to receive them.

The Constitutional and legal foundation of the monetary system of the United States is thus distinctly seen, and the power of the Federal Government to institute and regulate it, whether the circulating medium consist of coin or of bills of credit, must, in its general policy, as well as in the terms of its investment, be deemed an exclusive power.  It is true, that a system depending upon the agency of the precious metals will be affected by the various circumstances which diminish their quantity, or deteriorate their quality.  The coin of a State sometimes vanishes under the influence of political alarms;  sometimes in consequence of the explosion of mercantile speculations, and sometimes by the drain of an unfavorable course of trade.  But whenever the emergency occurs that demands a change of system, it seems necessarily to follow that the authority, which was alone competent to establish the national coin, is alone competent to create a national substitute.  It has happened, however, that the coin of the United States has ceased to be the circulating medium of exchange, and that no substitute has hitherto been provided by the national authority.  During the last year the principal banks, established south and west of New England, resolved that they would no longer issue coin in payment of their notes, or of the drafts of their customers, for money received upon deposite.  In this act the Government of the United States had no participation, and yet the immediate effect of the act was to supersede the only legal currency of the nation.  By this act, although no State can constitutionally emit bills of credit, corporations, erected by the several States, have been enabled to circulate a paper medium, subject to many of the practical inconveniences of the prohibited bills of credit.

It is not intended, upon this occasion, to condemn, generally, the suspension of specie payments;  for appearances indicated an approaching crisis, which would, probably, have imposed it as a measure of necessity, if it had not been adopted as a measure of precaution.  But the danger which originally induced, and perhaps justified, the conduct of the banks, has passed away, and the continuance of the suspension of specie payments must be ascribed to a new series of causes.  The public credit and resources are no longer impaired by the doubts and agitations excited during the war by the practices of an enemy, or by the inroads of an illicit commerce;  yet the resumption of specie payments is still prevented;  either by the reduced state of the national stock of the precious metals, or by the apprehension of a further reduction to meet the balances of foreign trade, or by the redundant issues of bank paper.  The probable direction and duration of these latter causes constitute, therefore, the existing subject for consideration.  While they continue to operate, singly or combined, the authority of the States individually, or the agency of the State institutions, cannot afford a remedy commensurate with the evil;  and a recurrence to the national authority is indispensable for the restoration of a national currency.

In the selection of the means for the accomplishment of this important object, it may be asked,
1st.  Whether it be practicable to renew the circulation of the gold and silver coins ?
2d.  Whether the State banks can be successfully employed to furnish a uniform currency ?
3dly.  Whether a National Bank can be employed more advantageously than the State banks for the same purpose ?  And,
4thly.  Whether the Government can itself supply and maintain a paper medium of exchange, of permanent and uniform value throughout the United States ?

1.  As the United States do not possess mines of gold or silver, the supply of those metals must, in a time of scarcity, be derived from foreign commerce.  If the balance of foreign commerce be unfavorable, the supply will not be obtained incidentally, as in the case of the returns for a surplus of American exports, but must be the subject of a direct purchase.  The purchase of bullion is, however, a common operation of commerce, and depends, like other operations, upon the induce meats to import the article.

The inducements to import bullion arise, as in other cases, from its being cheap abroad, or from its being dear at home.  Notwithstanding the commotions in South America, as well as in there is no reason to believe that the quantity of the precious metals is now (more than at any former period) insufficient for the demand throughout the commercial and civilized world.  The price may be higher in some countries than in others;  and it may be different in the same country, at different times;  but, generally, the European stock of gold and silver has been abundant, even during the protracted war which has afflicted the nations of Europe.

The purchase of bullion in foreign markets upon reasonable terms is then deemed practicable, nor can its importation into the United States fail eventually to be profitable.  The actual price of gold and silver in the American market would in itself afford for some time an ample premium, although the fall in the price must of course be proportionate to the increase of the quantity.  But it is within the scope of a wise policy to create additional demands for coin, and in that way to multiply the inducements to import and retain the metals of which it is composed.

For instance, the excessive issue of bank paper has usurped the place of the national money, and under such circumstances gold and silver will always continue to be treated as an article of merchandise;  but it is hoped that the issue of bank paper will be soon reduced to its just share in the circulating medium of the country, and consequently that the coin of tile United States will resume its legitimate capacity and character.

Again, the Treasury, yielding from necessity to the general impulse, has hitherto consented to receive bank paper in the payment of duties and taxes;  but the period approaches when it will probably become a duty to exact the payment either in Treasury notes, or in gold and silver coin -- the lawful money of the United States.  Again, the institutions which shall be deemed proper, in order to remove existing inconveniences, and to restore the national currency, may be so organized as to engage the interest and enterprise of individuals in providing the means to establish them.

And, finally, such regulations may be imposed upon the exportation of gold and silver as will serve in future to fix and retain the quantity required for domestic uses.  But it is further believed that the national stock of the precious metals is not so reduced as to render the operation of reinstating their agency in the national currency either difficult or protracted.  The quantity actually possessed by the country is considerable;  and the resuscitation of the public confidence in bank paper, or in other substitutes for coin, seems alone to be wanting to render it equal to the accustomed contribution for a circulating medium.

In other countries, as well as in the United States, the effect of an excessive issue of paper money, to banish the precious metals, has been seen;  and, under circumstances much more disadvantageous than the present, the effect of public confidence in national institutions, to call the precious metals to their uses in exchange, has also been experienced.  Even, however, if it were practicable, it has sometimes been questioned whether it would be politic again to employ gold and silver for the purposes of a national currency.  It was long and universally supposed that, to maintain a paper medium without depreciation, the certainty of being able to convert it into coin was indispensable;  nor can the experiment which has given rise to a contrary doctrine be deemed complete or conclusive.

But, whatever may be the issue of that experiment elsewhere, a difference in the structure of the Government, in the physical as well as the political situation of the country, and in the various departments of industry, seem to deprive it of any important influence, as a precedent for the imitation of the United States.

In offering these general remarks to the consideration of Congress it is not intended to convey an opinion that the circulation of the gold and silver coins can at once be renewed.  Upon motives of public convenience the gradual attainment of that object is alone contemplated;  but a strong, though respectful, solicitude is felt that the measures adapted by the Legislature should invariably tend to its attainment.

2d.  Of the services rendered to the Government by some of the State banks during the late war, and of the liberality by which some of them are actuated in their intercourse with the Treasury, justice requires an explicit acknowledgment.  It is a fact, however, incontestably proved, that those institutions cannot, at this time, be successfully employed to furnish a uniform national currency.  The failure of one attempt to associate them with that view has already been stated.  Another attempt, by their agency in circulating Treasury notes, to overcome the inequalities of the exchange, has only been partially successful.  And a plan recently proposed, with the design to curtail the issues of bank notes, to fix the public confidence in the administration of the affairs of the banks, and to give to each bank a legitimate share in the circulation, is not likely to receive the general sanction of the banks.

The truth is, that the charter restrictions of some of the banks, the mutual relation and dependence of the banks of the same State, and even of the banks of different States, and the duty which the directors of each bank conceive they owe to their immediate constituents, upon points of security or emolument, interpose an insuperable obstacle to any voluntary arrangement, upon national considerations alone, for the establishment of a national medium through the agency of the State banks.

It is, nevertheless, with the State banks that the measures for restoring the national currency of gold and silver must originate;  for, until their issues of paper be reduced, their specie capitals be reinstated, and their specie operations be commenced, there will be neither room, nor employment, nor safety, for the introduction of the precious metals.  The policy and the interest of the State banks must, therefore, be engaged in the great fiscal work, by all the means which the Treasury can employ, or the legislative wisdom shall provide.

3d.  The establishment of a National Bank is regarded as the best, and, perhaps, the only adequate resource to relieve the country and the Government from the present embarrassments.  Authorized to issue notes, which will be received in all payments to the United States, the circulation of its issues will be co-extensive with the Union, and there will exist a constant demand, bearing a just proportion to the annual amount of the duties and taxes to be collected, independent of the general circulation for commercial and social purposes.  A National Bank will, therefore, possess the means and the opportunity of supplying a circulating medium of equal use and value in every State, and in every district of every State.

Established by the authority of the Government of the United States, accredited by the Government to the whole amount of its notes in circulation, and intrusted as the depository of the Government with all the accumulations of the public treasure, the National Bank, independent of its immediate capital, will enjoy every recommendation which can merit and secure the confidence of the public.  Organized upon principles of responsibility, but of independence, the National Bank will be retained within its legitimate sphere of action, without just apprehension from the misconduct of its directors, or from the encroachments of the Government.  Eminent in its resources, and in its example, the National Bank will conciliate, aid, and lead, the State banks in all that is necessary for the restoration of credit, public and private.  And acting upon a compound capital, partly of stock, and partly of gold and silver, the National Bank will be the ready instrument to enhance the value of the public securities, and to restore the currency of the national coin.

4th.  The power of the Government to supply and maintain a paper medium of exchange will not be questioned;  but, for the introduction of that medium, there must be an adequate motive.  The sole motive for issuing Treasury notes has, hitherto, been to raise money in anticipation of the revenue.  The revenue, however, will probably become, in the course of the year 1816, and continue afterwards, sufficient to discharge all the debts, and to defray all the expenses of the Government;  and, consequently, there will exist no motive to issue the paper of the Government as an instrument of credit.

It will not be deemed an adequate object for an issue of the paper of the Government, merely that it may be exchanged for the paper of the banks, since the Treasury will be abundantly supplied with bank paper by the collection of the revenue;  and the Government cannot be expected to render itself a general debtor, in order to be come the special creditor of the State banks.

The co-operation of the Government with the National Bunk, in the introduction of a national currency, may, however, be advantageously employed by issues of Treasury notes, so long as they shall be required for the public service.

Upon the whole, the state of the national currency, and other important considerations connected with the operations of the Treasury, render it a duty respectfully to propose--

That a National Bank be established at the city of Philadelphia, having power to erect branches elsewhere, and that the capital of the bank (being of a competent amount) consist of three-fourths of the public stock, and one-fourth of gold and silver.

All which is respectfully submitted.

Alexander James Dallas (1759-1817)
Secretary of the Treasury.

In the Senate of the United States

Monday, June 11, 1832.

Bank of the United States.

The bill to modify and continue the act to incorporate the subscribers to the Bank of the United States was read a third time.

The question being on its passage,

Mr. Webster asked for the yeas and nays on this question, and they were ordered.

Mr. Magnum then spoke briefly in exposition of the reasons which would compel him to vote against the passage of the bill.

The question was then taken, and decided as follows:

Yeas. --Messrs. Bell, Buckner, Chambers, Clay, Clayton, Dallas, Ewing, Foot, Frelinghuysen, Hendricks, Holmes, Johnston, Knight, Naudain, Poindexter, Prentiss, Robbins, Robinson, Ruggles, Seymour, Silsbee, Smith, Sprague, Tipton, Tomlinson, Waggaman, Webster, Wilkins. --28.
Nays. --Messrs. Benton, Bibb, Brown, Dickerson, Dudley, Ellis, Forsyth, Grundy, Hayne, Hill, Kane, King, Magnum, Marcy, Miller, Moore, Tazewell, Troup, Tyler, White. --20.

On his name being called, Mr. Dallas [George Mifflin Dallas (1792-1864) son of A.J.] said that, being called to vote on the passage of the bill, he felt it to be his duty to make a brief statement to the Senate.  He had been returned to the Senate on the list of stockholders, as holding a part of the stock in the bank.  As soon as he found that this subject would come in for discussion, he had directed the stock which he held in the institution to be sold.  It had been sold, he had received the amount of the sales, and had no longer any interest in the bank.

On his name being called,

Mr. Silsbee said that he perceived his name on the list of stockholders.  He had disposed of his stock before this question came before Congress, and was no longer interested in the institution.

On his name being called,

Mr. Webster said that he had seen his name on the list of the returns;  but that the insertion was altogether a mistake of the clerk at the bank in Philadelphia.

The bill was then passed, and sent to the other House for concurrence.

Letter from Nicholas Biddle to Horace Binney
Philadelphia, February 6th. 1832.
My dear Sir

It strikes me that the resolutions of our legislature will place Mr. Dallas in an attitude equally new, and imposing;  offering an opportunity of distinction, which a young statesman could scarcely hope for in his dreams, & which the oldest statesman might pass a whole life without encountering.  It seems to me, his position is precisely this--He wishes to be the Pennsylvania candidate for the Vice Presidency and then
"Glamis -- and thane of Cawdor
"the greatest is believed."
The Pennsylvanians are disposed to assist him and to exclude Mr. V Buren.  To promote this Mr. Dallas should identify himself with all the Pennsylvania interests, more especially those interests to which Mr. Van Buren is supposed to be hostile.  He should therefore go immediately to the President with these resolutions of Penn. in his hand -- he should warn him against irritating our State, especially as the offence to her is wholly gratuitous.  He should say to him you are not opposed to this bank essentially;  you mean to agree to it with certain modifications.  Now let me mediate between you and the Bank;  let us agree on the modifications;  the Bank will consent to them, and I will report them, the rechartering of the Bank will thus become a measure of yours -- you will gratify Penna.--you will take from your adversaries their most formidable weapon, and secure the ascendancy of your friends.  If the President will do this his success is certain, if Mr. Dallas will do this, besides sustaining his father's work, & conferring a great blessing on the Country, he will assure to himself distinguished consideration through the nation.  I do not know how he is disposed for such an enterprize, but he ought to give ten years of his life for this chance of attaining it.  Tell him so, and if in half an hour afterwards he is not on his way to the Presidents,--why then--the stars have conjoined for him in vain.

An Act to incorporate the subscribers to the Bank of the United States.

Be it enacted by the Senate and House of Representatives of the United States of America, in Congress assembled, That a bank of the United States of America shall be established, with a capital of thirty-five millions of dollars, divided into three hundred and fifty thousand shares, of one hundred dollars each share.  Seventy thousand shares, amounting to the sum of seven millions of dollars, part of the capital of the said bank, shall be subscribed and paid for by the United States, in the manner hereinafter specified;  and two hundred and eighty thousand shares, amounting to the sum of twenty-eight millions of dollars, shall be subscribed and paid for by individuals, companies, or corporations, in the manner hereinafter specified.

Sec. 2.  And be it further enacted, That subscriptions for the sum of twenty-eight millions of dollars, towards constituting the capital of the said bank, shall be opened on the first Monday in July next, at the following places:  that is to say, at Portland, in the District of Maine;  at Portsmouth, in the state of New Hampshire;  at Boston, in the state of Massachusetts;  at Providence, in the state of Rhode Island;  at Middletown, in the state of Connecticut;  at Burlington, in the state of Vermont;  at New York, in the state of New York;  at New Brunswick, in the state of New Jersey;  at Philadelphia, in the state of Pennsylvania;  at Wilmington, in the state of Delaware;  at Baltimore, in the state of Maryland;  at Richmond, in the state of Virginia;  at Lexington, in the state of Kentucky;  at Cincinnati, in the state of Ohio;  at Raleigh, in the state of North Carolina;  at Nashville, in the state of Tennessee;  at Charleston, in the state of South Carolina;  at Augusta, in the state of Georgia;  at New Orleans, in the state of Louisiana;  and at Washington, in the district of Columbia.  And the said subscriptions shall be opened under the superintendence of five commissioners at Philadelphia, and of three commissioners at each of the other places aforesaid, to be appointed by the President of the United States, who is hereby authorized to make such appointments, and shall continue open every day, from the time of opening the same, between the hours of ten o'clock in the forenoon and four o'clock in the afternoon, for the term of twenty days, exclusive of Sundays, when the same shall be closed, and immediately thereafter the commissioners, or any two of them, at the respective places aforesaid, shall cause two transcripts or copies of such subscriptions to be made, one of which they shall send to the Secretary of the Treasury, one they shall retain, and the original they shall transmit, within seven days from the closing of the subscriptions as aforesaid, to the commissioners at Philadelphia aforesaid.  And on the receipt of the said original subscriptions, or of either of the said copies thereof, if the original be lost, mislaid, or detained, the commissioners at Philadelphia aforesaid, or a majority of them, shall immediately thereafter convene, and proceed to take an account of the said subscriptions.  And if more than the amount of twenty-eight millions of dollars shall have been subscribed, then the said last mentioned commissioners shall deduct the amount of such excess from the largest subscriptions, in such manner as that no subscription shall be reduced in amount, while any one re mains larger:  Provided, That if the subscriptions taken at either of the places aforesaid shall not exceed three thousand shares, there shall be no reduction of such subscriptions, nor shall, in any case, the subscriptions taken at either of the places aforesaid be reduced below that amount.  And in case the aggregate amount of the said subscriptions shall exceed twenty-eight millions of dollars, the said last mentioned commissioners, after having apportioned the same as aforesaid, shall cause lists of the said apportioned subscriptions, to be made out, including in each list the apportioned subscription for the place where the original subscription was made, one of which lists they shall transmit to the commissioners or one of them, under whose superintendence such subscriptions were originally made, that the subscribers may thereby ascertain the number of shares to them respectively apportioned as aforesaid.  And in case the aggregate amount of the said subscriptions made during the period aforesaid, at all the places aforesaid, shall not amount to twenty-eight millions of dollars, the subscriptions to complete the said sum shall be and remain open at Philadelphia aforesaid, under the superintendence of the commissioners appointed for that place;  and the subscriptions may be then made by any individual, company, or corporation, for any number of shares, not exceeding, in the whole, the amount required to complete the said sum of twenty-eight millions of dollars.

Sec. 3. And be it further enacted, That it shall be lawful for any individual, company, corporation, or state, when the subscriptions shall be opened as herein before directed, to subscribe for any number of shares of the capital of the said bank, not exceeding three thousand shares, and the sums so subscribed shall be payable, and paid, in the manner following;  that is to say, seven millions of dollars thereof in gold or silver coin of the United States, or in gold coin of Spain, or the dominions of Spain, at the rate of one hundred cents for every twenty eight grains and sixty hundredths of a grain of the actual weight there of, or in other foreign gold or silver corn at the several rates prescribed by the first section of an act regulating the currency of foreign coins in the United States, passed tenth day of April, one thousand eight hundred and six, and twenty-one millions of dollars thereof in like gold or silver coin, or in the funded debt of the United States contracted at the time of the subscriptions respectively.  And the payments made in the funded debt of the United States, shall be paid and received at the following rates: that is to say, the funded debt bearing an interest of six per centum per annum, at the nominal or par value thereof;  the funded debt bearing an interest of three per centum per annum, at the rate of sixty-five dollars for every sum of one hundred dollars of the nominal amount thereof;  and the funded debt bearing an interest of seven per centum per annum, at the rate of one hundred and six dollars and fifty one cents, for every sum of one hundred dollars of the nominal amount thereof;  together with the amount of the interest accrued on the said several denominations of funded debt, to be computed and allowed to the time of subscribing the same to the capital of the said bank as afore said.  And the payments of the said subscriptions shall be made and completed by the subscribers, respectively, at the times and in the manner following;  that is to say, at the time of subscribing there shall be paid five dollars on each share, in gold or silver coin as aforesaid, and twenty-five dollars more in coin as aforesaid, or in funded debt as aforesaid;  at the expiration of six calendar months after the time of subscribing, there shall be paid the further sum of ten dollars on each share, in gold or silver coin as aforesaid, and twenty-five dollars more in coin as aforesaid, or in funded debt as aforesaid;  at the expiration of twelve calendar months from the time of subscribing, there shall be paid the further sum of ten dollars on each share, in gold or silver coin as afore said, and twenty-five dollars more, in coin as aforesaid, or in funded debt as aforesaid.

Sec. 4.  And be it further enacted, That at the time of subscribing to the capital of the said bank as aforesaid, each and every subscriber shall deliver to the commissioners, at the place of subscribing, as well the amount of their subscriptions respectively in coin as aforesaid, as the certificates of funded debt, for the funded debt proportions of their respective subscriptions, together with a power of attorney, authorizing the said commissioners, or a majority of them, to transfer the said stock in due form of law to "the president, directors, and company, of the bank of the United States," as soon as the said bank shall be organized.  Provided always, That if, in consequence of the apportionment of the shares in the capital of the said bank among the subscribers, in the case, and in the manner, herein before provided, any subscriber shall have delivered to the commissioners, at the time of subscribing, a greater amount of gold or silver coin and funded debt than shall be necessary to complete the payments for the share or shares to such subscribers, apportioned as aforesaid, the commissioners shall only retain so much of the said gold or silver coin, and funded debt, as shall be necessary to complete such payments, and shall, forthwith, return the surplus thereof, on application for the same, to the subscribers lawfully entitled thereto.  And the commissioners, respectively, shall deposit the gold and silver coin, and certificates of public debt by them respectively received as aforesaid from the subscribers to the capital of the said bank, in some place of secure and safe keeping, so that the same may and shall be specifically delivered and transferred, as the same were by them respectively received, to the president, directors, and company, of the bank of the United States, or to their order, as soon as shall be required after the organization of the said bank.  And the said commissioners appointed to superintend the subscriptions to the capital of the said bank as aforesaid, shall receive a reasonable compensation for their services respectively, and shall be allowed all reasonable charges and expenses incurred in the execution of their trust, to be paid by the president, directors, and company, of the bank, out of the funds thereof.

Sec. 5.  And be it further enacted, That it shall be lawful for the United States to pay and redeem the funded debt subscribed to the capital of the said bank at the rates aforesaid, in such sums, and at such times, as shall be deemed expedient, any thing in any act or acts of Congress to the contrary thereof notwithstanding.  And it shall also be lawful for the president, directors, and company, of the said bank, to sell and transfer for gold and silver coin, or bullion, the funded debt subscribed to the capital of the said bank as aforesaid:  Provided always, That they shall not sell more thereof than the sum of two millions of dollars in any one year;  nor sell any part thereof at any time within the United States, without previously giving notice of their intention to the Secretary of the Treasury, and offering the same to the United States for the period of fifteen days, at least, at the current price, not exceeding the rates aforesaid.

Sec. 6.  And be it further enacted, That at the opening of subscription to the capital stock of the said bank, the Secretary of the Treasury shall subscribe, or cause to be subscribed, on behalf of the United States, the said number of seventy thousand shares, amounting to seven millions of dollars as aforesaid, to be paid in gold or silver coin, or in stock of the United States, bearing interest at the rate of five per centum per annum;  and if payment thereof, or of any part thereof, be made in public stock, bearing interest as aforesaid, the said interest shall be payable quarterly, to commence from the time of making such payment on account of the said subscription, and the principal of the said stock shall be redeemable in any sums, and at any periods, which the government shall deem fit.  And the Secretary of the Treasury shall cause the certificates of such public stock to be prepared, and made in the usual form, and shall pay and deliver the same to the president, directors, and company, of the said bank on the first day of January, one thousand eight hundred and seventeen, which said stock it shall be lawful for the said president, directors, and company, to sell and transfer for gold and silver coin or bullion at their discretion:  Provided, They shall not sell more than two millions of dollars thereof in any one year.

Sec. 7.  And be it further enacted, That the subscribers to the said bank of the United States of America, their successors and assigns, shall be, and are hereby, created a corporation and body politic, by the name and style of "The president, directors, and company, of the bank of the United States," and shall so continue until the third day of March, in the year one thousand eight hundred and thirty-six, and by that name shall be, and are hereby, made able and capable, in law, to have, purchase, receive, possess, enjoy, and retain, to them and their successors, lands, rents, tenements, hereditaments, goods, chattels and effects, of whatsoever kind, nature, and quality, to an amount not exceeding, in the whole, fifty-five millions of dollars, including the amount of the capital stock aforesaid;  and the same to sell, grant, demise, alien or dispose of;  to sue and be sued, plead and be impleaded, answer and be answered, defend and be defended, in all state courts having competent jurisdiction, and in any circuit court of the United States: and also to make, have, and use, a common seal, and the same to break, alter, and renew, at their pleasure: and also to ordain, establish, and put in execution, such by-laws, and ordinances, and regulations, as they shall deem necessary and convenient for the government of the said corporation, not being contrary to the Constitution thereof, or to the laws of the United States;  and generally to do and execute all and singular the acts, matters, and things, which to them it shall or may appertain to do;  subject, nevertheless, to the rules, regulations, restrictions, limitations, and provisions, hereinafter prescribed and declared.

Sec. 8.  And be it further enacted, That for the management of the affairs of the said corporation, there shall be twenty-five directors, five of whom, being stockholders, shall be annually appointed by the President of the United States, by and with the advice and consent of the Senate, not more than three of whom shall be residents of any one state;  and twenty of whom shall be annually elected at the banking house in the city of Philadelphia, on the first Monday of January, in each year, by the qualified stockholders of the capital of the said bank, other than the United States, and by a plurality of votes then and there actually given, according to the scale of voting hereinafter prescribed:  Provided always, That no person, being a director in the bank of the United States, or any of its branches, shall be a director of any other bank;  and should any such director act as a director in any other bank, it shall forthwith vacate his appointment in the direction of the bank of the United States.  And the directors, so duly appointed and elected, shall be capable of serving, by virtue of such appointment and choice, from the first Monday in the month of January of each year, until the end and expiration of the first Monday in the month of January of the year next ensuing the time of each annual election to be held by the stockholders as aforesaid.  And the board of directors, annually, at the first meeting after their election in each and every year, shall proceed to elect one of the directors to be president of the corporation, who shall hold the said office during the same period for which the directors are appointed and elected as aforesaid:  Provided also, That the first appointment and election of the directors and president of the said bank shall be at the time and for the period hereinafter declared:  And provided also, That in case it should at any time happen that an appointment or election of directors, or an election of the president of the said bank, should not be so made as to take effect on any day when, in pursuance of this act, they ought to take effect, the said corporation shall not, for that cause, be deemed to be dissolved;  but it shall be lawful at any other time to make such appointments, and to hold such elections, (as the case may be,) and the manner of holding the elections shall be regulated by the by-laws and ordinances of the said corporation: and until such appointments or elections be made, the directors and president of the said bank, for the time being, shall continue in office: And provided also, That in case of the death, resignation, or removal of the president of the said corporation, the directors shall proceed to elect another president from the directors as aforesaid: and in case of the death, resignation, or absence, from the United States, or removal of a director from office, the vacancy shall be supplied by the President of the United States, or by the stockholders, as the case may be.  But the President of the United States alone shall have power to remove any of the directors appointed by him as aforesaid.

Sec. 9.  And be it further enacted, That as soon as the sum of eight millions four hundred thousand dollars in gold and silver coin, and in the public debt, shall have been actually received on account of the subscriptions to the capital of the said bank (exclusively of the subscription aforesaid, on the part of the United States) notice thereof shall be given by the persons under whose superintendence the subscriptions shall have been made at the city of Philadelphia, in at least two newspapers printed in each of the places, (if so many be printed in such places respectively,) where subscriptions shall have been made, and the said persons shall, at the same time, and in like manner, notify a time and place within the said city of Philadelphia, at the distance of at least thirty days from the time of such notification, for proceeding to the election of twenty directors as aforesaid, and it shall be lawful for such election to be then and there made.  And the President of the United States is hereby authorized, during the present session of Congress, to nominate, and, by and with the advice and consent of the Senate, to appoint, five directors of the said bank, though not stockholders, any thing in the provisions of this act to the contrary notwithstanding;  and the persons who shall be elected and appointed as aforesaid, shall be the first directors of the said bank, and shall proceed to elect one of the directors to be President of the said bank;  and the directors and president of the said bank so appointed and elected as aforesaid, shall be capable of serving in their respective office, by virtue thereof, until the end and expiration of the first Monday of the month of January next ensuing the said appointments and elections;  and they shall then and thenceforth commence, and continue the operations of the said bank, at the city of Philadelphia.

Sec. 10.  And be it further enacted, That the directors, for the time being shall have power to appoint such officers, clerks, and servants, under them as shall be necessary for executing the business of the said corporation, and to allow them such compensation for their services, respectively, as shall be reasonable;  and shall be capable of exercising such other powers and authorities for the well governing and ordering of the officers of the said corporation, as shall be prescribed, fixed, and determined, by the laws, regulations, and ordinances, of the same.

Sec. 11.  And be it further enacted, That the following rules, restrictions, limitations, and provisions, shall form and be fundamental articles of the constitution of the said corporation, to wit:

1.  The number of votes to which the stockholders shall be entitled, in voting for directors, shall be according to the number of shares he, she, or they, respectively, shall hold, in the proportions following, that is to say;  for one share and not more than two shares, one vote;  for every two shares above two, and not exceeding ten, one vote;  for every four shares above ten, and not exceeding thirty, one vote;  for every six shares above thirty, and not exceeding sixty, one vote;  for every eight shares above sixty, and not exceeding one hundred, one vote;  and for every ten shares above one hundred, one vote;  but no person, co-partnership, or body politic, shall be entitled to a greater number than thirty votes;  and after the first election, no share or shares shall confer a right of voting, which shall not have been holden three calendar months previous to the day of election.  And stockholders actually resident within the United States, and none other, may vote in elections by proxy.

Second.  Not more than three-fourths of the directors elected by the stockholders, and not more than four-fifths of the directors appointed by the President of the United States, who shall be in office at the time of an annual election, shall be elected or appointed for the next succeeding year;  and no director shall hold his office more than three years out of four in succession: but the director who shall be the president at the time of an election may always be re-appointed, or re-elected, as the case may be.

Third.  None but a stockholder, resident citizen of the United States, shall be a director;  nor shall a director be entitled to any emoluments;  but the directors may make such compensation to the president for his extraordinary attendance at the bank, as shall appear to them reasonable.

Fourth.  Not less than seven directors shall constitute a board for the transaction of business, of whom the president shall always be one, except in case of sickness or necessary absence: in which case his place may be supplied by any other director whom he, by writing, under his hand, shall depute for that purpose.  And the director so deputed may do and transact all the necessary business, belonging to the office of the president of the said corporation, during the continuance of the sickness or necessary absence of the president.

Fifth.  A number of stockholders, not less than sixty, who, together, shall be proprietors of one thousand shares or upwards, shall have power at any time to call a general meeting of the stockholders, for purposes relative to the institution, giving at least ten weeks' notice in two public newspapers of the place where the bank is seated, and specifying in such notice the object or objects of such meeting.

Sixth.  Each cashier or treasurer, before he enters upon the duties of his office, shall be required to give bond, with two or more sureties, to the satisfaction of the directors, in a sum not less than fifty thousand dollars, with a condition for his good behaviour, and the faithful performance of his duties to the corporation.

Seventh.  The lands, tenements, and hereditaments, which it shall be lawful for the said corporation to hold, shall be only such as shall be requisite for its immediate accommodation in relation to the convenient transacting of its business, and such as shall have been bona fide mortgaged to it by way of security, or conveyed to it in satisfaction of debts previously contracted in the course of its dealings, or purchased at sales, upon judgments which shall have been obtained for such debts.

Eighth.  The total amount of debts which the said corporation shall at any time owe, whether by bond, bill, note, or other contract, over and above the debt or debts due for money deposited in the bank, shall not exceed the sum of thirty-five millions of dollars, unless the contracting of any greater debt shall have been previously authorized by law of the United States.  In case of excess, the directors under whose administration it shall happen, shall be liable for the same in their natural and private capacities: and an action of debt may in such case be brought against them, or any of them, their or any of their heirs, executors, or administrators, in any court of record of the United States, or either of them, by any creditor or creditors of the said corporation, and may be prosecuted to judgment and execution, any condition, covenant, or agreement to the contrary notwithstanding.  But this provision shall not be construed to exempt the said corporation or the lands, tenements, goods, or chattels of the same from being also liable for, and chargeable with, the said excess.

Such of the said directors, who may have been absent when the said excess was contracted or created, or who may have dissented from the resolution or act whereby the same was so contracted or created, may respectively exonerate themselves from being so liable, by forthwith giving notice of the fact, and of their absence or dissent, to the President of the United States, and to the stockholders, at a general meeting, which they shall have power to call for that purpose.

Ninth.  The said corporation shall not, directly or indirectly, deal or trade in any thing except bills of exchange, gold or silver bullion, or in the sale of goods really and truly pledged for money lent and not redeemed in due time, or goods which shall be the proceeds of its lands.  It shall not be at liberty to purchase any public debt whatsoever, nor shall it take more than at the rate of six per centum per annum for or upon its loans or discounts.

Tenth.  No loan shall be made by the said corporation, for the use or on account of the government of the United States, to an amount exceeding five hundred thousand dollars, or of any particular state, to an amount exceeding fifty thousand dollars, or of any foreign prince or state, unless previously authorized by a law of the United States.

Eleventh.  The stock of the said corporation shall be assignable and transferable, according to such rules as shall be instituted in that behalf, by the laws and ordinances of the same.

Twelfth.  The bills, obligatory and of credit, under the seal of the said corporation, which shall be made to any person or persons, shall be as signable by endorsement thereupon, under the hand or hands of such person or persons, and his, her, or their executors or administrators, and his, her or their assignee or assignees, and so as absolutely to transfer and vest the property thereof in each and every assignee or assignees successively, and to enable such assignee or assignees, and his, her or their executors or administrators, to maintain an action thereupon in his, her, or their own name or names: Provided, That said corporation shall not make any bill obligatory, or of credit, or other obligation under its seal for the payment of a sum less than five thousand dollars.  And the bills or notes which may be issued by order of the said corporation, signed by the president, and countersigned by the principal cashier or treasurer thereof promising the payment of money to any person or persons, his, her or their order, or to bearer, although not under the seal of the said corporation, shall be binding and obligatory upon the same, in like manner, and with like force and effect, as upon any private person or persons, if issued by him, her or them, in his, her or their private or natural capacity or capacities, and shall be assignable and negotiable in like manner as if they were so issued by such private person or persons; that is to say, those which shall be payable to any person or persons, his, her or their order, shall be assignable by endorsement, in like manner, and with the like effect as foreign bills of exchange now are; and those which are payable to bearer shall be assignable and negotiable by delivery only:  Provided, That all bills or notes, so to be issued by said corporation, shall be made payable on demand, other than bills or notes for the payment of a sum not less than one hundred dollars each, and payable to the order of some person or persons, which bills or notes it shall be lawful for said corporation to make payable at any time not exceeding sixty days from the date thereof.

Thirteenth.  Half yearly dividends shall be made of so much of the profits of the bank as shall appear to the directors advisable;  and once in every three years the directors shall lay before the stockholders, at a general meeting, for their information, an exact and particular statement of the debts which shall have remained unpaid after the expiration of the original credit, for a period of treble the term of that credit, and of the surplus of the profits, if any, after deducting losses and dividends.  If there shall be a failure in the payment of any part of any sum subscribed to the capital of the said bank, by any person, co-partnership or body politic, the party failing shall lose the benefit of any dividend which may have accrued prior to the time for making such payment, and during the delay of the same.

Fourteenth.  The directors of the said corporation shall establish a competent office of discount and deposit in the District of Columbia, whenever any law of the United States shall require such an establishment;  also one such 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:  Provided, the directors aforesaid shall not be bound to establish such office before the whole of the capital of the bank shall have been paid up.  And it shall be lawful for the directors of the said corporation to establish offices of discount and deposit, wheresoever they shall think fit, within the United States or the territories thereof, and to commit the management of the said offices, and the business thereof, respectively to such persons, and under such regulations as they shall deem proper, not being contrary to law or the constitution of the bank.  Or instead of establishing such offices, it shall be lawful for the directors of the said corporation, from time to time, to employ any other bank or banks, to be first approved by the Secretary of the Treasury, at any place or places that they may deem safe and proper, to manage and transact the business proposed as aforesaid, other than for the purposes of discount, to be managed and transacted by such offices, under such agreements, and subject to such regulations, as they shall deem just and proper.  Not more than thirteen nor less than seven managers or directors, of every office established as aforesaid, shall be annually appointed by the directors of the bank, to serve one year;  they shall choose a president from their own number;  each of them shall be a citizen of the United States, and a resident of the state, territory or district, wherein such office is established;  and not more than three-fourths of the said managers or directors, in office at the time of an annual appointment, shall be re-appointed for the next succeeding year; and no director shall hold his office more than three years out of four, in succession;  but the president may be always re-appointed.

Fifteenth.  The officer at the head of the Treasury Department of the United States shall be furnished, from time to time, as often as he may require, not exceeding once a week, with statements of the amount of the capital stock of the said corporation and of the debts due to the same;  of the moneys deposited therein;  of the notes in circulation, and of the specie in hand;  and shall have a right to inspect such general accounts in the books of the bank as shall relate to the said statement:  Provided, That this shall not be construed to imply a right of inspecting the account of any private individual or individuals with the bank.

Sixteenth.  No stockholder, unless he be a citizen of the United States, shall vote in the choice of directors.

Seventeenth.  No note shall be issued of less amount than five dollars.

Sec. 12.  And be it further enacted, That if the said corporation, or any person or persons, for or to the use of the same, shall deal or trade in buying or selling goods, wares, merchandise, or commodities what soever, contrary to the provisions of this act, all and every person and persons by whom any order or direction for so dealing or trading shall have been given;  and all and every person and persons who shall have been concerned as parties or agents therein, shall forfeit and lose treble the value of the goods, wares, merchandise and commodities in which such dealing and trade shall have been, one half thereof to the use of the informer, and the other half thereof, to the use of the United States, to be recovered in any action of law with costs of suit.

Sec. 13.  And be it further enacted, That if the said corporation shall advance or lend any sum of money for the use or on account of the government of the United States, to an amount exceeding five hundred thousand dollars;  or of any particular state, to an amount exceeding fifty thousand dollars;  or of any foreign prince or state, (unless previously authorized thereto by a law of the United States,) all and every person and persons, by and with whose order, agreement, consent, approbation and connivance, such unlawful advance or loan shall have been made, upon conviction thereof shall forfeit and pay, for every such offence, treble the value or amount of the sum or sums which have been so unlawfully advanced or lent;  one fifth thereof to the use of the informer, and the residue thereof to the use of the United States.

Sec. 14.  And be it further enacted, That the bills or notes of the said corporation originally made payable, or which shall have become payable on demand, shall be receivable in all payments to the United States, unless otherwise directed by act of Congress.

Sec. 15.  And be it further enacted, That during the continuance of this act, and whenever required by the Secretary of the Treasury, the said corporation shall give the necessary facilities for transferring the public funds from place to place, within the United States, or the territories thereof, and for distributing the same in payment of the public creditors, without charging commissions or claiming allowance on account of difference of exchange, and shall also do and perform the several and respective duties of the commissioners of loans for the several states, or of any one or more of them, whenever required by law.

Sec. 16.  And be it further enacted, That the deposits of the money of the United States, in places in which the said bank and branches thereof may be established, shall be made in said bank or branches thereof, unless the Secretary of the Treasury shall at any time otherwise order and direct;  in which case the Secretary of the Treasury shall immediately lay before Congress, if in session, and if not, immediately after the commencement of the next session, the reasons of such order or direction.

Sec. 17.  And be it further enacted, That the said corporation shall not at any time suspend or refuse payment in gold and silver, of any of its notes, bills or obligations;  nor of any moneys received upon deposit in said bank, or in any of its offices of discount and deposit.  And if the said corporation shall at any time refuse or neglect to pay on demand any bill, note or obligation issued by the corporation, according to the contract, promise or undertaking therein expressed;  or shall neglect or refuse to pay on demand any moneys received in said bank, or in any of its offices aforesaid, on deposit, to the person or persons entitled to receive the same, then, and in every such case, the holder of any such note, bill, or obligation, or the person or persons entitled to demand and receive such moneys as aforesaid, shall respectively be entitled to receive and recover interest on the said bills, notes, obligations or moneys, until the same shall be fully paid and satisfied, at the rate of twelve per centum per annum from the time of such demand as aforesaid;  Provided, That Congress may at any time hereafter enact laws enforcing and regulating the recovery of the amount of the notes, bills, obligations or other debts, of which payment shall have been refused as aforesaid, with the rate of interest above mentioned, vesting jurisdiction for that purpose in any courts, either of law or equity, of the courts of the United States, or territories thereof, or of the several states, as they may deem expedient.

Sec. 18.  And be it further enacted, That if any person shall falsely make, forge or counterfeit, or cause or procure to be falsely made, forged or counterfeited, or willingly aid or assist in falsely making, forging or counterfeiting any bill or note in imitation of or purporting to be a bill or note issued by order of the president, directors and company of the said bank, or any order or check on the said bank or corporation, or any cashier thereof;  or shall falsely alter, or cause or procure to be falsely altered, or willingly aid or assist in falsely altering any bill or note issued by order of the president, directors and company of the said bank, or any order or check on the said bank or corporation, or any cashier thereof;  or shall pass, utter or publish, or attempt to pass, utter or publish as true, any false, forged or counterfeited bill or note purporting to be a bill or note issued by order of the president, directors and company of the said bank, or any false, forged or counterfeited order or check upon the said bank or corporation, or any cashier thereof, knowing the same to be falsely forged or counterfeited;  or shall pass, utter or publish, or attempt to pass, utter or publish as true, any falsely altered bill or note issued by order of the president, directors, and company of the said bank, or any falsely altered order or check on the said bank or corporation, or any cashier thereof, knowing the same to be falsely altered with intention to defraud the said corporation or any other body politic or person;  or shall sell, utter or deliver, or cause to be sold, uttered or delivered, any forged or counterfeit note or bill in imitation, or purporting to be a bill or note issued by order of the president and directors of the said bank, knowing the same to be false, forged, or counterfeited;  every such person shall be deemed and adjudged guilty of felony, and being thereof convicted by due course of law, shall be sentenced to be imprisoned and kept to hard labour for not less than three years, nor more than ten years, or shall be imprisoned not exceeding ten years, and fined not exceeding five thousand dollars.  Provided, That nothing herein contained shall be construed to deprive the courts of the individual states, of a jurisdiction under the laws of the several states, over any offence declared punishable by this act.

Sec. 19.  And be it further enacted, That if any person shall make or engrave, or cause, or procure to be made or engraved, or shall have in his custody or possession, any metallic plate, engraved after the similitude of any plate from which any notes or bills, issued by the said corporation, shall have been printed, with intent to use such plate, or to cause, or suffer the same to be used in forging or counterfeiting any of the notes or bills issued by the said corporation;  or shall have in his custody or possession, any blank note or notes, bill or bills, engraved and printed after the similitude of any notes or bills issued by said corporation, with intent to use such blanks, or cause, or suffer the same to be used in forging or counterfeiting any of the notes or bills issued by the said corporation;  or shall have in his custody or possession, any paper adapted to the making of bank notes or bills, and similar to the paper upon which any notes or bills of the said corporation shall have been issued, with intent to use such paper, or cause, or suffer the same to be used in forging or counterfeiting any of the notes or bills issued by the said corporation, every such person, being thereof convicted, by due course of law, shall be sentenced to be imprisoned, and kept to hard labour, for a term not exceeding five years, or shall be imprisoned for a term not exceeding five years, and fined in a sum not exceeding one thousand dollars.

Sec. 20.  And be it further enacted, That in consideration of the exclusive privileges and benefits conferred by this act, upon the said bank, the president, directors, and company thereof, shall pay to the United States, out of the corporate funds thereof, the sum of one million and five hundred thousand dollars, in three equal payments;  that is to say: five hundred thousand dollars at the expiration of two years;  five hundred thousand dollars at the expiration of three years;  and five hundred thousand dollars at the expiration of four years after the said bank shall be organized, and commence its operations in the manner herein before provided.

Sec. 21.  And be it further enacted, That no other bank shall be established by any future law of the United States during the continuance of the corporation hereby created, for which the faith of the United States is hereby pledged.  Provided, Congress may renew existing charters for banks in the District of Columbia, not increasing the capital thereof, and may also establish any other bank or banks in said district, with capitals not exceeding, in the whole, six millions of dollars, if they shall deem it expedient.  And, notwithstanding the expiration of the term for which the said corporation is created, it shall be lawful to use the corporate name, style, and capacity, for the purpose of suits for the final settlement and liquidation of the affairs and accounts of the corporation, and for the sale and disposition of their estate, real, personal, and mixed: but not for any other purpose, or in any other manner what soever, nor for a period exceeding two years after the expiration of the said term of incorporation.

Sec. 22.  And be it further enacted, That if the subscriptions and payments to said bank shall not be made and completed so as to enable the same to commence its operations, or if the said bank shall not commence its operations on or before the first Monday in April next, then, and, in that case, Congress may, at any time, within twelve months thereafter, declare, by law, this act null and void.

Sec. 23.  And be it further enacted, That it shall, at all times, be lawful, for a committee of either house of Congress, appointed for that purpose, to inspect the books, and to examine into the proceedings of the corporation hereby created, and to report whether the provisions of this charter have been, by the same, violated or not;  and whenever any committee, as aforesaid, shall find and report, or the President of the United States shall have reason to believe that the charter has been violated, it may be lawful for Congress to direct, or the President to order a scire facias to be sued out of the circuit court of the district of Pennsylvania, in the name of the United States, (which shall be executed upon the president of the corporation for the time being, at least fifteen days before the commencement of the term of said court,) calling on the said corporation to show cause wherefore the charter hereby granted, shall not be declared forfeited;  and it shall be lawful for the said court, upon the return of the said scire facias, to examine into the truth of the alleged violation, and if such violation be made appear, then to pronounce and adjudge that the said charter is forfeited and annulled.  Provided, however, Every issue of fact which may be joined between the United States and the corporation aforesaid, shall be tried by a jury.  And it shall be lawful for the court aforesaid to require the production of such of the books of the corporation as it may deem necessary for the ascertainment of the controverted facts:  and the final judgment of the court aforesaid, shall be examinable in the Supreme Court of the United States, by writ of error, and may be there reversed or affirmed, according to the usages of law.

Rules and Regulations for the government of the Offices of Discount and Deposit
Established by the Bank of the United States.

Whereas, by the act incorporating the subscribers to the Bank of the United States, the directors are authorized and empowered to establish Offices of Discount and Deposit within the United States, or the Territories thereof, subject to such regulations as they shall deem proper, not being contrary to law, or the constitution of the Bank;  therefore, We, the Directors, by virtue of the power and authority vested in us, do resolve, that the following rules and regulations be established, for the government of the Offices of Discount and Deposit of the Bank of the United States:

The Directors of the Bank of the United States shall annually appoint not less than nine Directors for each Office, a majority of whom shall constitute a Board.

The Directors of each Office shall choose one of their number for President.

It shall be the duty of the President to preside at all meetings of the Board, except in cases of necessary absence, to convene the Directors upon special occasions, and to give such attendance at the Office, as the interest of it may require.

The Directors of the Bank of the United States shall appoint the Cashiers of the Offices of Discount and Deposit.

It shall be the duty of the Cashier, carefully to observe the conduct of all persons employed under him, and report to the Board such instances of neglect, incapacity or bad conduct as he may discover in any of them; daily to examine the settlement of the cash account of the office; take charge of the cash, and whenever the actual amount disagrees with the balance of the cash account, report the same to the President and Directors without delay; to attend all meetings of the Board; keep a fair and regular record of its proceedings; give such information to the Board as may be required; consult with committees when requested, on subjects referred by the Board; and also to perform such other services as may be required of him by the Board.

The Tellers, Clerks, and Servants of the Offices, shall be appointed by their Directors, and before they enter on the duties of their respective offices, bond shall be given with sufficient surety (to be approved by the Directors) for the faithful performance of the trust reposed in them.

No Teller, Clerk, or Servant, in an Office shall be permitted to have an account with the same, but shall receive his salary, quarterly or monthly, from the Cashier; and every Teller, Clerk, and Servant of an Office shall take, and subscribe, an oath, or affirmation, to the following effect, to wit: I,___ ___, do swear (or affirm) that I will to the best of my knowledge and abilities, perform the duties assigned, and the trust reposed in me as ____ of the Office of Discount and Deposit of the Bank of the United States, and keep secret the business thereof.

The Offices shall be kept open for the transaction of business, every day in the year, during such hours as the Directors thereof may determine, except Sundays, Christmas day, the first of January, and the fourth of July.

The books and accounts of the Offices shall be regularly balanced on the first day of June and the first day of December, in each year.

The Offices shall take charge of the cash of all such persons as shall choose to place it with them, free of expense, and shall keep it subject to the order of the depositor, payable at sight; and shall also receive special deposits of ingots of Gold, bars of Silver, wrought plate, and other valuable articles of small bulk, for safe keeping, at the risque of the depositor.

The Offices shall receive and pay all specie coins, according to the rates and value, that have been or shall be established by Congress.

There shall be at least one Discount day in each week, when the Directors shall be assembled; a majority of the members shall be required to form a quorum, except for the purpose of settling Discounts, for which five shall constitute a quorum, and no bill or note shall be discounted the unexpired term of which exceeds sixty days.

In case of sickness or necessary absence of the President, such other Director shall preside as he shall by writing nominate, or in case of omission of such nomination, by such other Director as the Board may for that purpose appoint.

Bills and Notes offered for Discount, shall be laid before the Board of Directors by the Cashier on the days assigned for Discount, together a statement of the funds and situation of the Office, for their information.

Discounts shall not be made upon personal security without two responsible names (the firm of a house being considered as one name only;) but if Stock of the Bank of the United States, Funded Debt of the United States, or such other property as shall be approved by the Board, be deposited and pledged to an amount sufficient to secure the payment, with all damages, one responsible name may be taken. But no accommodation note (i.e., a note, the proceeds of wrhich are to be placed to the credit of the drawer) shall be discounted, unless its payment be secured by a deposit of the Stock of this Bank or of Funded Debt of the United States, or such other property as shall be approved by the Board together with an express authority to the Bank to sell the Deposit in case of non-payment at any time after the Note shall become due.

On each application for discount, every Director who may be present, shall be held to give his opinion for or against the same. And no Discount shall be made without the consent of three fourths of the Directors present; and all notes and bills discounted shall be entered in a book, to be called The Credit Book, in such manner as to discover to the Board, at one view, on each Discount day, the amount which any person is discounter, or is indebted to the Office, either as payer or as indorser.

On every Discount day, the name of every person who shall have overdrawn the Office since the last Discount day shall be reported to the Board; and no person while he remains an overdrawer, shall have any note or bill discounted by the Offices. And in no instance will this Bank give a release or discharge to any debtor when the debt arises from an overdraft. And every officer who shall knowingly suffer an overdraft to be made on the Office, without communicating it to the President and Cashier, shall be dismissed from the service of the office.

If any Bill or Note belonging to the Bank, shall not be paid before the shutting of the Office on the last day of grace, each bill or note shall be forthwith protested; and while such bill or note remains unpaid, no discount or accommodation shall be granted to any drawer, acceptor, or indorser of the same. Bills and notes deposited for collection, at any time before the commencement of the days of grace, shall be proceeded with as bills and notes discounted; unless the person depositing the same shall otherwise direct in writing: provided that in case of non-payment and protest, the person lodging the same shall pay the damages of protest.

Every person who opens an account, and transacts business with an Office, shall subscribe his name in a book, to be kept for that purpose, to be called The Book of Signatures; and all the persons who compose any house, keeping an account with an Office shall subscribe their names, and the signatures of the firm, in the book, if residing in the place where the Office is established.

No Director, without special authority, shall be permitted to inspect the cash account of any person with the Office.

A Committee on the state of the Office, shall be appointed by ballot every three months to examine and count the discounted notes, and compare the amount thereof with the balance of the amount of bills discounted in the general ledger;  they shall also count the cash, and examine the evidences of the other property of the Bank, and make an inventory of the same to be compared with the books in order to ascertain their agreement, and make report to the Board.

The Presidents and Cashiers of Offices, shall take, and subscribe an oath, or affirmation to the following effect, to wit: I, ___ ___ do swear (or affirm) that I will, to the best of my knowledge and abilities, perform the duties assigned to, and the trust reposed in me as ____ of the Office of Discount and Deposit of the Bank of the United States.

All Notes and Bills receivable at an Office, shall be paid in Specie, or in the Notes of the Office, or in the Notes of such Banks established in the same place with the Office, as redeem their Notes to bearer, with Specie on demand.

The Offices of Discount and Deposit shall receive in payment of the revenue of the United States, the Notes of such State Banks as redeem their engagements with Specie, and provided they are the Notes of Banks located in the city, or place, where the Office receiving them is established. And also the Notes of such other Banks as a special deposit on behalf of the Government, as the Secretary of the Treasury may require.

The Offices of Discount and Deposit shall at least once every week, settle with the State Banks for their Notes, received in payment of the revenue, or for the engagements of individuals to the Bank, so as to prevent the balances due to the Office from swelling to an inconvenient amount.

The manner of keeping, stating, and rendering the accounts of the Offices shall be prescribed by the Directors of the Bank of the United States, and the observance of the rules established and instructions given shall be enforced by the Directors of the Bank of the United States, to whom accounts of the Offices shall be rendered.

The respective Offices, shall once in every week, make out and transmit to the Directors of the Bank of the United States, a distinct abstract of the state of their funds;  which abstract shall ascertain the amount of the debts and credits of the Office, amount of Notes issued by the Office, and then in circulation, the amount of cash on hand;  and shall likewise distinguish in the account of cash on hand, how much thereof, is in specie, and how much in the several kinds of Bank notes, designating the notes of the parent Bank and those of each Office particularly.

All notes issued from the Offices shall be delivered to their respective Cashiers, who shall give duplicate receipts for the same, one of which is to be lodged with the President of the Bank of the United States, and the other with the President of the Office.

All Notes which shall have become unfit for circulation, shall be cancelled by the President and Directors of the Office, and immediately thereafter transmitted to the Directors of the Bank of the United States, who shall cause the said Office to be credited with the same.

The Cashier of each Office shall give bond to the President, Directors, and Company of the Bank of the United States with two or more approved securities, in the sum of fifty thousand dollars, with a condition for his good behaviour, and the faithful performance of his duties to the Corporation.

The Directors of the Offices shall be empowered to form and establish all other Rules and Regulations for the interior management of the Offices: Provided, the same be not repugnant to law, or to the Rules and Regulations of the Bank of the United States, or the Resolutions of the Directors thereof.

I. The Bank shall be kept open for the transaction of business, from nine o'clock in the morning until three o'clock in the afternoon every day in the year, except Sundays, Christmas day, the First of January, and the Fourth of July.

II. The Bank shall take charge of the cash of all such persons as shall choose to place it there, free of expense, and shall keep it subject to the order of the depositor, payable at sight; and shall also receive special deposits of ingots of gold, bars of silver, wrought plate and other valuable articles of small bulk, for safe keeping, at the risk of the depositor.

III. All bills and notes offered for discount, shall be delivered into Bank on Monday and Thursday in each week, and laid before the Board of Directors, on the succeeding Tuesday and Friday, together with a statement of the funds and situation of the Bank; on which days the discounts shall be settled, and such as shall be admitted shall be passed to the credit of the applicants on the day on which they are discounted, and may be drawn for at any time after twelve o'clock; and the notes or bills not discounted, shall be returned at any time after twelve o'clock of the same day.

IV. Discounts shall not be made upon personal security without two responsible names (the firm of a house being considered as one name only;) but if stock of this bank funded debt of the United States, or such other property as shall be approved by the Board, be deposited and pledged to an amount sufficient to secure the payment, with all damages, one responsible name shall be taken.

V. On each application for discount, every Director who may be present, shall be held to give his opinion for or against the same. And no discount shall be made without the consent of three-fourths of the directors present; and all notes and bills discounted shall be entered in a book, to be called the Credit Book, in such manner as to discover to the Board, at one view, on each discount day, the amount for which any person is indebted to the Bank, either as payer, discounter, or indorser.

VI. On every discount day, the name of every person who shall have overdrawn the Bank since the last discount day, shall be reported to the Board; and no person while he remains an overdrawer, shall have any note or bill discounted at this Bank. And in no instance will this Bank give a release or discharge to any debtor where the debt arises from an overdraft. And every officer who shall knowingly suffer an overdraft to be made on the Bank, without communicating it to the President or Cashier, shall be dismissed from the service of the Bank.

VII. If any bill or note belonging to this Corporation, shall not be paid before the shutting of the Bank on the last day of grace, such bill or note shall be forthwith protested; and while such bill or note remains unpaid, no discount or accommodation shall be granted to any drawer, acceptor, or indorser of the same. Bills and notes deposited for collection, at any time before the commencement of the days of grace, shall be proceeded with, as bills and notes discounted; unless the person depositing the same shall otherwise direct in writing; provided, that in case of non-payment and protest, the person lodging the same shall pay the charges of protest.

VIII. Every person who opens an account, and transacts business with this Bank, shall subscribe his name in a book, to be kept for that purpose, to be called The book of signatures, and all the persons who compose any house, keeping any account with this Bank, shall subscribe their names, and the signature of the firm, in this book, if residing in Philadelphia.

IX. No director, without special authority, shall be permitted to inspect the cash account of any person with this Bank.

The books and accounts of the Bank shall be regularly balanced on the first day in January and July in each year; and the half-yearly dividends shall be declared on the first Monday in said months, and published in at least three of the newspapers in the city of Philadelphia:-- and the books of transfer shall be shut for ten days immediately preceding each of the days appointed for declaring the half-yearly dividends.

XI. In all cases when required, the Cashier shall accept powers of attorney for receiving any interest or dividend due, or to become due, on any shares in this Bank, or on any funded debt of the United States payable in Philadelphia; which interest or dividend shall be held by the Bank, subject to the order of the proprietor, free of charge.

XII. If any person claims a certificate of Bank stock to be issued in lieu of one lost or destroyed, he shall make an affidavit of the fact, and state the circumstances of the loss or destruction; and he shall advertise in one or more of the public newspapers in the city of Philadelphia, for the space of six weeks, an account of the loss or destruction, describing the certificate and its number, calling on all persons to show cause why a new certificate shall not issue in lieu of that lost; and he shall transmit to the Bank his affidavit, and the advertisements before mentioned, and give to the Bank a bond of indemnity, with one or more sureties if required, (in the sum of two hundred dollars, for each share to be renewed) against any damage which may arise from issuing the new certificate: whereupon the Cashier shall, six months after the notice by advertisement as aforesaid, issue a new certificate, of the same number and tenor with that said to be lost or destroyed, and specifying that it is in lieu thereof.

XIII. A Committee on the Offices consisting of five members, shall be appointed by the President every three months, who shall have special charge of the situation and concerns of the several Offices and Agencies, with authority to report such measures in relation thereto as they may deem beneficial. The said Committee shall have like charge of all matters relating to the nomination and election of Directors for the several Offices.

A Committee on Exchange consisting of three members shall be appointed at the same time and in like manner, who shall have special charge of all matters relating to the operations of the Bank and its Offices, in Foreign and Domestic Exchange and Bullion -- and who shall act as a daily Committee for the purchase of Domestic Exchange at the Bank.

A Committee on the State of the Bank consisting of five members shall at the same time be appointed by ballot, who shall have charge of such matters relative to the local business of the Bank as may from time to time be referred to them by the Board; they shall at least once during their time of service examine and count the discounted notes, and compare the amount thereof with the balance of the amount of bills discounted in the General Ledger; they shall also count the cash, and the printed and unprinted paper in the possession of the Cashier -- examine the evidences of the public debt and property of the Corporation, make an inventory of the same to be compared with the books in order to ascertain their agreement, and report to the Board.

XIV. Thirty days' notice shall be given by the Cashier in at least two of the daily newspapers of Philadelphia, of each annual election for Directors of the Bank; and within one week preceding the same, the Directors for the time being, shall appoint by ballot five Stockholders, not being Directors, to be Judges of the election, who shall conduct and regulate the same, commencing at ten o'clock A.M. on the first Monday of January.

But in case an election of Directors shall not begin, or shall not be completed on the said first Monday, the Judges shall adjourn the same from day to day, not exceeding five days, until the said election shall be completed.

The Judges shall on the forenoon of the day after the election shall have been completed, at the furthest, transmit to the Cashier of the Bank, an authentic certificate of the persons elected: and the Cashier shall thereupon forthwith give notice to all of the said Directors who shall be within convenient distance, to meet at the Bank at six o'clock in the evening of the same day, for the purpose of choosing a President.

XV. In every election to an office (except that of the President) by this Board, there shall be a previous nomination of the candidate at least one week before the election: Provided, that such previous nomination may be dispensed with by a unanimous vote of the Directors present:-- and every President, Cashier and Assistant Cashier of this Bank, shall take and subscribe, an oath or affirmation, to the following effect, to wit:-- I ____ do swear (or affirm) that I will to the best of my knowledge and abilities, perform the duties assigned to, and the trust reposed in me, as of the Bank of the United States.

XVI. It shall be the duty of the President to take into his custody at the Bank, the Seal of the Bank which he shall cause to be affixed to all instruments and documents when so ordered by the Board; and to sign all bills and notes issued by the Corporation.

He shall preside at all meetings of the Board, except in cases of necessary absence, convene the Directors on special occasions, and serve as a member of all committees of the Board.

XVII. It shall be the duty of the Cashier to countersign all bills, notes, certificates of stock, and bills of exchange to be signed by the President, or by order of the Board; He shall take into his custody at the Bank, the plates, paper-moulds, bank note paper, unprinted and printed until issued, blank certificates of stock, and bills of exchange, superintend the printing of whatever supplies of these may from time to time be considered necessary for the use of the Bank and Offices; keep a regular account of all the articles in his custody, which account shall be checked by quarterly examinations by the Committee on the State of the Bank; he shall attend all meetings of the Board, keep a fair and regular record of its proceedings, furnish official extracts therefrom, and give all such information as may be required by the Board or any Committee.

He shall correspond with the Officers of the several Offices, as the organ of the Board or Committees of the Board, in directing the general operations of the Bank, in stock and bullion, and in foreign and domestic exchange; he shall also correspond with the Agents of the Bank in Europe, and with all other persons doing business with the Bank on subjects connected with his department; he shall carefully observe the conduct of all persons employed under him, and report to the Board such instances of neglect, incapacity or bad conduct as he may discover in any of them, and generally shall perform all such other services as may be required of him by the Board.

XVIII. It shall be the duty of the First Assistant Cashier to take charge of the local operations of the Bank in Philadelphia in the same manner and with the same duties, as the Cashiers of the Offices do of the concerns of their respective Offices, except when otherwise provided by the by-laws or directed by the Board; carefully to observe the conduct of all persons employed under him, and report to the President and Cashier such instances of neglect, incapacity or bad conduct as shall come to his knowledge, daily to examine the settlement of the cash accounts of the Bank, to take charge of the cash, and whenever the actual amount disagrees with the balance of the cash account report the same to the President and Cashier without delay, and generally to perform such services as shall be required of him by the Board, the President, or the Cashier.

XIX. It shall be the duty of the Second Assistant Cashier to take charge of the general statements and accounts of the Bank; the accounts between the several Offices, the accounts with the Government of the United States, the foreign exchange accounts, and the returns of all foreign or domestic bills purchased at the Offices. On all these subjects he shall correspond with the Offices and the parties concerned, under the special superintendence of the President and Cashier; and generally perform such other services as may be required by the Board or by the President or Cashier.

XX. It shall be the duty of the third Assistant Cashier to take charge of the Suspended Debt and the Real Estate of the Bank and the several Offices, and correspond thereon with the Officers and Agents of the Bank and the Offices, and with other parties concerned under the special superintendence of the President and Cashier, and generally perform such other services as may be required by the Board, or by the President or the Cashier.

XXI. In the election of Cashier, or of Assistant Cashiers, the ballots shall be first taken for all the candidates, and if no one shall have a majority of the votes of all the Directors present, then the three candidates having the highest number shall be voted for again; and if no one shall be lected, the ballots shall then be taken on the two highest.

XXII. The Cashier before he enters upon the duties of his office shall give bond to the President, Directors and Company, with two or more approved sureties, in the sum of seventy thousand dollars, with a condition for his good behaviour and the faithful performance of his duties to the Corporation. The First Assistant Cashier, and the Cashier at each Office, shall give bond in like manner, in the sum of fifty thousand dollars, with the same condition. The Second and Third Assistant Cashiers shall give bond in like manner in the sum of twenty-five thousand dollars with the same condition. The paying and the receiving Tellers, in the sum of twenty thousand dollars each; The Book-keepers Discount Clerks, Note Clerks, and other Clerks, in the sum of five thousand dollars each; and the Porters in the sum of two thousand dollars each, with the same condition.

XXIII. No Clerk or Porter in this institution shall be permitted to have an account with the Bank, but shall receive his salary quarterly, or monthly. And every Clerk and servant of the Bank shall take, and subscribe, an oath or affirmation to the following effect, to wit:-- I ___ do swear or (affirm) that I will to the best of my knowledge and abilities perform the duties assigned to, and the trust reposed in me as ___ of the Bank of the United States, and keep secret the business thereof.

XXIV. None of the foregoing rules or regulations shall be repealed or altered, unless a majority of all the Directors vote for the repeal or alteration, nor unless upon a motion offered for the purpose at a previous meeting.

XXV. The proceedings of the Board of Directors, when conducting their business as a deliberative body, shall be governed by the following article.

I. When the President takes the chair, the members shall take their seats.

2. The Discounts shall be settled, and the minutes of the preceding meeting shall then be read, before the Board proceeds to any other business; and no debate shall be admitted, nor question taken, at such reading, except as to errors and inaccuracies.

3. The President shall be the judge of order, and his decisions shall be immediately submitted to, unless two members require an appeal to the Board. He shall name all Committees, unless herein otherwise provided, or unless the Board shall otherwise determine; and he shall call special meetings of the Board, whenever in his opinion the business may require it, or on the request of three members of the Board.

4. Every member presenting a paper to the chair, shall first state its general purport; and every member who shall make a motion, or offer a resolution, or speak on any subject under discussion, shall rise and address the President.

5. No debate shall be entered into on any motion or resolution, until it shall be stated from the chair; and all motions shall, if requested by the President or by two members, be reduced to writing; and no member shall speak more than twice upon any one question without leave from the Board.

6. While a resolution is under consideration, no motion shall be made, except to amend, divide, commit or postpone it: But it shall be in order, at any time, on the call of three members, to take the previous question, which shall be "Will the Board at this time act on this subject?" and if it shall be decided in the affirmative, the debate may be continued. A motion to adjourn, shall always be in order, but shall be decided without debate.

7. A member may call for the division of a question or resolution where the sense will admit of it; but no amendment which tends to destroy the general sense of the clause of a resolution shall be admitted.

8. If business of different kinds shall be called for, at the same time, by different members, the Board will judge and give preference accordingly.

9. The yeas and nays shall be taken on any question, if called for by two members previous to the decision on such question; but no motion for reconsideration shall be permitted, unless made and seconded by members who were in the majority on the original question.

10. At the request of any two of the Board, the names of the members who make and second a motion shall be entered on the minutes.