1. Moses Austin on Plan of Reorganization of the Bank of St. Louis.
Memorandum [Evidently for use of Stephen F, Austin.]
[December 1816-January, 1817.]
A Bank should always be Placed on such a footing as to secure to
the Public equal advantages and the Charter should give such power
to the directors as will inable them to Extend the stock, so as to meet
the Public demand and answer Public expectation
the makeing bylaws and establishing a Branch bank aught to be
left fully in the Power of the directors
A Territorial bank will be more advantageous then any Other—
because the Name of the Territory annexed to the Charter will give
Credit, to the Notes and Value to the stock, but it aught to be so
guarded as not to give the legislature too great and commanding
controle over the bank and at the same time retain such authority as
will cause the directors to discount generally for the Country as well
as town
The following General rules may be usefull to you
1— the charter should be for as many Years as can be obtained
say not less than Twenty
2— the stock should be equal to the commerce of the country to
obtain this fact make an estimate of the exports of both this and
Illinoies Territory making a proper allowance for fast improvement
3— the shares should be small say 50 Dollars each this gives an
Opportunity to many persons to become stock holders that can not If
the shares were 100 Dollars and the more stock Holders, the greater
number you have to support the Credit of your stock and also the
bank paper, for no stock Holder will refuse the Notes of his own
Bank—
4— All directors should be stock Holder of 10 Shares at least
5— the President should be a stock Holder of at least 1000 Dollars,
or, 20 shares
6—- In regulating Votes each share should have a vote up to ten
shares, after which the ratio aught to be regulated by the Albany
bank or the charter now in force for the St Louis bank.
7— Votes aught to be given by proxy if demanded by a stock
Holder when the Directors are chosen.
8— the charter should provide Directors for the first six month,
after which they should be chosen by the stock holders each year and
to continue in office a Year
9— Six directors aught to constitute a board of Directors, on
discount Days, but when by laws are made, the whole board should
be called, and all by laws should be concured in by 3/4 of the
Directors, and on such occasions a Notice should be given at least 15 Days
to all the directors and If after being so Notefied 3 differant times
and they do not attend they aught to be discontinued as directors
10— the Legislature aught to have the power of Nameing at
least 5 or 4 Directors
11— the board of Directors are commonly 13 in Number less then
5 would not give the Territory an equal ballance of Power
12— The Territory aught to hold as much stock as she can
command money to Purchase.
13— On Subscribeing for shares at least one tenth should be paid
down for which a scrip should be given to the person that subscribes
something in this way
I, A B being appointed to open books and receive subscriptions to
shares for the Bank of Missouri do Certify that John Benny is
intitled to 10 shares in said Bank on which he has paid into my
hands five Dollars on each share agreeably to the law of this
Territory, establishing said Bank and which I have entered on the books
of subscription for bank shares.
14— Not more than six pr Cent should be allowed to be demanded
by the Bank for discounting Notes.
15— the regulations on discount days should be the same in town
as Country and a man liveing in the country, should not be obliged to
provide an endorser in St Louis.
16— No note should be allowed to be placed in the bank for
collection or discount unless the Notes is drawn payable at the bank
of Missouri
17— Every man haveing business with the bank shall have at the
Banking Boom in Writing his address in his own hand, and at what
place he keeps his Counting House, and such persons as reside in the
country shall name a place In the Town of St Louis at which a Bank
Notice may be left on the falling due of a Note
18— the directors shall have the power of puting the bank into
Operation when ever they in their Judgement may think proper or
when they may Judge that a sufficient amount of stock is subscribed
19— payments in stock after the first shall not be Demanded
until sixty days notice has been given in some Newspaper of this
Territory stateing how much on each share is demanded
20— Books for stock shall be opened in every county in the
Territory and at such Other places as the directors in there Judgement
may direct
21— all sales of Bank stock must be made at Bank and no transfer
can or aught to take place at any other place Nor aught any stock to
be transfered until the holder has settled his account in Bank,
I also propose the following Scheme of a Lottery in Ten Classes.
Te be called the Territorial Lottery from this lottery I propose to
raise the funds for the Territory to Purchase Bank stock This
Lottery shall consist of 100,000 Dollars each Class to be drawn in
Ten Years a Class each year.
Scheme of Lottery
say 10 000 Ticketts at 10 Dollars each is 100 000 Dollars to be
distributed in the following prises to say
1 prise of 10 000 Dollars__________is 10 000
2 do 5 000 do ____________ 10 000
9 do 1 000 do ____________ 9 000
20 do 500 do ____________ 10 000
50 do 200 do ____________ 10 000
75 do 100 do ____________ 7 500
100 do 50 do ____________ 5 000
240 do 20 do ____________ 4 800
3370 do 10 do ____________ 33 700
_____ ______
Dolls 100 000
3867 Prises
6133 Blanks something over 1 1/2 blanks to a prize all the prises
shall be subject to a discount of 15 pr Cent for the use of the
Territory, also it is proposed that the following Prizes shall be paid of
in Ticketts of the second 3 4 5 6 7 8 and 9 Classes
Tickets.
1000 Doll 1 of the 1000 Dollar prizes payable in 100 each
2000 4 of " 500 Dollar do do in 50 do
1000 5 of " 200 Dollar do do in 20 do
1000 10 of " 100 Dollar do do in 10 do
500 10 of 50 do______ do in 5 each
400 20 of 20 do do in 2 do
4100 410 of 10 do is 410
____________ _____________
Tickets 597
10,000 Dollars
you will see by this Scheme that the Territory will have the
command of 25 thousand Dollars which if vested in Bank stock will
give the Territory a command of 1/4 of the proposed stock of 100 000
Dollars in as much as the 10 Thousand Dollars of the prizes in the
first Class and so on to the 10 Class will remain in the hands of
the Territory, I propose that the 15 Thousand Dollars which will
be produced on the Other clases shall be expended in Opening a
Territorial road and in Building bridges as the legislature may
Direct all of which to be under Directors appointed by the
Legislature themselves—
I also propose that the money vested in Bank stock say 25 000
Dollars shall be untouched for 10 years and the Dividends acruing
each year shall be again vested in bank stock Now suppose the
bank devides 12 1/2 pr [Cent] pr annam the account with the Territory
at the end of Ten years will stand thus.
25 000 bank stock @ 12 1/2 pr Cent is 3125 Dollars
Stock in bank 25000
_____
28125
_____ 28125
28125 stock second year @ 12 1/2 pr cent is 3515.62 1/2
Stock on hand 28125 31640. 62 1/2
___________________________
Doll 31640. 62 1/2
Stock for 3 Year is 31640. 62 1/2
Bank Interest on stock at 12 1/2 pr Ct 3855. 07 1/2
_____________
Doll 35495. 70 35495. 70
Dollares
Stock for 4 year is_______________________ 35495. 70
Bank dividend at 12 1/2 pr Cent___________ 4336. 75
_________
39832. 45 39832. 45
_______________________
Stock of the 5 year is____________________ 39832. 45
Bank Dividend this year___________________ 4989. 6
_______________________
44821. 51 44821. 51
Stock for 6 year__________________________ 44821. 51
Bank Dividend_____________________________ 5600. 22
_______________________
50481. 73 50481. 73
Stock for 7 year__________________________ 50481. 73
Bank Dividend_____________________________ 6300. 24 56781. 97
_______________________
56781. 97 56781. 97
Bank Stock for 8 Year is__________________ 56781. 97
Bank Dividend_____________________________ 7097. 60
__________
63879. 57
Bank stock for 9 Year_____________________ 63879. 57
Bank Dividend_____________________________ 7984. 87 1/2
___________
71864. 44 1/2
Bank stock for 10 Year____________________ 71864. 44 1/2
Bank dividend_____________________________ 8983
___________
Dollars 80847. 44 1/2
from this statement It will appear that at the end of the Ten
years the Territory will have Eighty thousand Eight Hundred and
forty seven Dollars and 44 1/2 Cents in bank Stock out of which
10 thousand Dollares will be then payable to the lottery
establishment
I may in this place mention that the old Charter may be amended
so as to meet all the Objects contemplated, propose an amendment
in the following manner
1 Change the Committe to Directors for six month
2 Give Power to the Directors to establish a Branch Bank at
St Genevieve when they think the Interest of the Bank will Justify—
3 Give power to the Directors to put the Bank into Operation
when they shall Judge proper
4 make 1/10 on each share payable on subscribeing
5 Make provision for the Interest of the Territory agreeably to
the plan proposed both as respects stock and Directors
6 reduce shares to 50 Dollares each the produce to the Territory
will be truly grate for after the Ten thousand Dollars payable in
Prizes on the last Drawing of the Class lottery, is made the produce
of this system will be 70,847 44 1/2 in stock to the Territory and
135 000 Dollars for the use of the Territory in building Bridges and
Makeing a Territorial road thus makeing the Produce of this Scheme
in Ten years a Public advantage of 205847 44 1/2 and that with out
taxing the People a Cent Whether this Project is or is not of
consequence to the Territory is to be submited to the legislature. I
would also propose that there shall each year be created as much
as will Cover the yearly dividends of the Territorial Stock, If No
more, unless there should be as much stock to be purchased at par
as the Territory may want and If there should Not be, it is a proof
that the Bank is doing a good business and can not be damaged
by New Stock being created, I have a few remarks more to make
respecting the payment of the first instalment on the Bank shares
for the Territory, lett the Territorial Revenue be plased in the
Bank in payment of the first instalment and lett the bank lend
money to the Territory from time to time untill the Drawing of
the Lottery, this the bank may do with great Propriety in as much
as the full amount of the Bank shares will be paid up by the sale
of Ticketts and by money deposited in Bank from time to time also
the use of all the money Produced from all the Classes of the lottery
for the Ten years in fact It is likely that the sales of ticketts would
produce as much money and in time for the Payment of the
Territorial Instalment that is if the lottery is put into Operation as soon
As the Bank for the lottery Money may be used in payment Untill
the Drawing of the lottery In Justification of this Systam you may
urge the many Counterfit Bank Notes which no Law can cure in as
much as the Banks that put them into circulation are at too great a
distance to obtain Proof you may also urge the necessaty of a
bank to bring back hard money which will be the consequence
of a Territorial Bank, you may urge its utility in general and as
Banks in general use in other Countries it becomes more necessary
in this Territory, you may produce many Examples to Justify
the lottery and the advantages as so great that I think with some
exertion you may obtain the establishment of the lottery as part
of the banking Systam the money to be expended on the road and
on bridges will greatly advance the General Interest and I think
Bring in the country members you can mention the dependant
State of this Territory not haveing any land to dispose of to fill
the Treasury and that we may at least calculate to become a State
in a few years and then a Territorial fund will be much wanted
to meet many Expences which If drawn immidiately from the
People will be grievously felt you may also urge that by lottery
the Territorial fund will be drawn from different Parts of the
Western Country in short it is commencing a fund on which the
Territory may calculate much hereafter I will mention that a
law aught to be made to Prohibit Lotteries in the Territory except
granted by the legislature, for the lottery there should be not less
than 5 Directors and for the Public Road at least as many by
examining the old Bank charter you will soon see what
amendments it will want to meet the proposed plan and I would also
so form the law establishing the lottery as to give power to the
lottery Directors to enhance the Scheme to 150 thousand Dollars If
the Ticketts are found to sell of this the Directors must be the
Judge you may in support of the system point out how farr this
Territory is behind any Other part of the U States in usefull
Establishments for the want of a monied Institution on liberal
principles—
It will be well also to observe that at the present day most if not
all the states make all the New Banks pay large sums to the State of
[for] Charters and as the Territory do not propose to make the
Missouri Bank pay anything the Bank may with great propriety give
the Territory time to pay in the amount of the Different instalments
on the Bank Shares this aught to be press.d on the minds of the
merchants that if the establishment of a Bank is delay.d they may
have to pay Smart money hereafter to obtain a Bank Charter, see
the Tax, paid by a number of the Banks some pay 100,000 Dollarrs
to the State for a Charter and this Territory will do the same
shortly
[Endorsed:] Memorandum of Bank business in Mo
2. NOTES EOR A SPEECH BY STEPHEN E. AUSTIN AGAINST CHARTER OF
THE BANK OF ST. LOUIS, MISSOURI
Reflections respecting the Bank question 1816-17
I cannot reconcile it [to] my concience that I should have
executed the duty which I owe to my constituents to posterity and my
country were I to content myself with giveing a Silent negative to
this Bill and shall therefore claim the indulgence of this House for
a few Moments untill I again attempt to assign the reasons why I
thing it aught not to pass but in doing this I most sensibly feel the
disadvantages under which I labor, in consequence of my connection
with and Interest in the Bank of St Louis as a Stockholder, I am
wel aware that however forcibly I may urge any arguments against
this Bill and however cogent those arguments may be, were I so
fortunate as to advance any such that a counterpoise is already fixed in
some of your Minds to weigh them down and distroy their effect, in
the Supposition that they flow from Motives of Self interest more
than from a conviction that the public good will be promoted by
their adoption The conviction I say that I have such an impression
to remove before I can hope to have any weight in the discussion of
the main question would have discouraged me from again speeking
on this subject—did I not feel an internal consciousness—a proud
internal conviction that as the Representative of freemen as One
of that Body in whose integrity and unbiased judgement the people
have reposed the guardianship of their Prosperity of their
Happiness and their dearest blessings, I should spurn those traitorous
motives and recoil with horror from those incentives of individual
Interest which would lead me to adopt a course in the slightest degree
incompatible with the interest of my Constituents or inconsistent
with the Individual as well as aggregate wellfare of my Country—
and I can not but flatter myself that the Members of thise House
will do me the justice to believe my solemn asseveration that were
I as disconnected with the Bank of St L as I am with that of M that
the course I have adopted would have been the same for sir it is a
course which my understanding of the Genl Interest of the
Community pointed out that understanding may have been an improper
an erroneous one, but that the intention the Motives of my
opposition to this Bill spring from selfish view, I denounce as a most
infamous and malicious implication of my principle as unfounded as
uncharitable and base Sir I wish my conduct as a Member of this
House at all time to pass in review before the awfull tribunal of the
People and shall allways wave those privileges so far [as] they
extend to myself which would secure [me] for being questioned,
when for my acts and words on this floor I wish those acts to be
probed to the quick. I wish the touch stone of Public scrutiny
applied to them, and if found erronious and corrupt that they might
sink into infamy beneath the weight of public disapprobation, but
sir those who impugn my principles maliciously and without just
cause are injureing themselves not me for there is an innate
impenetrable and impregnible security and Safety in conscious integrity
which disdains the dastardly assaults of malice, and causes that ruin
to recoil upon the assailant which was intended to overwhelmn the
assailed, as to the motives therefore which may be attributed me by
those few who viewing my conduct themselves through the medium
of Self-interest prejudice and hatred Condem it, I feel perfectly
indifferent they excite they ought to excite only one feeling in my
Bosom as well as in the Bosum of every member of this House and
of every honest honorable and candid Man, which [is] contempt,
I hope therefore that whatever may have been the impression as to
the Motives by which I have been actuated that the Members of this
House repose sufficient confidence in my integrity to believe the
assertion that I am not actuated by motives of self interest alone, and Sir
whatever may be the appearance to the Contrary I assert it as a fact
that [if] I were governed by these selfish views which have been
attributed to ine out of this House I should be in favour of the passage
of this Bill, and sir I can prove that I would be so to every man of
understanding who knows anything about Banking for Sir suppose
that two Banks were established and that both could keep up their
credit, which however I contend is impossible, but we will suppose it
possible, is it not evident that if I could give the satisfactory security
to Both B. that from the two I could draw double the amt. of
discounts from them both that I could from one, and that therefore I
could have double the amt. of money to speculate on that I would
have had if I was confined to one B— Sir were I governd by
motives of Self interest alone I would vote for 500 B. for then I could
apply for 500 discounts and always have my pockets fil'ed to
speculate upon the miseries or misfortunes of my fellow Citizens, were I
governed by Motives of Self of interest therefore alone you would
see me sir advocateing this B. and advocateing the principle that the
Banking system aught to be extended to an unlimited extent, I
therefore again reiterate the hope the members of this House will do
me the justice to assign my opposition to this Bill to the proper
motives, and to give me their unbiased attention while I attempt to give
my reasons for voting against this Bill, reasons which as I before said
I feel bound by my duty to my constituants to give. I am opposed
to the passage of this Bill because I am convinced that the Policy of
establishing One Banking Institution on the plan of the State Banks
of Ky etc. with such a Capital as will insure credit and
respectability abroad and enable the Directors of it to extend its advantages to
every part of the Country at home by the establishment of Branches
where required is the best one which ever has been adopted and
infinately better than the policy pursued by P. and O— of establishing
innumerable petty independent institutions—the advantages
resulting from a State or Territorial Institution are that in the first place
the weight of its Capital must and will if properly managed secure
its credit and respectability abroad as well as at home sir as a proof
of this look at the Bank of Ky. dureing the late suspension of specie
payments look at the State B. of N. C. of T. of Virginia and you
find that their paper has never depreciated abroad on the same ratio
that the paper of the Independent Banks have and within the State
it has never yet in any one instance been below par well sir compare
this with the Paper of the Independent B. and what do you discover
by the comparison. Sir the paper of the Independent B. was abroad
always invariable below any of the State B. and that even in their
own State at a distance from the B they would scarcely pay at all and
then at a discount of 10 to 14 pr cent, and what is the cause of this
disparity in the Credit of the State and independent B. sir what but
the weight of capital, what but the respectability of an institution
which is known to be fostered protected and watched over by the
Legislature of the State by the Guardian of the Peoples rights and
prosperity, thus Sir we see the arguments in favour of State Bank
over independent ones is that it Unites the Commertial and active
capital of the State and there by give more respectability and
permanency to the establishment that it insures the Currency of its notes
at par throughout its own State and gives a greater and sure credit
to them abroad, than the notes of Inde[pendent] Bank can ever have,
which are often 10 to 12 pr cent below par even [in] their own State
witness Philadelphia where Ph [Pittsburgh] notes are 12 1/2 pr ct
below par but if there was one Bank for the whole State with
Branches through out it this would not be the case.
I am therefore opposed to the system of Indepent Banks, One
Bank is establish in this T let us make that one a Territorial one on
the plan of the State B of K( ?) and supp[res]s all others—
2 I am opposed to this B because the Country cannot support 2 B
at this time and because there is not specie in it for their
establishment
Sir ask any candid inteligent man who is acquainted with the
commertial and other exigences of this Country and he will at once
say that it can not support 2 B. and sir I lay it down as an
established proposition or one which is self evident and acknowledged
that the Country at this time can not support 2 B. well sir if 2
are established under those circumstances what is the consequence
to the Bank to the individual and aggregate wellfare of the
Community sir it is ruin to both, you have been told that no injury
will [result] to the community if the B do not do a profitable
business or do not even make one cent for the Stockholders but Sir the
Gentlemen who have advanced this doctrine have by doing [so]
only shewn that as relates to Banking and the opperation of Banking
they are totally and profoundly ignorant, for Sir if it is known that
a Bank is doing a bad business and if its stock is below par the
public suspicion is at once aroused and fixed upon it Something is
suspected to be wrong to be as it should not be it is immediately
suspected that the funds of the Bank are in disorder and its notes
are receivd with caution and reluctance they circulate with difficulty
and are crowding into the Bank and finally fall much below par
this is the inevitable consequence the notes of the Bank will
depreciate or rise in proportion as the Stock of the B is below or above
par, this Sir I lay down as another axium another self evident and
acknowledged proposition, well Sir and who can say then that no
injury can result to the Community if the Bank do no business if
their Stock is below par—
Will it be no injury to have our country filled with paper the
credit of which is fluctuating and below par, yes Sir it will be
an evil and it is so perfectly self evident that it will be an evil that
I deem it unnessary to attempt to prove that it is one. Eminence
and incalculable evils therefore will result to the Country if these
Two Banks if they are both established, do not do such a business
as will keep their stock at par and that they cannot do such a
business at this time I lay down as a self evident proposition and
therefore it is equally self evident the establishment of 2 Bs will
be an injury to the Country and literally ruin its commercial
advantages for if our paper is below par at home what will it be abroad
Sir it will be blank paper—
3 I am opposed to the establishment of another B because it will
be rearing up in the heart of our Country two Rival Institutions
who wowld view each other as adversaries plac'd in opposition by
the Legislature to cut each others throughts as soon as possible
4th the President [precedent] it establishes of extending the B—
system to an unlimited extent.
the establishment of another Bank at this time I consider as
militateing with the best interest of the Country and tending most
inevitably to involve it in evils the effects of which will be felt for years
to come. Sir every one knows, who knows anything about the
quantity of specie in circulation in this Territory that there is not
a sufficiency for the establishment of two Banks and indeed not
sufficient for one in consequence of which supposeing we grant this
charter and establish another Bank and that the specie is equally
divided between the two and the consequence is that both will be
compeled to go into opperation with a Paper Capital and neither
will have or can have Specie to take up their notes with by
authorizing the establishment of another Bank therefore at this time and
under these circumstances you are sanctioning an imposition upon
the People and fostering and encouraging a system of speculation
whose opperations if not seasonably checked will involve the Country
in confusion, anarchy, and ruin, the establishment of another Bank
Sir will by overstocking the circulation of the Country with paper
money be productive of most serious evils for I lay down as an
undeniable proposition and one which I think I can demonstrate to
the satisfaction of this House that overstocking the circulation of
any Country with Paper will have a direct tendency to drive almost
every dollar in specie [out] of it we will suppose that it requires
300,000 hundred thousand Dolls to supply the circulation of this
Territory and I am extremely doubtfull wheither it will require that
much for it is to [be] observed that the quantity of money necessary
to supply the circulation of any country and to carry on the
operations of trade bear no kind of proportion to the amount of property
actually bought and sold in as much as the same money may in the
course of one day represent ten times its value in property by
passing through different peoples hands—thus for instance ten Dolls may
serve me to buy that amount of property and perhaps in five Minutes
after it serves another the same purpose and thus in the course of a
day represents property to the amt of some 100s or perhaps 1000s of
Dolls the circulateing medium therefore necessary for any Country
bears no kind of proportion to the amount of commodities vended
from the great disproportion therefore which the circulateing
Medium necessary for any Country bears to its productions and the
quantity of Commodities vended in it I am led to the conclution
that 300 000 Dolls would be togeather with forreign notes amply
sufficient to supply the circulation of this and the adjoining
Territory Suppose these Notes were emitted from the two Banks to the
amount of Eight hundred thousand Dollars wiiich is the amt. they
are entitled to emit by their charters and there would be an excess
in the circulation of 600 000 Dolls. and Sir let me ask you what is to
become of it, will you send it abroad to seek a market in the
circulation of other States the Credit of these Banks be assured sir will
never be such as to insure the circulation of their Notes abroad at
par and sir if so as the circulation of every part of the U. S. is
already supplied with Bank [paper] and when the National Bank
goes into opperation will be overstocked—your notes therefore must
flow from the circulation into other channels than foreign
speculation and sir where will they flow to where but to the source whence they
issued, Sir they will return to the Bank and the specie will be drawn
for them and that Specie carrying upon the face of it a quarantee
which insures its currency through out the civilized world will be
taken from the Country and employed by merchants and Speculators
in foreign trade, and thus is the Country dreaned of Specie the Banks
are dreaned of Specie and involved in the alternative of importing
Specie at an eminence hazard and expence or of stopping payment,
an event which like the thunder bolt that rends in fragments
whatever it comes in contact with would prostrate the prosperity of the
Country to a state of depression whence it would take the labours
and exertion of years to redeem it
the establishment of another Bank therefore at this time would
most clearly and unquestionably have a tendency to drive almost all
the specie out [of] circulation and entail up [on] us the numerous
evils resulting therefrom Sir Experience has shewn that the
Banking system has been carried to an excess in the United States which
endangers their prosperity and there is reason to fear may even shake
the foundation of the government itself and aught we not to profit
by the examples before us, to view the acts of those States who have
multiplied Banks with a scrutinizing eye and to take warning by
their Errors—look at the commencement of the Banking system in
those States and trace its progress and you find in every instance
that Charters were obtained with difficulty at first, but the granting
of one was made a president for granting another untill the interest
of the Banks predominated over the interest of the Community and
then charters were granted indiscriminately—so it will be in this
Territory unless a cheerk is put to it at once, the establishment of two
Banks at a time when the Territory is hardly able to support one will
reiterate in the case of future Legislatures as a most weighty
president in favour of granting 50 or an 100 Banks as soon as we have a
state and the population increases
We see therefore upon a fair and impartial view of this subject
that no evil can possibly result to the community from a
Postponement of this bill in as much as the charter Bank now going into
operation will be sufficient to supply the present state [of] the
country and to drive away foreign Bank notes and that no evil will
result to individuals but that on the contrary by adopting the Bill
at this time we run the hazard of involving both Banks in ruin. We
do an act of injustice to the Bank already chartered by depriveing
[it] of those facilities of procureing specie and the advantage which
it otherwise would have and in contemplation of which the stock
was subscribed, and indeed jeapordise the prosperity and happiness
of the whole country—I trust that upon this view of the subject no
one can for a Moment hesitate which course to adopt, wheither that
one from whence no possible evil can result to any person or that
one which places the welfare of our constituents and Country at
stake—
Postpone untill the other Banks open and the country more
improved and an experiment made of one Bank &c &c—
Another argument in favor of postponement to the time proposed
is that before that time the Banks in the United States will all have
commenced Specie payments and there will be no difficulty in
procuring specie for the establishment of another Bank, and by that
time we shall have made an experiment of one Bank and assertained
by actual experiance Wheither the opperations of the Banking system
are benifitial or injurious to the community and enable the
Legislature to shape their course accordingly. I have moved a
postponement of this Bill to the time proposed and shall vote for it from a
firm conviction that the best interest of the country demands it and
will be materially benefited or injured in the discussion of this
question which I think rests up [on] this proposition
Wheither there possibly can as much injury result to the
community from the postponement of this Bill as there can from its
adoption let us first consider what evils can possibly arise from its
postponement.
You are told that the country is deluged with the Bank paper of
other States, and that we are compeled to have Banks in self defence
and Sir have you not a Bank now going [into] opperation under a
charter granted by the Legislature of this Territory on principles,
which guarantes to the community at large, to the country as to the
Towns to the whole Territory as well as to St. Louis an equal
participation of those previleges and advantages to be drawn from a
Banking institution, and will not the pamper of that Bank drive out the
foreign paper with which we are infested as effectually as the paper
of two Banks can do. Sir I contend that it will. I contend that the
one Bank is Sufficient to stock the circulation of this Territory at this
time, and consequently that two will overstock it, One Bank therefore
remedies the evil as to forreign paper two creates another evil still
greater, you are told that it is necessary to have two Banks in order
to form a competition and to be a check upon each other, Sir those
who are versed in banking will tell you that nothing is more
dangerous than a violent compe[ti]tion between Banks for there is eminent
danger that the directors harried on by those warm feeling which are
always alive and on the alert in all cases of competition and governed
more by the impulse of those feelings than by the true interest of the
Bank would hazard its credit and safety by extending its
accomodations too far and by attempting to injure and ruin the other—as to a
check Sir the Charter of the old Bank prescribes [rules] for its
govern which were [made] sufficiently restrictive by the Legislature who
granted it, and the intrest of the Bank alone-is a sufficient guarantee
against" partiality—for sir if the Directors were so far to disregard
those principles of equity which aught to govern every man in all his
transactions with his fellow man, they at least would be attentive to
their own private interests which would lead them to give general
satisfaction to all so far as the friends of the Bank would permit
them for if they pursued a different course and instead of
giveing that general satisfaction which would arise from impartiality—
they were to disgust and enrage their customers by their partiality
and injustice, no person would apply to it for discounts—it would do
no business and would be an expense instead of a profit to
stockholders—Competition therefore is dangerous and there are sufficient
checks in the charter and in the individual interest if not in the
integrity of the Directors—you are told that the Individuals who have
associated themselves togeather will be injured if they do not obtain
a Charter Sir I do hope and trust that when individual and local
interest comes in contact with the interest of the whole community
that this nor no other legislature that ever did or ever will exist can
entertain the shadow of a doubt as to the course to be adopted, Sir
individual interest has nothing to do with and aught to have no
bearing whatever in the decission of this question it is one which involves
the interest of the whole community as such must be acted on by this
House, but sir even admitting that the House would suffer themselves
to be biased in favour of this charter provided any individual injury
would result from its rejection or postponement, and I cannot see
that any argument can be advanced in favour of it on that ground for
sir the individuals composeing this association entered into it
volentarily without any prospects or perhaps expectation of getting a
charter they were perfectly aware of the ground upon which they
stood of the position they had taken if it was a bad one I cannot see
that there is any obligation on this Legislature to relieve them at the
hazard of the interest of the community I can therefore see no evils at
all which can result from a Postponement—let us now consider
wheither any can probably result from acting upon it now and
passing it or rather the danger of emitting more notes than is sufficient
for the circulation of the country in consequence of which they will
return to the Bank for specie which will be taken abroad The danger
of depreciating the value of the paper
The stockholders consider that the Territory is by a strong
implication pledged to support the Bank of St Louis in as much as
provision is made in the Charter for Territorial Stock The cause
of the opposition to the Country is that by excluding them from
the Bank they could speculate on their produce at pleasure etc,
now they can get assistance from the Bank untill they have time to
dispose of their produce etc. The danger of a Contest between the
Banks and should one be ruined it would involve the whole country
in ruin
The danger of Multiplying Banks see Ohio and Pennsylvania,
and if this Charter is granted it will be held up as a president to
future Legislatures to grant other Charters The Bank of St Louis
is now going in to opperation and it would be much safer and much
more politick(?) to try the experiment with that Bank a new years
to see wheither the Country flourishes etc before another is established
The charter has been granted more than two years dureing which
time it lay dormant because the Citizens of St Louis were unwilling
that the Country should hold the influence in the directory which
the Law gave them, they asked you in 1813 for a Charter, you granted
it on such principles as you then deemed conducive to the prosperity
of the Territory principles which guaranteed to the Country an
equal participation in the advantages of the Bank, the Merchants
of St Louis by their conduct in permitting that charter to lay
dormant for two years have said that unless they can monoplise the
Bank to themselves to the total exclution of all others they will
deprive the whole Territory of the privileges to be drawn from a
Bank &c why should the Legislature yeald to the Caprice of the
Mercts. of St. Louis in 1813 The Legislature deemed 150 000 Dolls.
a sufficient capital to be vested in Bank Stock—
What has caused a change in two years which renders it necessary
not only to double the Capital invested in Bank Stock but to vest
that Capital in two seperat companies—the injury which will result
from the competition of the two Banks—
We see therefore upon a fair and impartial investigation of this
subject that no possible evils can in any way result to the community
from a postponement of this question in as much as the chartered
Bank now going into opperation will be sufficient to supply the
present exigences of the Country and will more effectually remidy
the evil arising from the circulation of forreign paper than two can
that no injury will result to the individuals concerned in as much
as they entered into an association which without the prospect of
getting a charter was deemed an advantageous one and and by
refuseing to grant this charter we do not leave them in a worse
situation than they volentarily placed themselves in on the contrary
we see that a different course is frought with the most dangerous and
serious consequences we see that by adopting this Bill at this time
we run the hazard of ruining or materially injureing both Banks by
placeing them against each other as adversaries whose exertions
would be directed more to the distraction of each other and the
consequent advantage of some individuals and ruin of others than to
the good of the community we should do an act of injustice to the
Bank already chartered by depriveing it of those facilities of
procureing specie and that prospect of support which it otherwise would
have and in contemplation of which the Stock was subscribed we
should be establishing a president in favour of the ruinous extention
of the Banking system which it is much to be feard the firmness of
future Legislation would not be able to resist-and in fine Sir we
should jeapordise the prosperity of the whole community and upon
this view of the subject I trust no one can for a Moment hesitate
which course to adopt, wheither that from which no possible evil
can result to any person or that one which embarks the permanent
and dearest interest of our Constituents upon the ocean of
uncertainty—
3. BILL FOE SUBSCRIPTION TO TERRITORIAL BANK
[January, 1817?]
A Bill concerning the finances of this Territory and to create a
permanent Bank Fund for Territorial purposes
Sect 1. Be it enacted by the General Assembly of the Territory of
Missouri that the auditor of Public accounts is authorised and hereby
directed to subscribe a number of shares to the amt of Dollars
for and on accou' of the Territory of Missouri in Stock in the Bank
of as is provided in the section of the Charter of said Bank
And the said Auditor shall at the time of subscribing said shares
pledge in the name and on behalf of the Territory so much of the
Revenue as will secure the instalments on said shares, and pay the
same into Bank as fast as it is collected—
Sect 2 And be it further enacted that it shall be the duty of the
Territorial auditor to draw funds from the Bank from time to time
as necessity may require to meet the demand against the Territory,
untill the Amount of instalments on said Stock shall be paid off
and the appropriation of the Revenue for that purpose shall cease,
as is provided for in the Section of the charter to said Bank-
Sec 3 And be it further enacted that in order to secure the said
Bank fund to the Territory free from debts and incumbrances, a
fund may be raised by means of a Territorial Lottery as hereafter
directed to pay off the demands which said Bank may have against
the Territory for advances made on the Auditors draft aforesaid,
and that be and they are hereby appointed Commissioners to estab-
lish a Territorial Lottery, for the purposes aforesaid, under such
scheme as they or a majority of them may deam most advantageous
and profit [able] not inconsistent with the provisions this act
Sec. 4 And be further enacted that the said Lottery shall consist
of any number of classes not to exceed Ten one of which shall be
drawn annually, untill they are all drawn, and as large an amount
of prizes in the first class shall be paid off in Tickets in the Second
class as the Commissioners may deem practicable not to injure the
scheme, and the same amt. of Prizes in the Second Class shall be
paid off in Tickets in the third Class and so on to the last class when
all the prizes must be paid off in Cash, The Prizes subject to a
deduction of pr centum
Sc 5 And be it further enacted that the sd. Commissioners shall
keep a Book in which shall be registered the scheme of each class of
the Lottery in detail as it was drawn, and at what prices and by
whom the Tickets were sold, also all the expences and all other
statements accounts and proceedings relating to or in any way connected
with said Lottery which Book may be examined at any time by the
Governor and Auditor, and it also shall be their duty to deposit in
the said Bank of all the Money accrueing from the Sales of
Tickets as fast as they shall receive the same, there to remain untill
drawn out by their joint order for the payment of Prizes and, in
days after the drawing of a Class is completed they shall give
the Governor a Check on the Bank for the Proceeds accrueing to
the Territory from said Class and the Governor shall appropriate so
much thereof as may be necessary to pay off the debts due by the
Territory to the Bank for advances made as aforesaid, and the
commissioners shall at the same time furnish the Auditor with a just
true and full statement of the scheme and drawing of said Class
which shall be laid before the Legislature by said Auditor at the time
he makes his annual Report of the fiscal concerns of the Territory.
Sc. 6 And be it further enacted that the proceeds accrueing to
the Territory from said Lottery over and above the sums necessary
to discharge the demands at Bank as aforesaid shall be appropriated
by the Legislature to Public Roads—Bridges or such other usefull
purposes as they may deem most advantageous—
Sec 7 And be it further enacted that the said commissioners shall
previous to acting under this Law take an oath before any Officer
authorized to administer it faithfully and justly to perform all the
duties assigned them by this act to the best of their abilities, and
also give Bond with security for the sum of Dollars payable to
the Governor of this Territory and his successors in Office condi-
tioned to discharge the duties of Commissioners of the said Lottery
agreeable to this act, and should any of said Commissioners die or
refuse to act the Governor shall appoint another in his place
4. PROTEST AGAINST PASSAGE OF CHARTER OF BANK OF MISSOURI
The undersigned members of the Legislative Counsel of the
Territory of Missouri being in the Minority on the question to reconsider
the vote postponing the Bill to incorporate the Stock holders of
the Bank of Missouri to the 1st Monday of Decr 1818 feel it
incumbent upon them as a part of that sacred duty they owe as legislators
to themselves, to their Constituents and there Country to declare
their dissent to and disapprobation of the proceedings of the
Majority of the Legislative Councel in reviveing in an unpresidented
unparliamentary and illegal manner the said Bill to incorporate the
Bank of Missouri, and passing the same into an act after it had been
regularly layed over and postponed by a vote of the House to 1st
Monday of Decr 1818
The undersigned recognise the principle and indeed they lay it
down is an axiom that a departure from the established and long
tested rules of parliamentary proceedings opens at once the door
for corruption irregularity and inconsistency, totally anihilates the
rights of the minority, and puts it in the power of a corrupt and
venal majority to tryumph in their venality without check or
restraint, and to involve the whole proceedings of the Legislature in
confusion, for a departure from parliamentary forms in one instance
establishes the presedent that they may be disregarded in all the
consequence of which would be a Body organised and governed only
in conformity to the whims caprices and designing views of each
succeeding Legislature and the Order, System and dignity which
should preside in the Legislative Hall would degenerate and sink
into the confusion and inconsistancy of a Town meeting or the
assemblage of a Mob, where the feeble but perhaps just and
reasonable voice of the minority is lost and overwhelmed in the tumultuous
violence of the majority— The undersigned can therefore recognise
no act of the Legislative Council as legal and obligatory in equity
and justice which have originated progressed and passed in violation
of any of the Rules of the Legislative Councel or of any of the
acknowledged principles of parliamentary proceedings and they are
therefore compelled to protest against the said decision of the
Legislative Councel on the question to reconsider the vote
postponing said Bill incorporating the Bank of Missouri as
unparliamentary and illegal and they do hereby enter their solemn protest
against said vote of reconsideration as well as against all the
subsequent votes on said bill and for the following reasons—It appears
by the journals of the Legislative Counsel that said Bill was taken
up on day Decb. and on motion to postpone the further
consideration of it to the 1st Monday of Decr. 1818 it was decided in
affirmative ayes four nays three and the House of Representatives
were acquainted therewith afiter which it could not regularly be
brought up again unless moved for as prescribed by the rules of the
Legislative Counsel which say that (insert the rule about
reconsidering) therein recognising the principle that no vote can be
reconsidered unless moved for by one of the majority—it is also layed
down in Jefferson manuel as a principle that no vote can be
reconsidered unless moved for by one of the majority—and that no vote
can be reconsidered after the Bill or papers on which such vote was
taken had been sent to the other House, and that a question once
carried can not be questioned again the same session but must remain
as the decission of the House See Jefferson Manl. page 140—the
undersigned therefore lay it down as an undeniable proposition that
said Bill could not be revived again by a vote of reconsideration
unless such vote was moved for by one of the Majority, it however
appears by the Journal of the Legislative Counsel that the motion
for reconsidering the vote was made on the day of Decr. by a
member who was not in the House when the question for the
postponement was decided and as he did not vote on that question was
not of the majority and therefore could not legally make such a
motion— it appears evident to the undersigned that the nature and
meaning of a reconsideration implies the fact that something must
have been previously done before there could be a reconsideration
and consequently that it would be absurd to reconsider on a question
which had never been decided—and it appears equally absurd for a
member to move for a reconsideration of a question on which he had
never decided or acted at ail—it therefore appears evident to the
undersigned that the motion to reconsider said vote was out of order
and improper being in violation of one of the Rules of the House
and in contradiction to the established principles of parliamentary
proceedings and therefore that the decision of the majority to revive
and take up said Bill again was erronious and unparliamentary and
consequently illegal—
The undersigned also protest against said vote of reconsideration
and against all the subsequent votes on said Bill on the ground
that the member from Howard County without whose vote the
question to reconsider would have been lost (there being five ayes and
four nays) was not and is not legally entitled to a seat in the
Legislative Counsel—the organic Law declares that the members
of the Legislative Counsel shall possess two hundred acres of land in
his own right and it appears by the acknowledgement of said member
from Howard County that he is not possessed of two hundred acres
of land and therefore is not legally a member of the Legislative
Counsel and consequently all acts votes or decissions of the Councel
which were passed and decided by a Majority of one vote wherein
said member from Howard voted in the Majority are illegal and null
and void they also protest against said vote of reconsideration on the
ground that the motion for said reconsideration after having been
declared to be out of order by the President was decided to be in order
by the House on an appeal by a majority of one vote only the said
member from Howard County giving the casting vote who had only
taken his seat on the morning of the day on which the vote was
decided and was ignorant of the Rules of the Counsel as well as
of the principles of Parliamentary proceedings as he afterward
acknowledged and was therefore not prepared or quallified to vote
on a point of order wherefor the undersigned do hereby enter their
solem protest against said vote of reconsideration and against all the
subsequent votes on said act to incorporate the Stock holders of the
Bank of Missouri and they do protest against the Speaker of the
House of Representatives and the President of the Legislative
Counsel signing said act and also against the Governor's approving
and signing the same and against the legality of said act to
incorporate the Stockholders of the Bank of Missouri should it be
approved and signed by the Governor.
Acknowledged at the [same] time that they are fully satisfied of
the correctness and honesty of the intention and meaning of the
majority and regreting that a different will and understanding of the
subject on the part of the minority should occasion a difference in
opinion.
[Endorsed:] Relative to the Bank question in Mo. 1818
5. BILL TO ESTABLISH A LOTTERY FOR CONSTRUCTION OF ROADS
[1817-1818?]
Whereas the opening of Public Roads and Highways are objects of
primary importance to this Territory, and there being at present
no disposable Revenue to appropriate to those purposes, it is
deemed expedient by the General Assembly to raise a fund for
those purposes by means of a Territorial Lottery, Therefore—
Sect. 1. Be is enacted by the General Assembly of the Territory
of Missouri that be and they are hereby appointed
Commissioners to establish a Territorial Lottery under Such Schemes as
they, or a majority of them may deem most expedient and proper
and not inconsistent with the provisions of this act. The said Lot-
tery shall consist of any number of Classes not exceeding Ten one
of which shall be drawn Annually (if practicable) at such times
and place as the Commissioners may appoint. The Prizes shall be
Subject to a deduction of Fifteen pr centum—
Section 2d And be it further enacted that said Commissioners
shall keep a Book in which shall be registered the Scheme of each
Class of the Lottery as it was drawn, at what prices and by whom
the Tickets were sold, also all the Expences and all other Statements,
proceedings and accounts in any way connected with said Lottery,
which Book may be examined at any time by order of the Governor
And it shall also be the duty of said Commissioners within
days after the drawing of a Class to deposit in the Territorial
Treasury the proceeds of such Class and at the same time furnish the
Territorial Auditor with a full statement of the Scheme of such
Class which shall be laid before the Legislature by said Auditor at
the next succeeding Session after he receives such statement.
Sect 3d And be it further enacted that said Commissioners shall
previous to acting under this Law take an oath before any officer
authorised to administer it faithfully to discharge the duties
assigned them by this act to the best of their abilities, and also give
Bond in the Sum of Dollars payable to the Governor of this
Territory and his successors in office conditioned to perform the
duties of Commissioners of said Lottery agreeable to Law which
Bond shall be lodged in the Secretaries Office, and should any of
said Commissioners die or refuse to act the Governor for the time
being shall appoint others to fill the vacancy—
Sect 8a [4] And be it further enacted that said Commissioners
shall be permitted and they are hereby authorised to retain
pr centum on the amount of Tickets sold in each Class which shall
be a Compensation in full for their services as Commissioners as
aforesaid. Provided however that said Commissioners shall be
jointly and severally liable and responsible for all losses by selling
Tickets on Credit
Sect. 4th [5] This act to be inforced and take effect from and
after the passage thereof.
6. BILL AUTHORIZING NOTES OF THE BANK OF ST. LOUIS
[1817-1818?]
A Bill To provide for the payment of the revenue of the Territory of
Missouri.
Sec. 1. Be it enacted by the of the Territory of
Missouri, That all duties, imports, taxes, fines and forfeitures due and
payable or which may become due and payable to the Territorial
and County Treasuries, Shall be paid either in the legal gold and
silver coin of the United States or in the notes or bills of the
Bank of the said United States or in the notes or bills of the Bank
of St. Louis in the Territory aforesaid.
Sec. 2. Be it further enacted, That the collectors of the revenue
in the several counties of this Territory shall, for the purposes
aforesaid, consider the above described bank paper as a legal tender and
equal in value to gold and Silver coin in all payments made in aid
of the revenue aforesaid.
Sec. 3. And Be it further enacted, That this act shall commence
and be in force from and after the passage thereof and shall continue
and be in force as regards the bill or notes of the Banks aforesaid,
till the expiration of their respective charters, any thing in the
other acts of the of this Territory to the contrary
notwithstanding.—
7. BILL AGAINST THE UNITED STATES BANK
[1817?]
A Bill To prohibit the issuing and circulating of unauthorized
bank paper.
Sect. 1. Be it enacted by of the Territory of Missouri,
That if any person shall, within this Territory, act as an officer,
agent, trustee, clerk or servant to any bank or monied association,
coming within the description hereafter given, except a bank
encorporated by a law of this Territory, he shall, for every, such offence,
forfeit and pay the sum of Two thousand dollars.
Sec. 2. Be it further enacted, That every person, company or
association of persons who shall lend money and shall issue by
himself or themselves, or by his or their officer or officers, agent or
agents or by any other person or persons whomsoever, any bonds,
notes or bills payable to bearer or to order, and endorsed in blank,
or use other evasions or devices, by which the bonds, notes or bills
so given or issued by such person, company or association of
persons, or on his or their behalf, pass or cerculate by delivery, shall
be taken and deemed a bank within this act.—
Sec. 3. Be it further enacted, That every person who shall act as
a president, director, cashier, clerk or Servant or agent to such bank
or shall in any way assist in the issuing of such, bonds, notes, or
bills, or shall assist in the discounting of paper or lending money for
such bank, or in paying out or receiving money for such bank, or in
any manner use his agency for the benefit of such bank; and every
person whose handwriting shall appear on the bond, bill, note or
contract of such bank, whether as the drawer or endorser thereof,
or as a witness or payee thereof, shall be deemed and taken as an
officer of such bank and shall be liable to all the penalties and
forfeitures within the meaning of this act.—
Sec. 4. Be it further enacted, That if any person or persons shall
receive and offer in payment, the bond, bill, note, or contract of
any such bank, knowing the same to be unincorporated, payable to
bearer or to order and endorsed in blank, he she or they shall
for each and every such offence, forfeit and pay four times the
amount of such, bond, bill, note or contract: and if any persons or
persons shall receive and pass or circulate or in any way give
currency to the bond, bill, note or contract, of any such bank, by
delivery without first endorsing the same, knowing such bank to be
unincorporated, he, she or they, so offending, shall forfeit and pay
six times the amount of such bond, bill, note or contract, together
with the costs of suit where an action is brought for the recovery
of such forfeitures.
Sec. 5. Be it further enacted, That all fines and forfeitures
imposed by this act, may be recovered by action of debt or by
indictment, or presentment of the grand jury, and shall go one half thereof
to the informer, where the action is brought, and the other half in
aid of the public revenue of this Territory; but where the same is
recovered by indictment or presentment, the whole shall be to the use
of the Territory.—
Sec. 6. Be it further enacted, That in every such indictment or
presentment it shall be sufficient to state in substance that the
defendant on the day of at acted as an officer of a bank
not incorporated by law; or that the defendant on the day of
at paid (or offered in payment, as the case may be) the bond,
bill, note or contract of a bank not incorporated by law, for the
sum of dollars, without being required to set forth the special
matter; and in every suit brought under this act, it shall be sufficient
to set forth in substance the matter aforesaid, without setting forth
the special matter.—
Sec. 7. Be it further enacted, That it shall be the duty of the
presiding judge of any court or courts holclen in any of the counties
of this Territory, to give this act in charge to the grand jury, at every
session, so long as the said act shall be and remain in force.
Sec. 8. Be it further enacted, That all bonds, bills, notes or
contracts, hereafter executed, which shall be made negociable or payable
at such bank, shall be and the same are hereby declared null and
void; and all bonds, bills, notes or contracts given to such bank or
discounted by such bank, or given to any other person or persons, for
the use or benefit of such bank, either expressed or understood or for
the purposes of being discounted at such bank or of obtaining money
on the bonds, notes or bills of such bank, either directly or indirectly
from such bank shall be and are hereby declared null and void.
Sec. 9. Be it further enacted, That every such bank and every
trustee or person or persons on behalf or for the benefit of such bank is
and are hereby declared incapable of maintaining any suit in any
court of this Territory for any matter whatever, appertaining to
such bank or for its use, except it be a suit for the paymts of a bond,
note or contract given to such bank and actually discounted thereby
prior to the passage of this act; and every suit in which it shall at
any stage thereof be made appear that such suit is in whole or in part,
for the benefit of such bank, provided the original cause of said suit
shall have been of a date posterior to the passage of this act, such
suit shall be dismissed with costs.
Sec. 10. Be it further enacted, That every officer, stockholder,
shareholder or partner hereafter interested in any such bank, shall
be jointly and severally answeable in his and their individual
capacity for the whole amounl of the bonds, notes, bills or contracts
of such bank, hereafter executed, any agreement, shift, evasion or
devise in such bond, note, bill or contract or otherwise to the contrary
notwithstanding.
Sec. 11. Be it further enacted, That the holder or holders of any
bond, note, bill or contract of such bank may institute suit and
recover judgment thereon against any part or the whole of the persons
who were interested in such bank, at the date of such bond, note, bill
or contract, or who became interested in such bank at any time
between that and the commencement of such suit.
Sec. 12. Be it further enacted, That in such suit it shall be sufficient
for the plaintiff to set forth in substance that he is the holder of such
bond, note, bill or contract; that the defendant or defendants was or
were interested in said bank at the date of such bond, note, bill, or
contract or subsequently thereto and that it remains unpaid; neither
shall the plaintiff be required to shew in his declarations nor in his
pleadings, nor to prove on the trial that a demand was made of the
contents of such bond, note, bill or contract at the time and place when
and where it purports to be payable, for the persons interested as
aforesaid shall be liable without such demand.
Sec. 13. Be it further enacted, That if during the progress or on the
trial of such suit, it shall appear that any one or more of the
defendants are not liable to such action, under this act, it shall not be subject
for abatement nor non-suit neither shall it prevent the suit from
proceeding as to any other defendant or defendants, but judgment shall
be given for the full amount of such bond, bill, note or contract
against any one or more of the defendants, who may appear to be
liable.
Sec. 14, Be it further enacted, That nothing in this act contained
shall extend to any company incorporated by a law of this Territory,
who may be authorized by their charter to loan money or otherwise
to act as a bank, so long as the charter of such company shall be and
remain in full force—
Sec. 15. And be it further enacted, That this act shall commence
and be in force from and after the close of the present session of this
legislature: Provided however, that time shall be allowed to all such
private companies and associations now existing, till the first day of
July in the year of our Lord one thousand eight hundred and
seventeen for the sole and only purpose of selling and closing their business
and accounts: and provided also, That the penalties and forfeitures
herein enacted in the fourth and ninth sections of this act against
persons offering in payment the bond, note, bill or contract of such
bank, company or association, or bringing suit upon such bond, note,
bill or contract, shall be suspended until the said first day of July one
thousand eight hundred and seventeen.
8. MEMORIAL TO CONGRESS
[1817-1818?]
To the honorable The Senate and House of Representatives of the
United States of America in Congress Assembled the memorial of
the Legislature of the Territory of Missouri respectfully sheweth
that having seen with much satisfaction the disposition manifested
by Congress to foster and promote domestic manufactures by
extending to them that liberal encouragement which arises from the
protecting duties imposed in their favor on foreign importations, and
hoping that the Same policy which induced the adoption of that
System will opperate to extend its advantages to many usefull
branches of Manufactures not at present embraced by it, they beg
leave to call the attention of Congress to the propriety and utility of
promoting the manufacture of crude Lead at the several Lead
Mines in the United States, by laying an additional duty on the
importation of that article—
perhaps no Country in the world abounds with more numerous and
productive Lead Mines than the United States, which if properly
wrought it is believed would yeald a Sufficient Supply for home
consumption, and afford a considerable Surplus for exportation
thereby retaining in the Country the Capital which is at present
sent abroad for that article and indeed have a tendency to convert
the immence balance which is now against the United States and in
favour of those Countries whence their supplies of Lead are drawn
into a rapid accumulation of the internal wealth of the Country.
The Lead Mines of this and the adjoining Territory are of incal
culable extent and it is believed are equal in richness to any in the
world, and being principally the property of the United States,
would if properly wrought produce a very handsome revenue to
the Government and add another most important item to the
prosperity and Independence of the Nation by promoting the
development of its internal resources and affording an abundant supply
of one of the most usefull and necessary articles of National
defence, as well as individual consumption, Impressed therefore with
the conviction that most important consequences will result to the
Nation at large as well as to those States and Territories
individually where Lead Mines are found from an increase of the duty
upon the importation of crude Lead, and deeming that a branch of
Manufacture so important in a national point of view aught to
receive the same encouragement which has been so liberally bestowed
upon others, Your Memorialists respectfully solicit Congress to lay
an addition [al] duty upon the importation of Crude Lead into the
United States—
And your Memorialists further represent that in consequence of
there haveing been as yet no appropriations of Public Lands in this
Territory for the use of Schools there are no Academical Institutions
in the Country whence evils are dayly resulting which are in the
highest degree pernicious and indeed ruinous to the harmony and
morals of society, and obnoxious to the vital principles of
Republicanism which eminating from enlightened Reason have every thing
to dread from the ignorance of the people. Congress are therefore
most respectfully and earnestly solicited to devote an early
attention to such measures as will tend to promote the difusión of usefull
knowledge in this Territory and for that purpose to appropriate
at this time and untill further provisions are made, So much of
the Revenue arising from the Public Lead Mines as may be deemed
sufficient for the establishment and support of an Academy at the
Town of in the County of in this Territory
which is recommended as a situation combineing all the advantages
of locality Healthiness and Economy so essential for such an
establishment—
A Memorial to Congress praying for an increase of the duty on
the importation of crude Lead into the United States and also that
appropriations may be made from the revenue arising from the
public Lead Mines for the establishment and support of a Literary
Institution in this Territory.
9. AMENDMENT TO JUDICIARY BILL
[December, 1818?]
Amendment to the judiciary Bill
Strike out the whole of the section and insert in lieu thereof
the following
Sect. And be it further enacted that the County Court as
established by an Act entitled "An act establishing Circuit and County
Courts and for other purposes" approved the 4th of January 1815
be and the same are hereby abolished and in lieu thereof, there is
hereby established a County Court in each County which shall be
composed of three justices of the peace, any two of whom shall
constitute a Court, who shall be designated and appointed for that
purpose in each County by the Governor—and the said County
Court thus Established, shall have the same powers and possess the
same Jurisdiction which the County Courts hereby abolished
exercised and possessed and hold their sessions at the same times and
places. And should any Justice of the peace so designated and
appointed for the purpose aforesaid and after having received
notification of the same, refuse to accept of said appointment he
shall for such default, forfeit and lose his office of Justice of the
peace and be incapable of holding any office of profit in the
Territory for five years, unless he can assign to the Governor a reasonable
and satisfactory excuse for said non acceptance—
And should any member of said Court absent himself from its
sessions he shall be noted by the Clerk as a delinquent and as such
returned to the next Grand jury for the circuit Court of the County
and unless he can either by himself or agent or attorney make a
reasonable and satisfactory excuse to the Grand jury for such delinquency—
they shall fine him therefor in a sum not exceeding dollars
which fine and the proceedings thereon shall be certified by the
foreman of the Grand jury and lodged with the Clerk of the Court then
sitting who thereupon shall issue execution for said fine and costs,
which when collected shall be paid into the County Treasury—
And should the said justices be guilty of any malfeisance or non
feisance in office while sitting as a county Court whereby the interest
of the County might be impaired or the rights of individuals
infringed—they shall be liable to a prosecution therefor in the Circuit
Court either at the suit of the party injured or by indictment and
shall upon conviction pay double damages and forfeit and lose their
office of Justice of the peace—And the members of said Court shall
have and receive a compensation of dollars per day every
day they shall be in session provided however that they dispatch the
business before them without delay and at no term sit more than Two
days
It shall be the duty of the Clerks to notify the Governor of any
Vacancy in said Court either by death or removal from the County—
10. PETITION FOR CREATION OF JEFFERSON COUNTY
[December 8 1818?]
To the Honble the General assembly of the Territory of Missouri, the
petition of the undersign'd respectfully sheweth
That of the various blessings secur'd by a free Government, the
importance of none is more deeply impress'd upon the minds of your
petitioners than a convenient, certain and cheap administration of
Justice; that your petitioners reside in the Townships of Joachim
and Plattin, the exterior settlements in the extensive counties of St.
Louis and St. Geneveive, that therefor from the remoteness of their
residence from their respective Courthouses, from the frequent
obstructions arising from deep and rapid rivers, and from the great
expense of milage, Justice cannot be extended to them either
conveniently certainly or cheaply—In addition to those considerations,
your petitioners respectfully represent that the expense and
inconveniencies incident on the necessary attendance on Militia Regimental
Musters, and Courts Martial, in the present state of the Counties must
be oppressive as to expense, and self evident as to inconveniencys
subjected then to those inconveniencys and privations, your Petitioners
pray for the erection of a new County bounded by limits herein after
mentioned The Northern boundary line to commence at a point upon
the Mississippi river opposite the mouth of the Merrimack, from
thence runing up the Merrimack river [to the mouth of Indian
Creek.2] The South line to commence at a point on the Mississippi
river opposite to the mouth of the river Isle a Bois. thence five miles
up the Isle Bois, thence due west to Big river, thence down that river
to the mouth of the mineral fork, thence ten or twelve miles
westwardly upon the line dividing the Counties of Washington and St.
Louis, the West line to commence at the point of Termination of the
South line, thence a direct cource to the point of termination of the
north line upon the river Merrimack, the East line to commence at
the beginning point of the north line running down the Mississippi
river to the beginning point of the South line. Those limits it is
found will include a population sufficiently large at the present time
to Justify this appeal for a division and will be found sufficiently
large for a convenient County, not intended for future division,
Your petitioners have heretofore felt solicitude for the removal of
the inconveniences and privations which they have presented for
consideration, but forbore to press them while their Country was
involv'd in war and while more important matters (less local) seem'd
to require legislative deliberation. Those claims upon the
forbearance of your petitioners are happily remov'd, and they appeal with
respectful confidence to their Representatives for redress.
S. Hammond Thomas Evans
Benjm Carter Richard Mattingly
William Brown John C. Benedict
Matthew McPake (?) J. Fendley
Adam Brown E. Ellis
Wm F. Roberts John Hapburn
John Lamb Elijah L. Ray
ROBT SlMONTON JOHN LEON (?)
Aaron Guernsey by his order Wm Stewart
[A second copy of the petition bears the additional signatures:]
James Dowlin Alexr Starbuck
Robert Stewart Expedient Bouis
Cyrus Curtis Richard Lembesson
J. Findley W. Brown
Elias Bates
James Davis
Joab Strickland
J. Kendal
Joseph Andrews
11. STEPHEN F. AUSTIN ON JUDICIARY SYSTEM
[December, 1818?]
It is with the greatest diffidence I attempt to address the C.
[Council?] on this subject it is [a] subject with [which] on a/c of its
magnitude, of the numerous and important Interests and consequences
which are imbraced by it involving in them the closest Interests
and most esteemd and import [ant] previleges of every member of
the Community Individually as wey as the aggregate welfare of
the whole The Bill now under consideration contemplates a total
and radical change in the Judiciary system of this Territory. Sir
with what reverance, with what deliberation and with what caution
should we approach the important subject? We are about to lay
our hands on the most conspicuous and necessary part of that
magnificent superstructure which is reared upon the constitution and
should it be opperated upon and changed unskillfully and
injudiciously the beauty and Harmony of the whole fabric will be defaced
and disorganized, its intention and usefullness will be defeated and
destroyed, for Sir a well regulated and lest [least] exceptionable
judiciary system is unquestionably the main pillar and department of
that structure of jurisprudence and Government which is reared
upon the constitution and consequently should that material part be
defective the beauty the usefullness and indeed the permanency of
the whole will be disfigured defeated and endangered let us
therefore Sir approach this subject with reverence and give the most
mature and attentive investigation before we decide
The Bill now under consideration abolishes the present system of
circuit Courts and imposes the whole judicial proceedings of the
Territory upon the judges of the Superior Courts. The Circuit
Courts have been established for about Three years sufficient time
has been given to test their utility and to manifest their evils or
objectionable traits and the first question therefore to investigate is
whether experiance has proved that the present system is a good or a
bad one and whether any change is necessary or not— What Sir
are the objections to the present system I had presumed Sir that the
advocates of this Bill were convinced that material defects existed in
the present system, that material alterations were necessary, and Sir
I have listened with the utmost care and attention to hear those
defects pointed out and listened I am compelled to say in vain, that
the Circuit system is a good one the very advocates and fathers of
this Bill have admitted by continueing that system in the one they
have offered. The objection therefore is not against the Circuit
system and a single judge for in this Bill it is provided that a
single Judge shall hold Circuit Courts—what then are the
arguments in favour of this Bill—they are that the Sum of two thousand
Dollars will be saved to the Territory and all the objects and
advantages of the present circuit system can be accomplished by the one
now proposed—let us consider these arguments and first let us test
the correctness of the proposition that all the advantages which flow
from the present system will equally flow from the one now offerd—
You are told that the Judge of the Superior Court can hold Circuit
Courts as well as the present circuit court Judges—can administer
Justice as well and can in fine bear upon their single shoulders the
immense weight in the whole judicial and county Court proceedings
of this Territory—Sir had I the strength I could as well shoulder
this House and remove it as to do it by the agency of 500 Horses or
yokes of oxen— I contend Sir that the burden would be too great
for the superior Judges to bear. They could not devote that time care
and attention to the duties of their office which would be required
and also devote that time to study and the investigation of legal
subjects which they ought to do and which they are in duty bound
to do. We can not therefore expect that Judgements will be given
with that uniform legal correctness that they ought to be and which
we have a right to expect under the present system from the time
which is allowed the Judges to investigate subjects under the present
system we have the advantage of Court of Errors and appeals
wholly and entirely distinct from the Circuit Courts and appeals are
adjudicated by a Set of Judges who having never before judged the
subject or compromited themselves by a decission in the Court below
take up the appeals which are sent up there perfectly unbiassed and
free from that influence which a prior decission must unavoidably
leave upon their minds—This would not be the case under the system
proposed by this Bill One of the Judges must always have
prejudge [d] every subject which comes before them and would as is
provided by this bill be incompetent to set on the tryal of any cause
sent up from his Circuit. There would then be but two Judges on
the Bench on every tryal and should those Judges disagree no
decision could be had the cause would be continued from Court to
Court untill one or both of [them] were removed from office and
superceeded by others who would take a different view of the subject
and agree in their judgement. And thus Sir numerous instances may
occur where no decission can be had at all for years and suits on the
decision of which perhaps the whole fortune and happiness of
unfortunate litigants might depend would hang indefinitely suspended
between the Court by the obstinacy of the Judges or their various
conseptions of the subject, and decisions would be thus delayed and
procrastinated untill ruin and dispair may have overwhelmed and
prostrated the miserable litigants whose subsistance and truest hopes
depended on the issue of the suit, and the decision when it finalty was
obtained would be rather an agrivation than antidote to their
sufferings as it could not perhaps relieve them but only serve to give them
a slight taste of those comforts which the procrastination of the
cause had incapacitated them to enjoy
This system therefore Sir I contend will not insure to the citizens
of this Territory the same uniform and legally correct decisions in
the Circuit Courts, it [will] not insure the same impartiality
unbiased uninfluenced speedy and correct decisions in the Superior
Court of appeals and therefore I contend is not as good a system as
the present one and will not as fully answer the objects of
adjudication as the present system does and therefore is not in any manner
equal to it in point of expediency and utility, but Sir the main
argument in support of this new system is that it will save the enormous
sum of 2400 Dollars to the Territory, this Sir is the Colosial
argument which is to look down all opposition to this Bill to prostrate the
arguments which may b$ martialed against it and dispute and crush
them beneath its weight and rear up the Bill tryumphant amid the
ruins—Sir when this Territory shall have become so impoverished
that it can not afford to defray the necessary expences of its
Government, or the People shall have [become] so penurious so debased so
lost to virtue as to slumber in the icy arms of Averice regardless of
their political rights—regardless of those previleges and blessings
which are guaranteed to them by the constitution, of that invaluable
that heavenly patrimony which was earned by their fathers on the
bloody fields of Saratoga and Yorktown, when I say the people shall
have arrived at this stage of depression of degradation then Sir
and not till then [will] such arguments have any weight when
counterpoised by the best Interests of the people, for the paltry sum of
two Thousand 400 Dolls, we are called upon to distroy a system to
which the touch-stone of experience and of experiment has been
successfully and satisfactor[il]y applied and to substitute in its place
one which the plainest deductions of reason and of common sense
must decided is not equal to it. One which will not insure those
advantages which experience has proved are to be derived from the
present one, I am Sir as great an advocate of Economy as any man
and conceive it to be one of the first duties of Legislators to have
the strictest eye to economy in administration of the Government,
true and genuine economy Sir is one of the cardinal virtues in
domestic as well [as] public life, but Sir there is species of miserly
economy a hideous monster it may be justly termed which too often
creeps into the cabinets of Republican Rulers and penetrates into
the Hall of Legislators and infusing its subtle and deceptive poison
into their Hearts through the medium of ambition and a thirst for
popularity or bewildering their faculties and missleading their
understanding [by] the plausibilty and pleasing sophistry of its
theories involves them in error and confusion, blasts every measure
in its bud which originates in liberal policy, and cloging and
embarrassing the opperation of Government extends its baneful effects
to every part of the system to the great inquiry and eminent danger
of the whole—it is a species of Economy Sir which would force the
occomplishment of great objects with little and inadequate means
the sure consequence of which almost invariably is a total failure of
success and a loss and waste of the means employed It is a Species
of Economy Sir which would with hold from an object or system
the necessary means of support and yet expect from it everything
that the most ample means would enable it to accomplish—this Sir
is the species of Economy which I dread and which I hope will never
[enter] into the Bosoms of the rulers or Legislators of this
Territory—let us consider Sir whether this 2400 Doll, [has] been or is
likely to be a grevious burden upon the people—what Sir is the
present State of the Treasury agreeably to the Auditors report, it
is in funds Sir to pay off all the demands against it The Taxes
therefore which are already imposed are sufficient to defray all the
expences of government and those Taxes are not burdensome. I have
never heard them eomplain'd of by the people as being at all
burdensome they submitt to pay them freely and willingly—
I therefore do not conceive that the benefits which will result to
the people by having their Taxes lessend will in any the smallest
degree compensate them for the evils they must submit to by the
change in the judiciary contemplated by this Bill among the evils
and disadvantages which result from this change will be increasing
the Jurisdiction of magistrates to one hundred dolls. Sir the
Jurisdiction of magistrates is already too high in this Territory
they have a Jurisdiction which is inexpedient and in my opinion
unconstitutional for Sir the constitution guarantees the right of
tryall by Jury in civil cases for all sums over 20 Dolls. And yet
by this Bill you declare a Single magistrate a competent trybunal
to give Judgement for 100 Dolls.
This Bill Sir imposes the whole duty of the Judicial and County
Court business upon the Judges who are appointed by the United
States to preside over the Judicial proceedings of this Territory
There appointment as Superior Judges it may be contended
contemplated that they should adjudicate upon judicial proceedings alone,
well Sir if this construction is placed upon the Law under which
they are appointed that part of this Bill which imposes upon them
the County Court duties will not [be] obligatory and they will not
act under it at all for Sir no one will pretend I presume that laying
out roads levying Taxes taking care of the poor and other County
Court business is strictly Judicial proceedings—Suppose then that
the judges should declare that this Legislature had no right to
impose the County Court duties upon them and refuse to act as a
Couuty Court. Why Sir the County business would remain
untouched for two years or the Governor would have to call a special
meeting of the Legislature to create a new County Court—I have
another objection to this Bill which to me appears insurmountable
it has already been decided by the vote on the amendment which
I offerd this day establishing County Courts, that this House would
not agree to establish County Courts distinct from the circuit courts—
All appeals therefore from Magistrates as well as all the county
business must go to the circuit Court—but Sir this Circuit Court is
held by one of the Superior Court judges and the organic law says
that the Superior Court shall have original and appelate
Jurisdiction in all cases over 100 Dolls, now Sir let me ask you where is
the authority for those Judges to try an appeal on 20 Dolls, or any
sum under 100 Doll, where is the Law Sir giving them jurisdiction
in all sumb over 20 Dolls, the advocates of this Bill perhaps have
discovered Law on this point which has escaped my knowledge and
I hope they will point it out for I am under the impression that this
Legislature have not the right to say that the Superior Judges shall
have Jurisdiction under 200 Dolls, and therefore that the act if it
passd giveing them that Jurusdiction would not be constitutional
Another objection to the Bill Sir is changeing the system so often
the people scarcely become acquainted with a system of Judicial
proceedings before it is changed and new modified etc if we changed
it now it cannot remain permanent long for in a few years we may
calculate to go into a State Govet. when everything will be new
modified etc etc—