the struggle to acquire against the vested interest; the caprice of the moment against the established institution.[1] This struggle in all its phases will be seen raging around both the first and the second Bank of the United States.
The sectional antagonism included also the antagonism of city against country. The North had the free capital, because the planters could always employ more capital than they could get, on their lands. The North also had commerce and a diversified industry. The South was agricultural; it had fewer and smaller cities; its views and prejudices were strongly marked by these peculiarities. It was a special complaint of the southerners that only federal stocks were subscribable into the stock of the bank. These stocks had passed into the possession of the North, the southerners having sold them in order to use the capital on the land. Their State stocks could not be subscribed.
The first objection, that about the constitutionality of the Bank, occupied by far the most attention in the debate. It suited the temper of the time. It deserves our especial notice because it never was silenced until, in Tyler's time, it extinguished a great national bank as an American institution.
The charter passed the House, February 25, 1791, thirty-nine to twenty. There were three votes from the north of the Potomac against it, and three from the south of the Potomac for it.
There is a tradition that Washington wrote a veto of the Bank act, but that Hamilton persuaded him to sign it. No evidence can be found to support this tradition.
The Bank was chartered for twenty years; to be located at Philadelphia; to issue no notes under $10; to have twenty-five directors; only stockholders residents of the United States might vote by proxy; seven directors were to constitute a quorum; no foreigner was to be a director; the directors were to elect the president, who was to be compensated while the directors were not to be compensated; one quarter of the directors were to be elected each year; one share was to have one vote, three shares two votes, five shares three votes, and so on until one hundred shares had twenty votes. The Bank was to report to the Secretary of the Treasury at his demand not oftener than weekly, and that officer might inspect the books except private accounts. The notes of the Bank were to be receivable for dues to the Treasury of the United States. The Bank was to hold no land or buildings except for its own use or by foreclosure. It was not to buy or sell goods except forfeited collateral. It might sell but not buy public stocks.[2] The rate of interest was limited to six per cent. The Bank was not to loan the United States over $100,000 without an act of Congress, nor any State more than $50,000, nor any foreign potentate anything. Congress was to charter no other bank. The capital was to be $10,000,000 in shares of $400 each, $8,000,000 of which was to be subscribed by individuals, and $2,000,000 by
