Post by Bruce on Jul 17, 2014 0:48:22 GMT -5
In the House of Representatives of the United States of America, Mr. Beaumont of South Carolina, for himself, and with Mr. Terrus of New York, offers: A BILL To establish a national financial system. BE IT ENACTED by the House of Representatives and Senate of the United States of America that:
Section 1. This bill may be known and cited as the National Bank System Act of 1791.
Section 2. The following shall be added to Title V, United States Code.
Chapter 4. Bank of the United States.
Section 13. Regional Banks.
(a) Establishment. There is hereby established --
1. a Bank of New England, to be headquartered in Boston, Massachusetts, which shall act as a bank for a region encompassing Massachusetts, Rhode Island, New Hampshire, Vermont, and Connecticut;
2. a Bank of Hamilton, to be headquartered in Philadelphia, Pennsylvania, which shall act as a bank for a region encompassing New York, New Jersey, Pennsylvania, and the NorthWest Territory;
3. a Bank of Washington, to be headquartered in Baltimore, Maryland, which shall act as a bank for a region encompassing Delaware, Maryland, and Virginia; anda
4. a Bank of Columbia, to be headquartered in Charlestaon, South Carolina, which shall act as a bank for a region encompassing North Carolina, South Carolina, Georgia, and the SouthWest Territory.
(b) Board of Superintendents. Each Bank will originally be governed by a Board of Superintendents, comprised of a single Superintendent appointed by each state within that bank's region, two Superintendents representing a quorum, and this Board shall select a President from amongst its members to serve as chief executive of the bank, and shall oversee the Bank's operation until it obtains $100,000 in gold and silver from stockholders, at which point the President will oversee the election of a Board of Directors by the stockholders.
(c) Board of Directors. Each Bank will be governed by a Board of Directors, which shall --
(1) be comprised of seven members, each elected every January 1st by the stockholders, each stockholder possessing one vote per share;
(2) be comprised only of United States citizens that are shareholders;
(3) elect from amongst its members a President, who shall superintend the operations of the bank, hiring such employees and proscribing such policies as may be necessary for its success;
(4) meet regularly with four Directors representing a quorum; and
(5) with the approval of the stockholders, develop a Charter for the Bank, approved by the United States, but this Charter shall expire on December 31st, 1816, unless renewed by Congress before December 31st, 1812.
(d) Incorporation. The governing board of each bank shall form a corporation with its own seal, and such corporation shall --
(1) possess the authority to sue and be sued, plead and be imp leaded, answer and be answered, defend and be defended, in courts of record, and any other place whatsoever;
(2) possess the authority to buy, sell, grant, demise, alien, or dispose of lands, rents, tenements, hereditaments, goods, chattels, and effects of any kind;
(3) hold lands, tenements, and hereditaments only as necessary for its immediate accommodation and in relation to the convenient transacting of its business; and
(4) act as the only bank sponsored by a government within its region.
(e) Stock. Each Bank shall issue paper stock, provided that each bank shall --
(1) sell a maximum of 10,000 stares of shock at $250 each for a total of $2,500,000;
(2) sell no more than 1,000 shares to any individual, partnership, or body politic;
(3) sell 2,000 shares immediately to the United States government, granting the United States a loan to cover the cost of such purchase;
(4) accept payment for these shares only in gold, silver, or debt bonds, but at least $62.50 of each share will be paid in gold or silver; and
(5) pay dividends to shareholders at $5 per share every six months, provided that dividends be paid in gold, silver, or debt bonds, but at least $1 of each dividend will be paid in gold or silver.
(f) Stockholders. The stockholders of each bank may call for a public meeting anytime the holders of 1,000 shares of stock agree to it, and may remove and replace any director by a 2/3 vote.
(g) Powers and Restrictions. Each Bank may --
(1) never possess more than $3,750,000 in commodities including profits from sales of stock;
(2) never possess an amount of debt exceeding the amount deposited at the bank plus $10,000,000;
(3) never buy debt bonds;
(4) sell debt bonds at its discretion;
(5) not charge more than 6% interest on loans or discounts;
(6) not trade in anything except bills of exchange, gold and silver bullion, or in the sale of goods really and truly pledged for money lent and not redeemed in due time, or of goods which shall be the produce of its lands;
(7) make loans to foreign governments or monarchs only with the consent of the Department of Foreign Affairs; and
(8) not establish branch locations, but instead contract with credit unions and private banks to provide branch services through such institutions.
(h) Oversight. Each Bank shall provide annually to the Treasurer of the United States a comprehensive financial statement.
Section 14. Bank of the United States.
(a) Establishment, Charter. There is hereby established a Bank of the United States, the charter of which shall expire on December 31st, 1816 unless the charter is renewed by an act of Congress before December 31st, 1812, each renewal being for a period of twenty-five years.
(b) Board. There shall be a Board of Directors of the Bank of the United States, which shall be -- comprised of the President of each regional bank, along with a Chairman to serve as chief executive of the Bank of the United States, and this Chairman shall be appointed by the President with the advice and consent of the Senate for five year terms.
(c) Powers and Restrictions. The Board may --
(1) hire such employees and proscribe such policies as may be necessary for its success;
(2) issue directives to each regional bank regarding the operations of those banks;
(3) at its discretion assume moneys from each regional bank, and make loans with these moneys, but only for specific purposes, and where the Board determines it to be prudent for the national bank to do so instead of the regional bank; and
(4) never buy debt bonds;
(5) sell debt bonds at its discretion;
(6) not charge more than 6% interest on loans or discounts;
(7) not trade in anything except bills of exchange, gold and silver bullion, or in the sale of goods really and truly pledged for money lent and not redeemed in due time, or of goods which shall be the produce of its lands;
(8) lend up to $100,000 to the federal government, and up to $50,000 to each state;
(9) make loans to foreign governments or monarchs only with the consent of the Department of Foreign Affairs;
(10) not establish branch locations, but instead provide branch services via the regional banks; and
(11) not make loans, or assume amounts, in such a way as to defeat the purpose of Section 13(g)(1) and 13(g)(2) of this Chapter.
(d) Headquarters. The Bank of the United States shall be headquartered in New York City.
Section 15. Currency and Debt of the United States.
(a) The Bank of the United States shall have the sole power to issue the currency of the United States but all currency issued by the bank must be completely backed by specie, gilts of the United States, or gilts of other nations at the discretion of the Board of Directors, and any currency issued by the Bank of the United States shall be redeemable on demand for specie or gilts of the United States.
(b) The Bank of the United States shall issue $10,000 in currency initially but may issue further currency, and replenish that currency, at the direction of the Board of Directors.
(c) The Bank of the United States shall issue currency through the regional banks, and organize such issuing at its discretion.
(d) The Treasurer of the United States shall deposit any unused funds of the United States in the Bank of the United States.
Section 1. This bill may be known and cited as the National Bank System Act of 1791.
Section 2. The following shall be added to Title V, United States Code.
Chapter 4. Bank of the United States.
Section 13. Regional Banks.
(a) Establishment. There is hereby established --
1. a Bank of New England, to be headquartered in Boston, Massachusetts, which shall act as a bank for a region encompassing Massachusetts, Rhode Island, New Hampshire, Vermont, and Connecticut;
2. a Bank of Hamilton, to be headquartered in Philadelphia, Pennsylvania, which shall act as a bank for a region encompassing New York, New Jersey, Pennsylvania, and the NorthWest Territory;
3. a Bank of Washington, to be headquartered in Baltimore, Maryland, which shall act as a bank for a region encompassing Delaware, Maryland, and Virginia; anda
4. a Bank of Columbia, to be headquartered in Charlestaon, South Carolina, which shall act as a bank for a region encompassing North Carolina, South Carolina, Georgia, and the SouthWest Territory.
(b) Board of Superintendents. Each Bank will originally be governed by a Board of Superintendents, comprised of a single Superintendent appointed by each state within that bank's region, two Superintendents representing a quorum, and this Board shall select a President from amongst its members to serve as chief executive of the bank, and shall oversee the Bank's operation until it obtains $100,000 in gold and silver from stockholders, at which point the President will oversee the election of a Board of Directors by the stockholders.
(c) Board of Directors. Each Bank will be governed by a Board of Directors, which shall --
(1) be comprised of seven members, each elected every January 1st by the stockholders, each stockholder possessing one vote per share;
(2) be comprised only of United States citizens that are shareholders;
(3) elect from amongst its members a President, who shall superintend the operations of the bank, hiring such employees and proscribing such policies as may be necessary for its success;
(4) meet regularly with four Directors representing a quorum; and
(5) with the approval of the stockholders, develop a Charter for the Bank, approved by the United States, but this Charter shall expire on December 31st, 1816, unless renewed by Congress before December 31st, 1812.
(d) Incorporation. The governing board of each bank shall form a corporation with its own seal, and such corporation shall --
(1) possess the authority to sue and be sued, plead and be imp leaded, answer and be answered, defend and be defended, in courts of record, and any other place whatsoever;
(2) possess the authority to buy, sell, grant, demise, alien, or dispose of lands, rents, tenements, hereditaments, goods, chattels, and effects of any kind;
(3) hold lands, tenements, and hereditaments only as necessary for its immediate accommodation and in relation to the convenient transacting of its business; and
(4) act as the only bank sponsored by a government within its region.
(e) Stock. Each Bank shall issue paper stock, provided that each bank shall --
(1) sell a maximum of 10,000 stares of shock at $250 each for a total of $2,500,000;
(2) sell no more than 1,000 shares to any individual, partnership, or body politic;
(3) sell 2,000 shares immediately to the United States government, granting the United States a loan to cover the cost of such purchase;
(4) accept payment for these shares only in gold, silver, or debt bonds, but at least $62.50 of each share will be paid in gold or silver; and
(5) pay dividends to shareholders at $5 per share every six months, provided that dividends be paid in gold, silver, or debt bonds, but at least $1 of each dividend will be paid in gold or silver.
(f) Stockholders. The stockholders of each bank may call for a public meeting anytime the holders of 1,000 shares of stock agree to it, and may remove and replace any director by a 2/3 vote.
(g) Powers and Restrictions. Each Bank may --
(1) never possess more than $3,750,000 in commodities including profits from sales of stock;
(2) never possess an amount of debt exceeding the amount deposited at the bank plus $10,000,000;
(3) never buy debt bonds;
(4) sell debt bonds at its discretion;
(5) not charge more than 6% interest on loans or discounts;
(6) not trade in anything except bills of exchange, gold and silver bullion, or in the sale of goods really and truly pledged for money lent and not redeemed in due time, or of goods which shall be the produce of its lands;
(7) make loans to foreign governments or monarchs only with the consent of the Department of Foreign Affairs; and
(8) not establish branch locations, but instead contract with credit unions and private banks to provide branch services through such institutions.
(h) Oversight. Each Bank shall provide annually to the Treasurer of the United States a comprehensive financial statement.
Section 14. Bank of the United States.
(a) Establishment, Charter. There is hereby established a Bank of the United States, the charter of which shall expire on December 31st, 1816 unless the charter is renewed by an act of Congress before December 31st, 1812, each renewal being for a period of twenty-five years.
(b) Board. There shall be a Board of Directors of the Bank of the United States, which shall be -- comprised of the President of each regional bank, along with a Chairman to serve as chief executive of the Bank of the United States, and this Chairman shall be appointed by the President with the advice and consent of the Senate for five year terms.
(c) Powers and Restrictions. The Board may --
(1) hire such employees and proscribe such policies as may be necessary for its success;
(2) issue directives to each regional bank regarding the operations of those banks;
(3) at its discretion assume moneys from each regional bank, and make loans with these moneys, but only for specific purposes, and where the Board determines it to be prudent for the national bank to do so instead of the regional bank; and
(4) never buy debt bonds;
(5) sell debt bonds at its discretion;
(6) not charge more than 6% interest on loans or discounts;
(7) not trade in anything except bills of exchange, gold and silver bullion, or in the sale of goods really and truly pledged for money lent and not redeemed in due time, or of goods which shall be the produce of its lands;
(8) lend up to $100,000 to the federal government, and up to $50,000 to each state;
(9) make loans to foreign governments or monarchs only with the consent of the Department of Foreign Affairs;
(10) not establish branch locations, but instead provide branch services via the regional banks; and
(11) not make loans, or assume amounts, in such a way as to defeat the purpose of Section 13(g)(1) and 13(g)(2) of this Chapter.
(d) Headquarters. The Bank of the United States shall be headquartered in New York City.
Section 15. Currency and Debt of the United States.
(a) The Bank of the United States shall have the sole power to issue the currency of the United States but all currency issued by the bank must be completely backed by specie, gilts of the United States, or gilts of other nations at the discretion of the Board of Directors, and any currency issued by the Bank of the United States shall be redeemable on demand for specie or gilts of the United States.
(b) The Bank of the United States shall issue $10,000 in currency initially but may issue further currency, and replenish that currency, at the direction of the Board of Directors.
(c) The Bank of the United States shall issue currency through the regional banks, and organize such issuing at its discretion.
(d) The Treasurer of the United States shall deposit any unused funds of the United States in the Bank of the United States.