The enquirer. [volume] (Richmond, Va.) 1804-1815, 1808-08-16

'jinausPicioaS circumstances. Ii was imme-
diateiy recommended after the adoption of
4 thu celebrated funding system, which fed the
cupidity ofthe avaricious SPECTATORS with the
hand-earned wages of the old solliers-It
had the same auspices. Their common a,l-
! thor was Alexander Hamilton, then Secreta-
ry OF the Treasury. For, the first official in
formation, that we possess of the national
Bank, occurs in an official report of Mr. Ha-
milton of Dec. 18th, 179O.---This Report
winds up with the following paragraph =
| "Io these more direct eapcaiients for the
support of the public credit, the institution
| 81 national Bank presents itself as a ne
cessary auxiliary. This the secretary re-
/ CARDS as an indispensable engine in the acmi-
nistration of our finances. To present this i'm
| portant object in "A more distinct and more
comprehensive light, he has concluded to
make 1t the subject of a separate report,
which he begs leave herewith to submit
! No 9.
| In this document No. 9, the secretary os the
Treasury enters into long and able vindi-
cation of this measure-His reasons howe
! yer, are far from being conclusive. Among
other benefits, which he enumerates, he as
signs
"The augmentation of the active or pro-
ductive capital of the country"-But this
Ecapitaf is Immensely augmented by the mul
IMPLICATION of STATE banks The capital stock
of these now exceeds 40 millions.
The greater facility to the government
in obtaining pecuniary aids, especially in
sudden emergencies" The facility of loans
is sometimes the most pernicious instrument
OF extravaganza and corruption in the hands
of any government. Private catitais too,
are the chief resources for loans to the Bri :
fish government. This reply was first used
1, by Mr.. Madison in opposition to the Bank !;
but with how much greater force does it APP
ply at this moment, when private capitals
have been SO much more accumulatedl In a.
ny sudden emergency too, there would GER
tainly be no more difficulty in ob aiming loan
from state than a national bank.
1" The facilitating of the payment of tax
es'-in two ways" those who are in a sit
uation to have access to the bank, can have
the assistance ofioans to answer with pune
tuaiity the public calls on them" DIV the
increasing OF the quantity Of circulating me-
dunn, and the quickening of circulation
These expedients are certainly supplied by
) the establishment of state banks
The great argument in favour of this bank ,
is, the facility which it affords to the opera
tons of government. 1t is great instru-
. ment of finance. 1t enables the officers dis
persed throughout the United States to de-
post heir money in places of security, and
: 1T enables the treasury to remit resources 70
, different places. without the risk, expence
and trouble of remitting money-This is GER
+ tainly an immense convenience and per-
r haps 40 system could be contrivcd so convc-
nient as a national bank, whose head regu-
lates all the operations of its branches, dis
: persed through so many parts of the United
States.-But though no system perhaps is so
, conVenienf, yet the great number of banks
established in the different states, will ad-
NIT of a convenient substitute. These insti-
tntons pervade eeefy state in the union, ex-
cept Tennessee, Ohio, and Kentucky. The
+ latter state has an Insurance Company which
! cifcuiatts transferable paper. Each of
these institutions will certainly be willing to
v transact the business of the United States.
: But if it is not so disposed, the U. States may
make it an object by giving the preference
IN all Its peCuniary concerns to the paper of
c other baufs. Cannot the treasury of the u.
: States make an arrangement with some bank
at the seat of Government, which may re-
present 4 species of head or mother bank ?
BY making an arrangement with the other
state banks through the Union, deposits of
money and remittances OF resources may GER
: tainly be made.--A little more risk would
sure ly be incurred by this system but
> what is risk or even pccuniary loss to a pal
: pab!e violation of the federal constitutions
1t was on this last point, that Mr. Madison
displayed the mastery of great mind. In
the speech which he made in opposition to
|, this measure, he reviews every article of the
constitution, which may be supposed to JUS
f tify this measure; particularly those, which
give congress,
The power to lay and collect taxes, to pay
= the debts and provide for the common
: defence and general welfare ;"
The power to borrow money on the Gre
; dit of the United States - And
The power to pass all laws necessary &
proper to carry into execution these
powers
Having run through these details, Mr. Ma
, olson concluded with the following summary
of reasons:
alt appeared Cd the whole, that the power
| exercised by the bill was condemned by the
t silence OF the constitution; was condemned
by the rule of interpretation arising out of
the constitution was condemned by its ten
ID dencv to destroy the main characteristic of
the constitution, whilst depending before the
= public; was condemned by the apparent in
tention of the parties which ratified the con-
stitution was condemned by the explanato-
. ry amendments proposed by Congress them
selves to the constitution ! and he hoped it
/. would receive its final condemnation. by the
, vote of this house"
= The constitution Of the United States not
having undergone any chdngein this respect.
1t is hoped that the congress of 1909 and 10,
will give the proper weight to these obiecti-