The enquirer. [volume] (Richmond, Va.) 1804-1815, 1810-01-04
THE BANK BILL
UNDER CONSIDERATION.

UNDER CONSIDERATION.
MIR. MADISON began with a general re-
view of the advantages and disadvau. ,ges of
banks. The former he stated TO consist in, Grst,
the aids they afford to merchants who can there
by push their mercantile operations farther with
the same capital. I'd. The aids to merchan
in o. yng punctuaily the customs. Sd. Aids 10
the government in complying punctuaily with
its engagements, when deficiencies or delays
happen in the revenue. 9TH. In diminishing IL
sury. 5th. In saving the wear of the gold and
silver kept in the vaults, and represented by
notes. 9th. In facilitating occasional .remiltan-
ces from different places where notes happen To
circulate. The effect of the proposed bank, in
raising the value of stock, he thought, had been
greatly oyerrated. II would no doubt raise that
of tie stock subscribed into the bank but could
have little effect on stock in general, as the in.
terest on it would remain the same, and the
quantity saksn out OF the market would be re-
.plsced by bank stock.
The principal disadvantages consisted in, LIST.
bansbing the precious metals, by substituting
another medium to perform their Office This
erect was inevitable 1t was admitted by the
most enlightened patrons OF banks, particularly
by Smith on the Wealth of Nations. The CON
mon answer to the objection was, that the mo-
ney banished was only an exchange for some
thing equally valuable that would be imported in
return. He admitted the weight of this obser.
vation in general, but doubted whether, i'll the
not he IN articles of no permanent Use to it,
81. Exposing the public and individuals to all
the evils of run on the bank, which would be
particularly calamitous in great a country as
thus, and might happen from various causes, as
false rumors, Rad management of the institute
on, an untsvoPable balance of trade from short
crops, &c.
1t proper to be considered also, that the
most important OF the advantages would be bet
te obtained by several banks properly dstribu
,ed than by single one. The aids to commerce
couid onl, be afforded at very aear the seat OF
tho bank. The same was true OF aids to mcr.
CHAINS an the payment of customs. Anticipate.
GUS OF the government would also be most con.
veuient at the different places where the int.
rest of tie debt was to be paid. The case in
America was different from that in England -.
the interest there was al! due at enc place and
tie genius of the monarchy favored the con.
Ccntration of wealth and influence at the nae
uOpoiis.
lie thought the plan liable to other obiecti-
o..s: 1t did not make SO good bargaa for the
public due to its interests. The charter
to the bank Of Engi.nd had been granted for II
years only, and was paid for by u loan to the
government on terms better than could be else.
where got. Every renewal Of the charte had
III Like manner been purchased in some instan
ces al very high price. The same had been
done by the banks Of Genoa, Naples and other
Ike b-Dks OF circulation. The piAn WAS UNEQUAL
30 the public creditors--t gave an undue pre-
ference ~ the holders of particular denominati-
on OF the pubic debt, and To those at and with
IN. reach of the seat of government 1.-THE sub
SsriphoDs should be rapid, tie distant holders of
payer ~aouid he excluded altogether
In making these rem trks on the merits of the
bill. ne had reserved to himself, he said, the
right TO deny tie authority of Congress to pass
IT lie had entertained this opinion from the
date OF the constitution. His impression might
perhaps be the stronger, because lie wei. lecol-
iected, that power to grant charters of incorpo-
ration had been proposed in the general conyen-
ton and rejected.
Is the power of establishing an incsr5oyatca
hank among the powers vested by the CONSTITUTE.
on IN the legislature of the u States THIS is
the question to ba examined.
Alter some general remarks on the limitati
ons OF all political power, he took notice of The
peculiar manner in which the federal government,
S limited. 1t not general grant, out OF which
particular powers are excepted. il is A grant
OF particular powers only, leaving the genera
mass in other hands. So it had been understood
by It's friends and its foes, AID it was TO be
interpreted.
As prelimnaries to right Interpretation, be
laid down the following rules
An nterpre alton that destroys The very cha
racteristic OF the government cannot b.. lust.
Where meaning is clear, The cOnst ouences
whatever they may be, are to be admitted
where doubtful, il is fairly triabe by its csnse
guences.
In controvertsd cases, the meaning oftl.e par
gIes 70 the instrument, If TO be collected by re-.
Sonabie evidence, proper guide
Contemporary and concurrent sxpositions are
unreasonable evidence VI tie meaning Of the par
ties
la admitting or rejecting constructive autI,o
rity,not only the degree OF its incidentally e
AN express authority, is TO be reg ard d. but the
degree 0i us Importance also since on uiis vii
depend the probability or improbabilny OF lis be
iGg lett 90 construction
Reviewing the constitution with an eve +,
sIcsa positions, It was not possible to discoyet
~ Il tie power TO incorporate bank The OIL,
siauset under which such q pewer could be mr.
tended, ire euer--
!. he power to ley and collect taxes TO ~,
tie detls, and provide Tor the common asls,,r.
and CeLcFal Welfare Or,
=. The power to borrSw money on the credi
" The ~ States; Or
3. The power 20 pass al laws necessary an,
pT0Pcr to carry INTO execution those powers.
The bill did not some within thc frat yo,Rey
II laso no tax 20 pay he debts or provide fo. tt
gouefal welfare. II laid no lax gJaieyar 1
" salogeiacr ioic.gu tOthc subject.
80 Argument could Je drawn rum the ,.--,.
c"amoa defence, and general welfare" M
pc' a. ~ tAc9e gensrsi purposes. was i;ni.e,
. sC~ yi"S irF-s fot them md GIe p....,.
FuYcses Themselves were limited and r1g .
b, tie Particular enumeration suDia;pcd ~
s.aSrs1snd iacss scrs94 "a sry sc1.e, IL ,.e..l,