The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-07

iuuy granted 10 congress- and 80 carefully guarded by
restraints upon the States had any further object than
to enable Congress 10 furnish medium in which taxes
might be collected
But this power over the coinage is not the strongest
nor the broadcast ground which to place the duty Of
Congress There is another power granted to Congress-
which seems TO me to apply TO this case, directly and
lrreslsiiby, and that is the commercial power The
Constitution declares that Congress shall have power
regulate commerce. not only with foreign nations bat be-
foeeH me States. This is full and complete grant,
ana must include authority over every thing which is
part OF commerce, or essential to commerce. And 10
not money essential TO commerce. No man. in his
senses deny that and equally clear that what
ever paper is put FORTH with TO circulate as cur
rency, or to be used money, Immediately affects
commerce Bank notes, ina strict and technical sense
are not, indeed, money but In general sense and
often IN legal sense, they money. They are sub
saDaly money, because they perform the functions Of
money. They not, like bills Of exchange or CON-
mon promissoy notes, mere proofs or evidences Of
debt but are treated as money in the general transact
tons oil society II receipts be given for them, they
are gwen as for money They pass under legacy, or
other form OF GIFT, as money And this character Of
bank notes was as well known and understood al the
time OF the adoption Of the Constitution as il is now
The law, both Of England and America regarded them
as money In the sense above expressed II Congress,
them has power to regulate commerce, il must have
control over that money, whatever il may be- by which
commerce is actually carried Whether that money
be coin or paper however il has acquired the charac
Y,
actual agent or instrument in the performance of
mercai transactions it necessarily thereby becomes sub
Ject to the regulation and control Of Congress The
regulation oil money is not SO much inference from
the commercial power conferred Congress, it is
part OF IT, Money is OF the things without which,
in modern times. form practical idea Of COM
merce. Il is embraced, therefore, necessarily, in the
terms Of the Constitution.
But, sir as will be seen by the proposition which
have stated, GO further: insist that the duty Of Con-
has thn
ny not only to regulate and control that which others
may put forth money and currency but that it has
the power and Is bound TO perform the duty OF seeing
that there is established and maintained, at all times
currency Of general credit equivalent in value to SPECIE
adapted TO the wants OF and the business OF
the people, and suited to the existing circumstances Of
the country. Such currency is instrument OF the
hrst necessity to commerce. according TO the CONNER
cal system OF the present age and commerce cannot
be conducted, with full advantage, without it, 1t is in
the power Of Congress to furnish it, and 1t is in the
power Of no body else. The States cannot supply it.
That has often been tried and has always fail
cd am no enemy to the State banks, they may be
useful in their spheres but you cause them
to perform the duties Of National institution than you
can turn a satellite into primary orb. They cannot
maintain currency Of eqnal credit all the country
II might be tried sir your State of Kentucky,
State Of Massachusetts. We may erect banks on all
the securities which the wit of devise may
have capital, may have funds, we may have bonds
and mortgages may add the faith Of the State we
may pile Peon upon Ossa, they will be State nstitu-
tons after ALL and will not be able to support National
circulation. This is inherent in the nature Of things,
and IN the sentiments OF 1t is in vain to argue
that ought not to be to contend that one bank
may be safe another. Experience proves that il
is SO, and may be assured that it will remain
Sir mine is not the ruthless hand that shall strike at
the State banks mine the tongue that shall careless
y upbraid them with trcachey per6dy. admit their
lawful existence admit their utility in the circle to
itch thpy hpo Il on saw
perform National part in the operations OF commerce
general and universal accredited currency therefore,
is instrument of commerce. which is necessary to the
enjoyment of its just advantages, or, IN other words,
which is essential to its beneficial regulation Congress
has power estabishit, and other power can esta-
bish and therefore Congress lie bound to exercise it's
own power 1t is an absurdity the very face Of the
proposition, to alege that Congress shall regulate COM
merce, but SHALL nevertheless abandon to others the
duty Of maintaining and regulating its essential means
and instruments. We have in actual mixed cur
rency the circulating under the authority Of Con-
gress, the paper under the authority Of the States But
this paper, though it fills great portion OF all the
channels Of circulation Of general and universal
credit is made up Of various local currencies none OF
which has the credit the value, in all parts
Of the country and therefore these local ncies
but very loosely and decienty the purposes Of ge-
neral currency, and Of remittance Now, is 1t to be
conended that there remedy for this Are we 10
agree, that the CONSTITUTIONS with all its care, crcun-
specon and wisdom, has, nevertheless, left this great
interest unprovided for Is commercial system so
lame and impotent! Are constitutional provisions
and political institutions radically detective!
think not, They do deserve this reproach and
think it may now he easily shown that, under all
administrations, from General Washingtons time, down
to the Sd Of March last, the Government has felt and
acknowledged its obligation in regard to the currency,
the full extent in which have stated it, and has con-
stantly endeavored to fulfil that obligation. Allow me
to 90 back to the beginning, and trace this matter down
to our own times little in detail.
In his first speech to Congress- in 1882 having just
then assumed his new Office, Gener% Washington re-
commended no particular subjects topthe consideration
of Congress but in his speech at the opening Of the
second session. he suggested the Importance Of uni
form currency without Distinguishing coinage from pa
per- and this body in its answer, assured HIM that 1t
was subject which should receive its attention Re
collect sir at that time, that there were State banks
having notes circulation though they were very few.
The first Bank Of the United Staeswas established at
the third session Of the Congress in 1871 The bill for
its creation originated in the Senate the debates IN
which at that time were not made public We have,
however the debates in the House. we have the reports
Of the Secretaries, and have the law itself Let US
endeavor to learn from these sources for rhat objects
This institution tras created, and ichether national cur
rcncy ,cas one Of those objects
Certainly, sir il must be admitted that currency was
not the only object in Incorporating the bank oil lISl
The Government new, its fiscal affairs were not
well arranged it greatly in debt, and the political
state Of things at the time rendered il highly probable
that sudden occasions for making loans would arise.
That it might assist the operations Of the Treasury,
therefore, and that might make those loans to Govern
men il pressing occasions should arise, were two OF
the purposes had in view in establishing the bank But
il is equally clear that there third purpose and that
respected commerce and currency. To furnish cur
reneu for general circulation aud TO aid exchange oas,
dcmoGsfrabv clear, distinct, and aroioed Object IN the
creation Of the first bank
On the 18th Of December, 1890, the Secretary ofthe
Treasury made report to the House Of Representa-
tives, recommending National Bank In this report.
he set forth the advantages Of such institution; one
OF these advantages he says consists IN increasing
the quantity Of the circulating medium ana