The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-08-23

IN the House 81 Representatives. ~ the u s.; FEB. q
1871, on hs Bal 10 charter nc Bank Of The United
States.
FkprUlRr 2, 1871,
On the question, "Shall the bill pass ~ the follow
ing debate took place
Mr. Manson began with general review OF the sd-
vsntages and Disadvantages Of banks The former he
stated TO consist in. FIRST The aids they afford TO
merchants who thereby push their mercantile ope-
rations farther with the same capital. Second The
aids to merchants in paying punctnaly, the customs
Third. Aids TO the Government. in complying pune.
tualy with its engagements, when deficiencies and de-
lays happen in the revenue. Fourth In diminishing
usnry Fifth In saving the wear Of gold and silver,
kept In vaults, and represented by notes. SlIfh. In
facilitating occasional remtiances from different places
where notes happen to circulate. The elect IN the
proposed bank in raising the value Of stock he thought
had been greatly overated II no doubt would raise
that VI stock subscribed the bank but could have
little effect stock in general the interest it
would remain the same, and the quantity taken out Of
the market would be replaced by the bank stock
The principal disadvantage consisted in, FIRST, Ban
ishng the precious metals by substituting another
dum perform the office. This effect inevitable
1t was admitted by the enlightened patrons Of
banks, particularly by Smith the Wealth OF Nations
The common to the objection was, that the mo-
ney banished was only an exchange for something
equally valuable, that would be imported in return He
admitted the weight OF this observation, general but
'-SsesNN
The return would not be 10 articles Of permanent
to it. Second Exposing the public and individuals to
all the evils Of the bank, which would be partl-
cuiarly caamtons IN so great country as this, aud
might happen from various false rumors bad
management of the institution an unfayorable balance
OF trade from short crops, &c. II was proper to be
considered, aso, that the most important Of the adyan
tages would be better obtained by several hanks pro-
perry distributed than by sn,gle one. The aids to
commerce could only be afforded at, very near the
seat OF the bank The same was true Of aids to mer-
chants in the payment of customs. AHiicipalons Of
the Government, would, also, be most convenient AT
the different places where the Interest Of the debt
to be paid. The in America different from
that III England; the interest there all due at one
place. and the genius Of the monarchy favored the
centratioh Of wealth and influence the metropolis
lie thought the plan liable to other objections; il
did not make so good bargain for the public as
due Its interests The charter to the Bank of England
had been granted only for eleven years, and paid
for by loan TO the Government, terms better than
could be elsewhere got Every renewal Of the charter
had, IN like manner, been purchased IN some instances
at very high price. The had been done by the
banks Of Geuoa Naples and other like banks Of circu
lation The plan unequal to the public creditors
gave undue preference to the holders Of partcu
lar denomination Of the public debt and to those A.
and within reach Of the seat OF Government II the
subscriptions should be rapid the distant holders Of
paper would be excluded altogether.
In making these remarks the merits Of the bill, he
had reserved HIMSELF he said the right deny the
authority OF Congress pass He had entertained this
opinion from the date Of the Constitution His impress
sons might, perhaps be the stronger because he well
ton had been proposed in the general convention and
rejected Is tho power of establishing incorporated
bank among the powers vested by the Constitution,
the legislature Of the United States This is the
question TO be- examined.
After some general remarks on the limitations Of all
If
which the Federal Government Is limited. 1t Is not
only general grant out Of which particular powers
excepted grant Of particular powers, leaving
the general mass in other hands. So it had been
derslood by its friends and its foes and it to
be interpreted.
As prellnnaries to right Interpretation, he laid
down the following rules
An Interpretation that destroys the very CHARACTERISTIC
OF the Government cannot be just.
Where meaning Is clear, the consequences, what
ever they may be, to be admitted whatever they
may be, to be admitted where doubtful 1t Is fairly
triabe by It's consequences.
In CONT reverted cases, the meaning Of the parties to
the instrument, II to be collected by reasonable
dence, Is proper guide. ...
Contemporary and current expositions a
bic evidence Of the meaning Of the parties.
In admitting or rejecting constructive authority,
only the degree OF It's incidentally to an express
authority to becgarded, but the degree of It's npor-
lance also since this will depend the probability
nnprobAbiy OF Its beng lett to construction.
Reviewing the constitution with an eye to these po-
sitlos, It not possible to discover IT the power
TO incorporate bank. he only clauses under which
such power could be pretended, was either.
Farsi The power 10 lay aud collect taxes to pay the
debts and provide for the common defence and general
welfare or,
Second. The power to borrow money the credit
Of the United States; or,
Third Inc power to pass all laws necessary TO car
ny into execution those powers.
The bl did not come within the first power 1t laid
no tax to pay the debts provide Tor the general well
iare. II laid no tax whatever. IL was altogether for
eIgn TO the subject
No argument could be drawn from the terms " com
mon defence and general welfare" The power as to
these general purposes was united to laying
for them; and the general purposes themselves were
limited and explained by the particular enumeratlons
subomed. To understand these terms in any sense
that would justify the power IN question, would give to
Congress an unlimited power; would render nugaory
the enumeration oil particular powers would supersede
all the powers reserved 10 the state governments
These terms copied from the articles OF cocdera-
ton had 1t ever been pretended that they were to be
understood Otherwise than here explained II had
been said, that general welfare IN which
general power might be exercised by Congress, With
interfering with the power Ut the states and that
the establ .slnen, of National Bank OF thus
There were, he said, several this novel doc
trlne.
FIRST The proposed bank would interfere, in
directly to defeat state bank al the place.
Second 1t would directly Interfere with rights OF
states prOtthn, well TO establish, banks, and
the circulation of bank notes. He mentioned law OF
Virginia, actually prohibiting the circulation OF notes
pay aplc to bearer.
Third Interference with the powers Of the States
was no constitutional criterion Of the power Of Con-
gross II the power not given, Congress could not
exercise 1t 1t gwen, they might IL, although
should in.er.re with the laws, the constitu-
tlon, of the states.
Fourth. II Congress could incorporate bank, merely
because the act would leave The free establish
banks also, any other Incorporation might be made Ivy
Congress. They could incorporate companies Of
manufacturers, companies for cutting canals, even
for religious societies, leaving similar interpretations by
IL, hnL