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

m;ltanees from different places whefe notes happonW
circulate and Mr. Ames, who was one o. me mos' al
,;n.hed friends OF the measure and who represented
commercial district, enlarged on the great beneht o.
,he oronosed institution He insisted mat
he intercourse between the States could never DO on
GOOD footing without institution whose paper would
circulate more extensively than that OF any state panh
and what he saw, in the future, we have seen ~ he
mast and feel in the present Other gentlemen, ALSO
commended that some such institution necessary, IN
order to enable Congress regulate the commerce oil
the country, and, for that reason that would be con-
stitutional as being proper means Tor lawful end
When the bill had passed the two Houses, the Presi
dent as we all know asked the opinion oil his cabinet
upon its conslitutonality. The Secretary OF State and
the Attorney General against IT. the Secretary Oh
the Treasury in favor oii and among the grounds
on which he placed the right OF Congress to pass the
law was its adaptation the exercise Of the CONNER
cisl power, conferred by the Constitution on Congress
His language is "Thc institution OF bank has, also,
natural relation to the regulation OF trade between the
States, in far is conducive to the creation Of
convenient medium Of exchange between them, and TO
the keeping upa full circulation by preventing the ire
quent displacement Of the metals IN reciprocal remit
tances Money is the very hinge which commerce
turns and this does not mean merely gold aud silver
many other things have served the purpose, with differ
emit degrees Of utility Paper has been extensively en-
poyed II cannot therefore be admitted With the At
torney General that the regulation Of trade between the
States as il concerns the medium Of circulation and
exchange ought TO be considered as confined to com
And he adds, in reference TO these general re-
latons OF commerce. that establishment which iur-
nishes facilities circulation, and convenient medium
OF exchange and alienation to be regarded as regu-
laton of trade"
Nothing can be palmer, sir, than this language; and
therefore, nothing certain than that those who
recommended and supported the first bank. regarded u
as fit and necessary measure. in order to enable Con-
gress exercise It's important duty Of regulating com
merce and to fulfil, especially, that part OF The duty
which enjoined upon it the provision OF proper and
suitable currency for circulation and exchange.
But it is not necessary TO rely on these opinions OF
individual friends Of the measure LIT the act speak
for itself Let look into it. and search its reasons on
its face What the grounds and objects Of the law
as forth in the law itself! The preamble tells U.S.
It declares
"That the establishment Of bank will be very
duciye to the successful conducting of the national t.
nances and will tend give facility TO the obtaining of
loans for the Of Government in sudden emergencies
and pW be productive Of considerable Advantage 20
trade, and industry IN geaeraL"
Trade and industry general therefore, constituted
one distinct and definite object of the incorporation, If
the law truly exponnds its own purposes IL was not
revenue alone not the facility of making loans
merely; it not mere utility to Government; but,
in addition to these it commerce, it the nte
rest Of the people, it trade and business general,
which, among other considerations, formed impor-
tant part Of the objects Of the interpretations and in
deed, sir, events proved that it vastly the
portant part Of all What else did the first bank do,
for the Government or the country, at all to be
pared, in the amount OF benefit, 10 its influence
the currency and the cxchangesi
1t is as clear demonstration, therefore, that the
Government in General Washingtons time, did feel
itself authorised by the Constitution and bound in duty
to provide safe currency Of general credit for crcula
ton and for exchange It did provide such acurren-
cy. II is remarkable enough, comparatively small
was the mere object Of keeping the public money that
provision for that purpose inserted In the char
ter there any law the subject, SO far as
remember till the year 1900.
The bank went into operation. and its
great and instantaneous and during the whole period
Of its existence there complaint Of the state Of
the currency or the exchanges.
And now, sir, let me ask, what was it that gave
this success to the new institution! Its capital was
small and the Government had participation in its
direction; it was committed entirely to individual ma
nagement and control
Its notes. 1t is true, made receivable in pay
ment to Government: that advantage. Ii had
solid capital, and It's paper was at all times con-
vertible into gold and silver at the will and pleasure
Of the holder: that was another and most important
ground Of its prosperity But, sir, there some
thing more than all this. There something that
touched mems sentiments, as well as their understand
ings. There was cause which carried the credit Of
the newborn bank, the wings of the wind, to
every quarter and every extremity Of the country
There charm, which created trust and faith and
reliance, not only in the great marts Of commerce,
but in every corner into which money, in any form,
could penetrate. That cause was its nationality Of
character. It had the broad seal Of the Union to its
character 1t was the institution of the nation esta-
bshed by that new Government which the people al
ready loved aud it was known to be designed 10
revive and foster that commerce which had SO long
been PROSTATE and lifeess
MIR. President, let it be borne in mind that am not
now arguing the constutonality, present expedi-
ency, Of Bank Of the United States. NY senti-
ments are already well known that subject; and, if
they were not, the subject is not now before US
But have adverted TO the history Of the first bank,
and examined the grounds on which, and the purposes
for which, was established in order to show the fact
that this Government, from the FIRST has acknowledged
the important duty and obligation OF providing for cur
rency and exchange, part Of the necessary regua
ton OF commerce do not mean at present. TO say
that bank is the only the Indispensable means by
which this duty can and must be performed although
certainly think it the best Yet / will not set limits
to the wisdom and sagacty Of gentlemen, in the in
vention and adaptation Of If they do not like
bank, let them try whatever they do like If they
know better instrument or agent let them use -
But maintain that the performance OF the duty by
some means, or some instrument or some agent Is in
dispensabe; and that so long it shall be neglected.
80 long the commerce and business of the country
must suffer.
The history Of the late Bank of The United States
manifests, as clearly that OF the rst that the Co
vernmeni, in creating it, acting avowedy, in exc
cution Of It's duty, in regard to the currency Fiscal
aid except SO far as the furnishing OF currency was
concerned, was hardly thought Of Its bills made
receivable for revenue indeed but that provision, as
lar as It went was obviously provision for currency
Currency for the revenue however, was not the lead
ing object The leading object currency for the
country.
The condition OF things, at that time was very much
like that which now exists. The revenue Of the Co
vernment was entirely adequate to all its wants but
It's operations all INSTRUCTED by the arrangement
OF the currency and the people were as bad off as the
Government The banks, or most of them had sus-
pended payments Their paper was deprecated in va
rous degrees; the exchanges all disordered and
the commerce OF the country thrown into confusion
Government and people all rich but with all their
riches they had no money Both might annlu 10 them