The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-04-10
NH. WEbsTER's SECOND SPEECH ON
THE sUB-TREAsURY BILL.
DELIVERED, MARCH II, 1888.
(T0Bry,,.L,y


member stands upon the authorities in our own his.
tory.
When the first bank was established, the right Of
Congress No create such a corporation was as we all
know, very much disputed. Large majorities how
ever in both Houses were of opinion that the ri ht
existed and they therefore granted the charter and
In this charter there was an express provision that
the bills of the bank should be receivable in all paw
ments 10 Government Those who opposed the
bank did not object 10 this clause on the contrary
they went even much farther; and Mr.. Madison ex-
pressy insisted that Congress might grant refuse
70 Stale banks, the privilege OF having their notes
received IN revenue. In 1901 therefore, men of all
parties supposed that Congress in its discretion
hlsh' aulnofize the receipt Of bank notes The
same principle was incorporated into the bank char
Ter Oh 1910 indeed ii in the bill which the gem
lleman himself reported and il passed without OBJ
lecton from any quarter But this is not all Mr.
Ffesiaeht, lei US look into the proceedings of the
session Oh lolo-lo, lIttle more closely. AT the
commencement OF that session Mr. Madison drew
our attention to the state of the currency; by which
he meant the paper currency Of the country which
was then very much disordered, as the banks had
suspended specie payment during the war and had
not resumed Early in the progress Of the session,
the honorable member from South Carolina moved
that this part of the message should be referred to
select committee. II was so ordered The commit
lee was raised, and the honorable gentleman placed
at its head. As chairman of the committee, he in
oduced the bank bill explained il, defended it, and
carried It triumphantly through the House. having
IN II the provision which have before mentioned.
the gentleman introduced the bill for the further col
lection OF the revenue, to which have already re-
1erred and in which bill he carried the receivable
" OF pahk notes much further, and provided that
notes o. any 6a bankers achiCh pdDdblc end
pad, on demand specie ight be al0tced and ac-
cePted IN all payments TO the United States So that
the honorable gentleman himself drew, with his
own pen the very first legal enactment in the histo-
ry Of this Government, BY which il was provided
that the notes of State banks should be considered
and treated as money al the Treasury Sill further
Sir. The bill containing this provision did not pass
the House and as deemed some provision neces-
Sary indispensaby necessary for the of things
then existing, introduced think the very next day
after the failure Of the honorable gentlernans BILL
three resolutions. The two first were merely decla-
ratory, asserting that all duties taxes, and mpoSts
ought TO be uniform, and that the revenues of the
United States ought to be collected and received in
the legal currency, or in Treasury notes, or the notes
OF the Bank Of the United States, by law provided.
These two resolutions agreed to waive, as it was
thought they were not essential, and that they might
imply some degree of censure upon past transac.
tons. The third resolution in these words:
And rcsolred, further, That the Secretary of the
Treasury be- and he hereby is, requredand directed
70 adopt such measures as he may deem necessary
TO cause, as soon may be- all duties taxes, debts,
or sums OF money accruing or becoming payable 10
the United States TO be collected and paid in the le-
gal currency Of the United States or Treasury notes,
notes of the Bank of the United States, aiore-
said and that from and after the LIST day of Februa
ny next, no such duties, taxes debts, sums of mo-
ney accruing becoming payable To the United
States aforesaid, ought to be collected or received
otherwise than in the legal currency of the United
States or Treasury notes notes OF the Bank OF the
United States, aforesaid"
The Senate will perceive that in this resolution
OF mine, there provision whatever for re-
ceiving bank notes. except ofhe Bank of the United
States, according to its charter. Well, what hap
pened thereon Why, sir, if you look into the Ma
uonal lntellgencer OF succeeding day, you VIII
find it stated, that Mr.. Calhoun moved TO amend MT
WebStprS
MenoteS ofaA6aak ,eieh should al The time specaed
therein, pay their notes IN specie on demand
This amendment was opposed ana loi uine de-
feated but it was renewed, and finally prevailed
Ii was incorporated The resolution, became part
of the law Of the land and so remains at this very
moment. Sir, may ! not now say to the honorable
member that if the constitution of the country has
been violated by treating bank notes as money
. Thou art the mani
How is i, possible, sir, the gentleman could so far
forget his own agency in these most important trans
actions as to stand up here the other day, and with
an air not only of confidence but of defiance, say
but take a still higher ground; lstrlke at the
root of the mischief ] deny the right OF this 90
vernmen to treat bank notes as money IN It's hscal
transactions. On this great question never have
before committed myself though not generally dis
posed 10 abstain from forming or expressing OPT
mons"
| will only add, sir, tina, this reception and pay
ment of bank notes was expressly recognized by the
act of the lith April, 1886 by the deposie act Oh
June of that year, and BY the bill which passed both
VI,
approve nor return. In all these acts, so far as
know, the honorable member from South Carolina
himself concurred.
So much for authority
But now, sir, what is the principle of construction
upon which the gentleman relies to sustain his doc
trine "The genius of our constitution" he says,
I" is opposed to the assumption of power" This is
undoubtedly true no one can deny it. But he adds,
" whatever power il gives, is expressly granted"
But think, sir this BY no means follows from the
first proposition, and cannot be maintained. II is
doubtless true that power is 10 be assumed but
then powers may be inferred, or necessarily implied
1t is question of assumption, it is question of
fair, Just, and reasonable inference. To hold that
no power is granted and no means authorized, but
such are granted or authorized by express words
would be to establish a doctrine that would put an
end to the Government Ii could not last through
single session of Congress. If such opinions had
prevailed in the beginning, il never could have been
put in motion, and would not have drawn its ilrst
breath. My friend, near me, from Delaware, has
gone so fully and ably into this part OF the sub
Ject that it has become quite unnecessary Tor me TO
pursue it. Where the constitution conerS on Con
greSS general power or imposes general duty all
other powers necessary for the exercise OF that ge
neral power and for fulfilling that duty are implied
SO far as there is no prohibition. We act every day
upon this principle and could not carry on the Go
vernment without its aid. Under the power TO
coin money we build expensive mints-hll them
with otficers-punish such officers for embezzement
buy bullion-and exercise various other acts oil
power.
The constitution SAYS that the judicial power of
the United States shall be vested in certain courts
Under this general authority we not only establish
such courts but protect their records by penalties
against forgery, and the purity of their administra-
ton by Furnishing perurics.
The Department Of the Post Office is another and
signal instance of the extent and necessity OF i'm
piled powers. The whole authority of Congress
over this subject is expressed in very few words
they are merely to establish post offices ana post
roads" Under this short and general grant, laws OIL
Congress have been extended TO great variety OF