The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-05-14

y
6ssed 81 tie peor16's tnxes; bankrupt citizens
win impIore and the paralyxed enterprise Of the
country viii upliff its trembling hands and ask
far mercy; and then viii the Sub Treasury
utalk forward with lbs hundred arms 0utspread,
and ali its machinery ready. Then give but
The power 70 emit Treasury bank votes and you
will have currency unlimited in its amount, rs,
for time, il will be in credit. From that mo-
ment, chow near to, or remote from, u.s. mer-
ciful God only knows, from that iated moment,
the North American Republic ceases TO be-
The occupant Of the Executive chair Is then
no longer the President known TO our Constitu-
ton; he is from thence forward seated on an
| imperial throne, covered over with dictatorial
power the rights Of the States, with their
powers, are driven before the breath OF his nos
trils, like wthered leaves before the blast Of the
tempest and instead of proud nation OF free
men, strong in the possession u their hDerties,
under Government Of limited powers, con-
solidated empire Of slaves, will kneel at the
footstool Of a despot begging from him, as
boom that liberty which our fathers, at the price
Of blood, bequeathed to US as an unal'enable
right.
/ have shrewdly suspected that our present
Chief Magistrate is favorable 10 an executive
bank. In President Jackson's second annual
message, find the following suggestion OF such
| a system:
at is thought practicable to organise such bank
with the necessary Offices branch Of the Treasury
Department based on the public and individual depo
sites, without power to make loans or purchase pro
perry which shall remit the funds Of the Government
and the srpense of which may be paid, If thought adj
visable, by allowing lis officers to SELL bills OF ex
change TO pirate individuals al moderate premium
In his third annual message find the same
suggestion, with an indication OF some Of its
principal features II 10 - follows:
THAT bank Of the United States competent to
all the duties which may be required by the Govern
ment, might be organized not TO infringe on our
own delegated powers, the reserved rights Of the
States do not entertain doubt Had the Executive
been called upon to furnish the project Of such in
stitution, the duty would have been cheerfuy per-
formed"
I These suggestions of General Jackson were
made when Mr.. Van Buren, was member OF
the Cabinet, and il is said, were approved by
him. This was what was called an Executive
bank in General Jackson's administration. In
Mr.. Van Buren's first annual message find the
following kindred suggestion:
"In transferring its funds from place to place. the
Government is on the same footing with the private
citizen and may resort to the same legal means. II
may do 30 through the medium Of bills drapn by IT,
self purchase from others; and in these operations
it may, in a manner undoubtedly constitutional and
legitimate facilitate and assist exchanges Of indri
duais founded on real transactions Of trade. The
extent to which this may be DONE and the best means
Of effecting it, entitled to the fullest consdera
| ton"
Now, if buying and selling bills Of exchange
be banking operation, then did these sugges-
| tons of General Jackson and Mr.. Van Buren,
amount to the recommendation Of an Executive
bank; and that such operation is banking,
and a most profitable one too, none who are Ia.
miliar with the subject can doubt These are
the grounds Of my suspicion, that Mr.. Van Blu
rem is favorable to such a one; and that such
win be the result | have no doubt, II the Ad-
ministraton succeed in fastening its financial
schemes upon the country.
The second objection which take to the po-
licy Of Mr. Van Buren,, is his recommendation
Of the establishment of a bankrupt law over
g State c0rDOratiOnsn This system, if adopted,
will create another batch of salared public Ofh-
GERS, as commissioners Of bankruptcy, to be To-
| Gated in all the prominent banking States arm
ed with authority, by federal power, to enter any
bank, which, by force of the revnlsions OF trade,
accident or other necessity, may decline to re-
deem its notes in specie, take possession OF all
| its assets. and disburse them in that mode which
shall be prescribed by act Of Congress, regard
less of the authority of the State by which they
were created, or the provisions OF its charter.
| That act which would benefit the State, and
which the interests of the people might require,
would subject these institutions to the operation
of the States or the interests Of the people,
Virginia, in one way or other, has about 80
100000 of stock in her banks which, under this
system, would be administered by federal au
thoyify, and upon principles Of federal law
| VIII she submit to this, or will she assert her
own rights, administer her own funds, and man
| age her own institutions, in her own way2 l.
conceive that this scheme, if adopted would be
one Of the grossest violations of the Constitu-
ton, and daring invasions of the rights of the
| States, which has been attempted since the
| foundation of this Government-the alien and
sedition laws not excepted; and only equalled
in enormity by the proposed militia organization
of the present session. What were the opinions
of Mr. Van Buren, upon this subject formerly {?
In 1927, in a speech in the Senate of the United
States, upon this identical question, he said:
He did not think that any great difficulty existed
in this question; TO him the matter clear but his
impressions had been opposed by several Senators,
| and he would protract the debate but a moment to
give, very briefly, his views Of the matter II certain
y appeared TO him, that one moments reflection would
decide gentlemen against the amendment proposed by
his friend from South Carolina 1t had been said,
formerly and various occasions that the States had
no right to grant bank charters and that the banking
| privilege belonged exclusively to the Federal Go
vernment. No direct attempt, however had hitherto
been made to deprive the States Of that power which
| they had long exercised nnmoested But now the
attempt was to be made, if not in an open and
quivocal manner, at least in indirect way strip
the States Of the power of charering banks At any
rate if it were contended that this provision did
go far il could not be denied that nterfered in the
regulation which State Governments might have
adopted for the government Of those institutions,
| which was an odious exercise Of power not granted
by the Constitution This amendment has this extent
Il directs the States the manner in which they
shall exercise their sovereignty in this particular and
points out what penalty shall be inflicted in the
charters granted by the States violated In fact
points out what the privileges granted the ncor-
porations shall be- by debating the Forfeiture and d.
recting what the companies may and what they NAV