, 1840-07-04

from Pennsylvania moved for 4 committee &c
inquire into the propriety of amending the
constitution, SO as to insert a provision giving
congress power TO restrain the circulation
of small bank notes. | did not concur in his
measure, not thinking the constitution need
ed amendment in that respect. but his argu
ment was quite Ineligible. lie said this abo
lition of small bills could not now be accom-
plished, because the states could not be brought
to act IN concert, yet they might all be brought
TO consent that congress should establish
uniform rule upon the subject. That WIS faiI
reasoning towards a proper object. 1t went
for uniformity on a point of great commercial
Importance. But how is it here? We dc
not here propose uniformity, We do not re,
quire that one rule may extend over ALL
Far otherwise, for we propose TO authorize
difference, dissonance, and confusion. Hay
ing the power to establish uniformity, we
delegate an authority 10 create VARIETY
Charged by the constitution to establish one
rule, we ourselves, instead OF performing that
duty, call upon others to establish different
and varying rules. All must see to what this
leads, or rather what this is; for Ii is a measure
which would be perfect in its beginning, it
would reach its destiny at is commencement,
Its mischieveous tendencies would be accom-
plished at its birth. The passage Of this
bill would add the solemn sanction of congress
TO the sanction Of the states TO the suspen-
sion Of specie payments by the banks
That is the practical sum and substance,
the long and the short of the whole matter.
Sir if our constitutional power enables us
20 opohrooa tho banks IN H.. Kill ,pl &c ua
see no insuperable or greatly formidable
practical objections, then | think we ought
to include them, and to include them all,
without any power of escape.
Suppose the bill should be made uniform.
then, and to include all banks, have we the
power, and is it expedient 10 pass i, in that
shape?
On the motion for a committee, made some
time ago by the member from Pennsylvania,
to which | have already referred, | suggested
the opinions which | entertain on one branch
OF the power OF congress connected with
this subject. The constitutional point, now
arising, | do not mean TO treat, nor TO decide;
it is open to others. and will no doubt be dis
cussed by them. But upon the expedicncy
or propTiety of including banks and other
u pUl1tNOIS iu lHiS Uiis L VIII SdN IL Ic"
words. The state with which ] am connec-
ted can have as little objection to include
banks in the bankrupt bill as any other state.
MANY persons in Massachusetts. quite res
pectable and well informed, are in favor of
the measure. But it appears TO me they have
not well considered the practical difficulties.
Let US look at what is proposed to be done.
There are eight hundred or a thousand
state banks, each with its charter comforting
its rights, prescribing its duties and enjoining
penalties. They are banks of deposite,
banks of discount, and banks of circulation.
1t is now generally admitted that they are
lawfully created. Their legal existence is
established. They comprise, | suppose two
hundred millions Of capital. Some of them
are founded entirely on private ownership,
while in ONE others the states creating them
are part proprietors, and in some others
again the states are sole proprietors. Some
of them have a right TO suspend for a limited
time, others have not this right, the charter
of each being its own constitution.
Such being the general state of things, it
is now proposed to subject all these banks to
the operation ola bankrupt law, 50 that when
they stop payment for a day or an hour their
property and effects may be seized for dis
tribution among their creditors, and their
operations broken up. 1t is proposed to do
this, although the charters of the banks may
expressly authorize them to do that very
thing, which is an act of bankruptcy under
this bill, and for which their property is TO
be thus seized. Here is certainly a direct
collision between state authority Of the Uni
ted States, which ought to be avoided whene-
yer it can be. The act of congress in this
case would be made to repeal or annul pro-
the law of the state. do not say that
his can in no case be done; but | say that
dl such collisions ought to be avoided if pos
1t is proposed that congress shall prescribe
iuties to the banks not prescribed by their
OWN charters, and for the violation of those
luties thus prescribed by congress, it is pro-
posed to proceed against them as bankrupts.
o sequestrate their effects, and virtually
Innul their franchises. If this can be done, !
hould it be done, without clear and cogent
lecessityf Without wishing to represent the
proposition as extravagant, or speaking of it
With disrespect it seems to me 10 be bold, i'll
rash, until a case of absolute necessifv l.