The pilot and transcript. [volume] (Baltimore, Md.) 1840-1841, 1840-07-13

at every crossroads in the country. While that
bank was i'll existence, every body, who was Of
sufficient age, must remember we had the great
est abundance of specie in circulation for all our
purpose; and the merchants were glad to give
specie for its notes. and as before Observed often
gave hundred and one, and sometimes two,
dollars in specie for one hundred dollar note oil
that bank
But, again, some gentlemen contend that Con-
gress has no power to create such an institution
for any purpose, and others that it is unconsttu-
tional to create a national bank for any other
purpose than as an auxiliary of the treasury de-
partment in conducting the fiscal affairs of the
government. Now, sir, l think both these POI
sitIons untenable, and | shall prove by the
testimony of man whose opinions on tins point
| regard as entitled to more weight and conside-
ration than the opinions of all living men put to-
gether. Would the opinions of James Madison
be good authority with my friend from N. York,
(Mr KING, and other gentlemen who hold this
doctrine? He was one of the purcst and most
orthodox republicans that ever figured in the pub
lie councils of this nation; but | presume this
would be a strong reason why his credibility
should be attacked by the friends Of this admin
istration. Sir, let us what he said on this
point. shall read paragraph from his Mes
sage to Congress of the Sd December, 1916. He
says,
''Upon this general view Of the subject, it is
obvious that there is only wanting TO the fiscal
prosperity of the government the restoration Of
uniform medium of exchange. The resource and
faith of the nation, displayed in the system which
Congress has established, insure respect and con-
idence at home and abroad. The local accumu-
lations of the revenue have already enabled the
treasury to meet the public engagements in the
local currency of most of the states; and it IS
expected that the same cause will produce the
same effect throughout the Union. But for the
interests Of the community at large, as tceH as
for the purposes Of the treasury, it IS essential
that the nation should possess currency Of equal
value, credit, and use, wherever It may circu-
late"
All this, gentlemen say, would be quite con- con
venient il Congress had the power to create such
a currency. Well, sir, let what Mr.. Ma
olson said that point He continues IN the
very next sentence to say,
E.The Constitution has entrusted Congress,
erclusi3e!, ioitb the pO,oer Of creating and re-
gtlating a currency Of that description; and
the measures taken during the last session, IN
execution Of tie p0lcer, give every promise OF
success. The Bank Of the United States has
been organised under auspices the most faco7-
able, and cannot fill to be an important aiGri-
lidTy to those measures"
Mr.. Chairman, will not undertake to argue
the constitutional question of the power of Con-
gross to create n national bank. | should think
myself guilty of the most arrogant presumption
if did so. | regard it, sir, as a we'll settled
principle of constitutional law, and as being no
longer open to discussion. 1t has been decided
again and again, By every department of govern
raent, legislative, executive, and judicial and
has become to the fullest extent part of the
stitutional law of the land.
Gen. Washington presided over the delibera-
tions of that august assembly who framed the
constitution, and it is fair to presume, under
stood what powers were conferred upon Congress
BY that sacred instrument He was the Presi-
dent of the United States when the bill to char
ter the first bank of the United States passed
Congress. He gave the subject the most mature
deliberation, took the advice of all his cabinet
ministers, and, after the fullest consultation, he
gave it his sanction and approval.
The charter of the first bank expired in 1911,
and Congress refused 10 recharter it. From that
time to 1916, the country fell into state of the
most overwhelming embarrassment and pecuni-
AIRY distress only egualied by the state of things
which has oyertalen us since the destruction of
the late bank of the United States. In 1916,
MIR Madison, who was also a member of the
convention that framed the constitution, and who
is emphatically STYLED, E'the father of the consti
tuition" having drawn up the constitution with
his own hand, recommended to the consideration
of Congress the propriety of establishing U.
S. bank. Congress passed charter, and MIR.
Madison approved it, although he had been for
merly opposed to it. That pure patriot and re-
publican found it necessary to yield to the force
of precedent, and the impcrious and indispensa-
BILE necessity of such an Institution, both as
fiscal agent of the treasury, and regulator OF
the currency
Sir, | would also beg leave to refer the COM
mittec to a letter from Ex-President Monroe to
Mr.. S. f. Burrows. in 1881, in which he takes
a decided stand in favor Of United States bank.
He discusses in this letter the whole subject of
the currency, in connection with the finances, and
considers the State bank system, a government
bank, and national bank on the principles ef
the late bank of the United States. He repudi-
ates in the most decided terms, the two former,
and points out in a most powerful argument the
inefficlcncy of the State bank system, and the
dangers to the public liberty to be apprehended
from government bank. | will only read that
portion Of the letter which bears on the point
am now considering.
GA National Bank" he says, 'soccupies different
sround connected with the by its charter,
and its capital, which consists in Stock in which the
government participates in certain degree, there Is M
instance in which, in principle there can be difference
of interest between them, and many powerful consde-
ations by which the interest Of the bank must stimuli
late it to support the credit OF the government In any
situation in which it be placed. Ii the credit OF INC
stock should sink the capital of the bank would decline
equal degrees the effect of which would be felt IN all
its operations Its paper would deprecate, and check
be given to its circuation If not i entire suspenson-
Standing at the head of the monisd operations OF the
government, is lis intermediate agent in making re-
mittanceS 10 the Drinks
Union and likewise between individuals, from which
much credit and influence are gained, if not proat IL
has the means, and may be considered as the nsstpoW
erf agent in raising and sustaining the circulating
dunn in par with specie throughout the Union, and el
eyatIng the banks TO that standard, by sublecing
them to the necessity of reaching and adherDg TO IT, TO
sustain their credit, and their existence Let the
credit of the government sink and oil these advantages
lost The bank therefore, from regard TO interest,"
is bousd sustain it. The directors except the few
appointed by the government elected by the stock
holders and are amenabe them. 1t gives support,
therefore, The government in principles of NATIONAL
policy, in the support of which, 1t is nerested ana
Rurpose.' Sir far from its being dependent on the
credit of the government, Mr. Munroe was decidedly OF
opinion thnt would be means of sustaining the cred
of the government ITSELF deeply regret that could
not adopt the whee of this interesting and instructive
letter as part of speech; bat have read enough OF
to sustain fully in the position have assumed
Though doubt whether the opinions of such an Old
fashioned republican James Munroe will have any
weight with modern democrats Sir, might refer VOW
to the opinions Of long list of the most distinguished
republicans who have ever figured in the councils OF
this nation in favor of the conlutonaty of the Uned