The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-06-04


States in which they located, and exist AT the
pleasure Of the authority thai created them. BY
the terms OF their charters, they are made sub
iect TO certain fixed rules and regulations, and
for any act OF omission or commission inconsis-
tent with the laws which are prescribed by their
government, they forfeit the privileges and inn
munities conferred upon them. They also au-
thorize the doing Of certain things at certain
times, that is contrary to the general laws by
which these institutions are bound, and they
preserve To them the same rights and privileges
as if those acts had not been done Thus, the
i State Legislatures cause the acts OF the banks TO
conform TO the general interest of the commu-
nifty. Has the General Government powerto
destroy these institutions ? Can Congress-, by
law, take from the States the supervision ana
control over the creatures Of their own creation
| institutions that are an emanation OF their own
sovereignty? II they are the Legitimate sub
Jects OF a Bankrupt Law, then Congress has the
power TO destroy them at pleasure. II - not
only the suspension Of specie payments Tor
fifteen days, as prescribed in the amendment,
that may subject them to the operation OF the
penalties Of Bankrupt law. Congress may
declare any act an act Of bankruptcy: and II
has already been suggested by the Senator from
North Carolina, (Mr. Strange that no bank
| should be permitted to issue more paper than u
has specie IN its vaults. Any Senator who Is
| acquainted with the business of banking must
perceive, that such law would soon close the
doors OF nearly every bank in the Union lndivi-
duals and States invest their money in these in
stitutlons for the purpose OF obtaining fair M
| tcrest. Although they created for the ac-
| comnodation of the public they are expected TO
return fair and reasonable profit to the owners.
Under this restriction we should soon have no
| paper money but Treasury notes, and no bank OF
issue, but the Treasury. do not say, that such
IS the design Of those who support this PROPOSE
| ton but is il not apparent that this principle
4 n o..
scribe, at its pleasure, the acts which shall con-
| stitute bankruptcy on the part Of these nstitu-
tons, and thus bring them within its power, and
subject TO its control /?
| The Senator from Mississippi, (Mr. Walker,)
with his characteristic frankness, declared yester
day, that he wished 10 bring all the banks under
| the operation Of Bankrupt law, because he be-
lieved them all bankrupt, and he desired TO wipe
them all out Of existence, and free the country
| from the curse Of paper money. II misappre
hended the Senator, shall be pleased TO be cor
| rected. stat
| Mr.. Walker said the Senator had quoted him
correctly-he was opposed TO all banks Of issue,
and all paper money, and was in favor of an ex-
elusive metallic currency.l
| was sure, said Mr.. t., had not misunder
stood the Senator, because he has repeatedly
stated the same opinions here and elsewhere. -
But, sir, the reasons of the Senator so far from
inducing me to wish TO embrace the Institutions
VI THIS Din, nave caused me W Ell
! ter my solemn protest against II. l am in favor
Of well regulated banking system, and opposed
\ to an exclusive metallic currency. My motto
| has always been, 6 Preserve and regulate, but
not destroy" | cannot, therefore, consent 10
| destroy what we cannot create. ] am not will
| ing to bring them under the power Of the Fede-
| raj Government, by which they may be swept
out of existence without the consent of the
States that created them. To them is confded
the power 10 create, with them alone should be
the power 10 destroy They have prescribed
rules by which they ''preserve and regulate"
and they will continue to do So Those who
doubt this proposition, question the ability Of the
people for self-government.
II there were no constitutional objections TO
this course, is II expedent or proper to exercise
lltl Many States have permitted the banks,
without torfeiting their charters, TO continue
business, although they are unable to pay specie
on demand. Are we prepared to place the Fee
deral Government in an attitude Of hostility To
the States? Can any Senator believe that the
States will be content 10 see their manufacturing
and other corporations made subject to such
rules and restrictions as we may propose with
out regard TO the Legislation of the States And
has il come TO this, that the control Of the States
over their institutions will be resisted by their
representatives here Shall we, the creatures
of their will, undertake to arragn their legisla-
ton and enact laws to counterfeit III Is il right
to attempt TO intercept the current of their egis-
ation, and by Zone fell swoop," destroy what
they are laboring TO preserve? Sir, see no ne
cessity for this exercise Of powers we have
already causes of jealousy existing between the
States and the Federal Government, and do
not wish to see il increase. ! claim TO have a
full share OF moral courage, but confess am
not bold enough TO enter voluntarily upon such
an experiment as this. 1t is the most monstrous
assumption of federal power ever attempted
We are told by some Senators that this regu-
w NJ ,rfe.
ments by the banks. But how can this be
shown, and what evidence is there to prove that
such will be the case The State laws already
work forfeiture Of the charter of the banks for
failure to pay specie; but these penalties are
insufficient TO effect the object when the interest
OF the whole community requires a suspension
When such crisis has arrived, the State Legis-
latures have interposed not for the benefit of
the banks, for they are generally creditors to
much greater amount than they are debtors, but
to relieve the community, who are debtors TO the
banks, and who cannot pay their debts TO these
institutions in coin. No Legislature legalizes a
suspension OF specie payments by the banks
This they cannot do because the Constitution
provides that gold and silver coin alone shall be
a legal tender in payment of debts. The legal
remedies remain the same for both debtor and
creditor, and the Legislature only provides that
the bank may continue business without forfeit
ing its charter. The courts are continued open
to the creditor, and he can compel the bank TO
pay specie without any regard to the act Of the
Legislature. There is, therefore, no suspension
Of specie payments, except that payment is not
promptly made. If the charter Of the institution
should be forfeited by its inability to procure spe-
Gle 10 meet its demands, it is evident il must
1au on rs debtors e e., A. rai,h, re 20