Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1840-12-01
POLITICS.
State Rights School.

State Rights school.
Mr.. JEFFERSoN'S OPINIONS.
It is frequently asserted that Gen. Harrison enter
tains precisely the same opinions IN relation TO a Nation
nj Rank which were entertained by MIR. jefferson. Be-
low We give Mr.. Jefferson's views on this subject, as
officially given to Gen. Washington, when the first u.
S. Bank was chartered. Mr.. Jefferson was then one OF
the Cabinet.
To aid in the management Of the national. finances,
the Secretary of the Treasury had previously recon-
mended the establishment of q Bank; and in February,
1891, an act passed for that purpose. The preamble
disclosed the principal reasons for its adoption, De,
claring, shat it would be conducive TO the successful
conducting Of the national finances, give facility to
the obtaining of loans for the use of the Government
in sudden emergencies and would also he %''produc-
tive of considerable advantage to trade and industry in
general"
The capita. stock Of the Bank was ten millions of
dollars; two millions to be subscribed for the beneht
of the United States, and the residue by individuals.
One fourth ofthe sum subscribed by individuals was TO
be paid in gold and silver, and three fourths in the pub
lie debt. BY the act of incorporation, it was 10 be
made a bank Of discount as well as ~deposite, and IFS
bills, which were payable in gold and silver on de-
mand, were made receivable in all payments 10 the Z.
States. The Bank was located at Philadelphia, with
power in the directors TO establish ofiices OF discount
and deposite only, wherever they should think tit
within the United States. The duration OF the char
ter was limited 10 the 4th Of March, 1911; and the
faith of the United States was pledged, that during
that period no other bank should be established under
their authority. One OF the fundamental articles of
the Incorporation was, THAT no loan should be made to
she United States for more than one hundred thousand
dollars, or to any particular State for more than fifty
thousand, or TO any foreign Prince or State, unless
previously authorised by a law of the United States.
The books were opened for subscriptions in July, 1871,
and a much larger sum was subscribed than was allow
eddy the charter, and the Bank went into successful
operation. This measure was not adopted without
warm and violent debates.
II was said, in opposition, in the first place, that
Congress had no power, under the Constitution, 10
create this or any other corporation in the second
place, that so large a moneyed institution would, in its
effects, be highly injurious TO the community. Its ad-
vocates, on the other hand, contended, generally, that
the establishment Of an institution of this kind, though
not within the express words of the Constitution, was
among the incidental powers contemplated by that
part Of the instrument which enabled Congress to
make all laws necessary and proper for carrying into
execution the powers expressly granted.
The President, before approving the bill, requested
the opinions of the members of his Cabinet, in writing,
as to its constitutionality. The Secretary of State, and
Attorney. General, were of opinion, that the bill was
unconstitutional, while the Secretaries of the Trea-
sury and War were Of n different opinion, and concur.
red with the majority in Congress. Mr.. Jefferson was
~deciosdly and war mly opposed to this institution, not
only on account Of its uncons'itutionality, but on &C.
count Of the danger to be apprehended to Government
from the exoro"ancy of its power, and the injury which
it might intict on community. The following is his
Official %l opinion, P, ION on the constitutional question;
1 ne OIL y eSl3DlSnlGp q National Hank nphar.
takes, among other things,
/. To form the subscribers into : cornorat;on
2. To enable them, in. their corporate capacities, to
Zee grants Of land: and SO far is against the laws of
.Mortmain.
2. To make alien snhsoribcrs capable ofh",aa~-'~
and SO far Ihsmit these lands, on the death of a rTopri-
4, to u certain line of successors; and so far changes
the course of deseeRts.
5. To put the lands out of the reach of forfeiture and
escheat; and so far is against the laws Of forfeiture and
eseheat.
6. To transmit personal chattels to successors in a
certain line; and so far is against the laws Of diStriba-
zion.
z. To give them the sole and exclusive right Of bank
ing under the national authority; and so far is against
the laws of monopoly.
8. To communicate to them a power to make laws
paramount to the laws ofthe States; for so they must
be construed, to protect the institution from the control
of the State Legislatures; and so, probably, they vii!
be construed.
consider the foundation Of the Constitution as laid
on this ground, that sall powers not delegated TO the u.
S. by the Constitution, nor prohibited b. it to tine States,
are reserved TO the States or to the people. "-(Ime!fM
a~mendment.) To take a single step beyond the bound
aries thus specially drawn around the powers Of Con-
gress is to take possession Of a %boundless field OF power,
no longer susceptible Of any definition.
The incorporation of a Bank, and the powers assumed
by this bill, have not, in my opinion, been delegated 10
the United States by the Constitution.
l.. They are not among the powers specially enume-
rated. FOR these arc:
/. 4 power to lay tares for the purpose of paving the
debts ofthe United States. But no debt is paid by this
bill, nor any tax laid. Were it L bill 10 raise money,
its orr ginaton i'll the Senate would condemn it by the
Constitution.
Y. To "borrow money" But this bill neither boz.
rows money, nor insures The borrowing it. The pro-.
prietors of the Bank will be Just as free as any other
money -holders, To lend or not lend their money to the
public. The operation proposeden the bill, first TO
lend them two millions, and then borrow them back
again, cannot change the nature ofthe latter act, which
will still be a payment, and not a loan, call il BY wha,
name you please.
3. "To regulate commerce with foreign nations, and
among the States, and with the Indian tribes To
enact q bank, and to regulate commerce are two very
different acts. He who erects q bank creates a subject
of commerce in its bills; SO does he who makes a
bushel of wheat, or digs a dollar out Of the mines
Yet neither of these persons regulates commerce there
by. To make a thing which may be bought and sold,
is not TO prescribe regulations for buying and selling.
Besides, II this were an excess of the power of regu-
lating commerce., il would be void, as extending as
much TO the internal commerce Of every State as 10 its
external; for the power given to Congress by the Con-
sti,ution does not extend to the internal regulation of
the commerce of a State, (that is to say, of tke COM
merce between its citizcns,) which remains exclusive
~ within its own Legislature, but to its external COM
merce only; that is to say, its commerce with another
State, or with foreign nations, or with the Indian tribes.
Accordingly, the bull does not propose the measure as
a Regulation Of trade hut as 'productive of consi-
advantage to trade"
Still less are these powers covered by any other of the
special enumerations.
III. Nor are they with either of the general phrases,
are the two following: !
l. "To lay taxes to provide for the general welfare of
he United States; that is to say, /" 10 lay taxes for the
of providing for the general welfare :" for the
aging Of taxes is the po,oer, and the general welfare
he purpose for which the power is to he exercised.-
Congress are not to lay taxes ad Hbitum, for any pur.
bose they please, but only to pay the debts or proride
n. X e. - 4 49,. L. b n-~~a.
lot to do any thing they please to provide for the gene.
al welfare, but only to lay tares for the purpose. To
onsider the latter phrase, no. as describing the pur.
'ose of the first, but as giving a distinct and %indepen-
ent power to do any act they please which might be for
he good of the Union, would render all the preceding
nd anhsnnnanf annnnrniiona nE nnrcor onrn.lofolnl 1.