The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-05-16


Senate, on Wednesday. in support Of the Bank
rupt Law presented by the majority Of the Ju-
dietary Committee, was a masterpiece Of argu-
ment and cloquence; and viviied also by many
effective sallies Of wit and sarcasm. He was
listened to with the greatest attention and mani
fest delight by crowded auditory.
In every part of our country, there is strong,
general, and steadily growing sentiment in ia
vor Of the passage of uniform law, by which
honest and unfortunate insolvents may be dis
charged after just and complete surrender Of
their property for the benefit of their creditors
The bill, which Mr. CRIrTENDEN 50 eloquently
advocated, is of this character.
and benevolence is resisted by the Administers
ton, unless there shall be connected with it, pro-
visions bringing the Banking institutions and
other corporations Of the States within the ope-
rations of the Bill II will be seen that the able
Senator from Kentucky demonstrated in most
effective manner, the unconstitutionalty and in
expediency of this proposition.
| In 1927, Mr. VAN buren, himself took the
same ground now occupied by the Opposition
Senators in reference to this subject. He OPP
posed proposition exactly identical with that
now urged by Mr.. Wall, and in an elaborate ar
gument commended that ii was both inexpedient
and unconstitutional
A National Bankrupt Bill was pending in the
Senate, Of which Mr.. Van Buren, was then a
member. Mr.. BRANCH of North Carolina, offer
ed an amendment to subject the State Banks to
the provisions of the Bill The present Presi-
dent Of the United States opposed the project,
as follows:
Mr.. Van Buren, said he did not think that any
great difficulty existed in this question. To him the
matter was clear but his impressions had been opposed
by several Senators, and he would protract the debate
but moment, to give, very briefly his views of the
matter. It certainly appeared to him, that mo-
ments reflection would decide gentlemen against the
amendment proposed by his friend from South Caro-
lima. Il had been said, formerly, and various
casions, that the States had right to grant Bank
Charters and that the banking privilege belonged
cluavey to the Federal Government. No direct at
tempt however, had hitherto been made to deprive the
States Of that power which they had long exercised
molestcd. But now the attempt was to be made, if not
in open and unequivoca manner, at least in an in
direct way strip the States of the power of charterng
banks. At any rate IL il contended that this
provision did not so far il could not be denied thai
it interfered in the regulation ichch State Gopern
ments might hare adopted for the Government Of those
institutions trhich odious exercise Of porer
not granted by the Constitution. This amendment
has this extent 1t directs the States to the
in which they shall exercise their sovereignty in this
particular and points what penalty shall be infict
Cd in the charters granted by the States are VIC
lated In fact points out what the privileges granted
the interpretations shall be- by debating the forfeiture,
and dzecsing what the companies may and what they
may NOT do. All this has hitherto been done by the
States. They have assumed the direction Of these
matters as right, which they doubtless have. And
in including this subject of corporations, in the bill
now before the Senate, il will be taken entirely from
the States and subjected to the power of the bankrupt
system This never DONE and never attempted
in any country the face Of the globe. In England
such provision was dreamed OF, did he be-
Iieve that when the Constitution framed such
attribute imagined by those who authorized the
establishment of bankrupt system. He did not ac-
cede the opinion that the system had power all
chartered institutions By tho very nature oftheir
sociation they were in some respects exempted from
its operation, and such power was ever contem-
plated or was at this moment under the most extend
cd construction, enjoyed by the Federal Government
The duties of banking inatuons must necessarily be
intangible by such law. If the clause to be
inserted, and banks permitted to be made bankrupts
upon whom, upon what human being would the penal
ty of the law be made to operate
Would you apply the rigor Of the system to those
agents, who SO far from principals in the delin-
quency Of the institution to which they attached
that they only the hired servants of these banks
This could be. 1t would be the height of injustice
to mpcate, in a penal manner these agents. and not
from fraud but merely for the inability Of the corpora
tons to pay their debts. The individuals employed to
carry on these establishments surely should be exempt
from the penalties of bankruptcy they are persons
without whom they cannot be carried on; they are the
agents of all those who hold stock in their bank they
act for the various classes Of individuals whose
are confided to banking champions and among whom
are to be found the widow and the orphan, who
-. L.. ~, h,,,.
| fill these agencies.
| But how could such be induced to occupy
those situations if they to be made individually
RESPONSIBLE only for their acts, but for the
misforunes and losses of their corporations On the
other hand would you render the stockholders liable
for the disasters of the institution In cases OF mis-
conduct by the officers employed by them majority
of them would you make them answerable for an act
Of bankruptcy Could they, in justice be liable for
the maversaon of agents employed by them to trans
act business Of which they WERE all of them, proba
bly ignorant He thought that great expenditure
Of reasoning need be made TO show the true answers
to these inquiries and the very questions, nc con-
cciyed the difficulties of the His idea of bank
ru system was that could not be applied to any but
individuals principals and that II was not capable
nj being made to operate associations on the sub
ordinate agents. either of individuals or corporations
He therefore objected to this amendment He did not
wish the bill defeated by any inappropriate provisions
Mr. HENDERSON,. of Mississippi, and Mr..
SMITH, of Indiana, have also delivered very able
and effective arguments inssupport Of the bill
reported by the majority Of the committee-the
former on Thursday, the latter yesterday
II is expected that on Monday next Mr. WEB
srrR win address the Senate upon this import
ant subject
MR. VAN BUREN'S APOLOGY,
!
The address Of the Loco-foco federal Office holders
.h.;r P.lf;-