The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-06-25
SOME eases be most enticing perquisile Of oiiice

are applicable 10 their nature and consistency
that they should be left TO the legislative action
and judicial decisions Of the Governments that
incorporate them--leii in the hands Of their ere
ators- 10 be dealt with by the powers that sus
tain them, and held 10 those rules Of action pre-
scrbed TO them in their charters. Are they not
SO governed in the respective States by those
who are their constitutional superyisors2 Can
they resist the sovereign will, when constitu-
tionaly exercised, Of the States that have found
ed ihem2 Have not the States, in the first
place, the right 10 incorporate them Have
they moi the wisdom TO discern, and the power
10 remedy any evils resulting from the exercise
OF that policyl Those corporations must pay
their debts and perform Their other contracts ac-
| cording 10 the notions OF good faith which those
/ State sovereignties entertain and act upon
Their effects are liable tocivil process in payment
oftheir debts. The banks are visited and confroll-
dby commissioners in most ofthe States appoint
ed for hatpurpose, Therconcerns are reached
by the searching operations of the courts of chan
Gerry: lnjunctions may stop their proceedings;
receivers may be appointed 10 take charge OF
Their effects, and, if necessary, finally 10 dis
pose OF and wind them up. All this is done
under the sanction Of the power that made
them, and with the greatest tenderness and
care Tor The preservation oil that franchise which
| Is the lie Of the corporation. The very power
mat sanctions the putting corporations into COM
mission takes care to preserve life, and, when
expiring, can resuscitate them. No doubt but
the State Legislatures can make laws for cor
polations which they may denomnate bankrupt
laws, II they choose 10 do it ; but those laws
must apply 10 corporations alone, without con-
meeting them with other subjects of an entirely
different character. But il does not follow that
Congress has that power over those State cor
poratons. Such exercise Of power would be
direct encroachment on State rights and the
States would not submit TO it. They would
not tamely surrender this exercise Of preroga-
tive TO Congress, or transfer such an amount
OF business from the State 10 the Federal Judi
ciary
Again, sir who ever heard ofincluding corpo.
rations with merchants and traders in a bank
rupt law? 1t has been talked Of, but never done
and II that proves any thing, il proves that talk
ing about II IS all that can be done with it. How
ianciu the idea of connecting them with natu-
raj persons! Why not include any thing else
that may be artfcially personifed? The object
oil tins delegation Of power in the Constitution
was TO establish bankruptlaws for persons whose
insolvency induced failure Of paynent-for natu.
raj persons exercising volition, free agency, and
moral sense--not for artificial persons, without
volltion, on failure of payment. In short, tor
persons and not for things not for the failure Of
institutions or Of machinery, but by fictitious
and fanciiul analogies. admit they may be
extended 10 every thing in failing circums tances
TO vegetation on the failure Of crops; to the
tree that may be fuitless from the blighting
winds but, after all, il would be forming little
else than a fancy article.
| But, sir, if bankrupt system is to be formed
for use, let il be formed with more regard to its
appropriate objects and It's practical uses. Its
application 10 banks would not only be entirely
unavalling for all the useful purposes contern-
| plated, bur il would prove itself ruthless de-
stroyer OF those institutions. What would
banking corporation be when under this commits
FFl n,t Iys,t..t al N Il
hands oi assignees The receiver, or assignees,
might walk into bank, turn out the president
and directors, the cashier, and all its other Or
gained functlonarles, but the new corners would
not be able to carry on the business Of the bank
From the moment of this change the vital func-
tons OF this artificial person would be no more
It's franchise extinguished by the first touch of
the invader and without the States power to
resusctate, il would be defunct, and that forever
Yes, sir, the very first act that would put the
banks into the hands ofthe receivers or assignees,
under this provision, would put an end to their
existence. This would be cruel it would verify
The apprehenslons of Roger Sherman, the dele
gate from Connecticut, who objected that, as
bankruptcies were in some cases punished with
death IN England, he did not wish TO grant
power by which that might be done here
Would not this be pumshing with death, and
would II not be severe and more, than the bank
rupt laws OF old II would be cruel beyond ex
death in the first scene
Mr. President, listened yesterday with great
pleasure TO the learned and able argument Of the
honorable Senator from North Carolina, (Mr.
Strange) and in many Of his remarks readily
concurred; but when, in the language of the
faculty, he talked of this provision of including
corporatonssas being wholesome medicine for
the banks, IL did assure you, give me some
uneasiness, for il reminded me of that course OF
experimental alternatives which the banks as well
as the whole currency Of the country had Of late
undergone, and il carried TO my mind fearful
suggestion that those patients were not yet out
Of the doctors hands.
The honorable Senator made another sug-
geslon, which was not so alarming. Indeed il
was amusing, II was fancful, and well adapted
to the fanciiu theory of including corporations
in a bankrupt law. The emphasis with which
he distinguished that part of his speech was
natural as well as proper, and bespoke no more
than that seli-compaconcy which we all feel on
discovering what we deem important to our
selves or 10 our country In speaking of this
great bank corrective, he said they had disco
vered the great deslderatum he said il was the
philosophers stone; yes sir il was the philo-
sopher's stone Yet | could not but think that
the Senator was under some mistake and If
this was that great desideratum, and the philo-
sopher's stone, about which the alchymist had
for centuries so stimulated the curiosity Of the
world, that it would hardly fulfil expectation
But if il was the real philosophers stone, with
all its wonder-working powers Of transmutation,
by which the alchymsts contended that in the
potency of its mysterious touch all the baser
metals could be turned into pure gold, could
not but regret that it had not been discovered a
little sooner, it might have been valuable
auxiliary IN carrying out and giving success 10
that experiment. which has failed for the want
oil gold But believe, sir, this discovery is net