The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-12-29
gmemtp-Sfrth Congress.
SECOND SESSION.
IN SENATE.

morn,ng s was one hy MI STURGEON, Of Pa
from The heirs of Robert Fulton, praying Congress 70
recognize and pay their claims upon The Government
Mr. RUGGLES, OF Maine, from the COMMITTEE on
Commerce reported bill for the better security OF
the lives OF passengers board of steamboats, The
same bill was before the Senate at the last session OF
Congress.
The following bills severally passed
An act furnishing the counierietng offoreign com,
gold, and copper
An act for the relief Of Hannah Leighton
An act for the punishment OF certain crimes against
the United States and for other purposes.
TAXING BANK PAPER.
After the final passage of other bills ordered 10
be engrossed yesterday, Mr., BENTON presented ms
bill for taxing bank paper in circulation IN the us
trict Of Columbia and gave his reasons for presenting
his bill To the Senate The banking interests Of me
country were large, and in his opinion there was no
good reason why such interest should not be taxed
In Great Britain the banking system paid the Govern
mcnt immense sum per annum Mr behtoh pro-
posed TO bring in bill to tax only one branch oil me
banking system, and that was the paper put IN enou
laton money
Mr. Benton quoted from British precedents to prove
the propriety Of taxing banking paper During the
war in this country, also, the circulating medium was
taxed Sugar and iron, and shoes, and hats, and lm
Elements of husbandry were taxed at the same time
In 1917 the Banks were strong enough To throw oil
the tax. Ii time now TO put on the tax, especially
now-particularly now-when the Banks put the Go
rnment and every body else at defiance. don
know, said Mr. Benton, how the Banks will receive
my proposition and if they will excuse me for the re-
mark, don't care.
Mr. Benton spoke at some length OF his proposition,
and commented with his usual severity upon the hank
ing system He said tho old banking system was bet
ter than the modern for when man formerly present
ed his claims against Bank they were respectfully
met and considered But man meets with
more kicks than coppeTs,
Mi Benton explained his bill He proposed to re-
yive the old bill OF the and TO make his measure
one of revenue. He for driving all notes out OF
circulation under the denomination OF ifty dollars.
Ii he could have his way he would stop all notes
under a hundred dollars. But the country was not
ripe for this and would not be until there third
suspension, which he predicted would come My
bill said Mr.. Benton, proposes two things wish to
tax Bank paper for purposes of revenue and slowly To
DIVE from circulation small notes. am willing 10
begin by laying the higher tax upon notes under the
denomination OF twenty dollars All such notes pro-
pose TO tax twelve per beginning with per
cent and advancing TO twelve per cent. The Sena-
tor thought there i've classes of politicians who
would support his Bill
lst Those who believed that Congress had power
TO regulate the currency generally.
ID All those who admit that II Is constitutional TO
charter Bank.
3D. All who hold that there should be duties or
could be duties laid upon foreign perc andse his
party began with the Hamilton school
4th. All who believe, that there power incl
9Th The most ancient of the whole and 10 which
he belonged party who believed that Congress had
the power To lay taxes for revenue.
Mr. Benton spoke for an hour and more, conclud-
ing his remarks with severe comments upon the
exercise of the banking power of the country.
At the request of Mr. PRESTON, the bill
then read
Mr. HUNTINGTON said it was not usual, nor
in accordance with the courtesy generally extended
Senators on asking leave to introduce BILL to make
lint hIs af snT hat
with the views he entertained it seemed to him il
not properly admissible There provision in
tho Constitution which provided that all bills for the
raising Of should originate in the House of
Representatives thoughts Senate might make amend
ments thereto Now what this bl 1t was a
bill by which il intended to lay tax upon all
bank notes issued by any banking incorporation in
this country 1t was not confined to any district
territory but it bill to lay tax in form of
duty TO be assessed and paid into the Treasury of the
United States and thus forming part of the receipts
and the money Of the Government, and TO be expend
ed such Now if he understood the Senator from
Missouri Mr.. Benton) Alright that Senator consider
ed part of their obligations compel these corpo
rations 10 pay portion of that which justly goes into
the Treasury in the shape Of revenue; and if so, it
not within the powers conferred upon them by
the Constitution; and could they then, permit the in
PRODUCTION of bill containing such provision ; He
had intention to reply to the remarks the Senator
from Missouri on the merits OF the bill with the views
entertained he did not consider the Senate could
constitutionaly the bill and therefore he should
attempt no reply. Some years ago 1t was question
there whether indeed the Senate could reduce rate
of duty proposed to be imposed BY a BIZ, which had
up from the other House but that subject he
had now nothing TO say, should he say a word on
the merits of the bill he merely felt it to be his duty
TO state the views he had the question of its rccep
ton and therefore, the question of granting leave
he called for the ayes and noes
Mr.. BENTON said the objection of the Senator
from Connecticut chr. Huntingdon was very fair
one; It was one which he had anticipated, for he
should have sat there for twenty years to very little
purpose if he had not oreseen 1t. lie repeated, it
was fair objection and it was entitled to the grave
consideration of the Senate But in the twenty wears
that he had sat there he had the thing done
that in piece of legislation which they deemed the
most sacred of all the legislation they had done
he alluded to the compromise act Of 1888 which orr
gnated in the Senate, and to that part IN which they
raised the duty woollens from five to fifty
per cent. That bill was entertained by this body, it
was carried through this body, and perfected by
this body.
Mr.. WEBSTER. No, no no not perfected
Mr., BENTON repeated that it perfected by
this body. He knew well what he said 1t was per
fected by this body it was discussed and amended
in this body; afterwards adopted an amend
ment in the Hsuse Of Representatives, and then was
sent up again to this house, and passed as House
bill That bill, after being entertained hy this body
and perfected by this body, discussed until they
were satisfied with it, was taken as an amendment
by the other House passed there and sent here, and
then passed here. Thus il began here-was discuss
ell here amended here-peI fccted here-bu not pass
ed till adopted and sent up by the House
Mr.. CLAY, of Alabama, would suggest the proprie-
ty Of raising question of this kind on the bill until
it printed the discussion could como up more pro
pcrly when the bill about to have its second read
ing or the question whether it should be read a
second time.
independently of the question raised by the honor
able Senator from Connecticut he believed there was
another grave constitutional question to be determined
namely whether they had the power 10 regulate State
bank institutions at all If they could raise tax to
the proposed they could lay tax TO any other
amount-to an amount that would Re total prohibit
ton of system OF banking which they had had from
the foundation OF this Government. Let the bill be