Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-12-29

lated, s agriculture prostrate and every depart
nc nj Of industry suffering from the most benum-
Jag para gsis. It's finances in the worst possible
condition. and the patriots Of the land had almost des.
paired of the public faith For the energes of the
try had been completely Frustrated by the prornct-
I'd war i'll which achieved our independence, it was
thought impossible, that it could sustain an amount Of
xaiion necessary improve the one and uphold the
other. And it at this time, when every patriot
was anxiousy looking for relief, that Gen. Hamilton,
in whose patriotism and financial ability the country
had the greatest confidence, proposed the Funding Sys
TEN and its kindred measure, Bank of the u. S.
and in the hope Of finding in them the promised relief
TO the Government, the Bank of 81 was chartered
When the bill was submitted to General Washing.
ton for his Signature so strong his doubts Of its
that he requested his cabinet 10 lay
before him their opinions upon the subject in writing
General Hamilton and General Knox gave opinions in
favor of its constitutonuty; Mr.. Jefferson and Mr.
Randolph against it. And notwithstanding the very
able argument contained in General Hamlton's OPT
nion General Washngons doubts were still SO great
that he requested Mr. Madison TO prepare veto upon
the BILL and withheld his signature to the very last
men and finally signed il, as it is believed, in pursu.
unce of the advice of Mr. Jefferson contained in his
opinion, "lhat, unless the Presidents mind, on view
of every thing which is urged for and against the BILL
olerably clear that it is unauthorized by the Const
tuition if the pro and the hang to balance
his judgment, just respect for the wisdom of the Lee
gslaure should naturally decide the balance in favor
of their opinion 1t is chiefly for cases where they are
clearly msled by error, ambition, interest, that the
Constitution has placed check in the negative Of the
President"
The charter of the Bank of 1901, which has been
called stthe pioneer in constitutional encronchments
together with other kindred Subjects gave rise to the
two great parties which formed about that time,
and which have since div ded the county. The char
ter of that Bank in great measure relied upon by
the Republican party 10 establish that part of Madison
immortal Resolutions OF 81, in which it is declared
"hat spirit has, in sundry instances, been manifested
by the Federal Government, to enlarge its powers by
forced constructions Of the constitutional charter which
defines them. "Ihe obvious tendency and inevitable
result of which,, the resolution goes on to declare,
"woud be to transform the present Republican system
of the United States into absolute, or, at best, a
mixed monarchy" In his famous Report of 90, which,
since was promulgated has been tie text book OF
Republicans Mr.. Madison, and Virginia, by adopting
his language, said "Omting others which have less
occupied public attention, been less extensively re-
garded as unconstitutional the resolution may be pre-
sumed to refer particularly to the bank law, which,
from the circumstances of lis passage, well as the
latitude Of construction upon which it is founded,
strikes the attention with singular force and the car
rage tax, distinguished also by circumstances in It's his
tory having a similar tendency These instances alone,
resulting from forced construction and calculated Ia
enlarge the powers Of the Federal Government the
committee cannot but conceive TO be the case, sufficient
y warrant this part Of the resolution In which, as
the House will recoect, it is declared that "thc cb-
cous tendency inerae result Of ,chch acoud be 10
transform Die present Republican system Of the United
States o an ABSOLUTE or, at best, mIcd monarchy"
II was u the opponents Of that system of measures,
among which the Bank law and the Alien and Sediton
laws most prominent, as friends to strict con-
structon Of the Constitution, that the Republicans en-
gagged in the contest Of 90 and 80 which resulted in
the glorious civil Revolution Of $500. AS OF the
results of that Revolution, it the purpose Of the
Republican party TO permit the Bank charter TO expire
by its own limitation Notwithstanding the concur
renee OF sentiment in Virgnin adverse TO the rechar
ter of the Bank, when an application was 10 be made
to Congress for that purpose The Legislature Of the
State felt itself called upon to give decided express
sion of its opinion upon the subject which il did in the
following instructions passed al the session OF lSlO-li
"The General Assembly of Virginin, view with the
most serious the late attempts which have been
made 10 obtain from Congress renewal Of the charter
incorporating the Bank CT the u States. This Assem-
bly, are deeply impressed with the conviction that the
original grant of that charter unconstitutional;
that Congress have no power whatever tn renew 1T and
that the exercise of such power would be not only
unconstitutional but dangerous cncroachmcn on The
sovereignty Of the States; therefore,
"Resoired, That the Senators of this State in the
Congress of the IT, s. be instructed and RePresen
taves earnestly requested, in the execution OF
their duties faithful representatives OF their country,
use their best efforts in opposing by every means in
their power, the renewal OF the charter oil The Bank OF
the U. States.
The proposition 10 charter the Bank Of 81 I'M
successful and it was permitted to go down. No at
tempt was made to create second one until the late
war During the administration of Mr. Jefferson, the
Republicans completely into the ascendant, that
II the tendency Of party TO lose sight Of those prInc
pies which, IN lis infancy, constituted lis creed and the
war; and the which led TO it, caused parties 10
FORM not upon questions involving constitutional doc
trne, but upon questions OF expectancy In this con-
dition Of things the project of establishing National
Bank was revived, and portion of those who acted
with the Republican party sustained il; but for some
time, in this condition Of things, it unsuc
cesslu But, IN the mean time, with the most
powerful nation in Europe ragged throughout the coun
try. Washington had been entered by the enemy, the
Capitol and the Presidents house had been destroyed
by fire. and Admiral Cochranc had issued order 10 the
forces under his command to destroy and lay waste
such towns and districts upon the coast be found
assaabe. The public treasury was in the most hanst
ed condition. The demands upon it were enormous and
the revenue had sunk 10 almost no hing; that from the
customs amounting 10 only about six millions In this
condition Of things Tie Secretary Of the Treasury re.
commended The charter Of 4 National Bank means
Of relief But, notwithstanding the press Of crcum.
stances under which it proposed, such was the
pugnunce of the country to it, that it with Difficult
" charter could be obtained from Congress. But one
was obtained and, hIr. Madison vetoed it. Subse-
quently another proposed, and it passed one
House Of Congress; but in the mean time the news OF
peace arrived the crisis was supposed to have passed.
and it was indefinitely postponed in the other
But the war lett the finances oil the country IN
such an embarrassed situation, and the State Banks
were in such wretched condition. that was thought
that National Bank would be the Of great
lief In this belief it proposed; and most OF those
who differed from the Republican party in its doctrine
of strict construction, but who had been thrown into
IFS ranks in consequence Of an agreement with It upon
questions OF expedeney connected with The war, voted
for it, In addition TO these, others thought that the
necessity Of the justified their support of the Bank;
rbile others believed that as the Government was
bound up with the Stale Banks, to be unable to ex
tricate itself from bank connection, the question o.!
constitulionally did not arise. And all were anxious
to relieve the Government from the odium sought 10
be cast upon il BY the aatwar party, by invoicing 1t
in pecuniary embarrassment. In this condition OF
things, the Bank of 1916 waa chartered But, notwth
standing all this, the State of Virginia never relaxed
her opposition to it, As in $780, when the charter Of
the first Bank about to expire, again in 1884, when
that of the second also about TO expire, the Legls
ature declared its repugnance 10 the establishment Of
National Bank in the most impressive and unequivo
cal manner.
In 1853, General Jackson removed the public depo-
sits from the Bank of the United States. At that time,