The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-07-08
CONGRESSIONAL.
DEBATE IN THE SENATE,

1911 TO the bill to incorporate the subscribers To The
Fiscal Bank Of the United States
Mr.. CLAY, of Kentucky, addressed the Senate
regret said he, extremely that the Senator from Vr-
gina Mr.. Riyes,) has felt himself constrained by
sense OF duty, TO submit this amendment. No good
noihing rear but unmixed mischief, come out OF
II, although am quite that Is far from the in
ienton OF the Senator. The people want at hands
Bank, real old fashioned Bank-such an one as
they and their fathers have tried and xperienced the
benefits o. Now the institution, the proper organi-
zation OF which we are consderings to be a Nation
al Bank or Il local Bank. Ii it is To be National
Bank, We have the power to make it, have not.
If we have the power il the States have already
sented, in the Constitution to the establishment of
National Bank no further other consent from them
necessary. Indeed il they have not already given
their assent in the Constitution they give
in any mode other than that which the instrument
itself prescrbes according 10 which there must be the
concurrence Of three-fourth of the States. This
think, IS too clear for argument 1--we have power
TO make undisguised National Bank, we ought not
to attempt it, We ought not to seek to accomplish in
directly what we are not authorized forbidden To do
directly This district of ten miles square was placed
under the jurisdiction of the General Government,
that the Federal authority might govern it, not that
by means of the local jurisdiction, the whole Union
should be governed or controlled. We ought not to
apply power granted for one purpose to the attain
ment of another purpose for which il is not granted
! do not think, then, that we can establish local
Bank and mpart to it national faculties functions.
But the Bank which the Senator from Virginia pro-
poses, is manestIy local Bank of the District
of Columbia The Senator might have spared him
self some time in proving the power of Congress to
tablIsh such a Bank. There can be no doubt Of the
existence of such power II has been again and
again exercised in the chaItering of the Bank Of
Washington, the Bank of the Metropolis, the Pari-
otto and other Banks. Any one Of those Banks might
have asked the permission of State to establish
branch within its borders The Bank under consde-
ration, if amended proposed, would not essentially
differ from them except in the magnitude of its capital
and the interest which the Government takes in it,
Assuming the existence of the power a settled
and legitimate power il ought to be exercised for the
benefit of the whole Union and it ought to be
ercsed, without soliciting any further consent from
the States. If it be Federal powerifit be granted
in the Constitution, upon what possible grouad or
principle place justification for not exercs-
ing the power, without the previous consent of the
States, to be expressed hereafter in separate acts
And If we established the rule that prior TO the
else of the constitutional power TO establish Bank
we obtain the of the States what are the
limitations, if any, to the rule Must not ask the
previous consent OF the States every instance the
exercise of The powers granted in the Constitution to
the Federal Government If we propose to establish
Post office or ma route, in Stale, or to lay and
collect taxes to perform any other Federal duty APP
pertaining this Government we not solicit the
previous consent Of the States
The Senator from Virginia argues that in making
such Bank as he wishes we only forbear TO exercise
the power, II we have 1t, to establish National Bank
that toTbeaTance exercise is no abandonment oil the
power and that if his Bank does not work well we
can hereafter resume the power and make another
Bank. 1t is very true that in conserving to make
such Bank as he proposes do forbear TO exercise
the power TO establish National Bank for there is
quite much difference between. his Bank and Ma
ona Bank there is between any other local Bank
any State Bank-and National Bank, Just much
difference there is between Bank of the District
Of Columbia and a Bank OF The United States. As
general proposition, may be true that iorbearance
TO exercise power Is not antamount to the surrender
OF the power But there NAV be, on the other hand
case Of such marked and peculiar character that the
voluntary forbearance to exercise a given power
amounts to virtual surrender of that power. And
think the Bank question is such 1t has been
contested for fifty years and varously decided During
the last eight ten years the contest has been
Quoted with the greatest zeal and earnesness to
say bitterness. The defeated party not much short
OF moiey of the nation, stoutly Denies as a party
the power Now, if the triumphant party at the close
OF the contest refuses to exercise the power, will it
not be hereafter construed as virtual or implied re-
linqulshment of the power Ifthat party, moreover
declining to exercise the power puts forth in lieu, but
in the name OF National Bank rickety, mbece, in
competent local Bank, which, think, cannot fail to
dsappon the hopes and expectations of the people
how could you afterwards resume the relnquished
power Why, the people would become so Disguised
with the very name of Bank of the United States
that they would not allow you TO resume the power.
he Senator tells us that if has experiment fail we may
then make Bank after the old model. Why, sir,
what have we been struggling against for the last
eight yeaIs} Experiment after experiment until our
country has been brought TO the very brink of ruin
And, at the very moment when we have not merely
seen land but got, all had hoped into safe port
when storms and tempests and experiments were at an
end, and the bright sun of hope and prosperity was
bursting upon our joyful vision, the Senator from Vir
gna comes forward and asks us more, to put to
with HIM distant and perilous cruise, and to
try another experiment
The proposition which requires the consent Of
State within whose limits a branch is placed proceeds
upon the erroneous assumption that the branch is IN
toduced for tho sole benefit of the particular State
But that is not the 1t is put there for the benefit
of the Union, including the particular State. II the
Federal power to put 1t there exist oughtto be exer-
cised for the common benefit OF the Unloni II there
be no such power, then the branch ought not to lie
clandesnelv introduced into State But do, Mr.
President how advantage is taken of the consent
ing State by the Senator'S proposed amendment IL is
part of that amendment that, when office OF dis
count and deposit is established in State, WI h
the consent of the State "the office shall not be with
drawn without the assent of Congress-. Now, II
your power be incompetent to plant Office OF dis
count and deposit within the limits of State without
the consent OF the State how after Is put there can
hold and MAINTAIN IT there in spite OF and against
the will ofthe State
Here Mr.. RvEs lnterposed and said that it was a
part of the compact made between the sovereign State
and the Bank
Mr.. CLAY continued. Suppose it is, whence do you
derive your authority to enforce any contract made
between a sovereign State and corporation lfyou
forbidden by the Constitution to place branch in
a State, can you delegate such authority Can
YOU in other words, delegate what you have not to
corporation Forbidden to effect object directly,
can you achi, We it indirectly
The project of he Senator from Virginia proceeds
upon the supposlton that the Constitution has not
granted any power TO Congress to establish National
Bank. IT, therefore, a branch is admitted within
State is there virtue fthe will under the auho
rty of the laws and subject to the jurisdiction of that
State. 1t is, equently, amenabe to- and may be
dealt with by, the power of the State, according TO