The Madisonian. [volume] (Washington City [D.C.]) 1837-1845, 1841-07-24

mtted to continue business their suspended paper
would take the place of a sound currency
Mr. BERRlEN said he could not vote Tor the amend
ment He did not doubt the power OF Congress 10 es-
tabsh system Of bankruptcy, nor was ne disposed 10
feel that the sovereignty Of the S'ates was invaded by
any legitimate action Of this kind. But there Were
other difficulties which presented themselves against
this amendment The Senate would have been much
beterprepared 10 vote for this had the accompanying
amendments intended by the mover been brought for
ward on which would be the great difficulty carry out
this principle practically in detail Some Of the States
had applied the provisions Of bankruptcy, and had
gone beyond that with reference 10 their individual
banks Would not conflict arise between the pro-
visions of act of Congress and those which exist
ed in the States The question would be, which act
should operate2 Was il desirable to do this But
suppose the two systems could operate cotempora-
neously variety Of difficulties would then arise in
the practical operation of the two acts The form of
the amendment he objected to, as lily designed to con-
ciliate different interests, and falling short of the
main object to be accomplished. The amendment
would operate to destroy the elementary grant of the
Constitution to Congress- in regard Bankruptcy not
tending to uniformity in the system, there being
great diversity in the condition of Banks in the same
and in different States, some of the Banks were
owned by States and some not Independently of
any other consideration this amendment ought to be
rejected on that ground
But apart from these considerations still he should
find in the actual condition of the country an nsuper
able objection TO- this amendment. In many of the
States the Banks were now in state of suspension,
and they proposed to pass bill by which, without
previous warming these Banks to be included in
the provisions of bankruptcy. This would produce
universal distress. Disposed he was, to restrain
the Banks within all proper limits he could not, in
this state of things, vote for the amendment He
would detain the Senate no longer, this question
had been discussed in full before, and he could not
now see the use OF proiractad discussion.
Mr.. NICHOLSON said as the Senator from Geogia
had opposed the amendment because the others were
not offered, he would state the substance of them,
with the declaration that if this prevailed, he would
offer them, providing that whenever any banking
corporation, except those owned in part or the
whole by States should fail for thirty days to redeem
its notes in SPECIE they should be liable to become
bankrupt; and if, after the LIST of July, 1912, they
should decline to redeem their notes in specie, it
should be the duty of the Attorney General OF the
| United States, of the district where the branch
was situated to apply to the Supreme Court for an
injunction to restrain the Bank from further dealing,
and dividend to be then made Of its effects.
| He had still retained the principle OF excluding
those banks which were in part or the whole owned
by States. He did not doubt the consttutionalty of
including them, but he proposed in the amendment
to confne the operations of the bill to particular
class of banks. He did not believe that the Bank
rupt BILL as applicable banks ought to take place
until sufficient time was given for their resumption
The amendment then, would be fixing the time
| prospectively for this to commence operation, to
distance when ample opportunity would be given fol
| the banks to resume. il. .a .., 49,. .1- .0..
His object was to obtain an expression of opinion
and if the amendment prevailed, he should propose
his Others and that they, with the BILL be referred
ments of his friend from Arkansas, (Mr. Sevier,) il
was clear that if they depended the action of the
States, uniform system would never be adopted ap
pcable to all Banks, scattered they through
twenty-six States. 1t was on this ground, and moi
from disrust of the intelligence of the States, thai
he brought this forward. ~ G" '. ~. *"
| Mr.. WALKER said the project of including
Banks had always been favorable to him, since il
was first proposed in 1897. He believed were this
included in Bankrupt BILL it might pass both Houses
with almost perfect unanimity and he was very sor-
ry to hear the Senator from Georgia oppose this.
What was the ground of his obections' The diff
Guilty Of settling the details! This might be urged
with equal force to Bankrupt law, in any of its ope-
| rations As to the clashing of this law with State
preme Court had twice decided that the laws passed
| by Congress took precedence. Why was the power
to regulate commerce given to the General Govern
ment, when each State to some extent regulated its
own commerce. II was to produce uniformity
| throughout the States and so with Bankrupt law.
1t said that not to exercise this because
it was infringing on State power he wonld tell those
who made the objection, that it was an argument
against the Constitution and the whole interests OF
the country. The States were much interested in
having a specie currency in the States adjacent to
| them in their own borders. 1t was this want OF
| uniformity which had nearly broken up commerce.
Every State in the Union had equal interest in
| this, because of their constant interchanges with
each other. The power given by the several States
| to this Government was the same as they originally
possessed with the restriction only that OF unifor-
nifty. ..t- ..a ..5
MIR. SEWER, as his friends did not precisely I'M
derstand his position, proceeded to recapulate the
grounds he had TAKEN and urged further reasons
| against the amendment
/ Mr.. BAYARD gave his views, in support of the
principle of the amendment. He should not vote
! for it, because it was defective, and not sui-
GENTLY comprehensive in its provisions. He moved to
L" except those in which the stock is owned wholly
or in part by the State, or for which State is re-
sponsible." . 1884,. 80,
Mr.. HENDERSON spoke at some length, and de.
cared that he should vote for the amendment .
Mr.. CLAY, of Alabama, entertained difficulties a
any rate, as to the powers of Congress to ntermeddle
with State corporations. In the Convention tina
framed the Constitution, the question Of giving the
right to this Government to create corporations wa
voted down by eight to three. When he connected
with this fact, that clause of the Constitution tina
! provided, that all powers not granted therein
remained wph the States or the people, he conceived
this to be of the powers of the States
He consequently doubted their power to interfere a
all with State corporations, but when the amend
ment was made so much broader, he could not hest
tate moment to go against it.. The State of Ala
bama had a State bank and four branches which
were owned exclusively by the State, and she also
owned proportion in other banks. Under this view
he could not vote for this amendment, and thereby
agree to have the State of Alabama brought up be-
fore any tribunal as bankrupt So far as regarded
the States any portion of the interest of his State
or any other, he should not vote for it.
Mr.. SMITH, of Connecticut, said bank which
had sound capital, would not fear the operation Of
this bill. As all the banks in his State were sound
it was matter Of little interest to his State, wheth
er the amendment was adopted or not II had been
urged against the amendment, that it would tend to
bring the powers of the General Government and
the State Governments into conflict, but the issue
might as well be made now as at any time.
Mr.. BENTON said many of his friends were moi
prepared to vote on this amendment, and he would
propose that it be printed and lie over till tomorrow
morning. ..... ..... -.. ..
Mr.. BERRIEN said the matter had been repeat
eddy before the Senate, and as they were much be-
hind the House, he hoped no delay would be made
Mr.. BENTON then moved to lay the bill on the
table, which was carried Ayes 20, noes II.
Mr.. CLAY then gave notice that he should move