The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-07-27
The MADISONIAN.
THE BANK QUESTION, THE CABINET.

10 very distinguished member ofthe Admins
traton. They were written TO a friend in New
York, who has thought proper TO publish them
The first letter was published in Saturdays Ma
disonan. We now subjoin the second, which
treats of the uses of National Bank, and also
add third letter, which followed the first two
in the same paper, and which many have taken
to be from the same hand. II nevertheless has
merit, and was the first to receive the notice of
our neighbor Of the Inteigencer. II is scarcely
necessary to add that this third letter is from
different source from the two which preceded,
and is a very good illustration Of ones getting up
in the world by pinning ones self to another's
skirts.
WASHINGTON, July II, 1s4l
My DEAR Sir:
The power Of Congress to establish Bank
rests on two propositions.
| First, that Bank is necessary and proper
agent in the collection and disbursement Of rev.
enue.
Second, that it is proper and useful means
| of regulating commerce between the several
| States and with foreign nations by furnishing
currency and exchange.
| There is no other lawful object for Bank,
because the constitutional power extends 10 no
| other object. Revenue and commercial regula-
ton compose the whole power. A constitutional
Bank, then, must be limited to those purposes.
| For revenue, Bank is necessary,
| Isl, for the safekeeping of the public money
| ID for its cheap transmission from place to
! place.
Sd, for furnishing a convenient circulating
paper medium, equivalent TO specie, which
shall be Of equal and uniform value in every part
of the country, and which may safely be made
receivable in debts and dues to Government
These are the uses of Bank, as connected
with the operations of Government itself, and
can conceive of no others. Every one Of these
is provided for in Mr.. Eping's bill.
TO the general commerce of the country
Bank is useful, and in my opinion indispensable
in these respects.
lst, by dealing, on a considerable capital, in
domestic exchanges, it keeps those exchanges
steady and at low rates. Our experience has
sufficiently shown the incaculable value Of
well regulated national institution in, this re-
spect.
I'd, by issuing paper or notes, for general cur
rency and circulation, having a national stamp,
and therefore everywhere of equal value, il most
essentially benefits the currency of the country.
Sd, by REFRESHING, through the gentle and
quiet means of its own circulation and its own
business, the issues of local Institutions, it tends
to secure the whole mass of circulating paper
against excess.
Now, Mr. Ewings bill gives the power of
dealing In exchange, without limits and II gives
also the power OF issuing paper for circulation
In what, then, is it wanting Ii wants the
power of local discount, or the loaning ON local
notes, without the consent of the States; and
the omission of this power is said to be sur
render of great principle Let us examine
this. The Bank can buy and sell exchange, and
| II can issue its own notes for currency. Ii may
deal in exchange to the amount Of many mil
lions year. as the late Bank most usefuly did.
1t may receive deposits at its agencies, as well
as at the Bank and il may everywhere issue
its own notes, and it may issue these notes for
deposits, for specie received, or for any OF its
own debts But IL cannot make a local loan
1t cannot establish branch in Wall street, and
there loan money on note given by one w all
street merchant TO anoherW all street merchant !;
and because this power is denied, il is said a
great constitutional question is ANONYMOUSLY
surrendered.
| That this may be useful power-most use
fu to the People and the States-l fully believe;
but is no respect due to that intellect which can
not perceive how this power of local lending is
a national power, or how ii is connected with
the duties of Congress Suppose Congress
| were to establish a Bank with no other power
than this, viz; power to establish an Office in
| State, and TO loan money on notes given by one
citizen OF the State TO another; would any body
say that the creation of such Bank was with
in the authority of Congress Certainly not
| If the same power then be inserted among other
powers which are constitutional, does this pow
| er thereby cease to become unconstitutional
| do not say that these questions cannot be an
swered by those who seem in such hot haste to
ride rough shod over the supposed opinions OF
the President but ! say they require clear rea-
sonng the use of distinct ideas, and fair expo
stion. They are not to be disposed Of by con
temptuous sheer, and so | think the People will
decide.
| Its now admitted that the power Of creating
local corporations, both for the purpose OF loan
ing money, and circulating bills, does belong TO
the States. The States in fact exercise this
power, and many of them derive great part of
their revenue from it, In the Eastern States,
for example, bank capital is taxed, This capt.
tai is employed mostly inthese rery local loans,
To put five millions of untd,red capital into
Boston, there to be used in these local loans, dl-
minshes, by so much, the capital on which the
State of Massachusetts, levies her tax; and to
that extent directly affects her public revenue.
This does not prove that the power does not ex-
| isl, admit; but il shows that there are con-
siderations connected with the subject, which
| wise and moderate men ought TO respect. | will
not conceal my opinion that the power may be
defended on the ground Of its being necessary
to the efficient execution of the other powers,
but could never put II on any other ground
than that, and have always been aware that
strict interpreters of the constitution insist that
this mode of reasoning is dangerous, as it
attaches one Incidental power, raised by ar
gument, TO another incidental power, prevl-
ousy raised by argument, and may thus run
on indefinitely, till IL draws along all sorts of
powers in lis train. My own opinion is, how
ever, that what ever is necessary must be taken
to BE- granted.
This brings Us back at once TO General Ear-
ri,on's ground, and calls upon us TO decide