The Madisonian. [volume] (Washington City [D.C.]) 1837-1845, 1841-03-13

BANKING AND THE-CURRESCY
No. VII.
cOnstituti0naIiiy Of National Bank.

On this point In a former number we considered
the authority Of opinion, and found, that with the
exception u the shock occasioned by the extraordi-
nary stand Of President Jackson, tho opinion Of the
country has been principally side, and that in
favor Of National Bank. Here are ranked our
highest judicial authorities for the most part in our
history strong majority Of Congress, general con-
currence Of the high functionaries of Government,
and growing unanmity of the whole people-
We have suggested, what we think 10 be true. that
the state Of the public mind on this subject for the last
few years has been occasoned by violence done to
opinion evil now add, that opinion being left
ree IT'S likely to recover lis legitimate sway and to
be stronger than ever in favor both of the constitu
tonaliiy and expedency of National Bank
The doctrine Of the Constitution.
Congress shall have power to coin money. re-
gulae the value thereof and of foreign CON- and to
nix the standard of weights and measures" This is
made an exclusive power of congressional legislation
Il is also provided that State shall be allowed to
make any thing but gold and silver coin tender in
payment of debts"
The design Of this comprehensive rule.
Maniiesy, it was to endow the Federal authorities
with control over the currency of the country. We
cal world such is its effect and il does not become
us to say that the trainers Of the Constitution did not
perceive it. The prohibition Of the States from at
tempting to alter violate the tender of
gold and silver CON- leaves the entire control over the
currency in the hands of the Federal authorities as
will appear from revision of Nos and ii of these
papers on international and national currency This
was suitable and necessary. As international con-
- = a. a.
over the sovereignty of nations was meet that our
Federal authorities should have the sole power of
treaty with this all potent agency and be able to keep
things in such state to satisfy its demands
II was unnecessary for the Constitution to prohibit
Congress from establishing any other tender, mas
much as the control of international currency will
regulate that II would be impossible for Congress to
doit. An attempt of this kind would be like whist
ling against tempest. [See papers Nos. l and III
The relation of the constitutional tender to the COM
currency
1t is precisely the the specie deposes of
bank TO its paper circulation-on demand 1t is not
the currency, and never has been. [See paper No.
Ill 1t is the grand and Indispensable connecting link
between international and our national currency-
The domestic monetary system of this country, us
political fabric, and for the practical operations of
commerce, could not be maintained day without it,
And long this tender preserved in its constitu-
tiona position, and in its connexion and good fellow
ship with International currency it is no matter what
the common national currency is whether it be paper
rags leaves of trees tallies cut with jack knife
on Rough splinter provided they could be secured
against counteretng and fraudulent alterations The
more worthless the currency is in its intrinsic
vain Iof.f al.
ISSUE much the better it being understood that by
the action and care of proper authorities be always
convertibIeinto specie demand The reasons are OBJ
vous the consderate and observing why the
currency Of great commercial community like ours
cannot be purely metallic. The greatest amount
fthe circulating medium always has been, and is
likely to continue, something else.
sdszal troll oper The currency inpolpes prir-
cipie Of a irider scope.
II might perhaps be said, with truth, that the State
authorities far from having any other title to autho
rizs banking, except possession and This title
has never been disputed, and therefore is granted
The tenth article of amendments would not of course
leave this power unqucstoned If it should appear that
the general grants Of power to the Federal Govern
ment involve scope of influence inconsistent with
it. AT least the Federal and State authorities are on
level in this particular If the tenth article of amend
ments be interpreted license the States to a-
thorze banking, it will hardly be contended that the
sovereignty of the nation could fall short of this
More especially the Constitution has put the Fede
raj Government in the loties and most influential po
sition in relation to the currency of the country viz
that of entire control over it, by leaving the constu
tona tender in its hands. From the fact THAT such
is the effect of this power fused it is lawful argue
that such was its design. And if the design was
such, will follow, by the last clause of the eighth
section Of the first article of the Constitution that if
Congress shall judge National Bank necessary
andproper to carry into execution" this power as one
of the foregoing powers" enumerated in this section
that the act will lie not only constitutional, but mpe
rative.
Every one knows what is the effect of allowing the
right of creating banks the States and denying it
to the nation. First it throws the currency into the
utmost confusion to the great embarrassment and in
jury of the commercial interests of the country And
next it deplves the Federal Government of all power
of control over the currency, divess of that very
downment which the Constitution bestowed for this
very end. 10 such state of things the Federal Go
vernment is utterly powerless, in this practical and
momentous concern entrusted to it for the purpose of
influence and CONTROL and made incumbent upon it as
duty.
The Constitutional right of the States to erect bank
ing institutions may be questioned strong grounds
but the right of the Federal authorities on mono at
ALL If the States insist upon the right and continue
tousc it as il is most likely they WILL it beco mes abso-
uely necessary an imperative duty, for the Federal
Government to maintain that ground of influence and
control, in regard to the currency which the Consu
ton has marked out.
Suggestion
The sagacity of the trainers of the Constitution
could hardly have overlooked the necessity of endow-
ing the Federal Government with the power of con-
troll the currency, in the circumstances with which
they surrounded, and in view of the history of
the country. That they never designed or medtated
the disuse of banks is manifest rom their silence 7,