The Madisonian. [volume] (Washington City [D.C.]) 1837-1845, 1841-11-27
ANCIENT OPINIONS ON BANKING.

Il
ANCIENT OPINIONS ON BANKING.
Amid the conflict of opinions concerning the
necessity and utility of banking corporations,
some pleasure and instruction will probably be
derived from reverting to the opinions held by
many of the fathers of the Constitution. Not
withstandlng the talents and learning that have
Of late years volunteered in the discussion Of
this intricate que tion, we still think that we
may obtain some knowledge from their expand
ed wisdom and forcible expression. They had
not the same extent Of opportunity of learning
from experience the effects of Discounting banks
on the interests Of the community; but yer, in
less than dozen lines, we find condensed the
most comprehensive views of the subjects.
These objections to banks of discount may be
found in the report of Hamilton, the whole of
which is an attempted reply TO them. They
are as follows:
l. Banks serve to promote usury."
2. "They tend to prevent other kinds of lend
ing" ......
3. They furnish temptations to OVERHEAD
ing
4. "They afford laid to ignorant adventures,
who disturb the natural and beneficial course of
trade"
5. "They give to bankrupt and fraudulent
traders fictitious credit, which enables them to
maintain false appearances, and to extend their
impositions."
6. They have tendency to Danish gold
and silver"
Such were the arguments employed when
tha of tha
posed. The ingenuity of Hamilton furnished
specious replies to them, and his influence, com
bined with other causes which we omit at pre-
sent mentioning, obtained its charter. But our
experience proves that the reasoning of Hamil-
ton, however plausible, wanted solidity. The
wisdom of our forefathers foresaw all the evils
which large moneyed corporation must neces-
sarily engender. 1t were well for their descend
ants, who have experienced the disasters it
produces, if they pertinaciously opposed its resus
citation.
The arguments we have quoted above, enforce
the inexpedency only of national Incorporated
bank. But, IN Congress, the question of its
constitulionality was ably argued; and that the
establishment of such an institution was di-
rectly contrary to the intent of the Constitution;
was unanswerably demonstrated. The propo-
siton had been made in the Convention to con-
fer on Congress the power of granting powers
of Incorporation, and had been decidedly mega
lived. No latitude of construction can indi-
rectly give meaning to any instrument of wri-
ting, when we have decided evidence that the
authors of the instrument had unequivocally
determined that nothing having such signifca-
ton should positively directly appear in it,
While we are in the vein of Renaissance,
we cannot forbear appending 10 the preceding
paragraphs, the following resolution passed by
the General Assembly of Virginia in 1911:
The General Assembly of Virginia view with
the serious the late attempts which have
been made to obtain from Congress a renewal of the
charter Incorporating the Bank of the United States
"This Assembly deeply impressed with the
conviction, that the original grant of the charter
unconsutonal-that Congress have power what
ever to renew it-and that the exercise Of such
power would be not only unconstitutional, but dan
gerous encroachment the sovereignty ofthe States"
" Therefore,
"Resolved, That the Senators of this State in the
Congress of the United States be instructed and our
Representatives most earnestly requested in the
cution of their duties, faithful Representatives of
their country, TO their best efforts in opposing, by
every means in their power the renewal OF the char
ter of the Bank of the United States"
ROBERT TAYLOR,
Speaker of the Senate.
JAMES BARBOUR,
Speaker of the House OF Delegates.
January %, lsll-Agreed to.
J. PEASANTS, Jr,
Clerk of the House of Delegates.
In addition to the previous quotation, we will
give for the present but one more authority re-
speeding the unconstitutionality of an incorpo-
rated National Bank. We leave all these autho-
rites to speak for misunderstanding COM
ment unnecessary. The following passage is
an extract, asserting the .unconstitutionalty Of
Bank-the portion of the report, which we
omit, discusses merely the expediency of renew
ing the charter of the INK, and is adverse TO its
po,is;e~ 90 chic sronnd also.
Communicated to The Senate, on the ID of March,
1911"
mn. Clay, from the Committee, to whom was re-
ferei the memorial OF the Of the Bank of
the United States, praying that act of Congress
might be passed to Continue the Corporate poweIs OF
the Bank for further period, enable it to settle
such OF Its concerns as may be depending on the 81
of March, 1871 respectfully offered for the consdera-
ton of the Senate the following report:
THAT your committee have duly weighed the con-
tents of the memorial, and deliberately attended to
such explanations OF the views OF the memurslists
they have thought proper to present through their
agents. That holding The opinion, Gas maj rity OF
the committee do,) that the Constitution did not au, ho
rize Congress originally grant the charter it follows
necessary consequences Of that opinion, that an
extension OF it, under the restrictions contem-
pated by the holders, equally rePugnant to the
Constit ution"
THE BALTIMORE AMERICAN
Has done but justice in quoting the following ISSUE
which we tender the adVersares Of the Executive:
The name Of Wing originated with faction, in
the Old World, and has any great honor in
modern times in the New, till il was surrendered to
Tippeca noe and 'ryIpr Inn