The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-03-12
Communications.
ron THE MADlsosIA,
FOR THE MADlsoNIAN
BANKING AND THE CURRENCY
No. VII.
c0nstitutionaiity Of National Bank.

On this point, in former number, we considered
the authority Of opinion and found, that with the
exception Of the shock occasioned by the extraordi-
nary stand of President Jackson tho opinion OF the
country has been principally one 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 unanimity of the whole people
We have suggested what we think to be true that
the state OF the public mind this subject for the last
few years has been occasioned by violence done 10
opinion We will now add, that opinion being left
free II likely to recover its legitimate sway, and to
be stronger than ever in favor both of the constu
uonaliiy and expediency of National Bank
The doctrine Of the Constitution.
Congress shall have power to coin money, re-
gulate the value thereof and Of foreign COIN and to
fix the standard Of weights and measures" This is
made an exclusive power Of congressional legislation
lis also provided, that State shall be allowed 10
make any thing but gold and silver coin tender in
payment of debts"
The design Of This comprehensive rule.
Manifestly, il to endow the Federal authorities
with control over the currency of the country. We
know, that in the practical operations of the CONNER
cal world, such 10 It's effect; and it does not become
US to say that the trainers Of the Constitution did not
perceive it. The prohibition of the States from at
tempting 10 alter violate the tender Of
gold and silver CON- leaves the entire control the
currency in The hands of the Federal authorities as
will appear from revision Of Nos and ii Of these
papers, international and national currency This
was suitable and necessary. As international con
tros national currency, andis supreme in its influence
over the sovereignty Of nations, it meet that our
Federal authorities should have the sole power OF
treaty with this all potent agency, and be able 10 keep
things in such state 10 satisfy its demands.
II was UNI ecessary for the Constitution to prohkit
Congress from establishing any other tender, mas
much as tho control of international currency will
regulate that Il would be impossible for Congress to
do it. An attempt OF this kind would be like whist
ling asains, tempest. [see papers Nos. and III
The relation Of the constitutional tender 10 The com
mon currency.
1t is precisely the the specie depostes of
bank TO its paper circulation-on demand. 1t is not
the currency, and never has been. See paper No.
III 1t is the grand and indispensable connecting link
between international and our national currency
The domestic monetary system of this country, as a
political fabric, and for the practical operations OF
commerce, could not be maintained day without il.
And SO long as this tender is preserved in its constu
iona position, and in its connexion and good fellow
ship with international currency, il is matter what
the common national currency i, whether it be paper
rags, leaves of trees, taes with jack knife
on Rough splinter, provided they could be secured
against counterfeting and fraudulent alterations The
worthless the currency is in its intrinsic
value in all oft that is above the minimum bank note
issue, much the better it being understood, that by
the action and care Of the proper authorities it be always
convertibeint specie demand The reasons are OBJ
vious the considerable and observing why the
currency Of great commercial community like ours,
cannot be purely metallic. The greatest amount
of the circulating medium always has been, and IS
likely to continue, something else.
Ths Federal control orer The currency inpores prin-
ciple ofa ,oder scope.
1t might perhaps be said with truth, that the State
authorities far from having any other title to auho-
rze banking, except possession and use This title
has never been disputed, and therefore is granted
The tenth article Of amendments would Of course
leave this power unquestlonej if should appear that
the general grants OF power to the Federal Govern
ment involve a 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 as a license to the States to au-
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 oftest and most influential po-
sitlon relation to the currency of the country, viz
that Of entire control over il, by leaving the constitu
tonal 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, it will follow by the last clause of the eighth
section of the first article of the Constitution, that il
Congress shall judge National Bank necessar,
undproper to carry into execution" his power as one
of ".he foregoing powers, enumerated in this section
that the act will lie not only CONSTITUTIONAL but mpe
raive.
Every one knows what is the effect Of allowing the
right of creating banks to the States and denying it
to the ma ion. First, throws the currency into the
utmost confusion, to the great embarrassment and in
jury of the commercial Interests Of the country And
next, it depves the Federal Government Of all power
of control the currency dves's il Of that very en-
downment which the Constitution bestowed for this
very end. In such tate OF things the Federal Go
vernmcnt Is utterly powerless, in this practical and
monenIous concern entrusted to it for the purpose OF
inhlenee and coatrJ and made incumbent upon il as
duty.
The Constitutional right of the States to erect ban k
ing institutions may be questioned ON strong grounds
but the right of the Federal authorities on none
ALL Ii the States insist upon the right, and connu,
to use it, it is most likely they will, it be:o abso
luely necessary, imperative duty, for the Fedora
Government to maintain that ground of influence an
CONTROL in regard to the currency, which the Constitu
ton has marked out.