The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-07-08

Hty gave up tu Wuuic que5tiun Vi
power, and acknowledged the supremacy Of the Fede-
raj Government. There was alternative PROPOSE
ton in the bill which the Secretary of the treasury
had reported, and which proposition was now before
the Senate in the amendment Of the Senator from V-
ginia. What i'll Ii was, instead OF establishing
such offices, it should be lawful for the directors OF
said corporations TO employ any fiscal agents OF any
bank or banks, TO manage and uansac, business ~
beioresaid. What was The business IL was 70 uo"'
in bills of exchange and gold and silver com &C
Then they gave them this power. And what was the
difference OF the projects of the Secretary Of the rea-
sury and the Committee The amount oil y was TINS
whether not their Banks shall have right 10 ns-
count promissory notes That was the question but
these very agents which the Secretary OF the Treasu
rvs Bank proposed 10 establish authorized the Bank
TO do any business except TO discount promssory notes
Now he not surprised that great injustice should
have been done the Secretary of the Treasury IN
this matter The truth that the nature OF branch
had not been generally understood.
What the branch Ii was nothing hut an OF
fee Of discount and deposit, And what was that
merely agent. Who sued and was sued ne
Bank. Who distributed and declared dividend
Not the branch, but the Bank, What was the
difference between branch and the Once OF
dscounter, agent II precisely the same
thing The only question was, whether or not your
office or branch shall be permitted 10 discount
The error of the Senator from Rhode Island CON
| sisted IN assuming II To be true that the smendment
abandonment OF Federal power IL was not
But il was wholly distinct and express declaration
of the Federal power which authorized the corpora
tion through It's agents 10 make contracts anu trans
act business in the States independent OF the consent
| OF the States and that the whole subject IL
not put, in the Alabama case, on the mere
ground of comfy. They undertook 10 create cor
poraon. for national purposes within tins DISTRICT
without any regard TO comfy and that should nave
right TO and be sued in the Circuit Courts OF Tue
United States and in The State Courts and transact
business within the limits Of every State without any
reference whatever consent OF dissent ne I'M
derook TO say that this Bank would pe apie 70 ae.oi
psh all the purposes that might be designed, without
the power of discountng promissory notes The pro-
fits of the present Pennsylvania Bank of the United
States in 1886, on the item of dscountlng exchange,
possessing no other power than that Of corporation
within the limits of sovereign State, and aching IN
the other States by comfy al ne were 81 ,3i4 ,0OO-
In 1887, they ere 81 1898 600 and in 1888, upwards
of million dollars That Bank was State insiitn-
tlon-but invest this with reasonable capital, as her
operations would be extended to all the States, she
would have far greater facilities for transacng pusi
ness.
He referred to Madison's opinions on the subject
of bank citing from his message, and from
his letter 10 Mr. lngersoll, and from other writings
showing that he had no doubt of the constuonality
of bank-and that when the people BY their legis
aiiye or judicial tribunals which the expositors
OF the law, had pronounced decision on this
subject longer was question OF conscience, and
they were liberty to 60 back and look over the
subject and undertake TO settle this matter which had
been Scttleu IVY solemn utCisioH ne oatH WHICH
they took to preserve and defend the Constitution
CURED them not 60 back, and again decide the ques
ton but to adopt the decision.
He also referred to the similar opinions of Gallan
Crawford and others.
The phraseoory of the amendment was somewhat
obscure In point of fact bank established under
the bill, amended was national institution, with
all the powers of such Institution, throughout the
Union independent of the States, and the only matter
to which their assent required was as to whether
sorry. notes. In order to strip the matter of all ambgu
ty he proposed to strike out the amendment and oe
instead the following:
'Strike out all after the word corporation and in
sert may establish agencies to consist ofthree
persons, to employ any bank banks, at any places
they may deem proper, TO perform the duties herelnaf
ter required of the said corporation the fiscal agent
of the Government and to manage and transact the
business of the said corporation other than the ordAa
ry business OF discounng the promissory notes That
is TO say the said corporation shall have the right at
such agencies to receive deposits TO deal trade in
bills of exchange gold or silver coin, or bullion, or
goods or lands purchased on execution or taken bona
fde payment of debts goods which shall be the
proceeds OF its lands, and to circulate its notes And
moreover il shall he lawful for the said board of direc-
tors convert such agencies into Offices of discount
and deposit unless the Legislature Of any particular
State in which such agency shall be established shall
at its next session, after such agency established
express its dissent thereto."'
The proposition of the Senator from Virginia left
the power of dlscounting p.omissory notes dependent
the assent of the States and he proposed put it
the dissent of the States. lie considered the gen
teman from Virginia had gone every step in this mat
ter, and had admitted the constitutional powerthat
the power of this Government was a national power
be used for national purposes, and that was precise
Nv what was conended by the Senator from Kentucky
(MrClay) One national purpose was the execution OF
the duty of collecting and sbursng the revenues;
and another the regulation of the currency and
the furnishing uniform medium. These the
two great purposes, and they efcctualy accom-
plished by a Bank under the bill as amended.
Mr.. PHELPS said that the bill, originally pro-
posed by the Committee, assumed the power OF Con-
gress under the Constitution to establish Bank and
branches in any of the States, without requiring the
of the States the proposition of the gentleman
from Virginia went on the assumption that no such
power existed; on the question of constitutional power
his opinion had never changed and in all human
probab lily never would. He doubted the power OF
Congress to establish branches without the assent of
the States. Whatever course he might take in rca-
ton TO the amendment Of the Senator from Virginia
he protested against all inference SO far as he
cerned, of an abandonment of one ioia of power
which might be claimed for Congress under the Con-
stitution,
There addition TO this question of constu
uonal power and that was the question OF expedency
which in his view of the highest moment which
demanded in the present embarrassing condition Of
the country, and the financial interests of the Govern
ment, the creation of fiscal agent, Indispensable
to the welfare of the country This agent must be
tablshed, in his judgment, to have another
political revolution, and restore the condemned, rcpu-
dated, and txecrated policy of the late Adpnns
ton. From the outset he had urged this question
between the Sub-treasury and a Bank of the United
States. The system of deposting in the State Banks
must fail until they could bring the paper OF these
Banks to a uniform value
Viewing this subject as he did as all-important to
them and the country, he prepared to meet the
gentleman from Virginia the middle ground which
he had proposed He not prepared to surrender
to him his political principles, nor did he ask 1t. But
he was prepared TO omit the discussion Of those points