The Madisonian. [volume] (Washington City [D.C.]) 1837-1845, 1841-09-25

charter bank which had the power Of local discount
Mr. WEBsrEz pointed out the distinction between the
two plans in manner which appeared to be satisfac-
tory 10 him. The substance of what he said was, as
| understood him, as follows: He had decided pre-
ference for bank upon the plan then proposed over
either of those VIII oh had been previously spoken Of
He reminded the President that he had expressed bis
preference for bank which should be restricted in its
dealings to bills of exchange, when certain gentlemen
from the city OF New York present several weeks
before. He then thought he did now that it would
answer all useful purposes. One ground of this re-
ference was, and il had great weight with him. that
the plan did not contemplate the consent of the States
as in any way or at any time necessary to ITS exist
ence or efficiency. He thought the plan proposed at
the commencement of the session, generally known
Mr.. EwING's bill, as incongruous and Objectionable
on this ground. His general course of thinking on
such subjects led him to prefer that whatever power
this Government asserted was authorized to assert,
should be exercised Independently of State authority
and of the interference of the States. He thought
there could be no doubt Of the constitutional power to
charter such bank was then proposed, according
to the Presidents own modes of thinking upon that
subject if he understood them. Certainly there was
clear distinction between such bank and the late
Bank Of the United States The one now proposed
to be limited in its operations to such objects as
clearly within of the general provisions Of
the Consultation, or such were clearly necessary In
the execution of Others The privilege of issuing its
notes. of dealing in exchanges, and of receiving
moneys on deposite, all appeared to have immediate
reference 10 connexion with the power given In the
Constitution over commerce between the States,
the currency and the necessary fiscal operations Of
the Government in the collection, safe-keeping, and
disbursement of the public revenue. These were all
subjects of national and not local Stale concern
The distinction between this plan and the late Bank
of the United States lay in this the privilege enjoyed
by the old bank of dealing in local paper discount
ing notes having circulation, it might be, but
between the different streets or commercial points OF
the same city, had no connection with the trade or
1 Al Of
the Union with the transfer of the public money
from point to another; and it had, therefore, no
necessary connexon with any of the great national
objects for which the bank was chartered nor could
il be claimed incident to any of the powers given
to Congress by the Constitution That privilege, he
apprehended, conferred upon ths late bank from
the belief that without it the stock Of the benk could
not be made proftable and therefore consider
ed necessary incident TO an institution which was
itself but the offspring of an incidental power. ExPe-
rience he thought had shown clearly that such pri-
yilege was no longer important or necessary BY
combining the dscounting privilege of the proposed
bank TO bills of exchange between this country and
foreign States and between the several States Of the
Union this objection would not lie against it.
The President expressed his regret that he had not
used the words 81 bank of discount and deposte" in
his late Message that the distinction he now took
might be clearly inferred from that message and he
| could not then be charged with inconsistency. Mr.
| BADGER said he thought nothing would have been
gained by the of the terms bank of discount and
deposite in his MESSAGE for, to the charge OF in
consistency, it might, and probably would, be made
against him for party effect, If he sanctioned the bill
j then proposed by him. inasmuch dealing in or buy
ing bills of exchange would be diseouniing, and te
that extent make il bank Of discount.
When all the material points appeared to be dispos
ed or and the members of the Cabinet present had ex
pressed their decided appreciation of the plan the Pre-
siden had suggested, he said that, after ALL he would
not sanction bank in the form just agreed upon,
he supposed that would be made the groundwork
basis of bank with the powers of the late Bank o
the United States. He never would give his sanction
the next or succeeding session Of Congress- the Wings
| would be bringing forward amendments ENGRAVING
| this power upon any charter he might now approve
and he appealed to his Cabinet know fthey would
stand by him, and use their influence in preventing
any such movements while his Administration lasted
Mr.. WEBSTER and others gave him all proper assur-
ances upon this point .7...a Nl b.. ssa ..... so
The President thought capital of fifteen millions
of dollars would be sufficient.
A name, he said, was important. What should it
bel Fiscal Institute would do 1t was objected to,
and the name of Fiscal Bank preferred by member
of the Cabinet. He replied that there was great
deal in name, and he did not wish the word bank to
appear in the bill. Ee 4 sGE al IJaEE i - .s 5.
The President then inquired if he was understood.
He said there must be Misunderstanding Of what
| he proposed TO do. Addressing himself to Mr.. Ew-
ING, he asked him if he thought he understood his
views fully. Mr. EWING undertook to recaptulate.-
He understood the President to have no objection to
bank in the District Of Columbia with offices of dis
count and deposte in the States with their assent
The President interrupted him abruptly, by saying he
did not understand him at ALL he was not willing to
sanction any such bank. i understood his objection
10 be to the power Of local discount supposed Mr..
EwING intended to say that he understood the Presi-
dent had constitutional objections to such bank
Mr.. EWING, however, without explaining, went on TO
say that he understood the President to have no
objection to bank in the District of Columbia, with
the pc to issue its own notes. receive moneys on
deposte, with offices agencies in the States having
the privilege without their assent of dealing in bills
of exchange drawn in one State or Territory, and
made payable in another State or Territory of the
Union and in bills between the nited States and To-
reign States or Nations. ".ra.a.tE ..,.
The President said he was then understood. He
requested Mr.. WEBSTER particularly to communicate
with the gentlemen who had waited upon Tim that
morning, and to let them know the conclusions to
which he had come. He also requested Mr. EWING to
aid in getting the subject properly before Congress
He requested that they would take not to commit
him by what they said to members Of Congress to any
intention to dictate to Congress. They might express
their confidence and belief that such bill as had just
been agreed upon would receive his sanction; but il
should I've natter of inference from his Veto Mes
sage and his general views. He thought he NIGH
request that the should be put into the hands
of some friend of his own upon whom he could rely
Mr.. SERGEANT was named, and he expressed himsel
satisfied that he should have charge Of it. He also
expressed wish to see the bill before it present
ed to the House. if it could be so managed. -.s m~
then said, addressing myselfto Messrs. WEBsTEE
and EwN0, that time TO be lost in communca
ting with gentlemen of Congress; that there dan
ger that Mr.. EwINos bill would be taken up and re
ported to the House Immediately after the bill sent
back to the Senate with the Presidents objections
disposed Of. as -'" >''#'' .'"' ""'
As the members of the Cabinet rose to depart, OF
just before the President requested Messrs WEBSTER
and EWING, they had turned their attention more
particularly to the subject to furnish him with writ
ten arguments upon the points they had been discuss
ing. He wanted them to fortify his own opinions
and to lay up for future reference ..I.- -. =.
t.'..'.. JOHN BELL.
/ WAsHTNoToN, Sept. 20, lS4l.
J8taHrH ss8rg@
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