Indiana State sentinel., 1841-10-26
For the Indiana STATE Sentinel.

Fcr the Indiana STATE SsEftnef.
To THE Hon. OLIVER III. SMITH.
SU:-Haylng been a close observer oi Tie pro-
ceedings of the Legislative and Executive branches
the Government of the United States al the late
eriraordiHary extra session OF Congress. and know
my that you "A prominent actor IN the upper
branch 81 the National Legislature during It's late
evenl.ui session take tine liberty oi sddTessing Z
this letter To you. IL We'll known 10 every cItl-
zen of this republic. that the late session of
Congress, the friends OF strict construction OF The
constitution were ia a minority IN both Houses {;
which led 10 the enactment OF two hills Tor the Gre
alton of National Bank. both of which received.
If | mistake not, your support. and both ~ Dhici
were returned TO the respective houses IN which
they emanated. by CAPT Nm TYLER with
the executive rtIo " ithout stopping t. enquire
into the of the disagreement between the fre
sident and Congress having another and different
object IN view, shall proceed briefly 10 ask your
opinion upon the following points, accompanied by
such views OF my own as may think Viii ala IN
coming tO correct conclusions.
First can a system of STATE BANKS be 80 organ
zed as aid the Government in carrying on ITS
fiscal affairs and al the same time regulate the ex
changes. without violation OF the Constitution or
the surrender of State rights
] am aware that may here be answered 10y the
party slang of the day, that 1t Is impossible
that nothing short of United States Bank Will an
swer the purposes of the Government IN carry ing
on its fiscal affairs and give sound currency
and that United States Bank is constitutional, Ac.
IL not my present purpose TO either admit or deny
the cOnstitutionality of Il United states Bank. 1t
is enough for me for the present to know that men
distinguished for their learning, talents and nteg
rity, have been and are now found OF both sides OF
tins great question. Since the adjournment oi Con
gress my mind has been much employed ia trying
To devise some plan that would be acceptable To
both ot the coBtending political parties. and have
arrived i. something like the following conclu-
slons
| find from an examination of the second clause
of the tenth section of the first article of the Con
stituton OF the United States, that any State may
enter into agreement compact with any other
State, by and Ith the consent OF Congress. From
this clause of the Constitution ! apprehend, that
with the approba of Congress, the States could
appoint delegates to meet at some central point tor
the purpose of digest.ng and adopting STATE
BANK SYSTEM that would be uniform throughout
the United States; limiting tie amount o their is
upon their capital stock and permitting such
banks exist that Will come under the
strlctuns imposed, TO become branches upon such
terms the respective States may from time to
time impose, not inconsistent with the compact
The Branches to report at given periods TO the
State Bank of which they branches and the
State Banks Ia report Their condition t. the several
State Banks of the Union at limited and gwen
periods.
Ii such treaty was formed between the States,
feet OF law of The United States. and obcdence to
lts provisions enforced by lis supreme judiciary Tor
find by the first clause of the second section of the
third article of the Constitution, that The judi
cial power shall extend TO all cases IN law and
equity under the Constitution and Laws of the
United States, and treaties made, or which shall be
made under their authority" think have now
shown you that the plan have suggested would be-
strictly institutional.
The next question which arises is would sach
an organzation of state Banks remedy any Of the
existing evils IN our paper currency
| think it would. II would drive all of the worth
less, rotten institutions gradually ont OF existence
give Us safe paper circulation convertible into
specie upon demand exchanges would then be-
come settled, and liked, and general confidence
restored
Knowing now do that the dominant party
IN Congress are anXlOuely bent upon fastening a
National Bank upon the people, and that the minor
Ity, aided by the executive, are determined 10 re-
sst the creation OF such an institution. believing II
be deadly husti 10 free lnstitui ions and
infringement upon the rights of the States SAY
knowing these facts, would II not be the part of
wIsdum to meet some middle ground and organ
a uniform state Bank system. the constitutions
atty of which 40 one Ilquestion The party OPP
posed 10 a National Bank, you are aware, oppose
II on two grounds first, It's unconsttu'ionauty !;
secondly. H. IueXpedienry. That party believe
On the express language of the Constitution itself
that the powers not delegated the United - ies
by the Constitution, nor prohibited by It 10 the
states reserved 10 the states respectively or TO
the people" No power beng delegated by tine
Constitution To Congress 10 charter bank, nor
prohibited by il 10 The States thut power is reserv-
ed To the states respectively and ID the people.
" hat objection can tlcre then be- 10 tie states
agreeing one with the other, to have their Btnks
all placed ON the same footing and subject t. the
same general Jaws
In TINS snort aud brief manner have gwen vou
OF my ideas 10 relation To our banking system.
have done 1t with view Of chcitng your views
and opinions tins sut ct through the same chan
mel that address you. IN your reply (shouid you
degn to make one.) beg yon 10 abandon ior thc
beng all attempt al PrcSidcnf Dakire. and
give your views becomes Senator of the .9uus
giaaf ofhtc Ucsi" let yoar answer be character
lzed by the frtuknes- and cal.dor tn,t vou
evlncei on the morning you we're elected 10 the
United states Senate lou, no doubt, well rocol-
lect that on that morning you pedgrd yourself a.
the friends of Mr. NAN ErKEN. That II vou were
elected. You would know 10 whom you n.,cd yanr
elections and that IT elected. YOU would gi,c his
administration Il far and honorable support. T..
Correspondence II ne Sate Seatiao.
MouNr CARMEL. lll. Oct "a.
MEs,Rs. CHAPMANs-I have received lew sauI
paper, and tuy grathei ylur and pros
nd no NOur ,e % Ia eel u r