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

necessity and utility of banking corporations,
some pleasure and instruction will probably be
derived from revertlng TO the opinions held by
many Of the fathers Of the Constitution Not
outstanding the talents and learning that have
OF late years volunteered in the discussion of
this intricate question, we still think that we
may obtain some knowledge from their expand
ed wisdom and forcible expression They had
mol the same extent Of opportunity Of learning
from experience the effects of DESIGNATING banks
on the interests of the community but YET, in
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 10 them. They
are as follows
l. Banks serve 10 promote usury.o
2 "They tend to prevent other kinds Of lend
ing"
g. They furnish temptations 10 overtrad-
ing
A. .'They afford laid to ignorant adventures,
who disturb the natural and beneficial course Of
trade"
s. "They give to bankrupt and fraudulent
maintain false appearances, and to extend their
impostions."
g. "They have a tendency to Danish gold
and silver"
Such were the arguments employed when
the first Bank OF the United States was pro-
posed. The ingenuity Of Hamilton furnished
specious replies TO them, and his influence, com
bned with other causes, which we omit at pre-
sent mentioning, obtained its charter. But our
experience proves that the reas oning 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, ifthey pertinaciousy opposed its resus-
citation.
The arguments we have quoted above, enforce
the inexpediency only of a national incorporated
bank. But, IN Congress, the question Of its
constitutionality was ably argued and that the
establishment of such an institution was d.
recty contrary TO the intent Of the Constitution,
was unanswerably demonstrated. The propo-
sition 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-
recty 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,
mo cannot forhaor onnendinu IN tho procadinu
paragraphs, the following resolution passed by
the General Assembly of Virginia in 1911:
The General Assembly of Virginia view with
the most serious concern the late attempts which have
been made to obtain from Congress 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 was
Observation-Disclosures Congress have power what
ever to renew it-and that the exercise Of such
power would be not only unconstitutional, but dan
gcrous encroachmen on the sovereignty ofthe States
" Therefore,
"Resoiped, That the Senators Of this State in the
Congress of the United States be instructed and
Representatives most earnestly requested in the
cution Of their duties, faithful Representatives of
their country, to their best efforts in opposing by
every 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.
Test,
j. PEASANTS, Jr.,
Clerk of the House of Delegates.
In addition 10 the previous quotation, we will
give for the present but one more authority re-
speeding the unconstitulionality 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 unconstitutionality of
Bank--the portion of the report, which we
omit, discusses merely the expediency of renew
ing the charter Of the Bank, and is adverse TO its
petition on this ground also.
Communicated to the Senate, on the I'd of March,
1911"
MI. Clay, from the Committee, TO whom was re-
fcrred the memorial OF the of the Bank of
the United States, praying that an act of Congress
might be passed TO continue the corporate powers of
the Bank for further period, 10 enable it TO settle
such of ITS concerns may be depending on the Sd
of March, 1917, 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 memoralsts
they have thought proper TO present through their
agents. Tha, holding the opinion, (as maj ,rity Of
the committee do, that the Constitution did not aulho
rze Congress originally grant the charter it follows
a necessary consequence of that opinion, that an
extension of IT, under the restrictions contem-
pated by the holders equally repugnant to the
Constitution
THE BALTIMORE AMERICAN
Has done but justice in quoting the following issue
which we tender TO the ndversares Of the Executive
"The name of Wing originated with faction, in