The Madisonian. [volume] (Washington City [D.C.]) 1837-1845, 1841-07-24
IN SENATE.
FRIDAY, July %, l641.

s.. n' FRIDAY, July %, l641
Resolutions were submitted by Messrs. PHELPS
and HENDERSON, which lie Overcome day
MIR. PRESTON, from the Committee on Military
Affairs, to which was referred the Fertilization bill
from the House, reported the same without amend
ment.
The Bankrupt bill was then taken up, and MIR.
NICHOLSON offered an amendment to the 1st sec
ton line 2lst which relates to bankers factors, etc.
owing debts to an amount not less than two thousand
dollars providing that all banking corporations,
cept those in which the stock is owned wholly in
part by the State, for which State is response
be chartered for the purpose of issuing notes evil
dences of debts to be put in circulation as money,
shall be liable to become bankrupt, according to the
provisions of this act He said it would be observed
that the amendment proposed to include banks with
in the provisions of the BILL excepting those which
were owned by States If it were adopted, it would
be necessary to amend the bill so as to declare when
a Bank should be considered bankrupt, and regulating
the dividend of its effects for which he had prepared
several amendments and would offer them, if this
prevailed. He should not touch in his remarks the
constitutionaly of including Banks, but confne him
self solely to its eXpediency and propriety The pro-
vision with regard to Banks was designed to be pro-
spective in its operation, and prevent recurrence of
those disastrous consequences which had resulted
from suspension of specie payments by Banks.
There was nothing to which Bank looked with so
much horror its own destruction, and if this was
made direct consequence of its suspension it would
in great degree deter them from it. He referred
to the celebrated pamphlets of MIR. Gallatn on the
currency, who advocated the including of Banks
within the provisions of Bankrupt act. ..,.., .
Mr.. BENTON said the great point which he
wished to bring before the Senate was, that in the
commencement, the application OF Bankrupt laws
was directed in England (the country from which we
derived our notions of Bankrupt law to banking
corporations and bankers, and those only. There
was not corporation in England which is not in
cuded except specially exempted by act of Parlia-
ment which had power over them. He held that
the entire subject open, in the manner, to
legislation here Ii the provision of the Constitu-
tion which had for years been trampled on and eX-
Plunged was enforced compelling banks to pay spe-
Gle, there would be no need of National Bank as a
regulator of the currency. en NUl r uaa&
MIR. WOODBURY. wished to suggest an idea in
reference to this amendment. In England banking
corporations, as artificial persons, we're excepted
but he commended that they should be included and
referred in support of this to the pamphlet of Mr.
Appleton, of Boston, who united the qualities not on
ly of distinguished fnancier and practical business
man, but an intelligent statesman.
Mr.. WILLIAMS said there was hardly possibi-
ity with such provision this that the directors
of the Bank would allow il to become in situation
in which the provisions of this act would become APP
plicable He should with great pleasure vote for the
amendment. r 'H.. .... ......... ,.........
MI. SEWER should not vote for the amendment.
The Bankrupt Bill was advocated on the round that
Congress alone had power to pass act Of This kind
but this was not the Maine, Massachusetts, and
New York had already passed them as applicable to
their State banks Why were they called on, them to
exercise this power Was it because they had fears
that the States who them here would not do their
DUTY de would not, by implication, sanction such
a Proposition by his vote II the States had not the
power to do it, there might be some plausiblty for
them to do II here s|