The spirit of the age. [volume] (Woodstock, Vt.) 1840-1844, 1841-09-17

Is this bill, now presented for my approval or
dlsapproval, such bill as have already declared
could not receive my sanction Is it such bill
as calls for the exercise of the negative power un-
der the constitution? Does it violate the constltu-
ton by creating National Bank to operate per Sc
over the Union? Its title, in the first place, de-
scrlbes It's general character. 1t is "An act TO pro-
vide for the better collection, safe keeping and dis
bnrsement Of the public revenue by means of
Corporation, to be styled the Fiscal Corporation
of The United States" In style, then, it is plainly
national in its character. Its powers, functions,
and duties, are those pertaining TO the collecting,
Keeping, and disbursiag the public revenue. The
means by which these are to be exertcd, is Cor
POraii0n to be styled the Fiscal Corporation of
the United States. 1t is corporation created by
the Congress of the United States, in its character
of national legislature for the whole Union, to
perform the fiscal purposes, meet the fiscal wants
and exigencies, supply the fiscal uses, and exert
the fiscal agencies of the treasury of the L. States.
Such IS its own description of itself Do its pro-
visions contradict its own title ? They do not 1t
is true, that by its first section it provides that it
shall be established in the District Of Columbia, but
the amount Of its capal-.the manner in which its
stock is to be subscribed for and held--thc persons
and bodies corporate and polite by whom its stock
may be held--the appointment of its directors, and
their powers and dulles--its fundamental articles,
especially that to establish agencies in any part of
the CnOn--thc corporate powers and business Of
such ageneies--the prohibition Of Congress to es-
tabsh any other corporation, with similar powers,
for twenty years, with express reservation, in the
same clause, to modify or create any bank for tho
District Of Columbia so that the aggregate capital
shall not exceed five mons-without enumerating
other features which arc equally distinctive and
haracteristc-clearly show that it cannot be re-
gardcd as other than Bank of the United States,
with powers seemingly more limited than have
heretofore been granted by such an institution. 1t
operates per Sc over the Union, by virtue OF the
unaided, and, in my view, assumed authority, OF
Congress ms a national legislature, as distinguished
from Bank created by Congress for the District
of Columbia as the local legislature Of the District.
Every United States Bank heretofore created, has
had power to deal in bills of exchange as well as
local discounts. Both were trading privileges con-
fcrrcd, and both exercised by virtue of the afore-
said power of Congress, over the whole Cnlon--
The question of power remains unchanged without
reference 10 the extent of the privilege granted. If
this proposed corporation is TO be regarded as
local Bank ofthe District of Columbia, inyestcdby
Congress with general powers to operate over the
Union, it is obnoxious to still stronger objections
1t assumes that Congress may invest a local iGsti-
tuition with general or national powers With the
same propriety that it may do this in regard TO
Bank of the District Of Columbia, it may as to
State Bank. Yet, who can indulge the idea that
this Government can rightiully, by making State
Bank its fiscal agent invest it with the absolute and
unqualified powers conferred by this bill When
| come to look to the details Of the bill, they do
not recommend it strongly to my adoption. A brief
notice of some of its provisions will suffice;
lst 1t may justify substantially a system Of dis
counts of the most objectionable character. 1t is
to deal in bills of exchange drawn in one state and
payable in another, without any restraint. The
bill of exchange may have an unlimited term to
run, and its renewaby nowhere guarded against.
1t may, in fact, assume the most objectionable form
of accommodation. 1t is not required TO rest on
any actual, real, or substantial exchange basis. \
drawer in ono place becomes the acceptor in anoth-
or, and so, in uln, the acceptor may become the
drawer upon mutual understanding. 1t may, nj
the same time, indulge in mere local discounts UNI
der the name of bills of exchange. a bill drawn
at Philadelphia on Camden, New Jcrsey--at New
York on border town in New Jcrscy--al Cincn-
natl ON Newport Kentucky, not to multiply other
examples, might, for any Thing in this bill TO re-
strain it, become mere matter Of local uccommo-
daion. Cities thus relatively situated, would pos
scss advantages over cities otherwise situated, of
so decided character as most justly to execute
dissatisfaction.
md. There is no limit prescribed 10 the premium
in the purchase of bills Of exchange, thereby cor
rectng none of the evils under which the commit
nifty now abOrs, and operating most injuriousy
upon the agricultural States in which the uncqul-
les in the rates lcXchlnge are most severely felt
Nor are these the only consequences: 4 resumption
Of specie payments by the banks or other States
would be liable TO indefinite ponement-lor, as
the operation of the agencies of the interior would
chiefly consists in selling bills of exchange, and the
purchase could only be made in specie or the notes
of banks paying specie, the State banks would
either have to continue with their doors closed or
exist at the mercy of this national monopoly Of
brokerage. Nor can it be passed over without re-
mark, that whilst the District of Columbia is made
the seat of the principal bank, its citizens are eX-
Guided from all participation in any benefit ii might
afford, by Il positive prohibition on the bank from
all discounting within the District.
These are some OF the objections which promi-
nently exists against the details of the bill, others
nigh, be urged of much lorce-but it would be I'M
profitable 10 dwell upon them. Suffice it to add,
that this charter is 10 continue for twenty years
without compctitor--that the defects to which
have alluded being founded in the Fundamental
INV VI tOTpOTdliOIi, HIc Uill u
the objections be well founded it would be over
hazardous to pass the bill into law.
In conclusion take leave most respectfully TO
say that have felt the most anxious soicitudc TO
meet the wishes of Congress in the adoption Of a
Fiscal Agent which, avoiding all constitutional OBJ
ections, should harnonizc conflicting opinions
Actuated by this feeling, have been ready to yield
much, in spirit of Cancellation. TO the opinions Of
others. And it is with great pain that now feel
compelled 10 differ from Congress second time in
the same session. At the commencement Of this
session, inclined from choice TO defer 10 the legs
lutive will, submitted to Congress the proprieiy
of adopting Fiscal Agent which without violating
the Constitution, would separate the public money
from the Executive control, perform the operations
OF the Treasury without being burhensome TO the
people, or inconvencnt, or expensive 10 the Gov
eminent. 1t is deeply 10 be regretted, that this De-
partment Of the Government cannot, npon conSu- !
tonal grounds, concur with the Legislative Depart
ment in this last measure proposed TO attain those
desirable objects. Owing to the brief space be-