Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-06-01
POLITICS.
MR.. MADIsON'S SPEECH

POLITICS.
MR.. MADTsoN'S SPEECH
AGAINST THE BANK OF TIRE u STATES.
House Of Representatives., February :, l19l.
Mr. MADISON began with general review OF the
advantages and disadvantages of Banks. The former
he stated TO consist m-lst The aids they afford to
merchants who thereby push their mercantile ope
raons farther with the same capital-2nd, The AIDS
to merchants in paying pnnctualy the customs-oro'
Aids to the Government in complying punctually with
its engagements, when deficiencies or delays happen
in the revenue-4th, In diminishing usury-5th, In
saving the wear of the gold and silver kept IN the
waits and represented by noes-6th, In facilitating
occasional remittances from different places where
notes happen to circulate The effect of the proposed
Bank in raising the value of stock he thought, had
been greatly overrated 1t would doubt raise that
of the stock subscribed into the Bank but could have
little effect on stock, in general the interest on II
would remain the same and the quantity taken out Of
the market would be replaced by Bank stock
The principal disadvantages consisted in-lst,
Banishnp the precious metals, by substituting another
medium TO perform their Office. This effect was nevi-
table. 1t admitted by the most enlightened pa
irons Of Banks particularly by Smith, on the Wealth OF
Nations. The common answer 10 The ooJect'on was
that the money banished only an exchange Tor
something equally valuable that would be imported IN
return. He admitted the weight of this observation,
in general, but doubted whether in the present naots
of this country, the return would not be in articles OF
no permanent use to t-2nd, Exposing the public and
individuals to oil the evils of the Bank, which
would be particularly calamtous in so great country
at this and might happen from varons causes, false
rumors bad management OF the institution, an unia'
vorable balance Of trade, from short crops, &c.
II was proper 10 be considered ALSO that the most I'M
porant of the advantages would be better obtained by
several banks, properly distributed, than by single
one The aids to commerce could only be afforded at
or very near the of the bank The same was true
of aids to merchants in the payment OF customs An
ticipatons of the government would also be most
To tpho The iptpr 0f
the debt to be paid The case in America was diff
farent from that in England the interest there all
due at place. and the genius of the monarchy Ia
vored the concentration of wealth and influence at the
metropolis.
He thought the plan liable to other objections: 1t
did not make good bargain for the public, as was
due to its interests The charter of the Bank of En-
gland had been granted for eleven years only and was
paid for by loan to the government, on terms better
than could be elsewhere got. Every renewal of the
charter had in like manner been purchased; in some
instances at a very high price The same had been
done by the Banks Of Genoa, Naples, and other like
Banks of circulation. The plan was unequal to the
public creditors. 1t gave undue preference to the
holders of particular denomination OF the public
debt and to those at and within the reach OF the seat
of government If the subscriptions should be rapid,
the distant holders of paper would be excluded alto
gether.
In making these remarks on the merits Of the bill,
he had reserved TO himself he said, the right to deny
tanned this opinion from the date of the Constitution.
His impression might perhaps be the stronger, because
he we'll recolec'ed that power to grant charters OF
Incorporation had been proposed in the general con-
venton and rejected.
Is the power Of establishing an incorporated Bank
among the powers vested by the Constitution in the
Legislature Of the U. s.. This is the question to be
examined. After some general remarks on the limi-
tations of all political power, he took notice of the Pc
euiiar in which the Federal Government is
IL -. ,toc, hirb ri.
cular powers excepted 1t sa grant Of particular
po,oers only, leaving the general in other hands
So it had been understood by both it's foes and it's
friends, and SO it was to be interpreted.
As preliminares 10 right Interpretation, he laid
down the following rules
An Interpretation that destroys the very Characters
tic of the Government cannot be just.
Where meaning is clear, the consequences, what
ever they may be, are to be admitted Where doubt
ful, il is fairly triable by its consequences.
In controve rted cases, the meaning Of The parties to
the instrument tito be collected by reasonable evidence
10 proper guide.
Contemporary and concurrent expositions are rea-
sonable evidence Of the meaning of the parties.
In admitting rejecting constructive authority,
not only the degree of its incidentally to express
authority s TO be regarded, but the degree of its
importance a)so SINCE this will depend the proba-
bty improbabliity Of its being left TO construction
Reviewing the Constitution, with eye to these
positions, 1t was not possible to discover in it the
power incorporate Odnk. j ne only clauses un-
der which such power could be pretended are, Ell
ther-
LIST. The power to lay and collect taxes, TO pay the
debts, and provide for the defence and
welfare-or,
3D. The power to borrow money on the credit of the
U. S.-or,
Sd. The power to pass all laws necessary and proper
TO carry into execution those powers.
The Bill did within the first power. 1t laid
tax 10 pay the debts provide for the general wei
fara 4 laid tn rhofap ale tk.r g.
reign to the subject
No argument could be drolcn from the terms s'com.
mon defence and general welfare" The power, as 10
these general purposes limited to Acts laying tax.
for them; and the general purposes themselves were
limited and explained by the particular enumeration
subioined To understand these terms in any sense
that would justify the power in question, would give to
Congress an unlimited power-would render nugatory
the Of particular Powers-would supersede
all the powers reserved to the State Governments
These terms copied from the Articles Of Confedera
tion Had been pretended that they were to be
understood otherwise than here explained? II had
been said that general welfare means cases in which
general power might be exercised by Congress, with
out interfering with the powers Of the States; and that
the establishment Of National Bank Of this sort
There were he said several answers to this norel doc
frine.
LIST. The proposed Bank would interfere 80 as ind.
rectly TO defeat State Bank at the same place.
I'd 1t would directly interfere with the rights Of the
States to prohibit we'll to establish, Banks, and
the circulation of Bank notes. He mentioned law
of Virginia, actually prohibiting the circulation of
notes payable to bearer
3d. Interference with the power of the States was no
constitutional criterion of the power of Congress If
the power not pen, Congress could not exercise
il; il given they might exercise it, although ii should
interfere with the laws even the Constitution of the
States.
4th If Congress could incorporate Bank, merely,
,ecause the Act would leave the States free establish
Banks ALSO any other interpretations might be made by
Congress. They could incorporate companies Of ma
,pfaesxre,s companies for cutting CANALS even re-
ieous societies. leaving similar interpretations by the
states, like State Banks, to themselves Congress
night even establish religious teachers in every parish
nd n.u than mt Of the Treasury Of the u g. leaY.