The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-08-19
THE VETO.


marks upon the power Of dscounting or loaning
tied that any BILL giving such power, would
violate the Constitution.
The principle on which alone il could be sus-
tanned is certainly settled 50 that no other ground
can now be found on which it could be placed ::
that is, its necessity. 1t must be necessary TO
enable the Bank to discharge its fiscal duties, that
it should have this power to make loans and dis
counts. And it must be held to be thus necessa-
~ in the opinion of the Congress which gives
such power in a BILL and in the opinion of the
President, who confirms il by his signature. No
man who does not conscientiousy believe in
this necessity can vote for or sign, such bill.
Now, what can be said to show such neces-
sity-any sort or degree of necessity?
Let US suppose, for the sake of argument, that
such corporation as Bank is necessary to con
duct he fiscal operations of the Government
what powers shall il have2 All the powers ne
cessary, not to make the greatest profits for the
stockholders, but to enable it TO discharge its ifs
cal duties to the Government If, then, 1t can
be shown that such corporation, without the
discounting power and limited to operate in ex-
changes could sustain itself, and even make rea-
sonable profits, by such business, while it full
filed its duties to the Government, what pretence
could there be for adding this vast and danger
Gus power of discounting Vast and danger
Gus, because it has been proved, and even add
m itted, thai such corporation, with a large cap
ital, can control and destroy all the Banking in
stitutions OF the States and vast and danger
Gus still more, from its powers of corruption
The business of dealing in exchanges alone,
it is well known, is now, and has long been,
abundanty sufficient to maintain and make large
profits for such an institution. Without refer
ring TO other proofs for this than the history Of
the late Bank oflhe United States, andits publish
ed documents and accounts, we may defy any
merchant, or man of bus iness in the country, TO
deny the proposition.
If Bank is to be chartered, let those who be
lieve in its necessity limit its operations to ex-
changes, and see if the small capital il would re-
quire would not be readily advanced
If a corporation thus limited would be profa-
bic under any circumstances, how much more
so when it has the advantage Of being the ifs
cal agent of the Government Every body knows
that its connection with the Government, in the
fiscal duties it would undertake, would give it
great advantages.
We think, therefore, that no well.informed
man can now believe (whatever may have been
the case heretofore) that the power of discount
ing can be necessary, in any sense TO enable
banking corporation to maintain itself and do
the exchange business Of the Treasury.
We have said that, if this be the case, il IS
settled that such power cannot be given con
slstently with the Constitution. This we are
enabled to show by referring to the opinion OF
the Supreme Court in the case Of L. S. Bank
and Osborn--9 Wheaton, page SCI 50 WHY IS
il that Congress can incorporate create bank?
This question was answered in the case of Nc
Cuoch rs The State of Maryland, It's an in
strument which is necessary and proper for car
rying on the fiscal operations of the Government.
Can this instrument, on any rational calculation
effect its object, unless il be endowed with that
faculty Of lending and dealing in money, which
/. conferred by its charter? II it can if it be as
competent TO the purposes of Government with
out, as with this faculty, there lriW be much dif
fcuHy IN sustaining mat essential part Of its
charter. If il cannot, then this faculty is neces-
sary TO the legitimate operations Of Government,
and was constitutonally and rightfully engrafted
on the institution 1t is in that view of the sub
ject, the vital part of the corporation it is its
soul and the right to preserve it originates in
the same principle with the right TO preserve
he skeleton OF body which il animatesn
This opinion was delivered in the year 1924.
II seems to have been thought then, that this
power. of blending and dealing in money" was
the life and soul of bank, without which its
existence was impossible it was therefore a
Faculty necessary TO the legitimate operations
of the Government"
These two necessities were the father and
to the legitimate operations of the Govern
ment,n to incorporate bank then it was neces-
sary to give life TO the bank, rhatit should 'loan
and deal in money"
Now it may be that, at that time, when we had
less experience upon these subjects, there were
some grounds tor The opinion that such iacully
was necessary for the bank. But 1t cannot be
so held now when admitted, published docu.
ments from this same bank, plainly prove that
its exchange business alone was sufficient not
only for its life, but for profit and in the face of
the known fact, that hundreds of citizens and
institutions are making large profits by this same
business, even without the advantages OF having