The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-07-24
IN SENATE.
FRIDAY, July %, l64l

Resolutions were submitted by Messrs. PHELPS
and HENDERSON, which lie over-one 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 Mr..
NICHOLSON offered amendment to the lst 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, ex-
cept those in which the stock is owned wholly or in
part by the State, for which State is response
BILE, chartered for the purpose OF issuing notes evil
dences of debts, to be put in circulation money,
shall be liable to become bankrupt according to the
provisions of this act He said il 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 il adopted, it would
be necessary to amend the bill so as to declare when
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
consuuonality of including Banks, but confne him
sell solely To It's expectancy and propriey The pro-
vision nth regard Banks was designed TO be pro-
spectye IN its operation, and prevent recurrence of
those disastrous consequences which had resulted
from suspension OF specie payments by Banks.
There nothing To which Bank looked with so
much horror its own destruction, and If this was
made direct consequence of its suspension, 1t 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
MIR. BEN TON 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
cluded, except specially exempted by act OF Parha-
ment, which had power over them He held that
the entire subject was open, in the same manner, to
legislation here. If the provision of the Consttu-
ton, which had for years been trampled on and
plunged, was enforced, compelling banks to pay spe
Gle, there would be no need of National Bank
regulator of the currency.
MIR WOODBURY. wished to suggest an idea in
reference to this amendment. In England banking
corporations as artificial persons were excepted
but he contended 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
Is Of distinguished inancier and practical business
man but an intelligent statesman.
Mr. WILLIAMS said there hardly possibi-
ty with such provision as this that the directors
Of the Bank would allow it TO become in situation
10 which the provisions Of this act would become APP
picable He should with great pleasure vote for the
amendment.
Nh SEVER Should not vote for the amendment
The Bankrupt b II advocated on the round that
Congress alone had power pass &C; OF this kind,
hut his was not the case Name Massachusetts, and
New York had already passed them, as applicable to
ihcir State banks Why were they called on, then, TO
rIerc So this power Was II because they had fears
that the States who sent them here would not do their
duty fde would not, by implication, sanction such
proposition by his vote ii the States had not the
power to do IT, there might be plausiblity for
them TO do il here