The Madisonian. [volume] (Washington City [D.C.]) 1837-1845, 1841-08-21
THE VETO.

.-. THE VETO. ssf.s.a. MD
There is one view presented by the President
in this paper, which, independently of all other
objections to the BILL is conclusive upon the ques
ton of its constitutonality. We refer to his re-
marks upon the power of discounting or loaning
We are much mistaken if it is not already set
tied that any bill, giving such power, would
violate the Constitution.
The principle on which alone it could be sus-
tanned is certainly settled so that no other ground
can now be found on which it could be placed :
that is, its necessity. II must be accessory 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 bill, and in the opinion of the
President who confirms it by his signature. No
man who does not conscentiously 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? .l.rma,
/ Let us suppose, for the sake of argument, that
such corporation as Bank is necessary to con-
duct The fiscal operations of the Government
what powers shall it haye2 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 II, 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 ad-
mitted, that such corporation, with a large cap
ital, can control and destroy all the Banking in
situations 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,
abundantly 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 United States, andits publish
ed documents and accounts, we may defy any
merchant or man of business in the country, to
deny the proposition. ..:.. .,....... .......
If Bank is to be chartered, lei those who be-
lieve in its necessity limit its operations to ex-
changes, and see if the small capital it would re-
quire would not be readily advanced 81
If a corporation thus limited would be profta-
bic under any circumstances, how much more
SO when it has the advantage Of being the ifs
al agent Of the Government, Every body knows
thatits connection with the Government, in the
fiscal duties it would undertake, would give it
great advantages. m.& ...s ,..,..... "a.
We think, therefore, that no well-informed
man can now believe (whateyer may have been
the case heretofore) that the power Of discount
ing can be necessary, in any sense, to enable
a 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-
sistently with the Constitution. This we are
enabled to show by referring to the opinion of
the Supreme Court in the case Of u. s. Bank
and Osborn--9 Wheaton, page s61 -" WHY is
itthat Congress can incorporate or create a bank2
This question was answered in the case Of Nc
Culloch rs. The State Of Maryland. 1t is 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 it be endowed with that
faculty of lending and dealing in money, which
is conferred by its charter If it can, if it be as
competent to the purposes of Government with
out, as with this faculty, there rill be much DIFF
fcuhy in sustaining that essential part offs
charter. lift 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 il is its
soul and the right to preserve il originates in
the same principle, with the right to preserve
the skeleton OF body which il animates." It
This opinion was delivered in the year 1924
It 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 il was therefore a
Faculty necessary TO the legitimate operations
Of the Government " A#'8s RI hta
These two necessities were the father and
mother of the bank. First, it was necessary