Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-08-10
c0NG;,ICATiONS.
TUF BANKING vi
TIE BANKING. VI
THE TERMS-"NECESSARY AND PROPER"
TO TIE EDITOR or TiiE RICHMOND ENQUIRER
TuE FAR SouTn, July Goth, l54l

TO TIE EDITOR or THE RicA-uoyD E;reUIRER.
TuE FAR Sourn, July goth, lS4l.
The Poorer IF Borro,ring .Hoaey.
Returning to Mr.. Clays bill, we will perceive that
it proposes to raise the 600 of the capital OF
the Bank, for the Government, in the usual way OF 49,
suing Government stocks, bearing per cent interest,"
redeemable in fifteen or twenty years, and then
dsposing Of these stocks IN the market for gold ana
silver coin or bullion. Well, when The capital is thus
acquired il is b0rro,ccd, it not and upon the credit
ofthe United States?-Assuredy. And none can deny
but that the power to borrom money expressly grant
ed to Congress. But then there must be constdu
tionai necessity for the money! which Congress uses
the credit Of the Government to borro,c-and that
must depend upon the objects for which 1t IS Dor
7ored. You cannot borrolc money, TO raise and
support other armies, or 'to provide and MAINTAIN
other navies,' than those now have, unless ex-
press laws shall authorize the raising and providing Tor
additional armies and navies. You cannot "borrow
money to detray the expenses Of establishing Terrific
rial Governments for '.lhe Of forts maya
zines, arsenas, or dock-yards, unless special law
shall authorize these things TO be done. Yet these mat
ters per = are clearly cithia the jurisdiction of Con
gress How then money be bor-oaced for purposes
clearly ,cithout the jurisdiction of Congress: For
instance to purchase lands houses, &C. in Statc-to
erect Banking houscs-to loan out, Gire away
MES TO the States, which is the and substance oil
the present Distribution Bill. In truth, as read the
Constitution, the power TO borro,o money is conserya'
tive power altogether, and is entirely ancillary to the
power granted 'to lay and collect taxes, duties, i'm
posts and excses to pay The Debts and provide for the
common defence and general welfare Well-Con-
gress may 6Orr0lo money ''To THE DEBTS, &c
When. Whenever there is deficiency from the sup
plies from those other sources, and money shall be need
ed for those In times of peace, long usage has
restricted the Government TO two main sources of
venue-the customs and the public lands; and, say
the least, the power borroe not TO be exercised
while those ample 10 meet all the constltu
tional wants Of the Government.
But there are some who refer the whole Banking
This is passing strange. Cannot Congress Gorro,c mo-
neY without Bank The Government borro,ced far
larger sums of money during the last war, than all the
other accumulated loans from the date of National
independence up to this day. and yet no National
Bank was in existence during The But what does
this very bill of Mr. Clay propose: Why to borro'o
money not Of the Bank, but for the Bank II borroacs
money to make capital for the Bank Capital for WHAT
Why, Ia be used, to he loaned ont. Then II 60rr0cS
an0aeu to loan to the Bank, that the Bank may be
bled 10 ioan It 10 Others, The argument amounts to
this Congress has poscer to create Bank because II
has po,cer to borrow moneyand IT mast borroac money
TO create Bank with, because cannot create Bank,
without it borrows money! Well, when the Govern
ment borroes money, II creates deo and renders IT.
self quo minus sg6fciens to borrow more. When The
Bank is established it assumes The dbt which the Go
contracted by borro,cng money to raise It's
capital and when the Bank DISCHARGES that DEBT, it is
without the means to loan to the Government
The Poorer of Looming Money.
Inc government, then, OOTTofcS money, pecause ~
ardnts It for Bank capa and cnntS the Bans capt.
tai for the only purpose for which Buak capital is ever
wanted TO wit; to loan out And the Government IN
rests the Bank with the power TO perform this import
ant function for A. To all intents and purposes the
Gorernment loans out The money Quod taeit per alum,
facit per Very we'll. Whence comes the power 10
do this? Cndc deriratnr' Is the power money
one of the enumerated powers the power borroc
is. Can Congress invest the public MONIES of the
ton in loan o6eess Can it use those monies in buying
up the business paper of individuals loan them
on accommodation paper? Can it draw MONIES from
the peoples pockets, unless needed to meet the Go.
yernments liabilities TO the public creditors; When
so drawn from the people, it loan them, may be,
to apOritcs who pay taxes, their fortunes beng IN
vested in stocks and funds out of the reach OF the tax
aatherer, Can it collect monies ",o pay debts, and
then apply it to different use; and, when lost in its
new investment the people to pay it orer aga'nP-
Certainly lost the people mus, pay again. but does
not this very fact draw strongly in question the
of Congress originally to expose it to such risks
But though by the Constitution Congress, can S0r'