New-York daily tribune., 1858-02-22

the allegations Of the Governor in his mes sage were
falfe. He said that the bill compels the bank TO
pay specie for its notes, or suspend and 90 into
liquidation.
Mr. Hanna said that the veto message made its
chief point of objection on the ground that Terri
tory has no night to issue bank charters. II Ter
ritOres have not States have not II there had been
really any legal question OF this kind, It would have
been raised before. The message takes the extreme
ground that United States Bank is unconstitutional
Mr.. Hanna denies that the banks may by this bill
psy their debts and redeem in each others notes.
If there was such feature he would vote against it.
Mr.. Mitchell admres the Governors veto. Iii
the same position he (tbe speaker took in Ohio,
when he was hard-mOney man. He would vote
for the bill'Over the Veto
Mr.. DaDforth voted for the bill originally, but
must be excused from voting now. He was not
prepared to say whether the Governors exceptions
were well taken or not. He thought that the most
Objectionable point the fact that there is no limit
to the capital of the bank. 1t is AN unlimited
financial monopoly"
Mr.. John Speer hopes that the bill will pass over
the veto. He denies the Governors allegations
DR.. Cooper wants to have the bill carefully read
He is not satisfied. When the vote was taken II
passed over the Govern ers vetO only eght opposing
it. u
The bill has not been printed, but contains the
following provisions: 1t provides for three banks
one at Lawrence, one at LeavenwOrth, ana one AT
Wysudot Each has distinct set OF c0rpOrators.
The capital stock Of each is 500 OOO but capable
of indefinite extension. The basis OF the bank Is
iDterest.paypg State stocks at the current rates of
the New-York Stock Exchange These are to be
deposited with the Controller as cOllaterals. When
S25 900 Of these have been paid in, the Controller
sha sign bills to that amount which may be IN the
denomination of 81, $2, $3, $5, $40, $50,
$50. 800, $500, $500. Fresh securities shall
be deposited and fresh issues made from time to
time. The bank shall regulate its own rate of in
terest. Ten per cent of the additional securities
shall be specie, for the purpose OF redemption.
Issuing Of notes without such securities is made a
punishable ofense, liable to fine of the amount thus
issued. Stockholders shall be responsible to the
amOunt of their individual stock. The bank shall
discount its bills when called on, in specie, only
they are allowed to pay in the secured notes OF
other banks in the Territory or in the States, In
bankable drafts or certificates of deposit a. specie.
Should the bank refuse tO redeem its notes shall
bear from such date double rate of interest.
suspension of 30 days occurring, the Controller may
proceed to sell its securities at auction in the stock
market for its liquidation. The charter extends its
provisions to the authorities under the State Govern
ment, stating that such and such officers shall act in
the place of the Controller of the Territory. This
anticipates the action under the State Government.
Such are the leading features of this banking law.
append the veto message, over whchit has passed.
VETO MESSAGE on the LAWRENCE, LEAvENwoRTH
AND wYASDOT BANK
To N, Council Of The Leqisiatire AssemUy
GEsTLEMES: Herewith / return, without approval,
bill entitled "An Act establishing certain Banks in
Kansas Territory" In the investigation Of this sub
ect il may be well to inquire whether the Legsla
lure of this Territory has the power to charter banks
and authorize them to issue notes as bills OF credit for
a circulating medium. After struggle OF more than
forty years, Congress finally decided that they had
not the power e establish National Bank aud there
are very few at this day who do not .indorse the Wis
dom of that decision The power of Congress to legIs
late fof the people of the Territories Is not expressly
given by any provision In the constitution, oGt
eminent to afford protection to her own ciuzens In
order to carry out this Obligation Congress has the
right anywhere within the boundaries OF the Alner-
can Iniun and not within the limits of an organized
state TO make such rules aud regulations as may be
necessary for the government OF the people residing
there not inconsistent with the provisions OF the Fed
cral Constitution. In the exercise OF these powers
Congress delegated, with some reservation their au-
thorty over such hects to the legislative power OF
the Territory. The language Of the organic act is
veIy explicit aid reads as follows:
Subjects of consistent with the Constitution OF
the United States and the provisions Of this act"
The Constitution gives to Congress the right to ex
ercsc exclusive legislation in all whatsoever
" over the District of COlunba" but even there 1t
wss limited by the deed of cession. The other places
10 which such right extends are forts magazines,
arsenals dock-y ards and other needful buildings.
In all else the powers ef Congress expressly de-
fined or grow out of some absolute necessity; and it
has been determined that the power to charter bank
is neither a necessary, incidental power. Did Cor
ere then intend by the organic act to confer au.
thority on the legislative power of this Territory
which she did not herself possess No one will pre-
tend for moment that such was the intention, tor 1t
il expressly declared otherwise Ii this power csnnot
be found to have been conferred Congress by the
Constitution and the organic act under what author
ity it proposed to pass the bill before me Inc Con-
stituton further declares that no State shall ICON
"money, emit bills Of credit, or make anything but
gold or silver tender i'll payment OF debt; and can
IL be presumed that when the States were debarred
the right to exercise such power the Territories
would be allowed to do sO If there could be doubt
about it, reference to the tenth article OF the amend
NEXT to the Constitution would set that doubt at rest
II rea6s a. follows:
The powers not dele gated to the United States by the Con
tuition prohibited oS it TO the States are reserved 70 th'
States respectively OF 20 the people .,
The powers now sought to be exercised are prohibit
ed TO the States and Congress has decided that they
have not been delegated to the United States Under
and by what authority, then the Territory assume
such powerl Passing by this question of power, L
now proceed to examine the bill itself II authorizes
the banks proposed to be created " to purchase pos
sess and sell any property, the same a. indydu-
ais section |. Ii authorizes them, and dc
clales they shall have power to USE as specie, all
sight drafts or certificates Of deposits made by
specie-payng banking houses in this Territory, or
" in St. Louis Chicago, Cincinnati, Philadelphia,
Boston or Nsw-iOrk;' see section l8.
Section 10 provides that "no bank shall, at any
time suspend refuse the payment IN specie OF any
4" of its notes" &c.
BY an examination Of these provisions il will be
seen that the proposed banks would be authorized TO
enter the lists in competition with Individuals Tor the
the same to use bank notes eight drafts certificates
of deposits. Ii specie should be demanded they could
turn TO their charter and show that they have power
to ute specie" ell such paper evidences OF debts
There would never be necessity for them to suspend,
for the Bank of INavcnwOrth would be authorized 70
hern pfes in ne