The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-11-17

assumes undelegated powers, its acts
are kunauthoritative void, and of no
force: that to this compact each State
| acceded as a State, and is an integral
party, it's co-States forming, as to it
self, the other party; that the govern
ment created by this compact was not
made the exclusive or final Judge OF
theextent of the powers delegated to
itself: since that would have made its
| discretion and not the Constitution,
the measure of its powers; but that, as
in all other cases of compact among
| powers having no common ludge,
| each party has an equal right to Judge
for itself, as we'll of infractions as OF
the mode and measure of redress.
The remaining resolutions proceed
| to point out the acts of Congress
| which were pronounced to be uncon-
| stitutional and to- declare them null
| and void, and of no force But the
mode of redress pointed out, is an APP
| peal to all the States for cooperation,
| in opposing the measures; and SO far
| from declaring for open resistance,
| the concluding sentence of the 18th res
| olution excludes such a conclusion. 1t
| is as follows: THAT the proceedings
| of the General Government under color
| of these articles. will be a fit and nee
eSsary subject of revisal and correc-
| ton at a time of greater tranquility
while those specified in the preceding
resolutions call for immediate redress.
| MrMadison wrote similar resolu-
tions. but more guarded in language,
which were adopted by the Virginia
Legislature the following year, 1899,
and late in life, long after he had re-
tired from a participation in public
affairs, he wrote treatise explanatory
of his resolutions in which he stated
that the redress was to be had, not by
secession or modification, but by
Convention of the States He
placed the kentucky resolutions on
the same ground
Curiously enough, the first reference
to banks which appears in Mr. Jeffer-
sons writings, relates to the point
raised by me in the article upon
banking last week, that the share
holders are not held responsible, cas-
private individuals are, to the full eX
tent of their Indebtedness, but only
for the nominal value of their shares,
or, at most, to twice that amount.
Writing from Paris, August 25, 1856,
to an NJ. Van Hogendorf, he refers to
the incorporation of the Philadelphia
Bank by the Congress of the Confed-
Grafton, as, perhaps, the only instance
of their having done that which they
had no power to do; but apologies
for the act as one of necessity. The
Legislature of Pennsylvania" he adds,
however, passed an act of incorpora-
ton for the bank, and declared that
the holders of stock should be respon-
sible only to the amount of their
stock Lately that Legislature has re-
pealed their act. The consequence is
that the bank is now altogether pri-
vate institution, and every holder is
liable for its engagements in whole
property. This has had curious eff
feet. 1t has given those who deposit
money in the bank greater faith III
it, while it has rendered the holders
very disconnected, as being more ex-
posed to risk, and has induced many
to sell out, SO that | have heard Il
know not how truly that bank stock
sells somewhat below par; 712 per
cent; but as the publication was from
the enemies of the bank, / do not give
implicit faith to it,
Of course the bankers, after having
been given the monopoly privilege of
running in debt without being held
responsible for the amount, are reluc
tant to surrender it. In gambling
games, such as faro, poker, and the
like, every man puts up the amount he
is willing to risk on the cards, and if
he loses, it is no more than he had rea-
son to expect as the result of the shut
Il sXcx. xeE
money in bank expects its return IN
full, without making the turn of
card. He believes and has the assur-
ance that the bank is responsible and
honest and fair. But if anything goes
wrong, he finds, to his sorrow, that
the stakeholder is only responsible to
a certain extent-not to the extent OF
his wealth, bnt to the value of certain
shares he has in the venture, which is
never more than a fraction of the
value of the pool.
In regard to the newly chartered first
Bank of the United States, he writes
to Mr.. Monroe, July 10th, 1871, as fol-
lows:
"The bank filed and overhowed in
the moment it was opened. Instead
four thousand were offered, and a
great many unrepresented who had not
suspected that so much haste was nee
essary. Thus it is that we shall be
paying thirteen per cent. per annum
for eight millions Of paper money,
instead Of that circulation of gold and
silver for nothing. Experience has
proved to us that dollar of silver
disappears for every dollar of paper
emitted; and for the paper emitted
from the bank, seven per cent. profits
will be received by the subscribers for
it as bank paper, according to the
last division Of profits by the Philadel-
phia Bank,) and six per cent. on the
public paper of which it is the repre-
sentative. Nor is there any reason to
believe that either the six millions of
specie deposited will not be suffered
| TO be withdrawn, and the paper thrown
| into circulation. Very few subscri-
bers have offered from Virginia or
| North Carolina, which gives uneasi-