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REVIEW OF THE VETO.
,,'
d~.rdOOIlT4D1IKG
AN EXAMINATION
OJ'TlJE
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To modify and cOntinue the act Rec.kartenng "the Bank
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1832
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veto of the President upon 'the biU "to modify and continue" the charter of the Bank or the- United
States, wlieth~r we- consider tile' power claimed, the
principles advanced, or the c'onsequences to :flow ftoOJil
it, is well calculated to awaken public attention. AI~hOugh it is no~ a· more tJangerOus innovation: On the
principles and' usageS ot tlie' government than his for:
~r ones, it is now becoming : more alarming by the
frequeooy and the beldnese·of· itS .exercise,. and by i~
-diftctoperatiO!i' and effect upOn die coun~ry•
. 'It it too late toav~rt the evils of thi!!latal measure, it
will soon come home .to. the boiKma atu:l business every
man; it will ~ seen' arid Celt in ev~ry portioll 9f this
Widely extended e'mpire. It is not teo soon, how~ver;
tQ discuss the priRc~ples of .this high-handed measure,
,to restOre the constitution arid preServe what still·reTHE
ot
maiRS to us.
This veto, as the power is now claimed, is an anolJ14Iy in a free govel"liment, it is. founded in a principle
at variance 'with the 'fun~ameJltal principle, ~~e awer
of the peeple to make theu· law.s, and the supenar .lght
and io:ftuence ofthe:legislative body.. . .
It is, when exercised as a check upon the re']lresentatives of tlte people in ordinary legislation, an arrogant
preteD8jo.n~ and -an Odious power, ineonsisteat with our
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republican pIan-a power which Iias.been totaDy 8.ban~
daned, even in the monarchichal governments from
which it was borrowed-a power whic~ the king of
Eng1and, with all his sovereign attributes..and powerful
irdluence, :II as not dared for a. 'cent-:!iry t~ exercise.
. !1. negative upon the laws was' confided to the exe~utiv~, chielly to pro~e<tt himself from encroachment,
to guard· against ha~ty legislation, and' for the correc~
tion of palpable erro~. ... '.j ....... .
B utiC the power whiCh has.become obsolete elsewhere,
is' to become .6. d()Jninant 'power. in this government, to
contr91 the. constit!ltion,\ even agalP.8t the expressed
will of the ,·peop~,. and t~ protect tbe states against
tbelp.selves, it becomes the du.ty.. 'of J:be ~itizen to
h()wthe 'power i~ ex~r!ed, and to know the ·opinions
and principles oC tho.seto.wJlC)m-t~'Po'Yepi.s entrusted. l!his negati!~,~onfided to the ,executive foreasetJ.of
extreJ;lle n6C~ity; of -rare occurren~e,.is now erected. .
. into .. independ~nt. pow.~r and b~gh prerogative, and
for.ms. a part of a ge~~r~l :!Jystem, by .which the . executive is drawing t6 hioiself.all.th~ power·oC the govern-' ,
ment" through whi~h he.. may, ~p~D. ari~ pretence ·of
constitutionar ~~ple,
views
e~diency or person8.I eapric~, counteraCt·; thCl .wiD. of the- people, and
direct.and, control by his ()wn authority., the whole
course of legislatio~ ',."
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. This assumption", wlte~her arising Crorn error or ambition, from ~e~ or..p8ssi~)D" f~om -m.isapprehension
duty or the lov~ of. p(),werJ is 'equally dangeroua to
the constitution, and wiD be r~tal to tbe best interest5
and hopes of the country.
. The President now claims to refuse h~ assent to laws,
deliberately. pissed by a majority. of the pet»ple and by
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a majority of the states, upon principles long approved, "
DOt only on constitutional exceptions, but upon mere
grounds of expediency, constituting himself the sole !
judge ot what is useful, necessary atid proper.
)
He claims.to decide-nQt only what may be done,- but
when and where' and. how it may be done •.
He maintains that every- officer and magistrate caUed .. execute the -laws of the' Union, must decide for
himself upon their constit-utionality, a.nd whether they
shan be executed, Which must,·lead·to utter confuSion
and total insubordination.
.
He claims not only to decide on the 'bills-- presented
to him, but upon all those laws wllich hav~ been enacted
with all th~ 'forms of the cotistitution.
'- He disrega~ -the· authority of the S'upretne Court,
aAd,will not execute their decrees. ' '
He. has wrought ali entite revolution in the govemD)ent. He has coneentrated in him~el' all the power
which the· CQnstitntio~ designed to divide a~ong the
co-ordifiate·branches. _ He, practically nullifies the
power of Congress, ·the auth~rity or the'Court, the will
of. the people, and the rights Of majoritieS. He destroys
tbepriooiple .of representation, and dereats the objects
. of public djscussio~, the ad vantage$ of local information,
alUi alhhe benefits of a comparim and compromise of .
.
opinions and interests••'
If the people are eo~petent to .understand their own
inteP.est and to govern. tbeiBselves, which is the' idea
on whioll'aUfree governmen(s. rest~ there is no danger
ill aJtowing thema·free aCtion;, and no oc'cwon for restraints upon their authority.
If the people cannot trust themselves, shall they trust
oJie man-?:if the opinions and principles of th~ exeeu-
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tive correspond- with those who elect him, the ~pOwel'
is unnecessary; if tbey differ, it ~ 811 .d.nge,ous ia prac,
tice as it iii absurd in theory.
If the people cannet govern,~emselvetf,·there is an
end to' all OlU· hopes.. Jf ,Ol);e man, even a wise and
'able o'ne,ean shape the constitu~p, control Congreas
and the-{'..ourts, countervail the authority of 'the states
'and a lIlajority of the people~..it is- the govel'Jlment of
one man,cl).D i~,.as you '~JJ; which ean be tolerated no
longer tbu he ~~,bodies publio'aentiJnent and :responds
to public Qpiaion.
,
The power, of t:he: v~o was gene~ly conft4ed 8S a
shield to -the: exee'uuve, 'to be Used only on extraerc,li,nary occasions; and wltJt tbo, great~St Caution and ~Ii
caey: it is BoW perverted. to 'a~supreme and overruling
and ~irecting power, a'pc)\'v,rgrea~r, than t ..e
and superior',to ',alLthe.other,powe1'8-of thegcW~"
peop'"
lQ,eat. '
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", It,it nOW the duty of the people to inquire how this
p~er has,beea:obtaintd, an~:how it ,lias been exerted;
how it h~ppeBs. that
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eieoutive eQWttains viewsl)f
public policy drrerent from the people woo called hi. '
to that alice.
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, When the Presjd~nt is found.:-often arrayed agailJlt
both Houses of Congre. upon'questio~ of deepest in..
terest, it becomes necessary to iaquire how thiabll
~app,ened •• Ha~e ,the peQp1e ;ch~ed;
have they
been deceived and het~y~ ? .-. Were the opinions .of
the Prelident frankly explaine~' or have -they, been
artfully cOnoealetfand vaguely-elfpreseetU or have the
people conniv'edat the fraud plVlised upon them?
If; in the generous confi.denae of tbeir,natu~ they
have eDt~ such extraordina" powers toa map..
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trate,',wltose Qpinions were unknown, and whose priJr
eiples were uaiettl~d"..they deserve to suWer, though
, !lOt '10 se'~rely as in this~, that they lJlay leara wiadOD) by experience, never ,to trust,those rigbts and interests to men ,of nopriDcipies or bad principles, ~Ilcl
mueh Jess to ,,~and incOmpetent hand,. If tbey b!lve
been Dl!sled th~ugh erl'Qr, deceived by specious prom.ises, ~r betrayed ~y treacb.erous friends, let them
right themselve....-J.et t)1elO put tbe power in, the hands
,of thase who win honestly e"rtit; ,in accorUnce with
public sentiment~ ,for ,the-public benefiL '
The peopl, he.ve a~$et of pri(ilary principles in relation. to tfae poweraof Jhe ,goverDBlent, upon which has
been erected .. , system of -~Wic Policy, which' Jias for
its geaerid ob-j~, _~ pro~ the, indWJtry-of the cq~n·
~, ,to- ilB,rov~ the co~ ....unication !lnd extend the
COIDRlerc~ am'(tng th~ 8ta;teij to regQ)ate the currency,
'to.eteate an ample; ~qual and ,active ci~ulati,OQ, of mo·
ney, to establish' a.1Jniform,~dard of ' value, and to
tquali.e exch,loge. {Jpon-, this ~y8t.e.m ,is supposed to
" . depend the. g~t i~terests of, the 'country, ,~and. from
-,which has arisen its uneJta~pled~Rr08perity. _ _
_' ,The President, a l"ng time lialanciDg between oppo,.site principles, scattering ambiguous speeches and artfully ~uised seRti~enis, has at length thrQwn o1f the
Dl~k, ~nd has op~nly 'commenced a system~ ,!p~n the
atreilgth- of his power a04 pepu.la,rity, whi9h leads diPeCtJy to a :total'-8Qbve~a oftheae priQeiples, ,an~ the
, sacrifice- ot tbese in~ePests..,
_ ."., . , .
He ,availS,hilDMlf Qf tJ.1et ,righi,of recommending to
Congrees, to dietate the wbole 'c9urse 9~ IcgislatiOR.
He then ~erts all h.siDaucmoe over, themem'bers to'
,Qarry his 'p~uliar acllemes of poliClY i~to: eir~t. He
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puts in requisition all the re~u1'Ces .of his power· ,to
countetact the wishes of the- pe()pie, ,and· thwart, their
measures, and finally, w~en carried !lg~inSt -aiL tbeforce
of party discipline, and exe..c1,lti"eJnftt1enc,e-;-he resorts
to tbe, veto,. arrests the legislative pOwer _Df_the country, and withniost arrogant pret~~sions'to superior intelligeoQe JD4·virtue,.~ellsus' '.' it -is time·~o.pause iii
our. career., to review'~ur;pr.incip1es-,."-.H arid,i/ pO~8I'
bl;" to. r¢viv~ t~e-. ~voted.:patriQotism' which -distinguished the sage.s·~f ~h'e rtv'olu.~~n;" _." of improvi~ent
legislation," .and "of the prostitution _of·government.·"
'In relatipa to.,the Bank- -of. the 'United States, '}le began, long befor.e aqy neoessity,to -dehoD,rlCe the instit~tio,"; "he 4JIl.id i'ts'" eonstitu·ti~alityand _expediency
were well ·questiOned;" and what :most .as~onisbed a~.
iat~Iligellt men, be dec~~d'it·had- failed to p-f.odqc~ a~
.. sound corrency, or to-equaliz~ e~()~ange •. At a subSequent session, he rene~ed these' ~ntimimts, but ex'"
pressed·a determination.to 8ubDli~ the question to tbe
people.:' Then ca!De a l{;r,gand! well ~asoned: report .
froJ;ii tbe Secretary oftne "frelsUry, rec01nJRe~ding the.-- .
rechartering of.th~ .bank~. '
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The'question. nnder'th-ese auspices .came before~. gress; it ;\!as.'fully discussed in both houses,- during
which every-art .aDd resource of t~ .eltecu~ ve was 'employed to defeat'. tile- nleasure.- It .was carried, hO\f"
ever,' by coftsidel'able' .~joriti~s.· . U~der these eir:'
oumsbnces, t\le Pl'esident· 'hils <le.e~d it his duty to
exert the e:dr~ord!nary power of the veto. .
Let
now !!Xamine·,the reas~D$ uPQn which'he has
justified.this,assumption of POWer, which brings upon
tile eo,unt~y 80 -}lea?f a ca.lamity.. - ' .
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The hutto r~hmer .the:bank :wu presented to the.
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President 00 the aoniyersary of our independenc~, and
he:s'eizedthe occasion: to say that he had" considered
it with that solemn regard to the principles of the con';
8titutio~, which' the -day was calculated- to inspire,
.and come. ~o the conclusion t~at i~ ought nrit to- become
a law."
"
, If the Preside~t; in performing that duty on that
day, had adverted to the causes .that lee! to that memorable ennt, and to the prineiples it consecrated, he
would, hue leen ·that '.the revolutio;' had its origin in
abu~s and usurpiltions.of the: king-that we accused
him {)f having "1"e/uled.hi"q,8sent to laW. tke most
wholesome anc!·necessary It!'" the public goorP'-" 0/
takingawa!J9ur charter" -abolishing our most valuable Jm,.and.altering .f1ltidamerrtally the forms of our
gOvernment"-of.:having '~forbidden his governors to
paSs-laws of i-mmediate and pressil)g importaoc¢; uniess
suspended in their operation, until his assent shoul<J:be
, obtained"-'"0£ having. reCused t9 pass other.laws fer
the accommodation of lar.ge dis~ricts of people''':-u of
having obstructed the administration of Justice by I;.efu~ing, his assent to laws"-u of making judges dependant on' his will alone for the -tenure of their of.
li~," and consequently of being "unfit to be the
ru~r. ·of a free people."
, ,If he had been rightly. imbued with the true spirit
of those times, he would navc;l:perceivedcbe 'was im~tat
ing the worst ex.ampte, and p'erpduatihg' the 'worst
abuses and usurpations of that monarchy.
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The President thinks the charter "unauthorizetJ by'
the constitntion, sub.~rsive of the rights· of the states,
nd dangerous to the_liberties of the people.'" .
TheBan.k has been .twice chartered,. once in 1791,
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- lIndel" Gener,l WasbingWn,.aad ~.iB l1U~ under
Mr. Madison; aDd its cODsti~utio_ty:~ bee~ decld..
ed by the Su~me Court. ·:This· ~uld seem to <COllstitute some ,uthority in favour or .t~ power..-~~
" Rlere precedent," says the ~reside!lt,." is a dange~
ous source of authority"~upon whl\.t d~~D will he rely?
upon IUs own j~dgment? 'ia thatt~e Bafe ..and infallible
gui~e, which shan out'welgil' the .repeat~d. ~ncuons ,pt
COl;lgress and the Courts He says: "frecedent s~oul~ .
bedisregar~ed, except,w)le,n the·aoqu\esce.nce. ilrthe
people and the etates ca~·be CO'Dsid~~d as·well set~d~"
The Bank w~ chat:t;ered immediately after ~h,e.adoptioD· of the eonstitutioB':""it was -rechartered after' the last·
war-it has \leen n~ar fortYyea~ ia" oPera~it has
been again revised ~d ~~tioned by Co..ogress- at the
last ~ssion-and all this is Dot sufJici.ent ~c9.~i'~eQce .
OD the part of the people and tb,e 'state!) to coilStitute a
precedent.
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In the face of this, the Presi4etit argues that this .js,
DO authority for the constituuP.JiaJ power, .because Co~-.
gretSS, at other times have refuSed to charter the Bank.·
Now ~he reasoning would .hepertecuy fair an~ candid,
if Congress'had refused upon this'g-round to re~w the
charter, bt,lt the contrary is known to be true-it
·the union of those who denied the power and those wbo
denied· the ' expediency, .with thQSe who disagtee~ to
SOMe of the details, tllat~on$titnted' t~e majority.
This refusal to charter the Bank
consequence of
difticillties~ in the arrangement of the. system, is improperly ascribed now. to constitu-tional_objections, in
order .to impair the force of the p~edent.
The Pl"e$ident' st;e~ to 18.boU;f under some extraordinary errors'a! ,fact as well ~ Of :r:eason. , ~e says " the
r
was .
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'expressions 'of executive, legislative and judicial opi'nionsagainst the Bank are probably, to those in its favour, as four to one." This, if true, would only show that
those opposed, have taken more pains to publish their
·opinions. But, so far as any judgment can be formed
from the votes in the Senate, the revel'8eis true. There
were only seven states voting against the Bank, Diany
of them distinctly upon party grounds, to shield the
executi:ve from the res~n~ibility of the veto, most of
them'in reference to the time rather than the measure,
and very few exclusively upon constitutional scruples.
The charter was passed in 1791 by thirty-nine to
nineteen, when the necessity of the institution was not
so well understood as at preSent.
. Mr. Dallas, in 1814, considered the question as decided~ He says, "wh~~ therefore we have marked the
exiiate~Ge of anational bank for a period of· 20 years,
with· all the .sanctions of the legislative, executive,
and judicial authorities, when we seen the dissolution of
one institution, and heard aloud and contin~ed cal), for
the establishment of another, when, under t~ cir, cum stances, neither Congress nor the several states
~ave resorted t~ the power of amendment, can it be
deemed a violation of the right of private opinion to
consider the constitutionality of a national bank as a
queationforever settled and at rest."
He adds, "that-it is necessary and proper for earryiog into execution ~me of the most important powers
cnstitutionally vested in the government."
In 1815 tbe bill passed both Houses. It ~ negatived by th~ President, not on the grouQ,d' of unconstitutionality, but because in I)is judgment it ~ouJd not
. effect the object of the legislature. He says: "Waiving
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the question of the constitutional authority of the Ie·
gislature to establish an' incorporated' bank, as being
precluded, in my judgment, by repea~ed recognitions,
nnder varied circumstances, of 'the validity of suc.h an
institution; in acts of legislative, executiv'e, and judicial branches 'of the government, accompanied by indi~
cations in different modes of ' the concurr.ence of the
general will of the nation."
In the annual message of Beeember following, be says:
" It is, however, essential to every modific~tion of the , .
finaf\Ces, that the benefits of a uniform llatiooal currency should be restored to the -community. If the
operatiol\ of the state banks cannot produce this result,
the probable operation ofa national bank will merit
consjderation."
In 1816 the bill passed and received the approbation
of the President. It has been since th.!lt time in suc- .
cessful operation, and has completely answered all the
exptctations of the country.
During the last year,. Mr. 'Madison has more ful1y
expJained his views • . He says: "If Was on·the respect
due to. the deliberate and 'reiterated precedents, that
the Bank of the United Stat~s received the executive
signature. ' The 'act originally establishing a .bank, had
undergone ample discussjon· in its passage through the .
several branches of the government; it had been carried
into execution~ throughout a perio4- of twenty years,
with aimitallegislative recognitions, and with the entire
acquiescence of ~1l the local authorities, as well as of the
nation at large, to aU which may be added a' decreasing
prospect of any change in the publio opinion'adverse
to the constitutionality of such an institution. A veto
from the' executive under these circumstances, with the
admission of the expediency.and almost necessity of the
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ineasure, would hafJe heen.a dejiance of all the obliga#on,' derived from a cour,e of precedenu amounting
to the requisite evidence of the national judgment and
intention."
. The President had repeatedly brought the question
of the; Bank before the country-committees of both
Houses bad reported at large in favour of.rechartering
the institution-the bill had p.ed the Senate twentyeight 'to twenty, and thro~gh the House of Representatil1es'with a large majority, upon the recommendation
of the Secretary of the Treasury, that the meaSure was
constitutional apd essential to the fiscal operations of
the government, notwitbstanding all the influence of
party management and executive power.
The _'Secretary or the Treasury is clear and strong
on the question of power and precedent. "The authorityof the present:government to create an inlti. ttltion/or. the.8ame purposes cannot be leBl clear. It
has, moreover, the sanction oj- the execu,tifJe, legE'lIItive
andjudicial authorities, afld 0/ a majority oj thepeopIe of the United 8tates,Jr9m the organization of tke
." government to tke present' #me. If public opinion
~cannot' be considered the infallible expounder, it is
, 'ainongthe soundest commentators of tbeconstitution.
It is' undoubtedly the .wisest guide. and Qnly effective
check'to those to whom th'c administration of the constitution' is .confided; and it is bel~eved, that in free and
en1ightened states" .the harmony, not less than the wel- .
fare, of the, community. is, best promoted by receiving
as sett~d those. great questions 01 public policy in
which the constituted auth'oritie,kave
conCurred,
aad in which t~~y have been sustained by the u'nequivocal expression of the will of the people."
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It is upon this view of the qJiestion, the President
finds "precedent dangeroUs, tbat "it ought to be disregarded, that the force of precedents is equal, and
that four-fifths of the legislative, executive arldjudicial
.opinions are against the Bank." It is'manifest the
President has totally miscollc'eived the force of' public
opinion, and the authority or precedent, and set at defiance the legislative wi1J.
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The force of precedent being destroyed by this mode
ot reasoning, and the assumption of facts,· he pronounces
the law unconstitutional, and ~o~? ) He does not say
that Congress may not employ 'aU ,nec$ssary and proper
means to carry their powers into eifect,:but that they
are not the proper judges of-what is Recessary and proper, and assumes to himself to deoide, not that the Bank
itself is not a proper means, but ." thai some of the
powers and privileges conferred 011 it, cannot be sup:'
posed necessary (in his jUdgment) for the ,purpose for
which'it is proposed to be created, .!lnd'ar~ not, therefore, means ne~ssary to ..attain '. the end in view;' and
consequently not justified by. the c6nstitu~iod
~.
This Ba'nk was originally recommended by General
Hamilton, as a necesSary'~eans of aiding the operations
of the government, and ap'proved by· General W8,8h,ington. Mr. Gallatin hilS on sevet:al occasions, declared
it a constitutional and.'proper aid.to ~he, treasury ill collecting and distributing, the revenue. ",Mr.. 'Crawford
in 1811, and Mr. DaUas in 1816, considered it withinthe competency of Congress aad 'an essential branch of
the financial system. The opinions of Mr. Rush are
well known, and the present Secretary of the Treasury,
one or the President's cabinet at the la~t 'session, re-
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commended the institution in the following emphatic
language.:.
~'The indispensable necessity of such an institution
fpr the fi~al operations of the government in all its departments, ,for the regulation and preservation of
sound currency, for the aid of commercial transa.ctions
generalfy, and even for the safety and utility of the local banks, js not 'doubted,. and, as is believed, has been
shown in the past experience of the government, and
in the general accommodation and operations of the present hank~'" '
" The present institution may indeed be considered
as peculiarly. th~ 'offspring of that necessity-springing
from the- incnnveniences which, followed the loss of the
first Bank of the United States."
No doubt, ,therefore, can exist, as to the necessity
and propriety of the' bank as a means of carrying 011
the government-and well may tbe Supreme Court say
',~ that when the l.aw,is not prohibited, and is really cal-'
culated' to' effect any of 'the objects intrusted to the government; to unde~k~ to inquire into' the' degree of
the necessity~ would be to pus'the line which circum- '
SC)ribes'the judicial department and tread on legislative
, "
ground."
Now, the hank .b~ing a necessary and proper means,
is clearly constitutional; but' the President has gone
into the details, and there. finds what he considers, although' C(m~ress does not,' some powers and pr~vileges
conferred on the bank, not necessary for the purpose,
and not, therefore, means necessary to attain the end
in view-and not justift~d by the- constituiion.
Now" admitting the ceDstitutionality of the bank; as
well as the necessity of' such an instItution, to be sus·
a
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If
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tained by precedent and authority, and that they are
not denied by the President, let us see wh'ether in the
details, there is found any thing so important inprincipIe, "so subversive of the rights of the states, and so
dangerous to the Iib~rties~of the people," as to mak~ it
n~cessary for I~im to interpose himself to save the constitution from violation.
\
According to' the views of the Pt-esident,'a bank may
be a necessary and proper means, buUf in the· cbarter,
any power or privilege is given, which is rtot ~ecellSary,
that is, indispensable to a bank, (that is, without which
the bank could exist,) however useful, convenient,
needful, or conducive to the end of the institution, the
provision .renders the whole charter ~nconstitutional.
Thus foreigners and females are hot ' necessary to a
bank; it is riot indispensably neces~,. that the 'bank
lhould hold property, or have banking houses; a capital of thirty-five 'millions is not in4ispenSaJ>le;' it could
well exist without 'paying a bonus-and 'so every thing
which is not intimately c~linected and indispensably necessary to the existence of thebaftk, is unneceSsary,
and renders the charter unconstitutional. . '
This is a piece--orhyp'ercriticism, as ne\! as . it is'ingenious-produced, no ' doubt, by that solemn regard
for the constitution, which tile ~ay inspired, and is altogether worthy of the admirab)e ,coiiclusion to which it
brought the mind of the President to attnul the whole
charter.
.
Among the objections most seriously and strongly
urged upon ' public preju~ice and state- pride, is the
right of state taxation. Th,~re is in the discussion a
-total want• of clearness and distinctness
in the idea. pre.
I
sented to the ~nsideration of the people. When
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rescued from the confusion arising from general and
vague expressions, it will be seen, that the charter has
preserved all the rights of the states and of the people.
1;'he right of taxation, which, from the want of precision, the President treats under one general head,
involves three distinct powerS: 1st, The franchise, or
liberty of banking: 2nd, the capital stock and the dividends of the citizens of the states: and 3dly, the property C)f the institution.
.
The chart~r is entirely silent upon the question of
taxation. It neither gives nor denies any rights to the
states. ' They. are free to exercise any right, and to
~nforce it by ~he cOurts-they stand upon their rights.
The President,complains of its silence; but has Congre,SS a 'power to grant to the states e~pressl" a right
inherent in them---or a right which they have not---ol' '
to, set limits to their auth!>rity.
It is ,admitted, thai the states may tax the banking
houses, and .t he property acquired by the bank; and,
that they may tax theC?apita1.stock of, their own citizens, as they may i~ their own banks, or the dividends
as, any other inoome, and theseri-ghts are not contested,and are freely exercised. The only difficulty existing, . was to obtain the necessary information with
regard ~o the amount of the stock, and the names of the
stockholders, and the provision 'Of this bill, for furnishing that infor.mation; to' enable the states to exercise
their rights, is :aenou~ced in .the message as the very
worst feature in tbe bill.
This was a pre-~xisting right, which Congress could
not give or take -rway-but under this right all thel
stock of our own citizens invested in the Bank, may be
taxed to great an extent,as capital ipany other bank.
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The ooly question -of any real difficulty which arises
from this' 'e-xerciae of power, is, whether the'right totax,the funds, attaches, or ought to attach, to the citizen _
. or the property-to'lhe state. where the ban:k capital
is employecl, 01' where the stockholder resides. Much
may be said on that abstract right; but Congress cOuld
notand did not aecide. The states ha'Ving the power
to tax the income of their citizens, tro~ wheresoever
derived, it,would have been unjust fo grant to other
states . the right to tax the same prop~tty in anothel'
form •. ' But ad~it -the- right of Congr~ to confer this
power of, taxing the capital employed in ~ 'State, and
even with safe and proper' limitations; '~hat ,woald be'
its operation? Most unjust.~ and ' Ulieq.~al among ·the
states. The whole benefit -of ta:xation-'would reSult to
a few states. The chi,ef revenue' would be r~eived by
the states which" from their peculiar position, derived
the greatest. advantage t;rom 'the institution. N ~
. Orleans, b~ng the emporium',of all ,the western, s~tes,
employs one-fifth of.all the c.pital; and the 'west, ~ith
. a small investment, in the Bank, eJDpIGysmQre:tlwi-half
its capital.
.
"
.'
Would it ,be-fair tbat,these favoured states, should
'draw the money froni the other states, -aii~ enjoy the
exclQsive ·benefit of taxil;1g ·the capital in the- .Bank?
Would·it be just that ~lte stateS 'who equally grant ~is ,
franchise, .-and··who ' furnish' :the means, should ~ ~ut
off by this. Qlolie of distribution?, The states would not
submit to such a system, and it· would'be' grossly 'iniquitous to tax the capi~lin'onest&te.and the divide~d
in another. Congress have ,not interpC)$ed in this question among those states. "
'
,
Tl},e ,charterls a national grant:-tt.e franchise, which
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is entirely distinct from the property or funds or dividends of the institution, is conferred by. aU the states
as well as by aU the people'; the li~rty, whatevel" it is
worth, b~ongs to them to gnt.nt,'and the bonus or tax be, longs equally to aU the parties. The charter, therefore,
wi~ly 8~~ates that this fund sh&U go into the common
tre,sury for the- cO.mmon benefit. When there it ii, subjeet to th~ d\sposi,tion,of Congress. and at a propel' time
it would have· been aquestion, whether it should be divided 8.Il!ongthe:'slates, according to population,or appljed to. same Ilational. plirpose~ in. which all the 'states
',may h~ye an equal interest.
'But if the charter: is constitutional, Congress alone
have the .right to gr1Uitthe franchise; the states then
, Can hjve ·no power to< a right, which Congress alone
is competent, to make; a right which,being unlimited,
would be a right .to ·destroy what the other only had
the right to crea·te. It would admit., the absurdity of
. two' incOmpatible jurisdictions.
'
The pow~r,o"f 'taxing,th~ corporation involves in its
. exercise ..an allsolute -cOo.trol over' its existence-aad
,upon 'tins ~ririciple ~he &up~lrie,Court decided a~t
-the right, of the' states; a'right. which some of them, in
the spIrit of hostility,' ~re dis~ed to exert""':'to proJiibit the ex~rciseof tJie.priVileg~ withip. their limils,
, "and ,thereby destroytbecoDaexiQu,'harmony an4 utility
, of the system,- and' defeat. the M:rposes of the ~vern
ment~ . Jt would' be to make the insiitution, .created for
natienal obj~ctB, ·de.pendant on the concurrent will ot
an and each of the:states. _.
" In:, any event, whether- the stateS' possess the right
or not,f Copgrtss,canoot and ought not to grant'it, an~'
, much 1e8a.~n·they afti~'limitations to .it.
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It is. know~ t"'t·the. state of N evv' York, .a great .
commerCial state, in the 'beart of the union, 'from
the spirit of 8ggrandiBemen,t, or the ambitioii of eon;.
trolling the monitory system of the UDit~d, States,',
or for political pU:tposes,.. would·refuse·the BattkadJ.Di&sion, if that was, required, or ~pel it by taxation, if .
the power, was conferred. ~
.'
The. Bankelaims no exemption:from:·ta:X:a~, and·it
is· indilferent whether the-amount is Pilid
.'r,onusto
the governmtmt,.or ilUhe form .or:'.a;,taito..the stIltes.
The rights of·the,states are eqUally p~~rved, ~nd it is
equally indifferent to the stockholder, whether. he, pays,
in the state where' h~ .reSides or where; the Qapitalis
, employed.
. ' -',
. .' ,
The Bank of the: pnited:.8tateS, to mamtBin a.-up
equality with the state' institutiohs; ought to pay what
similar capital pays; for' banking privileges, and the
support of governmcmt."
, " .;;
The bi1l, hllS'.provided for:a bon.us,.(~o. the. amount ot- .
which reference will be hereafter 'mad~,rfor the, franchise ofbanking:.and 'bther-pl'l"Vi~~g~41ial waS a power which .could not be dele8at~d to -the states, arid \ in '
this bonus all the Btates~quaUy participate; but,/t&e
states enjoy ·the· ·right· of· .taJ!:IDg the, stoe~hol~r..
The power is eq~aHy~tid:justly'distriblited between .the'
two sovereignties, J)oth.,constitu,ting fair equivaleJl.t,
- and placing't4is institution ttpon (II equality w~th the
other institutions .• ? '.
. ,
•
Th~ SQP~me Court. }lave ,dt~ided' I that', the,
states cannot tax, the institj:ltion" and
grant it"
would be to tax it' tW~ee. Is. there, iJl al.! this any
thing injurious ·to' state rights, or
the coDstitUtion.
I~ there not, o~ the Co~trarY,. .the ~videnee of a pro- ,
as a
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fonnd investigation of all ~e rights of the ~es, and
aD equitable adjustm.ent of t~eir several interests•
.The next··objection, in.point 'Of importance,'is that
,the corpora~oll cannot hold property, and that' if they
could, 'it is not 'n~essary to the institution, and therefore unconstitutional.' Property cannot be held, lilt.
Because the government not having power t'o h~ld it"""':"
the right ~annot be· delegated-and 2nd •. Because it
, infrinies the rights' Qf the states in the- control of tit1~
.and t~DsferS of ~l property. .'.
. . The government of Ute. Uq,ite4 ~tates). being 10"
, ver,eignall:.to certain 'powers, can exercise all the
powers incident ·to, or nec.Cfssa'ry'tq that Sovereignty.
There
powers in relation to cerWtl things, so
. tra~~ndant. in 'their nature, that they. may 'be said .
to be ahove the' cQ~stitutiQn~ The. right, for exam'ple,to use, all the· Bleans necessary to cury-. ~eir
powerS into· effect, would have been. just as much
.within. the ~pe .o( their powers, if they' had not been
-expressly ~nte4.
Whentherefore·it is, in the discre•
/I
.
tion of ~ongress, .~eeessary to a9quit~ Jand, for any proper purpose of· the :government~r' houses, ships, ~r" mones, .a,pms,.. or any thing .else necessary to make war,
or ·regul.l\t~eommercef 9r coin, m9ney,or to regulate
the currenc1, or to ~o~et tbe .revenue, they have
a clear ilnp1ie~ power to· acquire them. ; By what
authority was· Louisi~n'a, and . Flcmida acquired, or
the boun~ie8, of the United States established. It
. was Dot gnwted,in the ~nstitution1 bu~ it was an emanation of, the. S9v~igD pow~r, exercised under the
authont~ to make tre~ties. ,.By,what ~rit in the constitutio•.are lends acquired from the Indians •.
. It .is 8Irld. tho po.wer: of, the,gover~lDOlt is limited to
purchasing for 'the "ere9t.lon of forts; magazines, ar-
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senaJs, dock yards, and other Jieed/ul ~iltlingB." 'HOll
then have they acquired' srrBs for light ,houses, amio...
ries, mints, hospitals;, custom. bouses, ~JTI!.cks, l\nd for
the miJitary 'academy; ·th~y a~ nqt mcludedin: the
enumeration";"'ner do· they come' onder the head of .
"needful buildings."" ·But. suppose ~and needtul for .
the growth of' 1,ive.'oak, for t~e'supply af the navy-it
,bas been. purchised' f~ this pu~uppose it is
, dec~ed necessary, to purchas~ lands;:and 'hQQSe8- to se,.
cure debts to tJie government; rthe~'ilJ"Jl6w'an actot
Congttess·authorizing. the Secretarf Ot,the·Tr,eulJry."~
purchase property,.ttnder ex.ecutioo, and·. under it"!,
lands . ha,!e been acqui~d in. ·.~veral stateS. .' Tb~
g9vel'JlJllent 'may therefo.re.. hold lands in .tbe states-- .
the consent of. the states is 'flecessary, not to enable them·
to buy the lana, for any nece!IS&rY' purpose; while it,
'remains subject' to the, jprisdict~on of tire sta~, but ~t is .
necessary: only when designed for either of ,the purposes mentioned'in the constitutio~ 'to have the jurisdi~tion and sovereignty, whicbA!~ nec~ to·ex~l't
the authority, and' extend· the laws of the United·State.
over those places.. ~.
....
. The government -may:do many thi~·by ·others,. or
exert its powell through diff'ucnt means, either of eontracts, agencies·' or corporations.·-.I~ may 'build, ships
or coin money by its own·ofB.4e'rs. OJ" "y'cOntract; a corporation might: be -created ~th- the Special ,ppwe:r- in
these . and -sl.-.ilar caSes; it may confer '. the power
necessary' 1;0. tbe .end., A' bank is necessary 'to ~I
leet and keep and payout the :revenue,
for. other
purposes, Connected. .with· the" 'clirrency.' _. The right
to have banking.h~ .is· to a ce~ degree.nece,s'sary and useful· to the, .¢Stabrtsbment, and the rig~t to
Ilequire property from their' debtors is a natural inr
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cwent to the right of collecting their, dues. This right
may not be indispensably neCeSsary ,to the existence of
the institution, ,but it· was not granted: for the heneAt
of the.~ Ban19: but cbielly of the peopl~ right by
which they :could,. in tb,e. event of..· ~sfortune, deliver
up. their. property and be disohmed from the debt, or
transfer it to tIl~ Bank. f~ a'high~~p~c~ than could.be
Pbtained from·oth~rs., The power.·hlUJ·beeJl beneficently
'~xer.t~d, qd has given rGJief to many individuals•.
. The' charter limitS, the power of holding. p.rOperty ~
five.
s.o t}lat it.does.nC)tinterrupt t1ie laws oC.de:'8C~tor the. ~g1ls of escheat; it does bot become indi. vidua1.pfope~ty, and·therefore·notof aliens.·, ButiCit
aft'ected the rights of the ,sta,tos, _th¢ Courts would cor.rec.t'.the .error, but no state has cOlRplainecl of this. privilege, and the objeetion_ is, entirely, gratu,itous. on the
part of the._ex~eutive, and evinces. excessive fastidi01,lSnt:ss and;morbid seMibility ab~t state:rigbts. .
, ' ".fh~reis no ui()ti~ of interest 011 the'part o~ the ballk:
the :acqu~tion ,.of property is not the object, .it -is the
result of iiecessity~the mea~s of saving under pecu~iar
ci~)lIQI$tnC~ the debts 3Jld rescuing the debtors. It
is ft. power used for the safety of tr.e_Ban~ and the relief
of'-indi~uaIs, .by Which, they Y.Q)8IltRrily dispose of
their property, upon t~~ ~t advantageous to them,
and most frequ~y save them'S~lves from hopeless ban~. ~tcy; aDd;, cliseharged. ft.(Mll iheir engagements,.~
conunence business unde~ ~Qre fa.vourable.auspi~eJ. . It
.. is.a pQ-wer,tOhc used only ia extraordnu"ry cases; and in
. ~'. of generlll ~~. ". In Jordinarr times,: when
proper.tY will"'l,,!here can 'be no necessity and no objoet.in 'tex~Jlg theri~; and therig~t·has··never been
,used" but ,?r .the;relie~. of the unfortu~ate.; .~nd there
yearS,
an
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will be D({occaSion to'use~the power, ~th01lt !Ome vn':'
expected revulsion, perhaps during-the, continuance ot
the .charter.
,.'
oj'
' . .
.Another ,objeetion to the constitutionality of ~echai-- .
. ter, so novel to have ~scaped the attention of aU tile
astute lawyers, and,all the sagae8)ustDen who guard th,tJ.
,constit-ution in both Houses of ..c~ngless.. It relates to,
~lie -sti'pulafion tha~ b01>th-:r Ba,* shall- be established·
duriD~ the period·of the ,charteri:aqd: ceJ:tain li~ta
'-t19ns upon. the pow.erof oreatirig' ~ks in -~e District
of Columbia. Let'· US ·test this ~ew,princ.iple,',which
is, put fortb. npoll the single, dictum., _the' executive,
~supportea by reaSOll O! authority. '~ .. ,,' ~. -.' ..
- CongreSs th.en 1ia~e no express' power to grant co~
poration., but merely an a~ncy or a ~eails Of ~.
rjing any'of"its'gel1eral.powerS into eft"ect.' Congress
haveto collect revenae from'imports:.. it-is.indispensable
that there··should be a currency-in which it can be Paid
af equal" uniform value-otherwis(, .duties would be
nneqUld .at the, clliferent ports; 'and a geaeral tleJ.!&ngement would -ensue of all the affairS of· gOvernll\el'lt~' Th,e,
lbOney muSt be ,safely kept, awl, p~tnpt1y ,distributed
, to dift"erent p.arts of ~Iie union •. ~
eWectthese .objects"
a bank. b@I'beeainstituted, which,' after an experiment
of fifteen jears,-. ~ &,atisfted Oongress, .th~t beSides
other .,benefits, -resulting' from the . institution, 'it 'had
ac~plishecl 'all the' speeial objectS of i~ creation.
Anothel" bank would not therefore be necejSary, and
therefore Could not be: pnt-ed, and w~uld b~ a vi~latio~ of the constitution.: " C~tlgress believe it 'indispensable to have one bank, but that'a'second would'be not
only unneCessary, but w0J,11d·defeat··tbe:operauon,,·aod
destroy the usef~ness, o(the other. ~ow.~he Presi- ,
as
as
a;
as
To
'.
,,-_{.
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~:
dent, who aeknowled~.:that ,~the· bank is. in many respeCts convenient to the government and useful to the ,
people," .with.!ldmita~l<= Con's~stenoyrefuses to approve
the first, which ·be; pronounces uncOJlStitutiopal,'~cause
Congress have stipulated',that they·will.not make anQther unconstitutional w.tik: ,But, says he, "Congress
ha.ve taken· away [this. .right] from' their SUQcessors. fe;»,
twenty .years;" '.'and ;it ca~not he necu8ary OP pr.oper. to
~arter away any ot. the powers vested in,' them to be·
exercis~d for the publjc ·gooC¥?-therefore th..e concll!-'
sion follows; tbat,. as thjs stipuI/ltion is not'neee.t8ary or
proper, the act i's .unc.onlltitutional. \' "
.
Now" btS~esi that nO,othc=:r.banltcan be necessary,
this is in its nature. exclusivc::-th~ d~ties (as being tb.
deposi~1'Y of the· public money, .&c.) could QnIy be
performed .by o'ne-'tb~re would be. tPen:fore.. tacit
uoo.erstanding, in the lIli,nd ,of the parties, ~Ddiqg, in
foro 'conscientia, ~ sort of good faith" resultitig from
the nature of ih~ compact, obligatory upon all men o£
honour in the ahsence of,all stipulation •. '
The president' has' invoked a priooiple. in this cas.e
of great'public eogsequenee, ~nd of universal appli,ca..
tion •. It was not sup~sed: t~at atth.is day any public
mall wu ignorant of the natllre·or extent of tbe,priQCipIe to which one.Jegi8Ia~ure, ~ay bintl- its succe~OI'Sr :.
The p.rinciple is: not .true that one legislature caJlnot
bind another... From" tlie.nat~re of their .funct;ions, it
results, t~at they mUst, froin Decessity" b.in~ not OJlIy
sl1bsequent-l~gi&latu.res, ..but- posterit~. ..'
La~s in general are passed ~thout limitation of
tim~, and' 'are "rep.ealable. tit all tiptes;' but they bind
during. all time" untill'epealed.
..'
.t.jvs ~hiph the public interest requires .~ be per-
.:to.
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good
mahent, sta~dupon. ~~
,fa~~h of the country, fiueh
is the pledge of t\le public lan~s---;pledges 'of taxesan appropriation of· ten 'milli~lis,to the sirlking' fund-.
and others; they may 'be .repealed,bllt it would 'be a
violation of th~ iiopJied faith of tlie nation',
Laws whiQh cre~te obligations ~nd vest rights, such
as the pension Jaw.s, which· ~'I'e binding during the life
time ()f thepersoo, conipacts ,:with ,illdividuals of par-'
ticular 'duration, aod charters having a ·limitation· of
time. ·In· 8,11 such casesj'there is a lilip~pior la.w'of
,honool" aod'-du~ythat bjrids;t~e~civilized world, that
stt:ains the subseqlle.nt legislature, and forbids;th'e violatioo: of persolialrights. . in'the. case'1.>efore '~he,P~i- ,
dent there was a compact, itnp.o~tirig certain o"ligaclo~" ..
-and cr~ting certain rights o( property, to continue1or ..
fifteen Y-e&rs-:.:-was that, not bindiQg ~n sUb~equcmt legislatures,-as Jimd) if there was a formal. stipulation
. in the act that it should not., b~ fepeal~d), ~nd would
such ~ provision vitiate the charter,?
,"
-The :.act confers certain Powers,and privileges' in
their nature exelus)ve-'-Could :Congr,ess, if they dould
not repeal "the aot;, take them a\VaY'by,graJiling the
same to. otherS-', would' it not, be to do indirectlywbat .
they coiIld not· do di~e,ct1y; and will a stipnl~tign not' to
impair the grant by.a.' subsequent.'act, invalid'ate-the,
ch~rter, 'or impair'-any right of a subsequent: legislature?
'
, These eri"m'S result'from characteristic'precipitancy, a loOse generalization' of ideas, 'the wani of ,,sober
reftection and ace'urate analysis; they ¢9uld not b..ve
" .eorallftted from "the ilk'iIful and practised statesmen, ,his
constitutional advisers-but how 1a~ntable that sUch.
priuc.iples, under their auspices, ancloo' theirauth:ori-
re-
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ty; sbou,ltl be ·ptit.'forth, .to de~eiv.e ~a too~cli!18 pe0ple, and.tI)Justif1·a~gi'OSS misu~ of ~er. . ,
as it reglJrth the r~fereDce_ t~ the~ district _of Columbia, it is' only. D,e~.~y _to . aad,: tbllt the stipulatio~ is
rather an ackPOwledgmept -or ~ ~r,a:tion _, of power
than a limitation; i1thougke.xp~e.J_ in nega~ive: tenDs.
The~ are. five ·banks.alreadywitb_-8 cltpital-ofJwo 'or
three millions of dollars)' besides the B_k of ~he:Uilit~d St.,a!~g, ~l!ic'h 'ai-e quite sufficient, atl~ otherS
bl!ve' heen' asked·_fOJ'.• , ThC·-stipulation ~t,they ,will
no
JlOt~:'on.pt;,eh8r.t~ring the..), 'incre~:t.heiJ'_~pital$; '8I1d
-that-:in m~~- Dew-:-cinea; .tlley: will_ ,riot exc.eed -six
~!lliOns:f>f -cl9Ilars,·~B.-sCarcelY':~ -c8IIed·.lill\itatioo.:
bijt it -c~)lrtains ~ direet ,inferenee,. ~W;:t Coogio.eliS· may
illC~
-.
. -, -them
- to_.8n almOit ~Illitnited. e~Di,- and ,Ilegativ~_.t~l(~:-~s_ ~.mi~tw~ .been drawn from
the_~,·against th~:exercise'oI; thii~; and this
is:Oill~"~. pQlplJlJfs:~emp.t to· amend. the ·cO~tu·
.
,"
.
tiOJj',br ~.aQt oflegisJati.on."
.' - ADotb'eJt-·consti.tJI~~ objection is, that ~'i.~ COngress
••
-
J
.laa.vo. any-~~~to,r.igulate eurreJjcy,-.(wtlicli he de..
nl~)' i~w.a8..eo~ep~d.W be exe,rcise.d -b,: tbemselv~,
ad' not',.to"he ~ra:RBferred--~ a corporau.!'- . That is.,
.~at, c~eY'~aD-oriIy ·be·ftgulat~d bY,u)act.of COil<> .
~2'.d';c,anllOt .,., .affectetl:bJ any ot~er, ~.' or·
~J:,-Whicb:,)s' ~uiva1ent l.9- ~eOIa"'1!gJhat m.oneJ.
~n 1ml1De ooined by ~u.te·; that ships _can be built,
.f.:·ma.ii-·,lp~~, ~I'.(tl- th~' ,!'-8.v.,ue co1l~ ,and
. paid. oUt-owy hr· JII!W; and war ~ o.oIy, by ~P1a
. - ,: The _Baagie-powe.i of th~ ~w over the CUfteUQY
wewd,:~ ~u.t. the{~ to.,h ()f·MiclaS,. '.
, Tb~ ~l'S are .eJ[e~ed .~y; CeJJgto~.in various
...,~- but·"Wa,ri.ia the :wa, to ~trect the, object, either
by Jaw or by agen:ts; by contracts .or by coPpor.ations,
4
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and it')S 0~OU.8 ,tba(:th.e·p·urp~~e· of'~tlle .b~Bk: cOUld ~ot
b~ aceomplished'in any other. mc,>de,": eertainly"so well
and'So eft'ectually~: , ...,:.' ," " "'.'. ',,' .... , ,J••~ , : .
These ar.e -the :eon~iltu.tional, -ebjeetions upon which
the 'preSident 'h(ls rested,·theveto.· It 'has been seen
t~ey ,are ·~,uten~tile;·;ibeyate 'founded6n erron~ous'
views. and ',false' rea$oliing~.: This'. i&'uot aU, the·doc.;.
tr.i~es-~f:cai'rie~ oUt, \!(Ju!~. ~~ ..ro~rid 'i~co~patible wit~
the exec~tion of all tb~ Jaws; ru)' ,\aw' .e8"bli~hi:ng .-ail",
of .'ou.r "8YS~~D\S call '~nd. Such a' scjoUtiny.•.. ':,Cail-: it De
imagined,,' th8:t~ev~: ptovi8i~Di in ',e~ery 'act; iii 'in . ~his
:1.00se. sense, ,.ecessarY", to the. main' pUrpOse,~ and ,th~t
. therefore' -th,e jaw, is. "»n~ons~~utibnal" 'and .th~~ up,~n
thls assumption ,,~~ may:,-~'upon, bis· peculiar piinciples
of/a~tiou, ,~e to,caiTy.th.intQ .effect? :..Is every
proviSion
the laws for, ~~lectlDg- im~,'.for 9rganizillg· tlie'jqdlc~ry,. for -tbe:.ad:~initiin~n -9f:the
publi~ ll,llds- indispensable, and 'are :t)ie'}aws tberefol'8
void? ", For ei~mple, the oa~h ,at
custom hou~e ij
in..
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J
,ti,e,
not~ab~hitely nec~ssarY' ·the du:ties- cDuld',be,collec'ted '
.~ibQUt, perh~pSJ 8'S w,e11 ;, it is ~p-ei:ls,e~:,Wjtjl in' :r:n:~BY placet in. ,Europe,:, ~ : is ther.ep~v~rhially' Usel~;
_.many other ~ .Qf tlursanle Jaw are DtereJy a choice'
exp~dientB,JIlJ>re :or leBA conducive to: the end~ I~
~~r,y part .of the JDiHtary system ~ecessatfto the. co~
man def,ence:?.-And, Wl.lIl~ is ,the 4egre~mneceS8ity)hat
'''-es:the act and· al( lts. parts constitutiot.al? _ ,So~e
idA} sf:aQ.d;ard of~~physical l1e~ssity exis'ting:,in-the
Bllilti. " h is a. theory: of the censti~utioQ;tllat makes.the .
. gove",m~nt im~b.te.: It isf~uu4ed in:a ~
abSurdity', .a8d
~e~. exploded as a inisChiev~~ fal!acy. Ins that no pGwer or, meapiJ. can',be u~d, that.
are.not et8~~ to ~e thing, that is ~~p'_b~; ,~d
or
has
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'
. ibat;is, with9ut ~hich
the:
,
tJd"Qg Carinot' he. 'Now"
nothing' .ill :indispetisable" 'w,~en ilny Oth,er thing will
, accop.plisJ! the"Same ~nd~, tberefori, while two or more
, things 'exiSt,' adapted to'the sarile end,- neither of them
can,' be employed; becaus~' Ileit~,er are iooispenSa'ble.
practical
, The "constitution' has-'nQw', re~eived ,a.
cOnstroction 'hi all-eqligh~eneci 'statesmen; .' ,
';: 'But' t~el>r,e,sid'en1 haS ',armed himself, with' 'other,
.,eaB& of.defence" 'and",cJi'awn, into the disCusSi()~ other
~op'i~; m'ore dir~tiy addresSe<i"it) the feelings, pa.ssions,
'more
aun'prejtidiees of"the.,people~" iIIs'inind seems never
'~l8yat~d:to-the dignity of i~e snbject,"or,insp"ired by
':t~e- :sQl~innity' of 'prono~neirig, his ',jia". in' a ,~ase, in-
. volviiig such momentous ·considerations. ,Instead"of
, ~~Qkiu&' to, the 'greli~ otijectS', oi t~e in~titutioll and its
'iri1l'uence 'upon 'the 'pro~penty
'~ country, he is
~~hi4g for -difticulties,- and groping with petty detaiis.'; ':The t(jo~jp~as accomplished" the eyfis :i~ has
of
reD,,~died, the benefit -of a sound currencY; an ample
'ci~lation and free e?Cchange; the evils gf depreCiated
paPQ;'in -tb~,disQtder'itcrea~es an~ tludQgs, it inflictS,;
"the n~c'essitr,6f. a sYstem wmch has the solidity of ' the
, pt.eQious'~taIs, aD.~ t~e ca:pa~ity apdexpansibiJity of
papet', a~d' its" ~eral 'effect upO~' 'di'e itability of property an,a pl'ice~~ t;lPou' t~e ',industry and eptel'prise
• ~ 'or 'the' peopfe,-and 'upon 'th~ ',~rev.enue'ot, the country,
~ ." , ao Dot 'enter. )iit~ his: view~~f p~blie policf. The
" 'iDind .of: the, preSident -runs on, ,the stock,holders, the
, bonus;, ':~poti ta:btion~ 'and ,foreigners, and' aD, 'the
iilinirti~ ,in t.he deta:~" of sucb' ~ '9'stem; expreSsing'
~I!'ariow: notions, illiberal' prejudi~s; 'andinjunous suspicioDsraftking ,beal't-burning jealousieS among (lif- fe~Jit ,c~,.,and- ~08ti:Jjns'.tlre WQ1'8t passions in· •
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bosOms or ihe '~,~~n; t~e, 'igliori(n~~ 'the needy; ~iid
the desperate. ' , : '
,",'" ","', ' , " -,', ,
, t!,h~ ,first im~i~n .1~t~nd;ed. io' be ~Ilde;,~ga!nst the
ban~,~ br cOnj~iing up ideas of. ~(?.f:lopoly anil'e~eI1:I, siyeptiViIegeiJ, and exciti~g odium by t~e-force of'asSo.
>:. -' ,
C?tat!mt~: ~is i8'an-'ge~erii~an4;~ild. d~]atnatic.m, weD
'
, c-alcuIateC1 tQllctup~n p're~existi~g 'QIiiwOtlS ~nclpl)pu-'
Jar feeling> ,·But-th~ig DO mon,oj>oly 9f'!lanlj'ng~ 'or
of discounting',notes; dealing i~,,~~chal'Jg~~ :::£veij'
,jndividUal may.buyaiul. seHnote~,a1td bins~o'texehaPge~ ,
Every State' lfIay:.grMit' chat'teri: -witbOlit,' 'iimit,;· arld
th,ere
baD:ks' iD.ilumerab:le:i~jbe,se"V-e1'allltateJ, ~th
,the,sam~ po\Ve~"attd, ~~iIep'of banking'Withint~~ir,
~v~lsPfle~J'~o- tar,: tber~rore, '~, bankiugis eon':
ceraed, . t~et enjoy, n~ . p~~uliai-<fayour, 1)r, exclu~iv.e _
-pJ'ivilege: the idea or inoiJopo~y' is. the,~fo..e a: vulgar'
'error~ The powe;r is a mere'banki~g':p:rivii~ge(ilebl
in cominoh 'Yith other institutioDs;':enle~ingmto active
competition with -them,. as well as':'With,indiYit{Ua18~'
The' charter ,outy''conters a· cO!'P0t8.te .c~a~ter, ',the ,
right 'to sue' and b~'. sued, and eX¢mPti:oi1"fr~ pe~DaI,
responsibility. 'rrhe banle, enjoys ~~e eJtclosive ppivi..
lege, while it does'no~ forr~it its' charter, lU1,d:;U~der the
-di5(:retion,ofthe Secr~~ry 'Q; tht?~T~(iry,' of !ec~iv
ins-; keePi~g, -and pay~ng o~t'tlte ;pub1ic ~vehue; ,' ,it
is in ItS nature excl~Ve; i1;'.i'8 an 611ic~, Jnfact" ~t dO .;
more ot- Ii monopoly truui any 'other', ageo,~y ~op. 'mn~~' .......
or
are
~nder the 'gGvernlQe~~~6 mor~'·iIlrlll: the pr~'.i~en~
" , ,... , ",' .-' .. '" ~'" ,
,' ,'Thi« haS given rise ,to.'a1r:th'e' ciurt a~Qfit ' ," ~rtift~
ofltce~
,
dlstin~tions," granting ,f.'~ titles,. gratuities~a\l'" ex-,
'eluSive privileges, to ~e. tne',ncn- .rich.et, an~ 't~
ooteJlt
iriore'powerruIJ''''~
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,','the' 'bigJl alid 'th~'}oWl, the rich. Ud th.e poor;'" and
artful appeals:'t~' tb~,: pJ'id~' of that. numerous arid respectable clilSs, ." tl)e ,}armel'S, ,~baDics;, and labour, erS;'~'wbom: he'de81ggQ.tes,o' ·~'tl}e humble me~bcrs of
~jety."
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labo~,tn.'a ':!lpil'it-un~COining the
. ch~ef"magis~nte:o(,'·thi!i:great nation, tg, infuse inio the
~iid8"O~ ~~ ·peopl~,.an·~benll p~judiee agaiqat (o~
'.< -"" :, . ", :.
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l"ei'grten!. , ,:" .~:n..e c~rterWas _gra~t,~d.in·181~, W~etdhere wasa
sr.eat'·~fCi.tyof the'pnQioQ~ tnetal,-.,:· The'bOOks were .
op~e4 to,rore:ign~rS; ;in order l.o,attracttbeir', capital.
they·had (~ane~fus, b.reply :(Juring ~Jle. ~r~volutiob, amI '
beJd' extensively not ooly'-govel1ninent; 'but many',other
kindS
Am~rican stookS'.' The' bank haS been ,·coin...
,.p'eIl~d to bOrTO~ in ',Eur,?pe iarge ~~s of. specie, in
, oriler; to. :fi.lLup -our circulation. ~e gnve",ment are
n~w: p~ying' ihi reDin&lit of the public aebt ;
whiie
" fo.,ei.gnerS may ~take'1!=n the state loans, subscribe. all
state '-banks;' and,'Jiold property, credits, .and securities
.. 'Or, ~Il kin~while they ,ar~ ~t only in~ited to invest
. among us; ~u~'a8'encies. are:-sent to t~eJli procure Iponey
. ·_..,....,.while·-alf our stOck. setl .8$l#.eebT,~n· ,Eul'O;pe as in ou~'
"
.or
.
and
to
to
9wn.market;·,and 'derivctenllanced' value ,trom them, and
. while. thiS', 'r~e~om Qt"~de' ~ry~s :.to"' re~der capital'
~b1iIidant, an'd intere&tlow;,and' eJterts the most' direct
influence on' alrou~·toreign>~iatj.bns, the President. is
.. 'iiJstiiling-lntoour ears suspicions,: fe~rs; and hatreds.p.rovOldng ·lelilousi~s 'and en~istil.ig prejudices against
. f~ign--'s~ock1iolderS, ,which wo"ri~ds their. nat-ionalsen8ibi1itY"a~(;~r puhlic credit. . '. , .
"
'. What rendeij- ttii'S' mo.st mottifying 10 the national
. pri¥, is, tl)at .this~ ilt-nature~p~ejudlce against f~
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reigpers', is'iric~mp~tible' ;"'ith' "~~: ch1&aet~~,,:'o~
princq)le&, o~.. s&c;l111 :feeling's~'and'out '~ti'OOf ",
,While ~r ,~()\intfy: ~s :t~e 'asylum ~r tfie,'unfortu..
nate and 'th~ li~~~ppy ,an,d tli~.'oppt~sse~ o~, all 'pa:",
ti!>ns;:whil~.'~eiriv,ije a,ll,the w-Orld1.6 lay ,(Jown,their
, prejudi'c~s a~d ,abjure' t~~ir>~rr~ts;",t()' giVe .'JiberlY· "
to man' ~Ii(l- freooofJi' to ·cominerC"e'; 'while W~(are'
.looking" to.'the· in1tuerit~ oi.iiberal ~Bd ~e:nljghtened'
Viewl, of p,ublic' pGlicy l1~n 'the int~~-ou~ IO~ n~~ :
tions, pr.incipl~!t~so consot:ul~t '·to :the :spirit' ~,t, 'o~r."
iristftuti~ms"a!l~ ,die ,professH'ons:of ,our_~peOp~e, the,
P~esident'()f the'~ :trDit~d:;States talk~';{)f the"~ayger.'
. 'o!,for~ijn'capitarto' Qu('cOth1ry.' "
"".' ... ,."',',.
Money. ,is Jik~-' any' :~therarticle of me~haridise;'
it has a~ ,rehl: 'an~ iritri:ri~c, as, w~n as an establi~h'ed,
valu~i~,.seJls.~n,,~ver di~'w~rld
for ,~very pro~u~',
tion of every C1iip,~wlIy, theretQre,-$hotild"it "pe'
excluded more ,tllaD any oihe~ 'excti~pgeable .'~~in.:
moditf,?" It.' th~ . r~present~iive '~i,$o;'of, aU 'other'
t~ings, and. th~'med~tim-' by )Vhlch.:~ll' .t~ings ate,
measured an,d, sold~ certain·p6rti.9~ of it is nec~
suy .to tb~ tr,ade:.of JndiYi~uals. ,and: the, cc)riurier~i,
is'
of na.tio~~-.itjs t~~ In.~a~s~'Jils~;tiy \v~ich il':'~stl'Y:
and ente~prise a,t,e' set in motion. _' 'fhis is;' cjHJ)parativ.~iy ,a ~~~,~'ohntry: _t~pi'd~y)~reasiJ)~ pop~
lati,014 ,deriviJl~f, its' stlel>Ii!!$ . .of .t~f ~eta!s., 'fro,m:
abroa~, .~aving l,ess th~D' ·the.ptber ~coQlmer~lal: n~
..
in
tions-of,Etir9pe~ with .in.tich,gr~ate* d~m.nds;',:and
much more', pro!itahle"~mPl<?iment, f~, i,t.,' Why~ ..
. therefore, 8houl~ it ~e, pr~hjbit~~? ,~s there more,
'_f:&@er in .i~~dUcjng' lDoneY,. t~an any. other ~~r
c~~ndis~? While: th~Y.' ,remalu, .:they. '~~ botl), ~r8!,
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, and:, ',!lr8n ~bey' retur.n, ~fley 1:!oth':'tVi~~raw ,their
equWaleDtsin'm~ney. or pt'Q~QctiQD,S,of the ·cguntry.
:, ':, The'aQtivity of trade,:
Progr¢s,8 of improve-
the
,~eDts,:th~' p~ospe,Ij(y of,tl)..~~cOUlltry;,theabuDd~nce
,:Of capital; tli~ low' rate' of intete't, ~e., depend, in a
. great,',me~~e, upon fo..ei~,oapital~~nd must do so
'Until;'by, !lUr"jndWJtry, w~'-~~ve'gain~d _ 8uftieient
quanti~y ,Of ~e precio~ ~etals..
':,"
"
, '''--1:'~e cduntry ~ay owe'~~ (oieigners fo~,ID.oney'and
. 'm~rchan(Jisefequ~l to~lfthe circulatip~,bti~ this is
, 'Dot :more)ha,n':Otte-~~th'~ of' one year's ia~our;,ot ~pe
':Y'~ar~s eXp.drf. :Brit this'capital, besides,adding"every
" y'ear:tQ =ttie':Jla;tiorial ~api.taI, is W.~l'k~Dg mi'ratles, in
our'land~; seetJte axtension ot Cliltivatton 'and-the im, ' provements of the' co.untry; in house~ roads, canals
. , and rail~way~see 'the gro.wtli 'of tl!e cities and to.w,ns
, ~ee" the -mme~ and the wo.rk-sh~p~see the pro'gre~s. of',natienitI and individual weatth,.the'iDCl'eas~ .~ c~~forts aii~ thei~proving condition' of 'the people.: ,How ab~qrd; then~ to. tal~a~out the 'capitalo.f
for¢igners~.to. withd~a:w it w~n;ild p~talyse indufotrs,
c;l,erange co.iiimei'ce~ involv-e the ·property and for'tune~ o.f the people,aI)d,destroy the wOnd~rful crea, ti~n$ ,~~ ~ndustry, ,a~cfge~i!ls and aI:t, t~a:t ate every
, whe~~ risn,g. ,aro.und' u~, to. cQeer and, ~nimate the
'h!;art'o.f'the·'patriot. ' ',,: ~',' -, ~" '~, ,',' .'
: ,p: HOlf! absutCl to -talk' 'of an'advance 'ofstocks and' a
'la~~', b~~; aD~.,!it '~lie'sam;e':illli~, ~f exci~ding
, fOl'eigil Capital~ 'wb~ntlieadvance,aDd the, value of
)li'e ,i;lOnuli, ~,ep~DaS ,entirely
th~ inilqence of
upon
fore;~ capital!.! ~', ;, .. \ ,:' . "
',:
, , ,Aild ,~hat '~~ t~e ~bj~tioDIi?,'., ~e foreignel'S oWn
about ,one-fifth of the' stook.Qf the
they have no
bank;
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34' ,
~te ill_el~onst'_~!lQ''PQW~ ~\h.'·pv~nt
or
~.~ .ins.titu~n;·:.nd,::·~r·:ait ex'~~ien~e~of ~a~xteeij ,
yea~ they. eviQ~e: .Q~gf~' ~~ire. to ~onDRPliie -this '
itqclt.,:..J~.Ut ,t!t~.: .!7~d~~appr~~~W;-~tlie .tack \vi~l.
lis. -t9'· ~y .p~;s.;' ~t., .. tI}~~ they,' will: ·-~ay. it 411, ..
aad t~t .tbe ~k.-w.iJl,be;ba~ly ~r.nan,.g(;d.;.~~ ~.~
~Y"." ShoQIQthe.st9~kbt tb~~(ik:J)~m;:o ~-heli~~
oC the subjects ot a~~gn..co~iry,.and" We:.shotWi·~!,-.
for~'n.a.ielil,be6001e inVQl~ed in l1·wai_ w.i~ tbiti cOun~:
try, :~at ·.~o\,dd -beou¥~~l!dition?" ~ dr~dfuJ{··",J"h~··
our eitizens,;~llo hol,ttw~iity .inil~i9»S. 9f' '~wQ~ '.piof.th~~ teJQaI,e8~~n~torph~oS; tgq;shoqid ~ ihei~:sWCk
~ fO~ig;.e~.':~ nfty per.· '~~t-. adYIl~c~~ '~,~~p. ~
. sbould'.he.'involvea'in··a war:wlth them,'with, aU ,thIs'
~~~y 'i~ o~~ ~~ntrf~:admin~teJ:~d. hYDur 'ci~iz'ens:' in:
!li~ofh:O$tije, fleefll. A~d armieiw'jth~ut~., 'HojTjble t: '.
T~e v~ry idea' o';goihg to :war ~it~ .$~ ew~h, cllpital.in,. '.
our- hapds i3 .app~l1jng. What a'~li~ry a.nd:~di~,:,·.
lib view 'QUJu~question! . . ' .' , ',':'. ',' ,..:'
. W4iie the,re ~tl!.,tesme~ w~!e~oJ;iteinP,l".~~g:thein.flu''':':
ence, of ~eb¥~·upo~'1i~nc~, .~e~~~qe~ 11~~1~!Jl~~ree, : '
th~ President :~a,!, tJt!>u~J\ '~hey-coult:I:'n~t,1>.Y a ~rng~e,
coup d'mil/tbe'adV:~lIitag~~ !~e ~e~my' ~~uld 'eRJ~Yi"
~n t~e' ev~nt ,of
in' .1ia\riIig\helr:.means. in' o'ur
ha~ds~. 'ratr.e~ ~li,aIi.: in:·,thej~.,. O\VIl: C?~up}iy.' }Vha~'..(
strijdng-illustmtjoliot the' ~up'eriocityjir lililitarY9ver ,
Wiri
eivihiua_li~catiQ~! ~.'!:.) ' ...... , :: '.'. ~ :': '. :: ~,::; .,. ~, . . " .
. The ,Presid'ent, bowever, entertains- Sonie'a'RQ.quat~
.notiQnS~:;a:
~beory.: h~ .obtained SiRC~ hiS ~~y~ 1\£0": .
ney;' itis ·iiow i4ought; ~!lghi' to. be tf€?e and, Uii-estriCt-',
ed.· It ~il1 obeY:its .own· ..la.Ws,:aad' ,:pr~erve its .'own ,
equllibnum f lik~ the ~ airt':ifr.ushes into'a'~ voi~, 'l~e'
water, it finds 'its Qwnlevd ; it.wiilgowhere.~t ~waB.ietl,
ne"
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stay ,where 'it is u"SefuJ, but it ~annot be govemed by
force, or restrained by laws. It is as idle to talk of
excluding foreign ,money from this country, as it is to
prevent its e:xportationfrom 'England, and both are as
impossible' as to chain the tides, or imprison the winds.
tyoreign money comes here beCause the industry andenterprise of the country demands it! it remains' be-'
cause'it is profitable; it wiD go when it ceases to be
useful. It dwells ill the haunts of industry, and fol- ,
lows in the tmb. of commerce. It creates a foreign in~
terest iB favour'of our country, nc;ltagainst-it; it makes
fri~ds, not enemielt; it is: a pledge in peace, and a
hostage in war3 '
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Monied men are in gene~ intent upon their own
interest; as they are MgaCious in the pursuit; tbey have
every motive to peace, -and in war. every interest impels, them to neutrality. ,While we maintain onr faith,
they will not dare; even if they desired, to throw'themselves into the contest, and hazard their fortunes upon
its issue. The interest' of the' money, and the safety of
the fundi! their Object'; it must heweD and ably administered; if ,it is mismanaged the public funds will be
withdrawn; if the chart~r is'violated; it will be forfeited;b~t tbreigners 'have no power to direct th'e operations'of the institution, and the idea that this direction
wi1~ faU into the' hands a few bad men, who will comhine'to use it against their country, in aid ," of hostile
:fteeti' and' armies,'" is one: of: the wildest freaks, if, it' is
not evidence' of disordered imagin~tion. The governmentappoint five of, the directors, the money wiJI 'he
distributed. into at least twenty-four establishments; and
pl~ced in each under',the control of twelve respectable
citizens, bound by much stronger ties to theil' country
5
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and the interes.b of the ,institUtiOlli than to those of any
foreign goverQment.. "
AHthe Ame.rican stocks' 'are open to, tore;sners,
their capi tal', becomes ours by. transfer, and is· I$OQIl
naturalized _moDg us; .it .is' 'iJlvested in loans, POad8,'
oaaals, rail-ways, commerce, .navigatic;m, aDd· maall~
tures; -it un~te!l with ours ~ fofm a solid b~is- Cor a.sollQd
ctp'1'ency and an, abun4ant.' circulation, it stimul~,s
trade and ,animates industry.' Wby theft. exc1l1d4
foreig~ ~apital, or foreign .skin, or art,. or \e~rning; it
is a miserable 'po1iti~a~ .expedient, ·foUQ.ded in na~"
selfish' views, and iUiberalprejudices; it is Dot CODSD-"
Rant with the spirit of our free institutions;., 01' die ea"
lightene~ spirit of the.ilge~ .
. . ,
' - .The veto'.mess.age'is' distiqg.llished (and perhaps .01
tbis only).by a tisslle of. -groSs mistakes and vulgar:. er-,
I'OPS, the result, ,!O doubt, like the unhappy conchisioa
to which they. led him, of the want of personal kn,oWl->
ledge a~~ pncti!Jal ability and sober ~tion, w-hieh
~e magDitude of ,the su~jeDt demanded .. " .. , ' ,'.
Let uspass.tbe~ in.rapid review. . ' . "
·T,he president object!!, to the capital, as ~ IArge~
He thinks- eleven .millioDs. ~aouih" ·This is ,a 'meN
practical question. His viewg..resl:llt from his peculia~
~Qtions;, if a bank, is an evil,' no dol,\bt t~e less capital
the better.;. if the object of haH is merely ~ keep
tlte puhlic 'money, th~n DO capital.is'neceS8a~y. In ~h~
case,. the presiQent;inex.perienced·by his position ·and
habits of life, and far reriIo:Ved. frQm the 'great, t~~
of our commercial atrairs,. sets up his judgme.n.t agai. .
~ experience and wisdoQl of Congress... ,,' "
,
. In ,1814, Mr. Dallas,,& pra~~.,antl enliglltenecl
statesman, recommended fifty IDiJlW~ The
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of 18.6 establilhCld thirty-five milliena, fOl" the capital
of the Bank, and after- the-experience &f Ilxteen yea1'S,
_it was not oonsidered ex.peclieat to ~nlarge or diminith
i.t.. The thirty-tve millions are n()w'profitably ami
aaefully employed; 1lG objection has been made by the
states or 100al banks to thcr capital; it is 'eM than the
'MOllnt· of domestic ~ilIs,. bought annually by the Bank;
it exceeds the revenue only by one-third, and it is but
little more . thai:&" half the export, 01' half tlte import; it
is not more than one-siJtth afthe circulation of the United
States, .aDd is, about oile-twentieth of the' amount of anItual labour ',in the country,' and less than three dollars
.-each individual. '
- Eleven million' were sU8lcient -when' the populiti01l
stood at three millions and a half, and the revenues at
Ave millions. The mind of the 'President does not
keep pace with the progress of things, and the extra'
ordinary development et our resonrces. .
. Tbe safety of tbe couRtry, and the a,ccomplishmeDt
oftbe purposes
the. 'Bank; whi,ch do not seem to be
CODIp1'ehended by bim; depends upOn a large and sOlid
eapital, not aWected by slight· accidents, 01' partial deI'8ftgemeDUI, and commanding public 'confidence.
The Pttesident .objects to the continuation of the
chartel'. Be assumes,that it is a great bo'unty, granted
to a few l"ich persons, &c •
.' TIM object of Oongtess is solely'the public good,
they. deein a bank ust'ful and' necessary; they'are satisfied :that this Bank is .judiciously located and wisely
administered; that it has aecolllp1ished, in a signal manDel',,~lre iesignof its creation) and'MARed the hopes
of 'th~,country.· They deem it safe and useful to Con"
tinue its operations, and dangerous to attempt a new
of
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exper~,"eJlt •. ~beae
advaatages, ar,& of ,more i_port~~~ than -anew 8ubscripti9n or a.1!U'ger bonus. ,Mf)I18Y
is loa~ed at six per cent., bills purchased ~~ olle-halfper
~.ent. .pr.eorl~m, in addition,to the inte~t, anel among
!be large cities of. ~he north exchange is equ.lizecl; the
, bi~lsare every. wh,e~ equal to specie; !IJ.,;many places,
e,pecial11 in the south, and west, more valuable,~they
~rer~ceivablein settJem,entwith aU the state ba11ks.,(IJ.e
Ban~ haS hitherto yi~)ded littIt:, more -than five per
c.ent., it has incurroo m.any risks, it is 'now in ',m.O..e
successful .ope.ration, ,it"is a period ,of peace- and of un~
eumpled:,prosperity; t~e country must, Ii,ke aJl'oth~n,
undergo s~asonsQf'distress, embarrassment,' war, revG-·
lution, an& perhaps d~ulliCln;:in aU the evils ofwmch
~e Bank,IQust particip~e.
, The obj~ct qf <;:engress w.'not speculation or profit,
they did: not desire, to srant .ny extr.o.rdinary .boon,
'or to stickle for, the amount oC'a bonus. They desire.'
to make it suftlciently induci~ to th~ ~tockho)dm:'~
c.n~nue the present' ,able- administ~tion or its daie..
If ihe books bad, heen· opell~ to a -.new subscription,
a shameful scrambl,e, such as·,w~. hav~ wit~essed;,,or a
scene of ,wild .speca)ation, would h/lve ~nsued: if the
ah.res were reducw, no. lOan would have ~bre than one
share. But not a dollar would be taken in t~
or ill
the south, except in South C"roli~. No~~, what
be the value of this ~ght bf subscription·to any il).divi.d~l? .Wu it worth the ,cleransement of th~ public
aft'ail'S?
.
,
,
A v~ry artful ~tten\pt ~ beell made to imprees ,the
people with the ide~ that this charter is held 'by ,a.few
riCh pel'fOns,; that it ." granted gratuities," "to·, male
"I
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west
would
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.
the rich richer, ad the potent,
JIl()m pewertat;- and
it required but Ii~tle stretch the imagination to fancy
"artificial .di8tinctio~' and "titletJ." . This cerd is
aever toaehed in vain; it vibrates to the human hearts
it .is ~ strOngest appeal to OQI' pride,· and pallio-,
and hubeea in ali times the topic of ~ agitator, and
the theme of th~ demagogue. .
,.
..
· . N ow, of this th4'ty-fi.ve ,.,niUiona the go~ernment hoI.
one-fifth, and foreigners lit~e IIlOl'e th. a. fifth. Two
hundred thousand shares, or abou~ twenty millions of
aollara, are held by about four. thousand citizeJUI of the
United States, averaging fifty: shares each, or 85000;
one.:fi.fth are holtlers.of and undeF &500; more than a
·third are less than 11000; mo~, than ~ne-'ourth is
OWIled by females, trustees, executol'8, ~ rellgi~8ll1ld
beaevolent societies.·
Among the foreign 'holdm"about halt is o~ed in
'fifty shares and under, and one-sixth are females. So
mucla for this fruitful topic of declamation, ".tlie higla
and the low, the rich and the· poor.". " Som~ are &ad.
must he greater· than the rest, more wise, more ricb I
but who infers from. hence. that.Reh·are happier?
.: Banks are a mutual, accommodation -to those who have
money, an~ those whQ want it; to those who can live.by
its pro6ts, and those who· profit by its use., It is a safe
depository for females and cbildrell, for the old and infirm, fol' the rich and even for the poor. It is convement to those who ~ot use their ·m.oney,·and to thOle
who can.,
. Is theN any oause ·of jealousy between ~e rich and
the pOor? . Are they not DlutuallydepeJldent. and.
· equally necessary to eae" other?' Are' they not both
protected by the laws? .
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. .,Th'e I'loll :.~ i~ general those .~ have. made ~
ewn ~unea by~ their honest,.indu,atry•. The other·
(l]a8MS are' fonowing in- their. path., and ,imitating theil'
~umple; they aPe daily increasing theil' means ....
improving their flOndition"8nd :gradually, by theip..ex..
eNion,8; and by'tne acquisition.of,.property, ppeparia&;
at the proper time and ag~, to enjoy their .'inde~~
denoo,.and to take the ·plllce.of. th~ wMIli'e ROW ea1led
rich, as they pass ~:dl'the stage.:'
, . In this ~untrYt· where estates' an' divided· eQrj"
generation', great equality of fortune must prevail; few
can be very rich, and .none 10l.g. ',The children or the
rich, a~ in few' ·c~s above' tile n~ty of labool'; ia
$Ome i'orm;·and -if they ~re;by another law qf.-our U.
ture they. are often Nduced to .the necessity. hateR.
ofj"eaJousy, distrust, and alienation- among.the different
olaJiel, there i_every motiveofiDte~it·to cherish the
Jiindelt.fe~lings. ". ",'
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. The rieh:·;do· not· horde th~r .DlO~y.; it is. put into
baab, invested in canals and l'9&cU,houses at'e erected,
,hips built, land purchaied; BDd this ,tlta. in requisi.tion all the labour and capital of th~ COUD-try; and -it-iS
this labour, from which few, 80IIle form, are exempt,
tJaat ,increases the .enjoyment. of UlQ rich, and pNtI""cures heal~b, p~aee"and coQJpe,!:eu.ee to t~ poor... It
il' thiJ labour-that consti~ute8 -tbepublic prOsperity ~aa
th~ .national weal. It binds'moiety legethet in a gNat
c.hain of, connexion and dependeue, by. their mutoaJ
wants and interests~ l;Jow unfortunate, then, to ·f...at
feuds among the dil'erent 'orders of 8ociety; to array.the
poor against tile rich-! . How -da,nge."Utland how wick.
, to lOW the seedt of discord, to. ..ake the poor' unhapp,~
and to rouse those' passions that have,in -other OOUR"
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tries;
.1
r
80 often· disturbed
the peace and order of govern·
ment~ Happily, iB -our favoured 1.od, there is no distinc~on: 'bot the SOod. and the ·bad;- there is no mob to
,r
move~
,.'"
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The President thinks tbe bonus too'smaU"and that
that is a suftieie~* obje~tion to the charter.
The bonus, in the existingcbarter, was ':fixed by the
r~commendatiOf1 of ,Mr. :paUas, in ais repm:t of Decem·
ber, 1815. Who, in hi$ estimate, ·:fixed seven .pel'
Cent. a8 the general rate of dividends; he saYI; ", &I.
lowing therefore two, three' and four years for the pay·
ment of the bonus, a sum·of 1,500,000 dollars, would
amount to aboUt foul' per cent. upon the eapital of the
JJank,and would constitute a just equivalent i'91' the
bendts of the' c~rter.": .
On the renewal, the biD' p'ropbses to give three. mil..
lion for fifteen years, being double the ~mount, and fOl'
one· fourth ~eBS tiDle, equal to near nine per e-ent: Oft
tbe capi....l, I801'e than eq~aI to one year's interest, and
about three·:fiftbs of a per cent. per annum .. This bonus
ia a tAl: upon all the .stock, and when divided is equi·
valen, to. tax by each' of the 8tat~ow the states
may tax the
'stockholders;
as oth~r bank capital.or divi.
.
dends in the. state. ifthey tax them ,equal to two·fifths
of a. per cent. it win ...allta tax with the bonus, equal
to one per cent. per annum.
The ~Dk eughi,to ,pay what similar charters pay in
the: states_ In- geaeral, this tax. is compromised for a
bonus, but Bever both.' ORe per cent. is the maximum
of either; so that the sum which the Bank· pays to both,
beside. ~he-tax.e8· on theit property, wiD he equal to the
Ilighe&t rate -paid hyether institutions, .ad. much above
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the general average. The benus alone is equal to the
bonus usu4llly exacted' in J.»ennsylvania.
But Congress, with'a full ,view of the whole subjeet;'
having no interest, and large portiOnS of the country
having no stock, and standiiJg between· ,the Bank and
the states, to dojll~tice to both;, upon 'ample deliberation, fixed thehonus at three mil1ions. ..,'
,
But the President, in,tbe:spitit of control and domination ,over the legislature, descends into aU, the
minutia of detail,- cOllfounding the duties-of the dift"el'eilt bl'8nche,s of the government, and without the\lights
()f experience or benefit of d~scussi.on" boldly censureS
every,provision the bill, even'the amend,mentsto the
former charter. ~ ,
'
The object of Congress was the Bank and'its national
benefits; that of, the President to defeat· both, he' has
resorted ~, -all -the ' captiOus'- objections aBCl popular
topics, which, consulting his own duty and 'proper rug..
nity, he would have, left to the :representatives of the;
people,. to whom, they belong.
The bonus is, ,made one ,of, the'leading objections to
the bill. The message, which is not ascribed to the
hand or the head 'or the 'President, is replete 'with
egregious enors an~ monstrous eXaggerations, which, jf
not lI1erely intended to, delude, .'evince a ,total want of
,
\
practical knowledge o,f the subJect.·'
,
The bonus, recommended upon these ,extravagant
calculations, is of such ,magnitude aS'to shock the comlI10n sense of mankind. 'But no' errer is too g1'08!J or
too palpable for Credulity.
"
The message, states, t-.Ilt " the "alue 01 tke monopMJJ
in
ClIBe may be correctly ascertaIned, the twentyeight millions of stock would probably be at an advance
or
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., IUty·per~nt.; aml.co81"Qd'i~.the, lDark~t at least·
forty}pvo. millkmsp( dollal'S.." ,ubjeCt to..tke. paynaent of
'~e
I ~
Pre8eB\ b8inI8~~e;preseDt:Valoe._otthe monopoly,
tberef()~f ,~ .~irteeR~ J.!ljUiO~ ~f jQi~~i 'a~ ~iS ~he
_lU;ti>~~io'~eU r9f three·JqiI.liom!;" ,&e'i' ': ' .
. ~ I_t.·is·-not n~esSary·to--ilotic~. 't~e~ .trifling. ~mr of
. lb~:.~ill~onS o!, the .fat:e· .of. this. .t8tta~nt,. as' it" wiU
, . ~l yaty the :"i-gn~ent;. i)l1~ 1lfty~ P~! ,c• • llPO~ twen-
, tI-~ig~t;~iHioll$ W9U~~. b~,but.fourte~n·nii1l.ioil6.:\ .The
·t~at,h; ~: t~e '/oUrt,e~~ milI~ons ··p.epends 'upQI)
a' fact
.. ~ltich:-;3 ~l~I_~;,~,CJ. ,is at ~t;·'nv:ihl specuI '
lttti.y.e ,oO-Pinj~; upwhieh- ~o 'stat~s1DIiJl: ,would base, a
~eat, pUbli((~~Pe-~' ,: -, L~~ us .~~g it to the true. test
.~r. q)~uJati~~ w~ ,"*ill, ~t mis16.1ld 9Ul' judgmep}&
, ,,:·.Tbe,v~~~ oUbis I~k ~t d,epend upon-tlie general
·v~e:. :oflOo.aeyrtllej·~w. '.9f" Inter~t, an~ ',t~e dm-a,ti.on
present
.~f: the~bal'ter• .- . :TIi~
·v~~e.is' calcQlated, in. 'a
. p~i94: Qf~~-rar}leac,e an~ of ~~~pi~~ Pr9~p~t1ty,
w~ .~l is ,abUl!d~: an.d ,inter~t cQnsequently
. ~!) .}lls l.be~~oet.r"vd~~~J~1:h~.y.aIl!e·,of ~t~e stQ~k.
· '.Let. us_ ~,ssu~: t!t~. ~inilllulIl' rate, qfiqtereat, upon
~t9c~, Qf.~.~~ h~ti~~t, ~ia~ter .~t fou~
.a-haIr. per
c~nJ.~ -t~~t ' this b~n~ ~iij. ~u~r
loSses, . the. . mark~t
.:~nd:eJ.'g~~lio;~~~ps.e;;~n~ tb~ ba.~k Y1e~d seven per ce,nt.,
a-,ld. c.~tinue for. :fiftee~"~at:S.,, . ::,' " >
•
.
-an4
no
·..r-~~ ,B~nk ,Ilas, av~~ll.~e~o!~ little more than
fiv.e
p~f" cen;t.- ; T:~e:',4h:i~.encJs .()f:·di~ Bank of the
~~ite~, '~~~;"4~!i~$ ,t~_~.1i~ts"i:x 'y.t:at;i;:fell short of
'th..re~,and,~·h8Jf.~~.(}~!).t~ lJy~ar, tliey, have, gra<lually
i~~ea~ sin~ ...thai. tifue:to~Ye'·a.Dd ~,e~«m per·cept.,
and 1n~y',cQ\iti~u,e·.~,iiv,e that; h,ut, t~e ave~~ during
. ~hi~een."i~~J a,~d ~'J1aif;' 'rid'j,!!:~8t)uly, ;~~~O, had.
he~o but ~ouP'.';;-fp~l' ,~n~. ay~l'•. Au &n~ual divi·
. 6'
,
,
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,..dend of aliou!" nine ,p~"~e~t during tt~~:~iliclU~'~'
the term, 'would 'be ' nece~ar.YAo ,gi\te:- ali' 'average' or
a'~yea:r~ ,-', 'The- ~hole t)~~~6n'f6rJlfteeii-:
years of the prese~t ilistitUtion;"iricltldi~g,tbe,~1.u.s~
fund, -and maldna iU{ arrOwatic~ 'f6t- ·IoSses~WiH~not..ei:...:
six per'c,ent.
.,
.
ceed thaf'tale.' ,'~:.' '. , -
. "~ ,: -: - -, ,-', - -~ , .
',Let us',' now" t~st ~thtf"t~th- or ,~he,statemeiif: upoit~'
whic,h tliewh9le..:qti~oft 9rtJie_lio.rius depe)llis"u)'wfi::,
tllatthe stoct~wiIll'ise fifty: pel"~em. and make -se~ .
teen millions for'tbe'st.ocfkb'olders:' :-- ';: .. "'" -, ,'.': -, ,
The stock atone 'liuddrid a~d'fifty dolia" w:oiil(fp!'O~ .
, duCe folit 'and twb ..thirds: peJ-. OeDt.; J;)ut the dilfel.enc~'
betweentliis and (our-'and .a_blf wOuld req~\~_ an:1n,;
fhnty- or"ti~e -t~' reimburse. ~e' ;fifty 'doUa~;q' but
cha1"tt~r: has" but fifteen y.eanfto rlili ;,:to: pu-relraSe ,~~ .
:tne
theref~re at M.tY-dollars, acivalt~e~ tcjyi~ld t6ur a:nd~~o.r.
thi~ 'per eent;.; wo~ _~ ~'saccl-fice"Dea~ly tfie ,wltoie
of .tlieAdvance-; thtit, is, -to· make theillustnitian: DV&re cIear, 'it' would: ~; ~eal!ry :equi~alf!nt to, 'a -toW ~h.iSS-'-of.
interest· fQ'r ne;lr
:Y~ars-!;.in.a charter- of'''Af~~ .
years.·: Th'Ij':whole'Jnter-est ,receiv.ed ;woij1d. &m9,unt ,to'
sixty~ni'ne dol1il!'S an~ niniiy .centsf:Wftieh woti14Je~i\rCl'
after paYing the, .dva,nce' '~f11Y';·nine"teen.,dolJa~· and'
'ninety cents, or ~quattO'()n~'llild>~e-~hiid 'per c}ent:
·eleven.
on the capital....-": :"::", ~',," ,': . , ;'-- : " .: , ~- ..:,: .
Tho idea that this' 'stOek-w.oufd',rlse tit on'e, fumd~
and fifty dollm,_a~d ~~ tb~ejry- worth Hv~teen':mif
lions to the, stoc"kbc,WerS; .~ o~e ot~the' ~ost pidpab}e
absurdltieithit baS -been, -ill-Bt,pmod ~f--ex~ardi~ry'
,delusion, palmed (~:pon- the p-e~e? it-~· the- ~est
at·-
te~pt toimPe~ on ~e' popular:cre«lolity, ·aD.d;:-Vi~c~·
some-W~ere,. a to.ta1-dm,regaid c)f- aU ~ and aoo.'uracr '
.
"'.~
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'in a caS,.;sUs~pti,b1e not ~rdi~of 'the ciearest:elucidationi but of mathematical delliODStl'ati,on.
" The,President, npt familiar with sach subjects, has
~been. dOOeived'~tt~e ,igilora~t Or the designing; and
,·thepj:op1e, if'tliey will il,Ot rouse' themselves, must be
"the dupea 6f the talla,cy, .or the victims> of the artifice.
, " " Th,,'prudent;, reilecting men,. ~~o deal in stocks, do
, not \ht~ Ilway' their c~pital, upon su~ miserable po'~~l. specul~!io~, :but the. Pl'el4dent, ~ithout. data or
"~~wat1on, bpldly- assufD~ -the -fac~ ,aJ,ld. upotl liuch
p~m~8. and sue~ reasoning.,ropQu.ne~lri!l'a.case"in
',vOlving' di~ctly ~aJiy:miUiOBS;a~d :i.Jlclir,eWy the sta, llility~f·ill ~-pi-op:r~in':~"~~~;an4 l'dshes to
~'bis ~QIlclusic)DS, 'wi~ a totaliQ~epende~ce of,~P9Dsi
, 'bility"and ail ~Dg tearl~t(SS.an4 J~o~lessnell8 'of
.ooosequences. ",.' ~ , ;-: ...., ::' -
" .: .T~ val~~~f ihe'Jiock,~UPOD tbe.grgunds stated~ at4{
cen~. ,Tbat
· ,is; a~ Gf..1OOdollat;l~1'ielding8eveo·per cent., will,
. ·if &bId at .12~-':1f' 'prodiu:e f~ and;a "~al{,,~1' ceot.
· .upon the itl~estm.tnt, and uu~IUl'..of'l..:.h·'pel'- ceQt.,
, ;'w~h, ,at. tlie:.eiid. o~· the ;fi:f\eeA_y~ .will reimhurse
,the' $22, ~ .4dvanee. T4e, stock ,-eannot seD. for ·more
, ~n~ any 1"~~able ~IilCuI~n,:an. j ..ncl'we ()f the
.. l"&~, o~ .~¥.fliy.icl~,:ol"diinin\lti~ ~f the ·general :rate
': ef,~ere'$t,..woUld':raise.:tb.e stock as a less :rate of divi:~~; ~~n~in~~e ot:~e ~a4-.e,'Of ~oney would de',' prep' it.., Itw~uld ~t J~qJ:e"~ without some
, :~ll~'Y:agant ,apetul~tion"always inj,u!ious-; and often dis, 88~U't, Th~~st: ~~e of tUney. in this eotm.try is
.from :4i r.o, 5, per. cent., ' 'If· we , assuDie' that money is
· '~6rth~ per~ent-J_-,the,-~tock:'wouJd be. worth, 8117-14,
',and at, tlii& ratei! .would ~y, S'per eeB.t.,-od ,reimburse
the adv~oCe Meen years.
'
·~ ~ld -~e- ~122-M, -equal"to ~..~
.'
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per
in
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'p'
The wb~ '-df this a"dvanbe Wouldb~t : 8'4f7to;eoo .
Deduct the 'bonus, .<.' ........
.-.~'. '~.' ;', 3,OC)O,OOO. ;
.
'.
. - ' .. ~ ... -. .
- -' .....-:." .~.""-~
.
.
,
.-
,
..-
"". J?,60;OOC)':
.State taxes I per:·ceIlt.: "":,,., ". - - ! '.: .. t,500jOOo
I
!
_ -.
: . . . . ·1J28O,000
Tile ·m~n ditrerence pepha~ ~ween .J.,~2 ·~ncl·l1.r=-.
e1t.
'Would be t~ tMJe'vaJue ofthif!l i'toclfJ on' tb~.aa,,..the
tercommenca, ·g.ad which wou~dote.our.e dtieUne eVerf. -.
year.; until it cam' ~'f at:' tire. end of,fifte"eli,.em. ~Jt :
would b'e, fa:ir,.urid~ :tlt~ 'ci~umstaAC~
place' ~e·~~lue Of a stOck, bemng :,ev.~ p~r cent; ·&fifteen.yea~
to
.,0.
at· twenty 401lafitadyance:.. ," . ( : - ', .. ' .'
~,'
;.: .
Th~adv.an~e "Of ~tw$lty··don.ars ~pon.~ thirly-five: '.
millions, wOuld~ be: equal Ut sevC!ll..JJliUioti. ofdollm, ef'
whlch the go~e'rnm~nt .bolding :oDe~fitth'
stook,~ -.
or·tbtf
· "'Quid receive 1,"'00,000 dollars; .. . .' :.
.·:But·esti:maUng ·tberemainder·;ot ·the-'stOck
I
"
_
.::~
~ >~
•••
..
held,&; ,
· individuals at· 'hyenty.eight :~iII[~~;' the :adYlloce" of
. twenty dollars. ~td'be5;~oO,~"cltJlIars~ theY~1.to
. :;')r. tIa"'goverJiment, in the fqriil ota DonQs, ,th~'inillionS,'
. ·of~Il4rs.. : Tht;re'is .thtn,twenty; milliOfis.Df;thla stock·
. ·Wd 'by oU! Citi~s,. Jjable- 'to'"be :tated ~ like Odie!! la. cOme; ,!hieb canbot,be estima~" but' which,: jf the .
~~ e.xercise tlteil" ri~ '(n~ tie.·esti~ated at' ba~:a'
:, ""J""~nt., equal.~ loo'~,4~11ais·a'y...;oI'1,500,~_
~:7.1ars in fif"~e, Yea~i~iag ;i.n al~ :..,500;~: d~ .
,.
": ... ,
.. ; there is .then IQft a'margin of ,1;1Ql);OOO·-dQtJars, ,
. '\ ~Q.t .. thir~1 of ~ ~r oe}lt. .fBl" tile ebapU;r:ef ·aool..·"
'. ,de.". -Tile sli~teit. ri~e ;i.i\M /nlue : of~ 1IIOney o~: .
!,;
¥nutiOll:.of di~ends;·be\o\,V.IJe.e~· per'c. .., or ·.w1.
~ or:.deft..gemems: WouIcJ..i • .edi"y.-cGnr, the..
. ,.
J
'rJ
I
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47
. 'This ~a1culatiqn "i~' 1ottna.td- o~ the very·Joweai ~te
of interest;J the
(Oansare tak.~il atlmm five to six.
p.e...··~~nt., at whiclfthe- bonuS in' this. eaSe,.Quld be ioed~ed much J~wet:;; .NOw,the gbtiernm.enfhave exa~ed
Dine -per 'eent"f'leaVi~ ·the _Sl&test6 'the '8toe'kho1~er
on 'his ino<Jlnef"rOlQ tooDank. the difference between
the twentj· donm 'a~d what' they pay:""r" bOnus and
state
tax
taxes, about one-third
of a
pet"-:~nt.,. is 'die: bOon, die
. migh.tY. 'gratuity; as -it 'is eft1~~~ieh Congress bave
. granted; Jtwol1ld<havebeen ~nwort~ythe ~erirnint;
in ilil kft'angement ~tb ,lier: citizens, to' ~ve .exacted
the 'last·· ~r; 'some 'Space must be left for :accidentS
and ~hang~i, «ltd. as in~~oo1nent to the stockhoTders.
Upbn& fair,and ~~naidvie~, {t,Wilrappe~Ttha:t.eoogre-ss
'. ~ve acted, witli·JuStice· aDa'liberaflty, and th~ narrOw'
vieWS ··aOOlo0s6 'ealciilations will not -do'm tlie altai" of·a
great t;latiotf.·- ~ ! '" .> '.:': " ... "', ;"" ,,> ,"" .', ': .
. The bonus iii thisca~·-exC!eed'{'th:e"Se'teftl1 ~teesta.;
'bIisii~dror State ~n~ in Pelni!'f~n{a:;a~ i~ believed
to'.,e -eqilal to '~eJljglies,t rate tn-apY-or:the states. ~
. N~\f, \vJlen the Piesident'.asM!l'ts· Up.ob'~l'esponsi
bUity,.-that:t~is 'stook'~II-me '15~, 3n:a~ the-gratuity
r,
te
be w~h 1 1ni1lio~,. what' coJifi~nce ·cd". ~e placed
in his jud~~nt and ~i8 :-ibility? ~ TIle exaggeration in
thUicue is -oJily'more ,appa~t, 'liecau~ 'it is more ft·..
, . poaed~ ;': " . ." '.':',', ..... :.,
,~-',
The, Piuident,haViDgma~lIed 'the monopoly into
~'Ve~·.'mi1IiOn,· Of,'(fo,Japos;·Say8. '~·k must come
f.
-
~.t otth~ earniogsot'tbe Alberi~afipeOpl~'."~· :N'ow~it
, is cl~r ,t~t Dei. one payS·more than·.six per cent. to tb~
'hank ;~hlt the,mual:legalintetest···fn ~the i!ates'; 'the
~e:at,wliich. all'othe'r'blilkir'~ount; 'the ~te'wbic'b
ean be' ebtain~ on the besf'propertj atlcl'best security
i'
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. ,48
in
tb~' ~ities;_ and.. ,iJptldouh:tedJY, less
than :tbe7,-mate
, .. , :
' .', ' ":"
,
,It.'Wo~l«l be~ext~rdinal'Y,. 'il tlii~ ballk ~olllci obtain
sevente~n~ ~,iili.1)i:ts,o~t: of...t1I~ earnillgS;of tb.e ~pl~)by.
who bor.JlQW frpm'thebanks~:
loamng tb~m ~~ty:-4:V<:,>mmiqD&,of,~~lf~,.t~(J.x,per
c~nt.tanti, tJley .sbQUl.a.,e6n~p...effor.1etLis", voluntarily
to borrow'it; and,Deyer ~v.er the 'fraad:uotiI,it;. is
revealed.to ~he~ b,.~ ora~.-::.;,:" >~, ~
,'-~:
, ',.In ,q-uth",this me~(~ook.i~ mere.1Y, i~ai; if ex.~~
only:aBlO~ th~ dealers, ~,stoCkS,,~B4,does not;.in·;~
,81igh~~t. d«;g~; ~ect -the CQ~JIl.!lDity., any ~ore t~atl
" .ny ,~otber'-t:ran.ti~S. at~n~n~,,Ql~n,.,r:ela.ting t6.tnOJl~y .Of'
proper~'" rhis pointJs;pf '~at-i~P.OrtaBcel-u it .1..,
.
. ",-.':
:
,~at~ ~ wh~l~ tb:eoty:.of.'~he.yeto.;. ' _,<':' .: - .. ; •
, .- Fmt.-, In.r~latiOll,to.·torejgae~:\:V.ho'seeJn ~ have u..presseci- ~hemset~~ -~ngly: ~poD;,-~he,:PreJi~n~i
iMagination~_suppOse_:thi'oreignerS shouJd, ~~ tne,·pr&.- .
sidc;ptf~rS."buy th~4:W:~tf:inilljon~1Jf ~~ o( ~~·hi-.
tizeDli, at fifty,per c~~_ :~d,.ce ... :~bat, w~uld: be':a
clear.ga1u.to our natio~alwealth'!>f te.n.i~Jili~9f :fute.d
capital, IJond th~ 'orei~~.r'wo.u•.ld,detj.ve, ·less than. fesr
per ceJlt.; an4, tliiS. . ;WoUld. ,consPt~te:t,..e,ePQ~m.ous,d.-ai1l
. 11~' Qur·~olHl~r.Y. _,~"
" -:, -.,' . -", .
'
_N~,:in:re(e~~ ~ o~ow~{ci~eI!iJc ..It is clea,r.
_ that,. from 'the, ,begilm.ing iii, .tJJ.e, end hf the el)arter,,~
rise and the.faU of ,the~k, must be 'equal, and that.
" what one. gaJ,Dt,', aj}~th:er, 'lo~~ . ," , ",:~ (. ' , '" " ,: "
, ",rhe p~ . of «ntik, tiq)~~ding,'~' .~~. i~c~ of
~ital anel the dGClin~"Q~ interest,: hpth _
of, w.hleh iJliAy
,~e ftsor~~«!'~ to ~~. j~~UeB~. of ro~ign, eapital4ll~ ~~- ~deri~~ ~1l.thiS in~~tlion,.t.of Qou~l.~c~uate;~ .
'and
~ecluinge~.'~lUst 'b.e V¢fY, p4ua1~
almoSt ipse......
ble~ ..J" e'~ tll~rere, in ;the .multifariOus .~~
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~
__
I
49, "
tions ,<if men, and ;imong AD 'iQfi~ite numb~ f,r persons, '
mUst -be '~very inconooetiliils;'and" tb'~' partial gain or
, ~. ·JhDSt,. from the 'lm~, oltbiu~ ,be- perfectly
,equal. ,; '. , - _ ,"','.'
'
N'ow;:~ if r.eganIithose'''?'ho originally sUbsoribed;
aii<l Who ~tai1,l thcl-r' stOck' to the" end of the...Ctiart~~,
when ofcoU1'Se,the·8toC~ wiIrral} to'par, it' is obvious
..
,
the 'me'o'f p'ric~j .{It,afiy iDtefm~dia~ ·tiio,~, '!ill' not:.,e·,
nefitthem; th'ey \iilh~eift,back tnc}~~at originally
paid for' the 8toc~, 'h9,yittgr~eeiv~' oRly ··the ~i~dends
duri~g ~he· thD~, 'as a' ccj~penSation 'fQl"~ their' Dloney.
·The_.cliange . ot' the liam6 'bf'tlie ~WckliolderS,by sale
and,trans(erjwill,notchaog·e. the' principle. : Tti'e stoCk
,ean. yield nothing Dl'Ore' tI,an th~.~di~~¥S.' The 'rise
of stoekSis, th.erefOrej '-mepely ··.·n.Olllinjl~; a1Fecti.rig. o~y
tll~ 'w1iv bUy aDd B6U; and. it Pllsbt?elf smnt6 tliat, at
, . ~l:'ds-foteigners, iti8~ a :Jlil.uonlll gain; a:8 fu ,inlJivi-·
duak,.'tlie .~ffect is·rumost·,iD8eBsible; as·~~·tlie stock:.
k'olde,~ it, is ;altogether' ,fictitious;: ~d 'as to' the .losS' or
gai~;}tbi.peri'~tly-equal;' .n~'8()·:it',must -be equally,
ifthe'~ai'tw. is-eo-D~lled (or :fifte~n::Ye~1'!Ilonge..~
,
.:Asi~,.regatdS' th,oSe who have' sold' at-an adv.noot a.iul
ma4e a c.ei1;ain,pm,wbich.mUSt have"b~ ve~y 'small;
iv.hate"er'it:niay'haw; been, it is'passed, and neither'the
ne\\( chart~~,rio:r' the:, 'Veto ~. 'have ~ny retrospective
.ratioo: on til. -~~ctions. . The· present holderS
Who ~ve' t»l1rc~~a; h(ve ~4·'dte ldyiil~e p!"ice, aD4
to them it~~l he'no·'~'tuity../~. ',' <e..
,:. ; .'
:,,:'Itils.clear,. t,.~rore, tlun thi$: sev.en~een .millions is
altOgeth¢~.a· cniirlera;a 'mei-e-~eirt Df. theh'i-ain; the
only'ttfu;g ,ihielt t.ll~e ,Bank .~ti -Yield:'is. tb.e c1ivid~nd:;
:thiS;di9idend'~as been;'sh.oWlt to )e' s~enpel" cent•. ;
bur,alhhe state haDkS'Yi~siX,.ejghta._ten-per ~t.,
,1•
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;ao,
.
'
/
De..e Iue·~~~., "~ Y~"~.of""'J',~"'~
,
~r .a~d ",balf'to ~D,,~. . to tbe"plaee,the',uJDeI,
" tbe ~~ !lad ~rman~cy..ar,tAe ·i~e~..: ~ ': . '..
, ,But '-cjOeI any· One 8tq)pose tQt; t'hitt adyanc~ ,~~.
oUt of ,1&4 '~i"&'. 6/ #ie, J$1P~;!' . ~'~il ~'~r-,
aumei¢ impo~~a:ttte~al!o"!"e.at,C}~l'S~~dioi?·:' ,
.' .' The :ba~' ,loan, 'mqney, at .i~. per .OOAt.,. t~' ,usQal
<
.~" the, .~~;, ~DCJa .~~ ~l1Jfit "~n l~ ,and Kro~
..riell, ~ :~D~,~v~"~ea, .per';ce~' ,(hu~, n.o·,jir4l...
;~ual pa~'mO"'" ,~(t,~; .nd)t~.~Ilai¢·t~,itJ9de~
, "f, ~ei'e, eke.) , 'There aft, c~t8:in cJiS$~,.fo~gnenr,
,/e~ei, ,~~, ~~}l.md I!ged -,persOD8; arid'ie~~ly' '
all :tb~' who.~~n~llse.,-:th~\r ~ney,theJUel..v,es ~re
,-~t6,bly, ~re'~~ii\g~'~ :give,,~~re. thul::PaI', for the
stook,..:\l~:-,tliey ,p~fer a: &~all~' 'l'\Ilt~ ·Qf in~.rest,
, JlPon. flare. ~na ~r,maii~Bt..ia;v$,meil~1 ~~.',~t ~
c~;-~h~~;:~~:.t..e, '~:q( ten.)}r':fit\y" ~,~etJ,
aa.y.~ tha~'l"l-Y J,)~.,~ ,41" :tran.~" -of;."l'OpeF.tl,
01' IPlJ..ot.h~·t~t~,;,.. ,'N.Qthin.i,~l~t~.t~ P!ie;.is
,eYi~eticeoJllt ~f. pu.~~ .prospe..ity, ,a~f.~ sto~ J.die
'fro.m' the. _e' ea~it t~.: e(F~~' eve.-, ,tJmtg' eJ8e.
~b~ ~w~ ,bt)y g~a fair ,~uival~n~ ~ .~eJ '"bl) ~eUaPe
'J~e acti:vc:,.·~~irlci., ~d., eflterp~~;'.Whpearl.eal~
,p1~y ,iheir m~ey',~ to, greater :~dv~~ In;.so•.~ o~
iJjv_tueqt.. . '" . ',' .' ',' :.' ....
',;~..:
".A ~~has a 8~~, w.or~ ~ih~~l(l~ddoj~'Gtljt
y'ie~ds ,hi~"'Si~;.~~ .~ t.l~Jt hi$ in~ t.O glve'on~
hund,red an"- tw.~lrty,io ~ !9r-u,.w.Jlich.t..,~es" ' .
• pJoia~~., ~fp"e ~,.in· ~e. O~;"MY-, ~ six j~~r.
>. ' " ,;:, "\
ce&:t., if.b.e s~cce~~he., js; ~W,~~'.Doa.inall,~.
ri~er,;and :~~:v.~.I?#fI..a.:I~It, i~. of'six:~l~,
\a18:~'is:~y eil~ .poo~·rQr~~~•. ',:T.e._,~" ~f ....
of t1)e.prip.:iPap~~,~
~.c~~,.~'
. .
.
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,51
"annihilated;. the money and the' paper hue merely
changed hands. How.then does. it come out of the
earnings of the people?
There is another consideration which deserves notice, although it is not relied on. When the Bank was
.chartered, money was scarce and high. The carrency
was' depreciated at. different rates, at ·different times
and places, .and banks yielded eight per cent., which
W8I!! perhaps its fair market value. There W!lS, of
course, no inducement to subscribe, and the stock hung
v.ery heavily, and was taken with reluctance.
The ~tockholders paid in one-fifth in specie, and
four-fifths in United States stocks, which were' advanced
equal to the depreciation. The Bank by restoring
specie payments raised the paper circulation to par,
and th~reby gained for the. whole country an advantage eqna1 to the depreciation, 'which vaned from fifteen
twenty-five per cent. It is clea~ that their
stock ·had cost them.in the currency im adva~ce of fifteen or twenty per cent.; it was therefore necessary
that this stock should raise to that price,_ to reimburse
them, that is;' to 'place them where they woul~ have
been if they had not subscribed, and where it had
placed aU other persons. For example, the stookcost
'in the' currency of the time one hundred .and twenty
dollars; the· Bank soon made this currency par, the
holders had then lost twenty dollars, which they would
have gained, and which:was ·gained by the community.
It would require an adval\ce of twenty dollars to reinstate .them. Those' who sold at twenty dollars advance,
gained no more than aU others by the operation, and
those who. retain their stock until the expiration" of the
charter, will have received six per cent. only .upon one
to:
7
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52
hundred and twenty 410llars paid in, uad. will be minus, "
unless made up by the surplus fund, equal to die'de·
preciation at the time of subscription. '
It is true, this depreciated paper had been received
in exchange for other property, which had'depreciatecl"
to the same extent; and so it is also with the rise
Btaeks, the price rises with every thing else, the change
is nominal, the relative state of things is preserveti.
You can buy no more property now with the one ~un
dred and twenty dollars, than you could formerly with
the one hundred dollars. You get no more interest for
the one hundred and twenty dollars than you received
for the one hundred dollars. While the curreacy had
ris~n to par, every thing had accommodated itself to
the general standard. , Money became more abundant,
its relative value was lessened; it required more ,of ,It
to purchase property as it did the 1Itock ; it ~ve there- ,
fore less interest. Every thing has changed its nomi..
nal value, by the ctaange of the standard by which it iI
atimated '; but the genem relations of society are pre.
1Je'l"Ved. The object of the Bank is to secure specie
payments, which make the general cireulation, equal flo
the specie stanflard, ~hich maintains what is ealled a
SODnd" equal, unifwm currency of standard. value every
where. ,It is to prevent depreciatioR, ituctuatiOA of
price, revolutions in property, wild s~Ulations, and
the consequent ~nof many people. '
, ,The Bank imd accomplished these great purposes, it
was the ifttentioo' of Congress· to ~atJe them.
"fhe stock was as high at the date of the ve1D III it
would "ave been, when the new charter went .to
operatioo, and. higher than it would haft been •
the ..nstributiol\ ef the surplus fund. By comRU-
'of
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~
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iog the charter, DOthing Was changed, the relatbe
state of things,. the standard, the currency, the cireuJatiol\, the exchange,tlie value of property, of stoc)pt,
of money, and. the. prices would have remained fixed.
and unaltered-there would have been no great gain
or ioss, any gain would have been . less than the actual
Joss in consequence of the veto, and the coun,try would
. have been satisfied..
The bank, at the date of the veto, had three years
aDd eight months to run; the stock was, therefore,
, worth 1107 87; the sut:plus fund was equal to 16-M"
which made the stock worth 18114 68. It stood, however, on the 7th 1uly, at 18121 2; the difference of
16rt~ was a rise above the. actuai value, created by
the hopes of a renewal of the charter, greatly increased
by passing through both houses, but upon the publication oftl1e.veto, the stock fell to its true value, 1114 68.
The stock,- with the accruing dividend, now stands at
111718, being only four per cent. leSs than before;
but this 18117 18 advance will be extinguished at the
end of the charter; the stock then would have been at
the highest (hoo for the stock of the new charter for
fift~en years. So th~t no permanent rise of stock could
have ~ken place, and the general price of from 1117
to $120 would have been maintained, but gradually
declining to the expiration of the charter.
Besides, it ought to be remembered, that the .hank,
to enable i"tse1f to accornplish the great purposes of its .
institu~on, incurred the expense of borrowing and importing into this country, seven millions of 8pecj~,
which greatly contributed to the rise of these and all
other stocks, as well as the general appreciation of property.
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..
The stoek ofthe bank having advanced in this way,
with every thing else; 'and holding only Ii corresponding relation to things in general, the :advance being
fully compensated, and being held either by original
subscribers; who deserve well of their country, for having taken it undel' doubtful, and retained it under' the
IilOIt discouraging c~rcumstances, or held by those who
had already purchased at this advance, 'what motive
Was there, as it must necessarily come back at the e;nd
of fifteen years to par,-to take this advance at all into
view; or to disturb the -existing st&,te of things? Congress 'acted wisely io leaving every thing untouched,
and· rechartering the bank as it happened to be.
Every man cannot get his due proportion' of the stock,
and if he could it must be very small, and of little value,
and if' opened again, it would lead to disgraceful scrambles, if sold at auction, it would either not sen at an ad·
vance,' from the amount in 'market, or it might induce
wild and :ruinous speculation; and after all, it must get
into the handS, of men who have no other or higher
claims to public'favour.
. The old bank must close its concerns, collect its
debts, and sell its property. Money distributed OYer
tile country, and ,every where exciting industry and
animating enterprise, must be withdrawn from its aceustomed chari nels, and concentrated again in the Jarge
cities, there to be rein vetted. All this must lead to
-great disorder-capital must be displaced, the circu·
lation deranged, exchange embarrassed, and business
impair confidence and creditinterrupted; these
.'banks will curtail, money depreciate,and property
fall.
Upon a fail' and stafesmanlike View, then,
the
will
or
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question, what' motive was there in breaking .. up this
ill8titutiOll.to. its. foundation ? Was it the miserable pittance of the b9nus? or .was it the seventeen. millions,
which has been shown to be moonshine? or the fear of
foreign capital, invested in ~very state and institution
in the country? or was it not a deep feeling of hOstility
to the bank, a secret passion ranklin~at the heart? and
have, not the best interests of the people, and the heat
hopes of the· country, been sacrificed to private resentment, to ignorant prejudices and political ambition?
Among the evils to :flow from. this meaaure is the displacement of capital,. by the withdrawal of twen~y millions from ·the west; the effect of this measure was foresea, bnt who Can calculate the extent of the IPSSrand
sacrifice, and .suft'ering it may -create? The -President
looking to this e1l)barrassment.arid distress, calmly SUr'vers!be catastrophe, and ~ures himself that "the: time
is ample," and "that the pressure will Ite light;" but
if it has been badly managed, or the preSsure should
be heavy on the people, "the fault will be all its
own~" And does the President suppose it is the Bank
or .the stockholders who are to suffer; they have ample
time to c.o)]ect their money, and it wi)) h~ agajninvested in a manner equally profitable to them. So far 18
the Bank is concerned, they scorn his power, and smile
at his impotent malice. So far from injuriQgthem, he
is preparing a crisis that must greatly enhance the value
of money; as it will diminish the value of every thing
else, while it will introdu~ confusion and <li!30rder in
all the walks of life. .
He complains of a drain of interest upon. the west,
and recommends a withdrawal of the whole capital, as
tbe means of relief!· If any evil is to be experienced
from closing the bank~ it is, in his opinion, much better
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to ~lBe now than fift.eeB yeaslleace J how philolopltical! He dreads the in:fluence of foreign cl\pital; dQe8
it go out of the countryP Money-has political.power;
will it have less wheD divided into numerous other in..
atitUtiODS? It baa, he .thina, too Iittl~ to bind it to
the country; will, its dispersion inorease its attachment? Is the suppression of this charter to make
the rich poorer, or the low higher ~ .. On the contrary,
is not the tendency to make the rich richer, and the
poor poorer? and to aggravate the evils of poverty, by
destroying the necessity and the value of labou.., by de·
stroying its reward?
.
. But· what has the President recommended in its
place? A gPeat national bank, founded on the reve..
nues and credit of the government, in the hands of a
dominant party, with immense capiu..1 and unlimited
powers; a political machine, by which the distribution
and mallagement of the capital will be placed· in the
hands, not of· statesmen, but of a divan located at the
seat of govemment and at th~ source of power, with
numerous agents, selected for their political in:ftuence,
·stationed at ~he great. ~ommercial points, with power
over the fortunes of the whole community; a con..
trolling power, capable of wielding every other
power; a fatal instrument of political corruption,
anQ. a potentengine of political ambition-a tremendous power, touching every man, controlling every
iQtereit, subsidizing the press, seducing public men,
subduing public opinion, demoralizing the p.eople,
and corrupting the principles of the govemment.
It is for such a cunning device as this, "a bran~h of
the treasury," without capital, resting on credit,without funds, depending on the revenue; without prqDigitized by
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perty, without stockbplftrs, without debtors, without creditors, without paper, and without discounts,
merely selling bills enough "to pay the MANAGERS
for counting and keeping the money;" the President
would surrender the Bank of the United States!
Would such a miserable expedient, that bas not obtained the sanction of one responsible name, supply
the place of the present Bank? Would it furnish
money where the wants of society demand it? Would
it provide an ample circulation of a sound, uniform
and equal currency? Would it fix a standard of value
of money, property, and exchange? Is there any
thing in the impracticable scheme, if created, which
a wise man can approve? Is there any redeeming
principle which can avert the calamity he has inflicted on the prosperity of the country? Could it
have any effect but to swell the power, and augment
the influence of the executive, by adding money to
patronage?
The President, unable to conceal the private
feelings that dictate his public conduct, lends himelf to the repetition of refuted calumnies.
.
The charges against the Bank were fully made,
ably investigated, and upon a deliberate consideration of all the reports and evidence, Congress passed
the bill to modify and continue the charter. Can
there be higher evidence,. that before that high-tribunal, the Bank was fully vindicated?
It was a part of the system of attack, to poison
. the public mind and forestall public opinion, by the
number and the grossness of the cliarges, and then
to defeat the measure by the delay of investigation.
The President says an " investigation unwill'
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conceded:" by who,m? to whom does he bring this
imrutation? The Bank was ,not consqlted, but
it opened to the comIrilttee all the' secrets of the
institution, disclosed every· fact, answered every inquiry, nothing waS' withheld. Does he then impute
~o Congress, that they were willing to wink at'its
abuses and suppress jnquiry? .is, that the delicate
insinuation .against the motiv.es of the members of
~he House of Representatives? The chairman of
the Committee of Ways and. Means promptly ~c
ceded to the proposition for a committee of inquiry
-the committee was appojnted with a,mple powers,
with a majority, not of moderate and impartial men,
but of those most distinguished for their hostility:
the chairman, who made the. charges, and was responsible for the truth of th~m, was made at once
the prosecutor and the judge and the umpire in
the committee.
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With a .committ~ thus constituted, wanting neither zeal nor ability, with all the aid and facility
which the Bank could give, he prosecuted the inquiry for four weeks, examined thirty witnesses, and
published a volume of near six hundred pages•
. The inquiry ended in the unanimous acquittal of
the President of the Bank from aU impropriety, an
abandonment of seve.ral of the ch~rges, and a tri;.
~phant refutation of aU the others by the minority.
One of the majority declared he considered the in- .
vestigation as amounting to nothing; that nothing
had been proven to inculpate the Bank, and that
he had signed .the report witho~t meaning to be responsible for its contents. But the President now
alleges that the committee were too restricted ill
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C"
'ttble.; .th.at' :the- prlldieeB .of· tb-e" Dank I're 'OBly par~
. 'Ually -unveiled, aBd' that. "numerous' charges cOIlfi-
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dently made aIfe :wholly .uBinvestigated~"
. tIhe whole o.t this- ,e.vmence· was, laid before Coo:
,gress' with elaborate reperis; it -did· nDt change the
opinion' 'Of .one·;maD. : The Bank. has stDod the test
of scrutiny, and passed the oroeal'of.public .opinioa,
against-.the .eilOrts of p·01itreal·opposit-ion,.again8t the
machinations of private- IHlignity ·and-th.e· schemes
'Of con'Certed hostility:~' . ,. - ...",
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, AU the ,c~arges alleged;- and aU the points made
.bY the'-President, were· fully 'diseussed,' and Con·gress,- upon a full ·view 'of the wh. subject, upon
their'responsibility, and~g3inst.a11the- influence 'Of
the executive .and· biB eabinet, approved 'Of a cootinuation of .ihe cbart~~ , The Pres.ident seems to misconeeive .the-nature
Of his.office, wliibh i.'chieG.y eXecutive•. The.eIt:.
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eempla~ency
with, which- he speaks·of himself ia
~mU8ing. ," Had the executive' (says, he) been called
on to furnish the'projeet oflOOh an instituti'On"tbe
doty would ha,ve been cheenullY'perfDrmed"-4l'Ow
condetcendingf The prQjeet Would nO"ooubt have
been either the 'Old, exploded· Treasury Bank, that
.miserable·skeleton, or it would have 'been formed
upontbe ·'Olfiginal views 'Of
President. himself,
as· di~ed in his message. ~ls.t. The eapital must
n"t-·~Keee.d :eleVeD'-miUi9Bs.;. 2d"It" must give a bobS of 50 pel: cent;· 3d. It must gramn'O power that
,is no1dndispemably neeesaary' to. a ·bank',. merely to
re~ve ~d m.tribtite the: public revenue. 4tn.; The
statesmuat. 'Wave .unlimited right to tax' ii. 5th. It
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must bold '110 p!Operty. 6th. It lDust not J>e:an.eal.....
siveBaBJt. of the ··UnitedState:s~ .. 7th. F..oreigners
Diust be pro~ibited; and, ~th, there must be ':fair
competition in subscribing, &e.. ~ ;
.
Congress, however" not' advisee·of th~ : pee_liar
notions and extraordinary tenRe·ity of-the Presid~nt
.upon his bankprQject, p~ceeded inth~ .usuat way
to prepare' a bill, wbloh was ~iseussed,. passed, atKI
sent to him as the. constitution p~scribes; .and he
returns for answer that he, " has'ni>t been cQnsulted/'
that he ~'neither needs D01 wailts·.an agent "clothed
with such powers';": whon bot a few months before,'
tbe President',S: own Seer~tarY' of the T,re,asury~,in .
a report' to Coo8J'ess, deelared that· 'tariou8consi..
derations,-whieh he sta.~d ~ greaUev.gth," induoed
him to recommend the expedleDcy of re.cb~rtering
the·present·Baa.k.'l .. ' ,
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. ThePresid~~ objects that the. bank monopolizes
tbe ~xchange.. , .
'. . ...
The bank ~joys DO exclusive 'privilege-'no.nol)oPQIy of thiS: ~ind has 'been confetred. The.right
of .dealing in exohange·belongs equ3l1y to· aU tneDt
and aIr banks. It is the chief merit and peculiar
beauty of the system, that by wideQing the field of
operations, tbepre-existing monopoly is destroyed.
Exc~ng~eretofore. in· the hands of indlvidu.als
ana separate corporatio~, with narrow means. and
limited view~as altogether·unsettled. and uncel"otain, it w,as inadequa_e to·the wa~ts of cp.mmerce•.
Tbe rate,. gov~rned by noJaws, regulated by private
int~st: 'and 'indiv~dual necessities"l8n ',higb,;1lnd
Co.itJlte.d a ·heavy tax. upoD.al~-the agriewtuFll
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eotmriunity. It is
reduced to order and system
--t-he means are adequate, the rate low and uniform.
If the' bank -enjoys the benefit of this exchange, it is
because it obtains -it in-a fair and -open competition;
it results;.from the nature of the institution, the location' of-its branehes, the extent -of its means, and the
liberal principles of its administration; it is, in fhle,
. because it buys for less~ But i's tbi's' a subject ef
complaint to the peopl e ? E-xchange has heretofore
constituted a tax "of from three to.five per cent.·upon
all the productions of the country J" ho-w does it· stand
now?- The bank notes' are every where receivable
for duties, for lands, and in the settlement of- all
transactions with .tIl tile- local bank~this renders
them almost universally receivable--and are, "therefore, to that· extent; a means of general remittance,
and so far supersede-theneeessity ofexchange orthe
removal of metals. The- bank alS.o put in circulatiOll,
in the western states; eight or ten lIlillions of .orders,
payable in Philadelphia, which serVed as aremittance; and preserved the local cireulatioD, and superseded to thatextent-the necessity of bank checks,
upon which they might haVe made large profits;
to this extent, ·therefore,excbange .is .perfectly
equal" and all' the business of society transacted
widtout cost.·
,
'On the other hand, the' exchange' in domestic bnIs
is rendered 'more. equal than gold and silver.
The ba~k, 'during the last twelve montlis, purchafed sixty-two' millions ·of bills-of which thirty
inill~onsare' in the west; :about eighteen, miHions
are drawn on·New Orleans,from Pittsburg, Lexing-
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too,. CiociDllati, Lo1JisviU~Nashvjlle; St. Louis. a~.
Natchez, upon .the 8hipmen~ Qf. w.estera produc-.
tions; aosut twelv.e- millions from New Orle~,. on
the north. Thes~ bills are taken at half a p.er cent.;
the-remainder ~f the QiUs,.in the AtJa~tic PQI'tS;. a,e
nearly.at par: so that the.whole e.x~hange deesDOt·
mueh ~ceed one.;.fourtb ofa per. cent., and the w·hol~
amount. of premium on exchange and·~emittaJlGe,
may be stated at .one-eighth of. a ·per cent.--far lesa.
than the expense of .remov.ing.mc;;taIs,·and less than
that o( any otljer coun-try. . The President yentures
to-assert that the baJ;llt.bas failed in equalizing ex. _
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change.
- .The bank deals in.foreign exchange to the amount
of fro~' th~e to five. millions a year,but e~joys in·
this -PO monopoly or e~clusive privilege; . - .
-Th~ eWect;ofihis ~te.9f~.reney and ex~ange is.
incalculable upon agriculwral indUltry and c~er-.
cial enterpri$e; in. t_h~ '~ayingQf premiums; in tlte
anticipation, by .se.veral moDUlI, of the result of their
IaboUl'-J by t~ emplOyment of, cash inste.ad of credit i by avoiding the. deJay ~ expense ·of:the displace~ent of cap~tal, and the derangement of cir£u...
lation by the remora1:of t~e. metals. . Now, what is
tlie alternative? S~l;e bank paper of limited circulation, and doubtful chal'acter-exc.hang.e high and
diftieult-~emltt.ances_in money, ap~ a credit system,
&e. from.whic.b mlJit·re$ult.qonsequence$· the ~Qst.
di~astrous.,. .,. . '. :- .
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. There .are now ,e~.sting three h~lldred aDd -twe~
ty-nine.state. banks, with a. capital.of ODe huudred
and, ten millions,. all ip high cr~ditt circula:tiDgtbeil'
. off
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paper through the community, all of whom are liow
governed by the force of moral ()bligation, and the
restraining influence of the Bank of the United
States. -'
,The fact- that one hundred and sixty-five banks,
with acapit~l of thirty millions, have failed in twenty
'years, of which the loss and injury, directly and' in-'
directly, cannot 'be -calculated, may serve'to awaken
attention to the dangers' that menace tliem now.
What have we ,to preserve specie payments, a
uniform eurreney, and regulated exchanger What
is -there but the public good faith, to protect-the
country against the new -banks, that must every
- where spring up,as they did· before, on the dissolution of the old bank?
NotWithstanding the general and ~knowledged
benefit oftbis·institution, in all its modes of operatien,
upon the aB'airs of gov:ern~e~ upon the busiReo of
society, in every part of' the cou~try, and inaH the
walks of life; i~_ i& insidiOUsly instilled into the ear
or the honest peopl~ of the 'c~untry, to .exasperate
~hei.. -minds, that "these exclusive privileges are
grarrted at the -expense of the public."
The President has taken theoceasion to'repeat
the stale story, so fully eXplainedaild so often r~fut
ed, ~ "That the President of the -banK bas t91d us
that most of the state banks exist by its .forbe~r
anee." He' is unconscioUs, ~ doubt, of ,tbe 'artful
maBner in which .tbe tenses have been changed, the
w<mk displaced, and the meaning perv:ertedto-(orce
this construetiOD,to answer a plU'tiootar'-and favour.t
:ite purpoae.
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Every one knows, that..the . Bank of. the United
States ha., no power,over-the existence of.any -SQund
and well conducted. state.·iQstitution, muob less any
disposition to exert such power. The credit .of
state banks rests upon ·tbe saDle principle a8'priv.ate
credit-upon .the ~oue.t and punetual~fulfilm~nt f)f'
-their engagements. . _ .
The .Bank. of the .United States has a power, held
oOucurreDtly with all the state banks, and with every
individual, necessary to 'thepulllic safety, and which
W9JJ the chief object of its institution, to compel all
~ks.to pay their notes in specie. It is this salutary.
power lb,t preserves the monitory,system.WhiIe
the banks perform: their e.ngagements,. they cannot
be destroyed; and if theyfaiJ, they fall,not by the
hQ'k, .but by their own folly,<.and the force of.
public 'opinion.;' It· is the duty of the. bank to prevent the. circulation of paper not at all times· equal
and convertible. to sp.ecie.. ..'
W.hat tbe .President-of the' baflk said oBhe-power
of the bank, relat~d not -to the present time, but'- to
period of .gr~t difficulty, on the resumption of
specie payments, whEm the government deposites
were traDs~erred to the.Bank ·of the United States.
The· .state banks then ·stood iridebted to the .bank
eight ~r.teB rnillions, and which they were not PP8pared to meet. Certainly it rigorous exaction would
have compelled. these banks to stop paYlJlent. . The
Pr..esident the bank.,. in· .refere.nce· to this state- of
things, ai!d to the peried of... 1.817 and 18~8, . said,
" there .~ fe;w banks:which m,isbt ...t itzee been destroyed,:by the ex~rtion of the power-ofthe bank"..-
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none have ever been inj~red. ~Iany have been saved,
and more have been aJld are constantly relieved,
when it is found they are solvent."
Is it possible, honestly, to construe this into a de.
claration, that the bank now holds the power of life
and death over the state i?anks, or to .believe that
any such power, in fact, exists? On the oontrary,
is not the power exerted by the bank essential to
the safety and existence of the state banks, as wen
as to the security of the people? And instead
of any feeling of jealousy or hostility, which this was
intended to excite, many of the local banks have petitioned Congress for a recharter of the bank, from
a conviction of its necessity and importance to the
country.
This veto, then, rests upon false principles, mistaken views, and futile objections.
It is presumptuously put forth, against the public
sentiment and the public interest-in the fa'Ce of the
highest authority and most approved precedent; it
is founded in fallacies the most pernicious, in doctrines the most detestable, in principles the· most
dangerous, and must lead to consequences, both by
its example and its influence, the inost disastrous. It tends to a total revolution, if not dissolution of
government: an assumption of all power in the
executive; a total disregard of the rights of majorities, or the will of the people; a denial of all power
in Congress, and of 3:11 authority in the courts; all
the balances of the constitution are destroyed, and
all the connexion, dependence, and subordination of
·the parts islost.·
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While tbe states deny the most essential powers
to the government, and ~he .President interdicts the
most wholesome Jaws, the constitution becomes a
dead letter, tire executive the only power, the eleetion of the chief magistrate the principal end, and
th~ "SPOl~ QF VICTORY" the only object of government.
:
It i~.time to pause, eXapline our position, review
our principles, and question our rulers.
Let·us see if this is the true coustruction of the
constitution, a~a the just interpretation ofthe power
of the executive. Let us iPquire i( he has consulted
the'real interest of the country, or sacrificed it to
ambition.
:Let us see whether this institution, CQJlnected
with all the affairs of government, Bnd with all the.
pursuits of society-'a bond that united in one comprehensive system aU the various interea*8 of industry, and all the dependenoies of commerce;' hafJ
Dot been wantonly sacrificed, in contempt of the
rights of t~e peop~e, to propitiate a partl' to perpetuate the office he seeks, and the power he has
abused. . Let us see if the man who has so violated
his trust, and disappointed our hopes, is longer it
to be the .ruler of a fr~e.~eoplej
Emuu1n.-In page So fourth line of ,the third peragraph. the word ,.;gld ftS
acoidentally i~lerted for -8"'. in lome few imprellicm...
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