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REVIEW OF THE VETO. ,,' d~.rdOOIlT4D1IKG AN EXAMINATION OJ'TlJE :::... :: .. :: ............... . :oo..: :• -:.:.oo: ':.." : : -.: .. •:-.•. -..~:: :-; oo •• AND , I • I ..: ..: :--:.:••... -........ .-oo ..... ... : ::.:: :.~: .. .• ..• :- To modify and cOntinue the act Rec.kartenng "the Bank ." . I " 0/ t~ UniJed $tate~. I PHIL.llDY.,pHI.A: 1832 Digitized by dzr Google : ., ~ ...... ··:.-..... ..'. '.. .....'.. . . .'. .. ....'.. · . . . ...-: -.:. .. . ... :' .... : ... : . .. .... .... .... .. : :: .. . : ..... ": ..... .. .. ~. ' 8- ••• •• •••• • ' -. - . ;: ... :: ~.' ... ..... ~: .. ..; .. . 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 ~~')..":)' 1 . -<--~ ~~~2412"",,",GOO:?le r(~ 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~ ',." . . 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 see . or of or Digitized by Google -w 5 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- ! Digilize.d by Google 6 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. ' '., - ," ',' , ", 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 ~, eieoutive eQWttains viewsl)f public policy drrerent from the people woo called hi. ' to that alice. , , , 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.. or Digitized by Google ,- 7 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 , Digitized by Google 8 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~. ' . . . 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.. - ' . . The hutto r~hmer .the:bank :wu presented to the. us I . . Digitized by Google - 9 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. . 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, Digitized by Google 10 . - 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. - .. ' ." . . 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 . in' Digitized by Google 11 '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 8 Digitized by Google 12 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 DigItized by Coogi e 13 . 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." long Digitized by Google ® 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. . 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- I Digitized by.c:9PSk 15 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 !. If 16 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 I DigItized by Googi e 17 I' ! 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. as DigItized ~Y GooSI e 18 '. 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 " Digitized by Google 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. ' 3 tax • Digitized by Google 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 . 'I a to_ to -Digitized by GoogI e .( 21 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- a.re Digili;ed by Google 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 .and Digitized by G<?ogIe ! 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 Digitized by Google ll~ .. .' 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 '. ,,-_{. Digitized ,I b;Google ' ., --, ~: 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. Digitized by Google 26 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- as ,Digitized by Goog1e ,': 27· 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 Digitized by .1.. Google .: i ii il Ii I, i J: " Ii II, 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.. ' 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 Digitized by Google . 1 29 I ' . 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· • ' " ", Digiiized by . Google \~ ',J . ' 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''''~ to• •'iI!-vidi~· ooiai>aii'SOGi- on Co· . ' .Digiliz;,d ~Y Google , I i I ! ,3~ ,','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." ,', .'. message ..,' I. '_ . ' .. The' 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~ '.< -"" :, . ", :. ' , 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~ Digitized by Google 'f , .32. - . 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!, Digitized by ' Google J 3.3- , 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; Digitized by Google . 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" .... ~, • ~ ~ -', • '. : ' " I' 0- : .._ • ..... Digitized • by'Google : ,. I 35' o 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 ' ,',' , " 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 of a Digitized by Google .. 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 < • a Co..,- Digitized by Google \' 37 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 Digitized by Google 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 ",' west would -, Digitized by Google 39 . 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? . 0.' Digitized by Google ~. . .,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 $Ome i'orm;·and -if they ~re;by another law qf.-our U. ture they. are often Nduced to .the necessity. hateR. ofj"eaJousy, distrust, and alienation- among.the different olaJiel, there i_every motiveofiDte~it·to cherish the Jiindelt.fe~lings. ". ",' . '-'. '. . The rieh:·;do· not· horde th~r .DlO~y.; it is. put into baab, invested in canals and l'9&cU,houses at'e erected, ,hips built, land purchaied; BDd this ,tlta. in requisi.tion all the labour and capital of th~ COUD-try; and -it-iS this labour, from which few, 80IIle form, are exempt, tJaat ,increases the .enjoyment. of UlQ rich, and pNtI""cures heal~b, p~aee"and coQJpe,!:eu.ee to t~ poor... It il' thiJ labour-that consti~ute8 -tbepublic prOsperity ~aa th~ .national weal. It binds'moiety legethet in a gNat c.hain of, connexion and dependeue, by. their mutoaJ wants and interests~ l;Jow unfortunate, then, to ·f...at feuds among the dil'erent 'orders of 8ociety; to array.the poor against tile rich-! . How -da,nge."Utland how wick. , to lOW the seedt of discord, to. ..ake the poor' unhapp,~ and to rouse those' passions that have,in -other OOUR" in Digitized by Google I 1 41 tries; .1 r 80 often· disturbed the peace and order of govern· ment~ Happily, iB -our favoured 1.od, there is no distinc~on: 'bot the SOod. and the ·bad;- there is no mob to ,r move~ ,.'" . ' . ' The President thinks tbe bonus too'smaU"and that that is a suftieie~* obje~tion to the charter. The bonus, in the existingcbarter, was ':fixed by the r~commendatiOf1 of ,Mr. :paUas, in ais repm:t of Decem· ber, 1815. Who, in hi$ 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 Digitized by Google , 42 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 '. ' '"ia Digitized by Google '- ., 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' , , Digitized by Google I ,..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 ' . "'.~ . ..' . . -- ." "'- , ': . . Di9itize~ ~~ GoogI e 45 '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 ~..~ .' ' .. per in Digitized b~ Google 1 ~, '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 Digitized by Coogle I, d • • " 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' • Digitized by Google . ,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 .~~ Digitized by Google - .. ~ __ 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• Digitized by Google ;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~~,.~' . . . Digitized by , Google ..!.t" ,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 Digitized by Google -, 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 Digitized by ~oogIe ,I I . . 53 i ~ ! I - 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. Digitized by Google .. 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 Digitized by Google L 5' 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 Digitized by Google 56 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 Google • 57 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' 58 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. . 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 Digitized by Google 59 C" 'ttble.; .th.at' :the- prlldieeB .of· tb-e" Dank I're 'OBly par~ . 'Ually -unveiled, aBd' that. "numerous' charges cOIlfi- " 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:~' . ,. - ...", ' , 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:. > • '. ,'. " 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 . , 8 the ,. Di9'ilized by Google --~~._=--.~~ . -;,-.-;;--;:.:-::=tIJF -7---. ~. ________ ""!.--~--~--- -- .. . 60 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 .. ' , ".' . 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 .8 Digitized by tA. .' Google l .. ! . • 61 :- now \.. 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- " 'i t . " Digitized by Google • ., 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. _ . ~. 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.,. .,. . '. :- . . , '. , . 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 Digitized by Google .J i. 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. Digitized by Google ,I • 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"..- a m , . .Digitized by"Google . ,- , 1..:-.J .. 65- .f 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.· Digitized by Google I i • ;". /6G " / , .~--.. \ \~-- 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... .' • . , \• . I . t •