The Madisonian. [volume], August 23, 1837, Image 1

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THE MADISOMAN.
THUMAH ALLEN.
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PROSPECTUS.
Tits Msdisomiah will be devoted to the aupport of
the principlea and doctrines of the democratic party, aa
delineated by Mr. Madi?ou, and will aim to coneummate
that political reform in the theory and practice of the
h, national goveniuieut, which haa been repeatedly indi
? cated by the general *ufferage, as essential to the poace
l,P and prosperity of the country, and to the perfection and
perpetuity of ita free institutiona. At thia time a singu
lar state of affairs is presented. The commercial in
terests of the country are overwhelmed with embarrass
ment ; its monetary concerna aro unusually disordered ;
every ramification of aociety is invaded by distreaa, and
the social edifice acema threatened with disorganisation;
every ear is filled with predictions of evil and the iiiur
wirings of despondency ; the general government ia
boldly aasailed by a large and reapectable portion of the
people, as the direct cause of tneir difficulties; open
resistance -to the laws is publicly encouraged, and a
spirit of insubordination is fostered, aa a necessary
dufunce to the pretended usurpations of the psrty in
power ; some, from whom better things were hoped, are
making the " confusion worse confounded," by a head
long pursuit of extreme notions and indefinite phantoms,
totally incompatible with a wholesome atate of the
country. In the midst of all these difficulties and em
barrassiAents, it ia feared that uiany of the Iraa firm of
the- friends of the admimatration and aupportera of
democratic principle* are wavering in their confidcnce,
and beginning, without just cause, to view with distrust
those men to whom they have been long attached, and
whose elevation they hsve laboured to promote from
honest and patriotic motive* Exulting in the anticipa
tion of dismay and confuaion amongst the aupportcrs of
the administration as the consequence of these things,
the opposition are consoling themselves with the idea
that Mr. Van Burcn's friends, as a national partv, are
veiging to dissolution ; and they allow no opportunity to
piss unimproved to give eclat to their own doctrines.
They are, indeed, maturing plana for their own future
government of the country, with aeetniug confidence of
certain aucceaa.
Thia confidence is increased by the fact, that visionary
theories, and an unwise adherence to the plan for an
txclutme metallic currency have unfortunately carried
some beyond the actual and true policy of the govern
' incut; and, by impairing public confidence in the credit
ay at cm, which ought to be preserved and regulated, but
not destroyed, have tended to increase the difficulties
under which the country is no.v labouring. All these
seem to indicate the neceaaity of a new organ at the
aeat of government, to be established upon sound prin
ciples, and to represent faithfully, and not to dictate, the
real policy of the administration, and the true sentiments,
measures, and interests, of the great body of its sup
porters. The necessity slso appears of the adoption of
more conservative principles than the conduct of thoso
seems t? indicate who seek to remedy abuses by dc
atroying the institutions with which they are found con
nected Indeed some measure of contribution is deemed
essential to the cuhanceincnt of our own self-respect at
home, and to the promotion of the honor and credit of
the nation abroad.
To meet theae indications this undertaking has been
instituted, and it ia hoped that it will produce the effect
of inapiring the timid with courage, the desponding with
hope, and the whole country with confidence in tho
administration of its government. In this view, this
journal will not aeek to lead, f>r to follow any-faction, or
to advocate the viewa of any particular detachment of
men. It will aspire to accord a juat measure of sup
port. to each of the co-ordinate branches of the govern
ment, in the lawful exercise of their constitutional
prerogatives. It will address itself to the understandings
of men, rather than appeal to any unworthy prejudicea
or evd passions. It will rely invariably upon the prin
ciple, that the atrength and security of American insti
tution* depeud upon the intelligence and virtuo of the
Thc Madi soman will not, in any event, be made the
instrument of arraying the north and the south, the eaat
and the west, in hostile attitude* towards each other,
upon anv subject of either general or local intcrcat. It
will reflect only that spirit arid those principles of mutual
concession, compromise, and reciprocal good-will, which
so eminently characterized the inception, formation, and
subsequent adoption, by the several States, of the con
stitution of the United States. Moreover, iu the same
hallowed apirit that haa, at all periods since the adoption
of that sacred instrument, characterized it's defkxcb
av this pi:opi.b, our press will hasten to its support at
every emergency that shall arise, from whatever quarter,
and under whatever guise of philanthropy, policy, or
principle, the antagonist power inay appear
If, tn this responsible undertaking, it ahall be our
?ood fortune to succeed to any degree iu promoting tho
irinonv and prosperity of the country, or in conciliating
jealousies, and allaying the asperities of party warfare,
by demeaning ourself amicably towarda all; by indulg
ing personal animosities towards none ; by conducting
ourself in the belief that it is perfectly practicable to
differ wnh others in matters of principle and of expe
diency, without a mixture of personal unkindncss or loss
of reciprocal respect; and by " asking nothing that i*
not clearly right, and submitting to nothing that is
wrong," then, and not otherwise, will the full measure
of it* intention be accomplished. and our primary rule
for ita guidance be sufficiently observed and satisfied.
Thia enterprize lias not been undertaken without the
approtiation, advisement, and pledged support of many
of the leading and soundest minds in the ranka of the
democractic republican party, ui the extreme north and
in the extreme south, in the east and in the west. An
aasociation of both political experience and talent of the
highest order will render it competent to carry forward
the principlea by which it will be gutded, and make it
useful ss s political organ, and interesting as a journal
?f news. Arrangement* also have been made to fix the
establishment upon a substantial and permanent ban*
The aubacriber, therefore, relie* upon the public for so
much of their confidence and encouragement only a* the
fidelity of Ina pre** to their great national interests shall
prove itself entitled to receive.
THOMAS ALLEN.
YVashinoton Citv, D. C. July, 1837.
WOMAN'S EYES.
Away, away ' I'll drink no more
Let's join the minstrel throng ;
Away, where voice and lute outpour
The dulcet tide of song,
But let it be where Beauty'* bower
It* sweetest theme supplies ;
Song lesos half its magic power
L'ublest by Womun'a eyes
The warrior's lance, thc poet's pen,
May win immortal lame;
As occan cave and mountain glen
_ Are taught each glorious name.
Yet is there still than fame, perchance,
A prouder, richer prize ;
W ho values not the sunny glance
Who'a home ia Woman's eyes ?
There is an hour when words are vail
An hour twice known to none: 7
It la when hearts, that once were>wain,
First feel they are but one. '
E en then when sense appeals to sense
And passion speech denies;
What tlien is l<ove's best eloquence T
Tis that of Woman's eyes.
I've drained the cup on Rhine'* proud hills,
I've drank Unronue, to thee;
Where lauuh the snow Alps' thousand rills,
I've quaff'd to liberty.
But, oh! of all the bacchant stores,
Garonne or Khine auppliea,
Give me the cup that, mantling up,
U drained to Wuman's eye*.
THE MADISON IAN.
- ? ? - ? . ? ?. ' " I /? " 1 " 1 1111 ' ~ ? '????' ""?? ;i' r'''
VOL. I. WASHINGTON CITY, WED KESDAY, AUGUST 23, 1837. NO. 3.
BANKING SYSTEM.
THE TXOK DOCTRINE.
Crusader* against the Banking System of
the States, would be wise in providing them
selves with text bonks, furnished by combin
ing the opinions of the great leaders of the
Republican party. They will then wander
forth in their Quixotic career with a better
understanding of the position of their ene
mies, aud forewarned of those Inna, where,
like poor Sancho, they may get tossed in a
blanket.
If they flatter themselves that the seeking
of new and untried paths, the adoption of
new creeds, or the entire relinquishment of
the old ones, will be countenanced by those
to whom ihey would fain look for direction,
they must have a singular confidence in that
jewel of virtues, Consistency. Forourpart,
we will not have the uncharitablcness to be
lieve, that these gentlemen whose opinions
we quote, and rely upon with confidence as
the true doctrine, will M turn their barks upon
themselves," and repudiate the principles upon
which they-have always professed to act.
To remedy the abuses of the Hanking Sys
tem by destroying all the Banks, would be
very much like hanging a sinner for the pur
pose of reforming him. We trust the people
w ill be guilty of no such folly. VVe trust they
will be on their guard, and not permit the pre
vailing disorders to blind tlieir eyes to the
true policy, nor allow themselves to be led
astray by the sinister devices of demagogues,
or the extravagancies of fanatics.
We readily admit tharour Banking Systom
is defective, and we shall cordially co-operate
in any proper measures for a practicable and
wholesome reform. But let us avoid rashness
and violence. The embarrassments of the
country would be wofully involved and in
creased, by punishing the State Institutions
with destruction, because, involved in the
vortex of a wide spread commercial and finan
cial calamity, they were forced to suspend
specie payments. Moderation and forbear
ance will best subserve the purposes of re
form, and turn away the evils, with which the
community would be overwhelmed by any
other course. Let us remember the great
principles for which we have been long con
tending. Let us remember that Congress, in
relation to the currency, has only power, by
the letter of the Constitution, to " coin money
and regulate the value thereof, and of foreign
coin." The question of a National Bank,
therefore, should be considered settled. Let
us rely upon the already declared policy of the
Government, for the best and safest measures
to promote the " general welfare." And let
us remember, in the language of President
Jackson, that, " instead of being necessarily
made to promote the evils of an unchecked
paper systom, the management of the revenue
can be made auxiliary to the reform which the
Legislatures of several of the "States have al
ready commenced." In this respect let us
see how far we may rely upon the declared
opinions of Republican leaders.
In his message in December, 1835, Presi
dent Jackson says: I
" It has been seen that, without the agericy of a great j
moneyed monopoly, the revenue can be collected, aud
conveniently aud safely applied to all the purpoaea of |
the public expenditure. It la also ascertained that, in
stead of being necesaarily made to promote the evils of
an unchecked paper aystein, the management of the re
venue can be made auxiliary to the reform which the
legislatures of several of the States have already com- \
menced in regard to the suppression of small lulls, aud
it hich has only to be fostered by proper regulations on
tke part of Congress to secure a practical retwn, to the \
extent required for the security of the currency, to the
constitutional medium. Severed from the Government
as political engines, and not susceptible of dangerous
extension and combination, the State banks will not be
tempted, nor will they have the power which we have
aeen exercised, to divert the public funds from the le
gitimate purposes of the Government. The collection
j<nd custody of the revenue being, on the contrary, a
source of credit to them, will increase the security
which tins Slates provide for a faithful execution of
their trusts, by multiplying the scrutinies to which their
operations snd accounts will be subjected. Thus dis
posed, as well from interest as the obligations of their
charters, it cannot tie doubted that such condition* as
Congress may see lit to adopt respecting the dejiosites
in these institutions, with a view to the gradual disuse
oj the smalt bills, will be cheerfully complied with ; and
tbat*we shall soon gam, ui place of the bank of the U.
States, a practical reform 111 the whole paper system of
the country. If, by this policy, we can ultimately wit
ness the suppression of all bank bills below twenty dol
lars, it is apparent that gold and silver will take, tlieir
place, and become the principal circulating medium in
the common business of live farmers and mechanics of
the country. The attainment of such a result will form
an era in the history of our country, which will be dwelt
upon with delight liy every true firend of its liberty and
independence. It will lighten the great lax which our
|>aper system has so long collected from the earnings of
labor, and do more to revive and perpetuate those habits
of economy and simplicity which are so congenial to
the character of Itcpnblicana, than all tlie legislation
which has yet been attempted."
Mr. Van Buren expressed himself thus, in
relation to this subject, in his letter to Mr.
Williams:
'? The constitution gave to Congress express power
to coin money and regulate the value thereof, and of
foreign com. and it expressly prohibits the exercise of a
similar power by the Slates. ? ? ? ? Whether
they also designed to divest the state's of .their antece
dent right to incoriicrale banks, it would now bo more
curious than useful to enquire. That matter, so far as
it relates to the mere question of power, must be re
garded ss settled in fat or of the continued authority of
the states. Assuming that this was contemplated bv
the frainers of the federal constitution, it is then most
evident that their hopes of a sound currency must have
been based upon the cx|>ectaiion that the respective go
vernments would faithfully discharge their peculiar du
ties, aud as faithfully conliuc themselves lu their re
spective sphere* ; thst the federal government would
exert all us consUtuUonal powers, not only by creating
aud diffusing a metallic currency, but by protecting it
against a paper circulation of the same nominal value,
whilst the states supplied such -emissions of paper as
"iifjht be actually demanded by the necessities oj Com
merce, and not at variance either in denomination or
amount with the existence of an adequate specie ear?
rtney. Had such ? |tolicy been pursued, there ia the
best reason for believing that a just proportion between
paper and spccie might hare been preserved, and a
sound currency uniformly maintained.''
Again :
" Although I have always been opposed to the in
crease of hanka, I would u*ver*heJes* pursue towards
the existing institution! a jo?t and liberal c?ura?-~pro
tecting tbem in the rightful enjoyment oI the principles
which have been granted to them, and extending U?
them the good will of the community, ?o long M li.ey
discharge with fidelity the delicate and imitortaot public
trusts with which they have been invested."
The Hon. William C. Rives, in his exce 1
leut speech upon the subject of the currency,
delivered in the Senate last winter, held the
following doctrine, which seems to have been
heartily responded to throughout the country,
and by many, considered " the most reason
able sentiments upon this subject ever put
forth." Mr. Hives says :
" My object then would be, not the destruction of
the banking system and the total suppression of hank
psper, but sn efficient regulation of it, and its restriction
to safe and proper limits ; not the exclusive use of spe
cie as a circulating medium, but such a substantial en
largement and general diffusion of it, in actual circula
tion, aa would nuke it the practical, currency of com
mon life, the universal medium of ordinary transactions
in short, the money of the farmer, the mechanic, the
laborer, and the tradesman : while the merchant should
be left in the enjoyment of a sound and restricted paper
currency for hia larger operationa. Such a reformation
in the currency aa this, would in my opinion be produc
tive of the most beneficial results. Il would give se
curity to the industrious classes of society for the pro
ducts of their labor, againal the caaualtiea incident to
the paper !vatein. It would give aecuritv to a great ex
tent to iho whole body of the community, againat those
disastrous fluctuations in tlie value of property and
' contracts, which arise from the eblis and flows of an
| unrestricted paper currency. It would give security to
the banks themselves, by providing them in the daily in
ternal circulation of the country, an abundant and ac
cessible fund for recruiting their resource!, whenever
they should be exposed to an extraordinary pressure.
L Again, in the language of prediction, now
?proved history, he says: .
"The rcquiaition of specie in payments to the Govern-'
mcnt will not only not avail to bring gold and silver into
circulation, but, if insisted on, while gold and silver yet
form, comparatively, but a small part of the actual cur
rency of the country, it will inevitably have the eflecl of
I diminishing their circulation. While bank paper forms
the great mass of the currency of the country, if the
Government refuse to receive it in payment of the
public dues, and demand ?|?cie excluaively, the neces
aarv consequence will be to enhance, to a greater or
lesa extent, the value of gold and ailver in relation to
paper. That being the caie, gold and ailver will no
longer circulate freely Those who liave specie will be
unwilling to part with it, except at a premium ; and those
who have notes will be anxious to convert them into
specie. Hoarding of the precious inetala will then
commence, and but little of tliein be aeen in circulation.
No one, I presume, Mr Prciident, attache! much im
portance to the collection of the public revenue in
specie, aa an ultimate object, if il can be made equally
safe b\ other means. It is only aa an matrument of
purifying and correcting the currency, that itdeaerves
the consideration of a practical statesman. The great
object la not to amass specie in the public treasury, or
in the vaults of banks, but to diffuse Us healthful cur
rency through the business ol society, and to bring it
into activc circulation among the people. 1 Ins can only
be effected by the previoua suppression of the amall
notes ; and any attempt by the Government, before that
ix done, to collect its revenues in spccie. instead of pro
moting and extending the circulation of gold and silver,
tends directly to narrow and diminish their circulation '
The Hon. Nathaniel P. Talltnadge, in his
speech in the United States Senate, ti|M>n the
Ueposite Act, which has been extensively
quoted and commended, expressed the follow
ing views. It is proper, also, to remark, that
these opinions have recently, received the
" entire approbation" of about " seven hun
dred members of the democratic republican
party, in the city ol New York," whose con
nexion with the commercial interests, and
knowledge of commercial wants, should en
title their views to great weight on subjects of
this character. He says :
ii What, then, do they, expect and desire ' I answer
no more, nor no less, than every real fri< nd to his coun
try is willing to adopt, namely, a preservation, and at
the same time, a regulation of the credit lysiem. In
all such measures of reform I will go as far as lie who
goes farthest. Pre?erve and regulate, but not destroy,
la my motto. Enlarge your specie basis ; introduce, a*
far as practicable. ? gold currency, by the prohibition of
small notca ; provide iiieam for coming at the mint;
take all proper measures to prevent excessive issues of
bank paper, and the unnecessary increase of bank incor
porations; repeal your restraining laws, so as to permit
the free employment and investment of foreign capital.
Whatever danger there may be. is to be found in the
abuse of the lystem, and not in its existence. Guard
against these abuses, and correct them when discovered
An entire abandonment of the credit system, and a
return to a sole anil exclusive metallic currency, if it
were practicable, w*ould produce desolation and de
struction from one extreme to the Union to the other.
Such notions ought not, cannot, muit not prevail."
Hon. Silas Wright, Jr. in his speech in the
United States Senate, in January, 1834, re
marked :
" The Senator from Massachusetts has asked?If
you will not rechurter the bank, or establish a new bank,
what will you do ! He (Mr Wright) would answer as
an individual, expressing hi* oirn sealiments, that he
would support the Executive Dejiartinent of the Go
vernment, by all the lawful means in hi* |K?wer, in the
attempt now making to substitute the State Ranks fur
the United Stales. He believed them perfectly and
completely competent to the object, and he was wW.'y
unmoral by the a/at im that had been sounded a* to
their insecurity and the dinners that were to be appre
hended from the change. He held that the steps al
ready taken to effect the object in view were all war
ranted by the Constitution and lairs rf the land. It was
his firm opinion that the steps which had been takeu |
would redound to the honor and l?e.tt interest of the
country, and ouyht to l?e suataiued by the People and
their llepresentatives."
In conclusion, Mr. Wright observed:
" He would merely pronounce hi? opinion that the
country would sustain the Executive arm of llie (?o
vernment in tho Experiment now making to substitute
the Stale Institution! for the Hank ot the United States
H% had the must en'ire confidence in the full aul com
plete success of the ExpernncrU."
Mr. Woodbury, in his Report to Congress,
in Decemlier, 1834, says:
" It is the part of sound philosophy and true political
wisdom to improve to the utmost, consistently with con
stitutional difficulties, our present mixed currencv
When it is remembered that, after long experience,
almost every nation of Europe, and esjieciallv the most
enlightened and commercial ones, have, though possess
ing full power to abolish wholly the paper system, deem
ed it good economy and a great convenience to retain it
to a certain extent, for the larger and more distant ope
rations in commerce and finance ; when it u considered
that the paper syalein is generally supposed to increase
the activity of the surplus moneyed capital of a country,
bv collecting it into banks, and distributing it speedily,
as needed, and to make a lesa quantity of circulating
medium, employed in thia way, answer the same pur
iK>*cs of society with a lar?;et quantity otherwiae em
iiioved ; and when it is computed by many, whether
juailv and wiaely, need not here be diarnssed, (hit.
ihroUtfh the wanes of psper over the amount of specie
in the? vaulta of banks, the public is enable to obtain a
temporary use of so much more money, as if in that
extent, and for that purjiose. it were a real addition to
the specic capital, and atUie same time to realiie ? sav
ing in the wear and loss of the sj*<cie in the vaults,
which it would otherwise sustain in actual use, the ques
tion becomes verv doubtful whether, in this commercial
and widely extended country, the anticipation can be
justified, that the Slates or the people will soon, if ever1,
conienl to tlie attuse of banks of paper issues. But it
is more probable, that the discussion and increased in
terest attending thia subject will terniuiate bc-re, as in
England, not in aboltahing all country or local banks,
though Parliament, like lite States, possess un<li?puled
power to do it; but, for the present at least, i? only
" exercising greater care in the regulation of theae bank*
by tike Statea, and in creating, by both Stale and United
State* legislation, a broader baste of specie in circula
tion, lor the increased security aa well of the banks aa of
the community, aild for the great and desirable improve
ment of the currency of the country."
Gov. Campbell, in bis sound and sensible
Message, recently delivered to tbe Legisla
ture of Virginia, furnishes us the following
excellent cTeed. He says :
"The tune is unprupitioos, if it were otliet wise desira
ble, to attempt anv radical changes in the policy of the
commonwealth. The system of banking has been long
since introduced, am) we find it filed upon ua. '1 he
commonwealth is largely interested in the slocks of our
banking institutions, through the fuud for internal im
provement and the literary fund ; and the stock which
ia thus held, is a nart of the security which has l>een
pledged to the holders of tbe public debt. Bank paper
has long performed all the purposes of currency, and by
tlie holders of it, the |xx>r and the rich, ia counted aa
inouey. The merchants and trader* of our towns liave
been accustomed to look to the banks for facilities and
aidand through their instrumentality it was, they have
lieen enabled to make their purchases of the planter and
farmer. It would aurely be unwise in a period of diffi
culty, and when private credit is in need of unusual fa
cilities, to put down institutions which are so incorpora
ted with every public and individual intereat, and Irmn
which it would result aa an immediate conscience, and.
the difficulties of paying would be augmented, whilst
the debt to be paid would be increased Tltfit art tKuse
who would have no hanks, cither btate or federal, and are
for enforcing an exclusive metallic circulation, 'i he pro
ject, in the actual condition of tlie country, I believe to
be wholly impracticable, and the agitation of it at this
period, could Iwve no other effuct than still further to
derange the business and oppress every interest ui the
community And I consider it of the highest importance
to maintain the credit of tlie state banks, aa forming un
der proper regulations and reforms, the?only practical
anlistiiute fors United .Ststes Bank?arid their preserva
tion affords the only defence against the dangerous
scheme of a powerful and overwhelming national insti
tution.
Again, in a recent toast he gives us :
" ilard money for our common transactions. Bank
notes, equivalent to specie, for the commerce of the
country.
hi the Address of the Albany General
Republican Commute^ ? find the following
saving doctrine: p
" We are not advocates for uidimited and extrava
gant credits,; and we trust that affclasses in tlie com
munity will learn wisdom from jiaal and present expe
rience. Still, we cannot agree with those who docry
the whole credit system To that system principally we
owe our canals and other public works It has extended
our cominrrce over the whole world?|>et>pled the wil
derncss?built our cities and vilages?founded our col
leges and established our schools, It has given ua na
tional wealth and individual "prosperity, and if it has
brought some evils in its train, they are not for a mo
ment to be compared to the advantages which we have
so abundantly realued. None but a dreamer, who
would throw us back a century, can wish to annihilate
crcdila. With anch a measure tlie canal would indeed be
come " a solitude," and the lake " a desert waste of
waters " Instead of enlarging the Erie canal we might
better discharge our collectors and lock-tenders?aban
don the project of opening other public thoroughfares,
and content ourselves with once more returning to a
state of barter Our legislature wool I have little busi
ness on its hands bevoiul that of declaring the State
bankrupt, and imposing taxea to defray the ordinary ex
penses of the government."
Hon. James Garland, member of Congress
from Virginia, in a recent letter to the editor
of the Charlottesville Jeflersonian Republican,
enables us to add another good authority to
what we consider the true doctrinc :
" It should be homo in mind that wc are now com
pletely involved in the banking ay stem insUtuted by
twrr>tv-five independent State Governments, each of
which will probably adhere to it 111 some form. How
vain, then, the effort, if attempted, on the part of the
Generat Government, by the mere employment of its
revenue, to overthrow all these institutions, and how de
structive the effects, could it bo suddenly occomphsh
ed. I think the wni?*f and most successful mode will
be to invite the co-operation of the States to a gradual
reformation of the Banking system, by gradually reduc
ing their paper and enlarging the specie circulation of
the country.
Extract from the Address of the Republi
can Members of Congress from New York,
to their constituents, June 30, 1834.
"In the present struggle between tlie government and
the people, and the government of the bank of the Uni
ted States, many of the state banks have rallied under
the banner of the great moneyed power, and have cs
I>oused its interests. The exceptions, however are suf
ficiently numerous, and especially in our own state to
vindicate tile policy of such institutions, and place them
in many instances, in close affinity with the people. In
deed, although the whole hanking system is more or
less liable to abuse, and is only defensible in communi
ties like our own, when actually required by the exi
gences of trade, ami carefully restrained by the effective
regulations and vigilant control, yet it is morally impos
sible that the stale batiks, can ever exercise any very
dangerous influence over the politics or business of a
territory so extended, and a population so numerous as
those of the United States. Their number would in
deed make them formidable could they all be combined
in one common effort; but for a thousand reasons, such
a combination is utterly impossible. In a national point
of view, ills only by means of a bank of the United
States, that " associated wealth," can in this country,
acquire anv great political influence ; because there is
IIO other organization by which its power can be extend
ed to every section of the Union, and brought to bear by
concerted and concentrated action on all the interests
of society." Signed by
Silas Wright, Jr. Abel Huntington,
X IVTalliiiadge, Noudiah Johnson,
John Adams, Gernt Y Unsing,
Samuel Brardsley, Abijah Mann, Jr.
Abraham Bockee, Charles Mc \ can,
Charles Bodle, Henry Mitchell,
John W Brown, Sherman Page,
C. C Canibreleng, Job Picrson,
Samuel Clark, Win. Taylor,
John Cramer, Joel Turrtll,
Rowland Dav, Aaron Vamlerpoel,
William It. fuller, Isaac Van Houteu,
Ransom H Gillet, Asron Ward,
Nicoll Halsey, Daniel Ward well,
Samuel G Hathaway, Reuben Whailon,
Edward Howill, . Campbell F. Whita.
Wo might quote other authorities in sup
jiort of these doctrines, which we believe
coincide with the sentiment of nine-tenths of
the republican parly. ^ e sincerely commend
them to the whole people of the country, and
for the purpose of impressing them thoroughly
upon the minds of our readers, we shall pre
sent them, several days successively, in our
columns, with such additions as we may'tilid
it convenient to make.
Sydnry Smith, preaching a charity sermon, fre
quently repeated the assertion that, of ail nations, En
glishmen were the most distinguished for generosity
and the love of their ipteut Tlie collection' happened
to lie inferior to his expectations, ami lie said that he
had cvidenllv made a great mistake, and that his ex
pression should have been, that they were distinguished
for the lote of their tpeae ?Bluckmnxi't Magazine.
A Cast for the O/nnion of a Court of 11onor ?By
the charter of appointment of the hereditary lord high
chamberlain of England, he has tbe right to the dress
worn by the sovereign at each coronation, in which he
is to appear on the first court after that august ceremo
ny. Queie : Will the noble Lord who auccecds to this
office, he bound literally to fulfil the terms of this
cli?rt?r? ? ? ?
SPEECH OF MR MADISON
lath* House cf Rrprcsenlahtet of the V. S, Feb. t,
179!, on the BUt to charter the Bank of the Untied
Slates.
Faatritr t, 1791.
On the question, " Shall the bill pass 1" the follow
ing debate took place :
Mr. Maoiaow begau with a general review of lh? ad
vantages and disadvantages of banka The former he
etatea to conaiat in. Fir it The aula they afford to
merchanta, who can thereby puah their mercantile ope
ration* farther with the aame capital. Second The
aida to merchants in paying punctually, the cuatonia ?
Third. Aida to the Government, in complying punc,
tually with its engagements, when deficiencies and de
laya happen in the revenue. Fourth In diminishing
usury. Fifth. In saving the wear of gold and silver,
kept in vaults, and repreeented by notea. Sixth In
facilitating ot^asional retnitlanrea from different placea
where notea happen to circulate. The effect hi the
proposed bank in raiairig the value of stock, he thought,
. had been greatly overrated. It no doubt would raise
that uf stock subscribed into the bank, but could liave
little effect on atock in general, as the interest on it
would remain the same, and the quantity taken out of
the market would be replaced by tho bank stock.
The principal disadvantage consisted in, First, Ban
ishing trie precious metals, by substituting another me
dium to perform the office. Thia effect was inevitable.
It waa admitted by the most enlightened patrons of
banka, particularly by Smith en the Wealth ol Nationa
The common ans ver to the objection was, thst the mo
ney liamshed was only an exchange for something
equally valual>k>, that would be imported in return. He
admitted the weight of tlua observation, in general, but
doubled wliclhcr, nr the present habits of this country,
"the return would not be in srticles of no permanent use
to it. Second, E.t|>oatng the public and individuala to
?II the evils of a run on the hank, which would be parti- r
cularly calamitous in so great a country as this, and
might happen from various causes, as lalse rumors, bad
management of liic institution, an unfavorable balance
of trade, from short crops, 6tc. It was proper to be
considered, also, that the moat important ol the advan
tages would be better obtained by several hanks, pro
perly distributed, than by a single one. The aids to
commerce could onlv be afforded at, or verjr near the
seat of the bank. The same was true of aids to mer
chants in the payment of customs. Anticipations of
the Government, would, also, be meat convenient at
the different places where the ukterest of the debt was
to be paid. The case in America was different from
that in England ; the interest there was all due at oiie
place, and the genius of the monarchy favored the con
centration of wealth and influence at the metro|>olis
He thought tlie plan liable to other objections; il
did not make so good a bargain for liio public as waa
due its interests. The charter to the Bank of England
had been granted only for eleven years, and was paid
for by a loan to the Government, on terms lictter than
could be elsewhere got. Every renewal of the charter
had, in like manner, been purchased ; in some instances
at a very high price. -The same had been done by the
banks of Geuoa, Naples, and other like banks of circu
lation. The plan was unequal to the public creditors ;
it gave an undue preference td the holders of ? particu
lar denomination ol' the public debt; and to tlwse at,
and within reach of the seat ol Government. If the
subscriptions should be rapid, the distant holders of
paper would lie excluded altogether.
In making itiese remarks on the merits of the bill, he
had reserved to himself, he said, the right to deny the
authority of Congress to pass. He had entertained this
opinion from the dale of the Constitution. His impres
sions might, perhaps, be the stronger, because he well
recollected that a power to grant charters ol incorpora
tion had been proposed in ihe general convention, and
rejected. Is tho power of establishing an incorporated
bank among the powers vested by the Constitution, in
the legislature of the L'uiled Stales! This is the
question to be-examined..
After some general remarks on the Limitations of all
political power, he took notice of the peculiar manner in
which the Federal Government is limited. It is not
only a general grant out ol which particular powers,
arc excepted ; it is a grant of parlioular powers, leaving
the general mass in other hands. So it had been un
deisiood by its friends and its loes ; and so it was to
be interpreted.
As preliminaries to a right interpretation, be laid
down the following rules :
An interpretation that destroys the very characteristic
of the Government cannot be just.
Where a meaning is clear, the consequences, what
ever thev may be, are to be admitted; whatever they
may lie, are to be admitted ; where doubtful, it is fairly
triable by its consequences ,
In contioverted cues, the meaning of the parties to
the instrument, if lo be collected by reasonable evi
dence, is a proper guide.
Contemporary and current expositions are a reasona
ble evidence ot the meaning of tne parties.
In admitting or rejecting a constructive authority,
not-only tne degree ol its incideota'ltly to an express
authority is to Ue.Tcgarded, but the degree of its impor
tance also ; since on this will depend me probablity or
improbability of us being lcll to construction.
Reviewing the constitution with an eye to these po
sitions, it was not possible to discover ill it tho power
lo incorporate a bank. I tie only clauses under whicli
such power could tie pretended, was either.
First. The power to lay and collect taxes to pay the
debts and provide lor the common defence and general
weitare ; or, v
Second. The power to borrow money on tho credit
of the United States, or,
Third, i'iie po.ver to pass all laws ncccssary to car
ry into execution those powers.
Tlie hill did not come within the first power. It laid
no tax to pay the debts, or provide lor tne general wei
tare. Il laid no lax whatever. It was altogether for
eign to the subject.
No argument could be drawn from the terms " com
mon delence and general weitare." The power as to
these general purposes was limited to sets laying taxes
for the in; and tlie general purposes themselves were
limited and explained by the particular enumerations
subjoined. To understand these terms in any sense
that would justify the power m question, would give to
Congress an unlimited power ; would render nugatory
the enumeration ol particular powers; would supersede
all the powers reseived lo liio state governments.-?
These terms are copied from lUe articles ol confedera
tion ; had it ever been pretended that they were to be
understood otherwise than as here explained ! It had
been said, that " general weitare" ineaiil cases in which
a general power iingnt be exercised by Congress, with
out interlcnng with me power of the stales ; and that
the establishment of a National Bunk was of this sort.
There were, he said, several answers lo this novel doc
trine.
First. Tlie proposed bank would interfere, so as in
directly to deleal a slate bank al the same place.
Second 11 would directly interfere with tne rights of
states 10 prohibit, as well as lo eslablish, banks, and
Ihe circulation of bank notes He mentioned a law ot
| V'irgtuia, actually prohibiting the circulation ol notes
puy^iiic to bearer.
Third. Interference with the powers of the folates
was no constitutional criterion of the power of Con
gress. Il the power was not given, Congress could not
exercise it; it given, they might exercise it, although
it should ititurlere with tlie laws, or even the constitu
tion, of the stales.
Fourth If Congress could incorporate a bank, merely
because the act would leave the slates free to establish
banks also, any otner incorporation might be made by
Congress. They could not incorporate companies of
manutacturers, or companies for culling canals, or even
for reiigious societies, leaving similar incorporations by
the slates, like state banks, to themselves; Congress
might even establish religious teachers in every'parish,
and pay them put of the treasury of llie United Mates,
leaving other teachers unmolested in iheir functions.?
l hc?e inadmissible consequences condemned tho con
troverted principle.
The case ol the bank, established by the former Con
gress, had been cited aa a precedent 'l"his wss known,
he said, to have been the child ol necessity. It never
could be justibed by the regular powers of the articles
of confederation. Congiess betrayed a consciousness
of this, In recommending to tlie slates to incorporate
the bank also They did not attempt lo protect the
bank notes. 1st penalties against COO Diet fitters I hese
were reserved wholly tol^ie authority of the states.
The second clause to tie examined is that which em
powers Congress to borrow money
Is this a bill to borrow money ? It does not borrow a
shilling. Ia there any fair construction by which the
bill can be deemed an exercise of the power to borrow
money < The obvious meaning ol ihe power to borrow
money, ia, that accepting paymente from, and stipu
lating payments to, those who ire able and mtling to
lend
To say that the power to borrow involve* the power
of creating the ability, where there may be the will to
load, ia not only establishing a dangerous urntple, aa
will be immediately shewn, but ia aa forced a conetrue
tton, aa to **y, that itiuvolve* the power of compelling
tlie will, where there may be the ability to leud.
The Ikiri clause ia that which gives the power to
peas all law* necessary and proper to execute the (pa
cified powers. *"
Whatever meaning this clauae may have, none can
be admitted that would give an unlimited discretion to
Cougrese -
lis meaning must, according to the natural and obri?
oiis force of the terms and the context, be limited to
mean* ne< e**ari/ to the end, and inn4tnt to tho nature,
of the specified powers.
The clause is, in fsct. merely declaratory of what
would have resulted, by unavoidable implication, as the
appropriate, a* it were, technical means of executing
those powers In this sem? it had been explained, by
the friends of the constitution, ani ratified by the stale
conventions.
The essential characteristic of the government, aa
composed of limited and enumerated powers, would be
destroyed, if, instead of direct and incidental means any
means could be uaed, which, in the language of the pre
amble to the bill, might be conceived to oe conducive
to the auccesaful conducting of the finances, or might
be eoneeired to tend to give facility to the obtaining of
loans. He urged sn attention to the diffuse snd ductile
terms which had been found requisite to cover the
stretch of power contained in tbe bill. He compared
them to the terms neeeutry and proper, used in the
constitution, and asked whether it was possible to view
the two descriptions as synonymous, or the one aa a
fair and safe commentary on the other
If, proceeded be. Congress, by virtue of the power
to borrow, can create the mean* of lending, and, in pur
euance of theae means, can incorporate a bank, they
uiav do any thing whatever creative of like meana.
The East India Company haa been a leader to the
British Government, a* well as the Bank, and the South
Sea Company is a greater creditor than either. Con
Sres* may then incorporate similar companiea in the U.
tales, and that, too. not under the idea of regulating
trade, but under that of borrowing money.
Private capitala are the chicf resources for loans to
the British Government. Whatever these may be con
ceived to favor the accumulation of capital, may be done
by Congress. They may Incorporate manufacturers.?
Thev may give monopolies in every branch of domestic
industry.
If, again. Congress, by virtue of the power to borrow
money, ran create the ability to lend, they insy, by vir
tue of the power to levy money, create the ability to
pay it. Tho ability to pay taxes depends on the gen
eral prosperity of agriculture, manufacture*, and coin
merce. Congress may then give bounties, and make
regulations on these objects.
i'he states have, it is sllowed on all hands, a concurrent
right to lay and collect taxea. This power is secured to
them, not bv its being expressly reserved, but tjy its not
being ceded by the constitution. The reasons for the
bill cannot be admitted, because they would invalidate
that right; why may it not be conceived by Congress,
that a uniform and exclusive irn|X>sitioti of taxes would
not, less than the proposed bank, be conducive to the
successful conducting of tho national finances, and tend
to give facility to the obtaining of a public revenue for
the use of the Government 1
The doctrine of implication is always a tender one.?
Tho danger of it ha?l?een felt in other Government*.?
The delicacy was felt in the adoption of our own; the
danger may also be felt if we do not keep close to our
chartered authorities. m
Mark the reasoning on which the validity of the bill
depends. To borrow money is made the end, and the
accumulation of capital implied a* the meant. The
accumulation of capital is, then, the end, and a bank
implied as the mean*. The bank ia then the end, and
a charter of incorporation, a monopoly, capital punish
ments, 6cc. implied a* the mean*.
If implications, thus remote, and thus multiplied, can
be linked together, a chain may be formed, that will
reach every object of legislation, every object within the
whole compass of political economy.
The latitude of interpretation required by the bill i*
condemned by the rule furnished by the constitution
itself.
Congress have power " to regulate the value of mo
ney," yet it is expressly added, not left to be implied,
that counterfeiter* may be punished. They have the
power" to declare war," to which armies are more in
cident than incorporated banks to Itorrowing. yet it ia
expressly added, the power "to raise and support ar
mies ;" snd to thi* again, the express power, ?' to make
rules snd regulations for the government of armie* ' a
like remark is applicable to-the power* as to a navy.
The regulation and calling out of the militia are more
appurtenant to war, than the proposed bank te borrow
ing ; yet the former is not left lo construction.
The very power to borrow money is a les* remote
implicition fron> the power of war, than an incorpo
rated monopoly bank from tlie power of borrowing?yet
the power to borrow is not left to implication.
It is not pretended, that every insertion or omi**ion
? in the constitution is the effect of systematic attention.
Thi* i* not the character of any human work, particu
larly tl?e work of a body of men. The example cited,
with other* that might be added, eufficictitly inculcate,
nevertheless, a rule of interpretation very different from
that on^which the bill rest*. They condemn the exerciea
of any power, particularly * great *nd important power,
which is not evidently and necea*anly involved in an
express power.
It cannot be denied that the power proposed to be
exercised, is an important power.
As a charter of mcorporatioiv-the bill create* *n arti
ficial person, previously not existing in Uw. It confer*
important civil rights and attribute*, which could not
otherwise be claimed. It .s, although not precisely*
similar, equivalent to the naturalization of an alien, by
which certain new civil character* are acquired by him.
Would Congress have had the power to naturalize, if it
had not been expressly given 1
In the power to m*ke bv-lawa, the bill delegated a
sort of legislative power, which is unqueatibn*hly *n
?ct of a high and important nature. Ho took uotic* of
the only restraint on the by-laws, that they were not to
be contrary to the law and constitution of the bank, *nd
a?ked. what law was intended ? If tl.e l*w of the U.
State*, the scantiness of their code would give * power,
never before given to a corporation, and obnoxioua to
tho states, whose l?ws would then be superseded, not
only by the laws of Congrea*. but by the by-law* of ?
corporation within their own jurisdiction. If th* law
intended was the law of the (late, then the *t*te might
make law* that would ifcatroy an institution of the Uui
ted State*.
The bill give* a power to purchase and hold land* :
Congress could not purchase lands within a Slate,
" without the consent of its Legislature." How could
they delegate a power to other* which they did not poe
tess themselve*! ,
It lakes from our auccessor*, who h*ve equal right*
with ourselves, and an opportunity of exerciaing that
right for an immoderate term.
It takes from our constituent* the opportunity of de
liberating on the untried me**ure, although their hand*
are also to be tied by it. for the Mine tenn.
It involves a monopoly which effects the equal right*
of every citixen.
It leads to a penal regulation, perhaps capiUl puni*h
mcnt?one of the mo*t solemn *ct* of sovereign au
thonty.
From thi* view of the power of incorporation exer
cised hi tbe bill, it never could be deemed *n acce**ory
or subaltern power, to be deduccd by implication, a* a
means of executing another jiower. It was in its nature
a distinct, and independent, *nd *ub*t*nlive preroga
tive, which, not being enumerated in the constitution,
could never have been meant to he included in a, *nd,
not being included, could never be rightfully exercieed.
He had sdvcrtcdTto * distinction, which h* **id had
not been sufficiently kept 111 view, lietween a power na
cessaiy and proper for the Government or Union, and a
power neceseary for executing ihe enumerated power* in
the latter case ; the |?owvr* included in e*ch of the enume
rated i>owcr* were not expressed, but lo l?e drawn from _
the nature of each. In the former, the jiowsrs composing
the Government were expressly enumerated. This con
stituied ihe peculiar nature ?f the Government; no pow
er, therefore, not enumerated, could l>e inferred frourthe
general nature of Government. Had the power of
making treaiiea, for example, been omitted, however
necessary it might hsve been, ihe defect could only hsve
been lamented, or supplied by an amendment of the con
?tiluion.
But tbe propoaed b*nk could not even be c*lled ne
cessary to the Govcrninrtit; at most, it could be but
convenient. Its uses te the Government could be sup
plied by keeping the taxes a litile in advance ; by loane
from individual*; by the other benk* over which the
Government would h*ve equ*l command, nay. gmier.
a* it may grant or refuae te thc*e ihe privilege, m*de a
free and irrevocable gilt to the proposed b.nk, of using
their note* in the feaeral revenue.
He proceeded neit to the contemporary exposition*
given lo the constitution.
The defence against ihe charge founded on ihe want: ot
a bill of righta, preeupfKwed, he aeid. that the powe
given, were retained , and that those glv??<
be extend od by remote implication On any otUrTWp
po.ition, the ^wer af Congress te abridge th. lreada?*