means that can be devised to obtain its ends; and being both "necessary and proper" to carry into effect the power expressly granted to Congress, "to collect taxes, to borrow money and pay the debts"-it must be Constitutional.

JANUARY, 1811.

in the Constitution; the authority results from the powers granted, and are necessarily implied as the fit and necessary means of executing the powers which are expressly granted. Yes, sir, whether I am answered or not, the fact is manifest, that the implied powers of the Government are not only fairly deducible from the spirit and letter of the Constitution, but are essential to the most familiar operations of Congress. And, sir, it is in proof that gentlemen are in the daily habit of exercising, without scruple or reserve, those implied powers, which. when urged in support of the bank, they turn from with affected abhorrence, as if a single glance, like a look at Medusa's head, would turn them into stone! They have repeatedly acted under them, still grasp them with the love of power and the ardor of ambition, and will only suit their hold to that force which shall deprive them of the reins of empire.

But, sir, the gentleman from New York says, the United States are not sovereign, and cannot exercise a right of sovereignty, because they depend on the will of the States for existence; for, said he, should the States neglect or refuse to elect Senators or to make the laws necessary for electing representatives, the Federal Government would die of its own imbecility. This may be true: the Government may cease to exist, yet, while it does exist, there are powers which it alone can exercise without the control or interference of any other authority. To these purposes, assuredly, then it must be supreme, or sovereign. For example, the Federal Government has power to lay and collect taxes and to The gentleman from Virginia deprecates a regulate commerce. Is there any power in this bank which shall be connected with the Governcountry-I speak of moral, not physical power- ment; he calls this a dangerous union of the which can prevent them laying such taxes and sword and the purse, reminds us of the abuse by making such regulations of commerce as they the British Government of the Bank of England think fit? The Constitution of the United States in obtaining loans, and of the public debt of that is the act, of "We, the people of the United Kingdom. None of those objections apply to the States." So are the State constitutions-both Bank of the United States. The charter of the are derived from the same source-each is inde-present bank places the institution beyond the pendent of the other, and only dependent on the control of the Government. It is bound to acsovereign will of the people, constitutionally ex-commodate the Government with loans to a pressed. The States have certain powers ex- limited amount when required; but this obligaclusively confided to them; they may prescribe tion on the bank, although its performance may the descents of estates, and regulate distribution at times chance to be unfavorable to the instituof property and other objects of internal police; tion, is yet connected with no danger to the they are sovereign as to these objects; the Fed- country, since the one cannot lend, until we, the eral Government is as much so as to the objects representatives of the people have authorized the within the sphere of its jurisdiction. Yet, Mr. other to borrow. The Executive of the United Speaker, obvious, indeed indispensable as is the States is said to bear the sword, but, sir, Congress inference and deduction of the right to incorpor- holds the purse, and it has not been explained to us ate a bank for the management of the financial how the existence of a bank is to render one subconcerns of the United States, from these premi- servient to the other, or to convey the sword and ses, gentlemen say it is only an implied power, purse into the same hand. I can, however, conthat no power can be used unless expressly ceive a plan of a bank which would sharpen the granted in the Constitution, and the exercise of sword of the Executive and give a power to his implied powers is deprecated as unknown to the arm that might be used to the ruin or degradaConstitution, and abhorrent to Republicanism, tion of our citizens. Adopt the plan which has and dangerous to our liberties. Let me ask gen-been recommended, and which is to rise upon the tlemen, and I pray they will inform me, whether they do not daily act upon implied powers? If not, let them speak, in what part of the Constitution do they and power to build light-houses? Where is the power which their President, doubtless with the feelings of a man and the firmness of a magistrate, so freely exercises of removing at pleasure from office men who were appointed with the consent of the Senate? You have committees now sitting, who, under your authority, but without law, compel citizens to attend at their summons, without consulting their will or convenience; you have conferred on certain individuals the sole privilege of trading with the Indian tribes-by what authority are all these, and many other acts which have been mentioned in this debate, exercised? If I am answered at all, truth will dictate this reply: the power to do these acts is no where expressly granted

ruins of the present institution; erect one great bank whose branches shall embrace all the States and whose capital shall swallow all the State banks, give to the Administration the enormous patronage of the appointment of directors to this institution, and place the credit and business of every man connected of necessity with banks at the mercy or pleasure of an Executive or his minions, the commercial and the enterprising must decide either to become flatterers and be favored, or to retain their independence and be ruined. It is this systein which would give a dangerous, a detestable power. Your Adminis tration, styling themselves Republican, have professed to desire no patronage: I will take them at their word; my vote shall never increase their patronage, to multiply their dependants. The Crown, which they profess to put away, I will not force upon their brow.

JANUARY, 1811.

Bank of the United States.

H. of R.

As to the Bank of England and the British result of fair banking-such has been the operadebt, I perceive not the bearing their connexion tions of the Bank of the United States, of whose can have on the subject before us. That the capital, debts, and issues, the Government has British Government have made too free use of been weekly informed. It is from the State banks the ability of the bank to lend, cannot expose us that danger is to be apprehended. Of their capi to like mischiefs, because our bank cannot lend, tal, (I mean not their nominal, but their specie nor our Administration borrow, but by the express capital,) of their debts, and their resources, we authority of Congress. Of the British debt, I are, and must remain entirely ignorant; and we know its amount is enormous. Yet, sir, how, and have seen that some of these institutions, dishonfor what purpose, has that debt been thus swollen? estly emitting paper beyond the sum authorized Perhaps the people of Great Britain owe to that by their capital, and beyond the necessities of the debt the preservation and enjoyment of rights country, their notes have returned upon them, dearer to freemen than their purse. It is, sir, at they have been unprepared to pay, their paper the cost of that debt that Great Britain maintains has depreciated, and individuals have been deher existence and independence as a nation. She frauded to a vast amount. And such, again, may might have submitted without an effort, without be the case if we remove the check, the restrainexpense, and, free from debt, have sunk under the ing influence, which the large and solid capital of chains which the tyrant of France, the enemy of the Bank of the United States, and its prudent the human race, has fastened upon all the king- direction, has enabled it to exercise over the State doms of continental Europe. Rather than see banks-these "mushroons," as the gentleman has my country bow in subjection to that direst of called them, which, like Jonah's gourd, have despotisms against which Great Britain has strug-sprung up in one night and withered in the next. gled, I would, in the spirit of an American, cheerfully bear my share of a debt as large as that which has been the subject of remark.

The gentleman informs us that our exports of domestic products amount only to forty-five millions of dollars; that the capital of the different The gentlemen tell us we have sufficient bank banks in the United States, at the rate of issues capital without that of the Bank of the United by the United States' Bank, may emit ninety States; that the capital of the State banks is millions of dollars, and he infers that a paper equal to the wants of the United States, and that, medium beyond the amount of domestic exports if this institution is continued, there will be an cannot be necessary. This opinion, sir, needs an excess of paper, and the consequent mischiefs to elucidation, which the gentleman did not give it. the country. Sir, gentlemen need not feel alarm Why the amount of produce purchased for exon this point. There is no more danger of a sur-portation should form the measure of circulating plus of capital being employed in banks, than of medium is, to say the least, not self-evident. such surplus being employed in any other busi-Nor can I conceive why, in calculating the meness. The thing regulates itself. Bank notes dium necessary or useful for the concerns of the may be emitted beyond the use of the country, country, we should exclude from view the purbut you can no more force them into circulation chases for internal use as well as for external beyond this necessity, than you can force pur-sale, or lose sight of the repeated use made of the chases and sales of tobacco and flour beyond the same note or piece of metal in its continued circonsumption of a country. The commerce of culation. The circulating medium of a country, every country requires a certain sum of circu- whether paper or specie, represents, because it lating medium. The amount must be ascertained commands, the articles we need and get in exby experience, which alone can show how much change for it. What the sum should be, my poit will absorb and employ. If you emit paper litical arithmetic does not teach me, nor does the beyond this amount it will, of necessity, return rule of the gentleman from Virginia. In my upon the banks. This discovery is not modern. opinion, experience alone can show it, as I have It is as old as the science of banking. And of before said, viz: that amount which the commerthe errors of a bank, no one is more unfavorable cial, agricultural, and manufacturing concerns of to them than the issues of paper beyond the neces- the country will require and can employ; to be sity of the country; for, so long as they keep ascertained from the amount of silver and gold within proper limits, it is found that they may in circulation, bank credit, and bank notes issued emit one dollar and two-thirds, or two dollars of and not returning upon the banks. It is, I admit, paper, for each dollar of specie in their vaults; a fact, a proud fact, that the exports of our counbut when their issues of paper exceed these lim-try have increased from eighteen to forty-five its, the excess continually returns, and instead of one dollar in specie meeting two of paper, a dollar in specie is required to redeem each dollar of the surplus emission of notes. With this restraint upon their issues, banks are kept in due check; and, sir, when the prudent and safe issues-viz: to the amount required by the country-do not yield employment for the capital, the business ceases to be profitable, the capital is directed to other objects, and the banking fund is kept at its just level. This, sir, is the necessary and just 11th CoN. 3d SESS.-26

millions. New fields have been opened, produce increased, means of conveyance multiplied, and new markets sought and resorted to. Agriculture, commerce, and manufactures, have advanced, as they necessarily must, hand in hand; and to the beneficial influence of banks, increasing the capital, encouraging enterprise, stimulating and rewarding the interest of the country, we are indebted for much of this increase.

The testimony which the gentleman has borne to the correct management of the Bank of the

United States, was to have been expected from his information and liberality. The fact previously stated, and repeated by him as a defect in arrangement, that the notes of the bank and its branches are not paid but at the office from which they issue, and at which they are made payable, is not a ground of complaint. The bank and its branches have each but a small portion of the capital. Of the branches, the largest portion, (only $1,800,000,) is in New York, and it is absurd to suppose that either the branch with this capital, or the others with less, should redeem, at all times, the notes emitted upon a capital of ten millions. The thing is impossible.

From the opinion advanced by the gentleman, that the state of the bank should rather excite the fears of the institution for its own safety or solvency, than awaken the apprehensions of the community for the effects of dissolution upon them, I beg leave to dissent. We have had, in debate, various statements of the affairs of the bank, drawn either from former reports or conjecture. The report of the Secretary of the Treasury, this day laid on our tables, shows the present state of the bank. To this I shall refer for facts.

There is due to the bank from individuals upon notes $14,578,294 25

discounted

Other banks owe them for notes and in account

1,287,485 92

JANUARY, 1811.

Such, sir, is the state of the account on the side of the bank.

How stands the account with the debtors of the bank, or rather with the public? The bank can demand the debts due it $18,672,826 66 Admit the demands upon it are ap13,673,368 83

plied as sets-off to their full amount

The balance still to be raised by the
country is

4,999,457 83

Within a trifle of five millions of dollars. Whence is this sum to come? Not from the vaults of the other banks; they do not possess it. It is stated in the able speech of the representative of the city of Philadelphia, in the Legislature of Pennsylvania, upon the resolution respecting the bank, that the report of the state of all the banks of that State, recently made to the Legislature, shows that all the banks in Philadelphia (excepting that of the United States) have together but a little more than one million of dollars in specie: those who have the best means of information, declare the specie in the banks of New York is not greater, and in those of other cities unquestionably less. The State banks then have not the money, and cannot produce it. Will the notes of these banks pay the debt? No, sir, because their notes will be returned upon them for payment, which they cannot make. These banks know their own strength or weakness, and that they dread this crisis, is manifest from the course they have already 2,807,046 49 adopted; they have curtailed discounts and commenced calling in their debts. The consequences learn from the moans of your correspondents, and from the petitions which daily press your table. The want of money has produced a want of punctuality; confidence is destroyed; the life, the animating spark of business is, as it were, suspended, and deep distress is fast spreading over the commercial world. Sir, my deductions are supported by facts. They prove the solvency, indeed the strength of the Bank of the United States, is such as to merit the confidence of the people, which it enjoys; while the situation of the State banks, and the deficiency of the precious metals, gives a fatal assurance of the inability of the country to submit, without great it the large debt due the bank. distress, to the operation of having extracted from

18,672,826 66

5,009,567 10
500,652 77

24,183,046 53

On the other hand what do they owe?

$5,037,125 22
1,929,999 60
634,348 01
5,900,422 83
171,473 17

13,673,368 83

you

The gentleman from Virginia says it is no arThus, sir, with a property of twenty-four mil-gument in favor of a continuance of the bank, lions of dollars, leaving the stockholders the orig- that it is necessary for the management of the inal stock of ten millions, and a surplus of more financial concerns of the United States, for that than half a million to meet bad debts. But were the word "finance" is not to be found in the Conit otherwise-were it possible that, of the debts stitution. Sir, were I called upon by one of the due them, ten millions should never be collected, yeomanry of this country-one whose days had the loss would affect the stockholders, whose orig-been spent at the plough, remote from Courts, and inal advance would be lost, but the interest of without concern in affairs of State, to define to the community would not even then be affected, him what were the financial concerns of the at least not as creditors of the institution; because United States, I should, as an explanation adapted even if ten millions, the capital stock, were by to the simplest understanding, inform him that any means sunk, the bank would still be solvent, the laying and collecting taxes, borrowing money, it would even then pay its debts, and, conse- and paying the debts of the Union, were its finanquently, must be perfectly safe as regards the cial concerns. And as these powers are expressly community. granted to Congress, although the word "finances"

The charter of the bank did not exclude for- But, sir, let it be supposed that an individual eigners from purchasing shares, because, at the who was unfriendly to our Revolution should have period of its establishment, our country was with- been chosen by those who are proprietors of the out capital, and it was an object rather to invite bank to a seat in its direction. Would the choice foreign capital to the United States than to repel be either new or criminal? Sir, a person whose it; their large funds and low rates of interest name is recorded in the proscription statute of a have enabled them to give more in the market State as an "old tory," was appointed by Mr. than our citizens could afford to pay, and they Jefferson a district judge of the United States. have consequently purchased. But, if it be a sin In other States, but particularly in New York to have sold stock to foreigners, lay it at the right and Pennsylvania, persons who bore arms against door; and when you revile the measure, do not us and adhered to our enemy in the Revolutionforget it was one of Mr. Jefferson's Administra-ary war have also been appointed by Republican tion, who sold to English merchants, in the year 1801, all the stock in the bank which the United States owned.