. I "and support,
,‘—~-.._
7 ' ithii isicriatiei ti
. "by increasing
. ::ggnae
UNITED srxrnsv BANK.
MESSAGE
0M._TH|°‘. PRESIDENT or rain: ox-«iri-in sfrA1‘r.s-
Brlltg the Se1iate..wi.th Ins Ob-
jections. ' .
1;
. -ra
Returning the Bani‘
5: The bill “ to modify and contliuiel’ the act.
’go'tii1ed.‘.‘ an.act- to -lflC0|'4l0l'Sll.0'tllB subscri-
bers l.o:the.B’sul_: of the United States.'_' ‘W35
presented to me on the 4th 0fJt1lY- '“l°""
Having considered it with t-hat_solein_n regard
to the principles oftho Constitution, ‘which
the day_was calculated to inspire. Mm 00"“:
"to the conclusion that it ought not to become
is lsw.I liecewith return it to the Senate, II)
which it originated, Yllll ml? °l’.l‘"§l“{“5'
A Bank ofthe United States is. "1 many
.respects, convenient for the Governmcflli tl_"<l
u3eful.tg mepeoplc. Enturtainiiig i.IIlS’0ptl|-
gun, and deeply impressed with the belie. that
some of thepowers and ‘privileges poesesseil
by the existing bank, are unautliorized by t ie
Constitution, subversive of the rights of the
States, and dangerous to the liberties of the
people,-I felt it_.my duty, at an early period of
my adminisctratiofi, to call the attention of
‘Congress to the practicability of organizing an
immune“ combining all its advantages, and
' ohvaitipg these objeptioos. I sincefcll’ TV‘
gt-at dint, I can perceive none of those modifi-
cations of the bank charter" which are neceu
» sa‘r_v.in' m_v~_ opinion, to make_it. -colnpatiolc
I :’:__w.w,ju5,_jc¢, _w1th_ _so'uud p‘olic'_v,‘ or with the
Constitution ofour country. .
The presenticorporat-e body, denominated
the President, Directors. and C0mP““,l.l’ ‘_’“lle
Bank of tlie_Uiiitcd States, will have existed.
at_the time this act is intended to take eZl'eci,
' ‘twenty years. It enjoys an exclusive privi-
legeiof banking under the authority of the
.' General G0\'ernment,a monopoly ofits i3V0l’o
' and, as ll. necessary consequence,
3131951 a monopoly of the foreigii and domes-
tic change. The powcrs, privileges, and fa.
vors bestcwedupou it in the 0l‘lg‘lll8l‘Cllal‘l.el‘-
' the value of the stock far above
its parviilue, operated ‘:19 -‘l El'l1l'“ll'.V °{ man)’
inillionsto the .st'oc.kholdei‘s- _ _
. . An apology may be found for the failure to
guard against l._blS_ result, in the consideralicii
that thc cifcct of the original actof lIlt‘.0l‘p(i-
ration could not he certainly foreseen at the
time of-its passage. The act before me pro-
-‘hpbses another gratuity-to the holders oftlio
same stock.’ and in_ many cases to the same
.‘ 'nen,.gfat_183S_i.j5even mzltions more. This
-donation finds no apology in , .
aslo the effect of the act. On all hands it is
conceded that its’ passrge will increase. ‘at
least twsntv or thirty per ccnt.'mores ll!" "12""
ket price of the stock. subject to the payment
‘ oftlie annuity of $200,000 per year, secured
bv the act ; thus ‘adding, in a moment, one-
fiiurth to its par value. It is not our own
citizensonly who are to receive the bounty of
our Government. More than eight millions
of the stock of this bank are held by foreign-
ers. By this act the American republic pro-
poses virtually to make them a present of
some millions of dollars. For these gratui-
ties to foreigners, and to some ofour opulent
cii'ize'os,'tha act secures no equivalent who!-
ever. They are the certain gains of the pre-
sent stockholders, under the operation of this
- set, after making full allowance for the pay-
’ - ment of the boniis.
Every monopoly, and all exclusive privile-
_- ges, are granted at the expense-of the public.‘
which ought to receive ti. fair equivalent.-
- The many millions which this act proposes to
bestow on the stockholders“ of the existing
bank, must come dizeclly or indirectly out of
the earnings of the.Americari people. It is
due to them, therefore, ifthcir Government
sell monopolies and exclusive privileges, that
-they should at least exact for them as much
as they are WOl'l.l1 in open market. The vul-
ue ofthe monopoly, inthis case, may be cur-
'rectlv ascertained. The tirezity-eight mill-
ions bfstock would probably be at an advance
of fifty per cent'., and comuiaiid, in market, at
least forty-two millions of dollars", subject to
the ‘payment ofthe present loans. The pre-
sent valusofthe monopoly, therefore, is seven-
teen millions of dollars, and this the acl._ pro-
poses to sell for three millions, payable in lil-
toen amiual instalments of $9-00.000 each-
It isnot conceivable how the present stock-
holders can have any claim to the special favor
of the Government. The present corporation
' has enjoyed its monopoly during the pei-ind
Jliptllated in the original contract. It we
must have such a corporation, why should
not the Government sell out the whole stock.
and thus secure to the people the full market
value ofthe privileges granted? VVliy should
not Congress create and sell the twenty-eiglit
millions 'of'st‘ock, incorporating the j)l.Il'Cll'd9~
e'l~'s,'with all the powers and privileges secured
‘in this act, and putting the preuiiuin upon the
sales into the treasury. , , :
-= But this act does not permit competition in
‘the-purchase 0f_llllS monopoly. It soeriis to
be predicated on the erroneous idea, that the
present stockholders have a prescriptive right ,
not only to the favor, but to the bounty oftlic
Government.- .It appears that more than a
fourth part ofthe stock is held by foreigners,
and the residue is held by a few hundred at
our citizens, chiefly ofthe richest class. For
their benefit does this act exclude the whole
American people from competition in the pin.
chase of this monop_vly,'and dispose ofit fur
maiiy"'mil_lions_ less than it is w-ortli. . _ This
seems the less excusable, because some of-our
citizens, not now stockholders, petitioned that
the door of competition might be opened, and
offered to take a charter on terms much more
favorable to the Goveriimeiit. and country.
But this proposition, altlioiigh made by men
whose aggregate wealth‘ is believed to be c-
qual to all the private stock in the existing
bank, has been set. aside, and tho l)0lJlll._\‘ ol
our-government is proposed to be again be-
stowed on-the fu_W who have been fortunate
enougli -to secure, the stock, and at this mo-
mont wield the power of the existing iii-.titu-
tion- =1‘ cannot perceive the justice or
pol-cy of this course. If our government
must sell monopolies, it would seem to be its
duty to take nothing less than their full value:
and if gratuities mus‘. be made once in fifteen
or twenty years, let them not be bestowed on
the subjects of a foreign goveriinient, nor up-
on it designated or favored class of rn_cn.in our‘
own' country.’ It is but justice and good poli-
cy as.fa'i'.a_sj:he_ nature of the case will aihiisi,
to confine our favours to our own" follow citi-
zens, Ind let each in his turn‘-enijny an opp,”-.
tuuity"t_o profit by _our-bounty. ‘Ill the" bear.
ings of the actbeforc me .upon these points-,
I find ample reasons why igohould not become
a law. ' , ' ’ -
It has been uigediis an at-gumvmi in raw“,
of rcchartering the present bunk, tlizitcalling
in its loans will produce great einliarassmeu:
and distress. The time allowed to close its
concerns is ample: and if it has been will
any uncertainty. .
nianaged its pressure will be light. lml l"3i“'l'
only iii case its management has been bad-—
It‘, therefore. it shall produce distress.’ ill.‘-'
fault would ‘be its own, and wculdfuriiisli 8
reason rgainst receiving a power which ha‘
been so obviously abused. Bul._\Vlll lllere
ever be a time when this reason will be ‘less
pfgtwdrfiil To aclmowlodga “,3 I-070.99 l5 1"
admit that the bank ought to be_ P°"P,‘f‘““l'
and. as a consequence, the present stnc-$ll”.l'
dors, and those inlieritiiig thelt flgll“ ‘*3 ‘“°‘
cessors be established a privll‘-‘Sell °”l'~'
clothed both with great pol.tical power. Mill
enjoy-"mg immensa pectltiiary advaiitagcs from
their connexion with the government. ~
The mndilicatloiis oftlie existing cliiirtcri
proposed by this act, are not such. in my VIEW.
as make it consistent with the riglitil Of l-ll?
states. or the liberties of the people. The
qualification of the right of the bank to hold
real estate, the limifafion ofils power to es-
tablish branches, and the power reserved 10
Congress to forbid the circuialion of small
notes, are restrictions, comparatively. of ltltle
value or iinportaiicc. All the objectionable
princip'os of the existing corporation, and
most of its odious features, are retaiiied Will!’
out alleviation. ‘
[He here .procseds to notice its objectionable
features. The 4th section requires the Bank to
receive, at each of its branches, the notes of ev-
ery other branch. in payment of baliiiiccs due
from any of the state blinks. This is a highly
proper exception from the very appropriate pro-
vision requiriiig f:il('l1 branch to receive only its
own notes in payment of debts due from individ-
als,-and not roiupelling them to redeem the notes
of the other branches. This feature is essential
to the safety of the state banks on the one hand,
and to thatofthe individual branches on the oth-
er; but the Prcsitlciit calls it an odious boon, and
a l.)t)l‘ICl'0f' unior. among the banking institutions
of the cnuii2i°_v, erecting them into aiiintcrest
separate from that ofthe pc ople.
The 9th section requires the cashier of the
Bank annually to report to the Secretary ofthe
Treasury the names of all foreign stockholders,
and when so requested, to fll‘.'l‘liSll to any state
trc.'isui'ei' the names ofall stvvckl\olde.is resident
in such state. The object oftlie provision is to
exempt the foreign stock from taxation, and to
"enable the states, if they choose so to do, to tax
that held by their own citizens. For the‘ propri-
ety andjustice oftliis provision, see Mr. Web-'
ster's ‘opinioiiin our paper or the 3.!‘ inst. But
the President is sadly troubled, lost this provis-
ion, by making the stock worth more to foreign-
ers than to American citizens, should send the
stock out oftlic country. and thereby make us
debtors to aliens, in nearly the whole amount due
the bank, and send across the Atlantic from two
to five millions evciy year to pay bank dividends.
.-\ serious obj:-ction truly that by any species of
legislation we should permit foreign cnpitalists
to administer to the prosperity ofiour country by
ftl;‘niSl'1ll|g’ us the means of carrying forward our
plans of iuiprov emcnt and greatness.
Another objection he has is the exclusion of
foreigners from voting for Bank Directors} He
thinksthat when the stock gets mostlyinto for-
eign hands the few reiiiuitiing American stock-
holders will be able to manage the institution as
they please. to iriulie it subserv-ieiit to their per-
sonal inieresis.'and tojeopardizc the public weal.
He p:o:ecds to u.sk_-—]
Is there no danger to our liberty and indo-
penilence in a band that, in its nature, has so
little to bind it to our country ? The Presi-
dent. of the bank has told us that most ofthe
state banks exist by its forbearance. Should
its influence become concentrated, as it may
under the operation of suchan act as this in
the hands ofa selfclectod directory,wliose in-
tcresls are identified with those of the foreign
stockholder, will there not be cause to trem-
ble for the purity of our elections in peace,
and for the independence of our country in
war? Their power would be great whenever
they might choose to exert it; but iftliis mo-
nopoly were regiilarlijrcuewcd every fifteen or
twciity _vcars,nn terms proposed by themselves,
they might seldom in peace put forth their
strength to influence elections or control the
affairs oftlie nation. But if any pri,vateIcit--
izcn or public flIllCtlOII8.l'j'i5ll0Ul(I interpose to
curtail its powers. or prevent a renewal ofils
privileges, it cannot be doulited that he would
be made to feel its influence.
Should the stock ofthe bank principally pass
into the hands of the subjects of a foreign
countr_v, and we should unfortuiintcly become
involved in a war with that country, what
would be our condition? Ofthe course which
would be pursued by is bank almost wholly
owned by the subjects ofa foreign power, and
managed by those wliosc interests, if not af-
fections, would run in the same direction,
there can be no doubt. All its operations
within would be in aid of the hostile fleets and
armies witlio-.it : controlling our curreiicy,rc-
cclving our public moneyr, and holding thou-
sands ufour citizens in dependence, it; would
be more form’.dab'c and dangerous than the
iiaval and milztary power ofthe oiieiny.
If we must have a bank with private stock-
holders, every consideration of sound policy,
every impulse of Auiericiiu feeling, admonish-
cs that it should be purely odmerican. -Its
stocklioldcrs should be composed exclusively
of our own‘ citizens, who at least ought to be
friendly to our governinentnnd willing to sup-
p0l'l it in times of ditiiculiy and danger. So
abuntlaut is domestic capital, that competition
in subscribing for the stock of local banks has
lel almost to riots. To a bank exclusively of
Amer can stockholder-, possessing the powers
and privileges granted by this act. subscrip-
tions for two hundred iuillioiis of dollars could
be readily obtained. Instead of sending a-
broid the stock of the bank, in which the gov-'
frrmnont must deposit its funds, and on which
it niust rely to siistsiii its credit in times ofe-
in‘r.-rgencr, it would rutlier seem tobo expedi-
ent to prohibit its sale to aliens, under penal-
ty ofabsziliitc forfeiture.
It is iiiiiiiiluiiiod by the advocates of the
bank, that its coiistitutioiialitv, in all its fea-
tures, ought to be considered ai settled bv
precedent. and by the decision of the Siipremii
_Coiirt. , 'l‘o this c0.'l(:lull0lI 1 cannot assent.-—
Meije precedent is ii dangerous source of au-‘
tliority. tmtl should .not be reg'arded‘as deci-
d|llg'qllGSl.lUn1Ul~6')D*illltll.l0n;1l power, except-
wli-re the acquicsunce of the people :ind"thc
States can be considered as well settled. ‘So,
far from this being the case on this subject,
.itn argument against" ilie brink might be based
on precctlont. 0.ie Coiigrsss, in I79t, deci-
ded in favor of a baril(——auothor, iii Jill I, de-
ciileil ugain'st‘u banlr—aiioi.her in l8l6, deci-
ded in its fayor. Prior to the present Con-
gress, therefore the preccleritii drawn from
that source were equal. If we resort to the
States, tlie_o..pi-ossiuns oflcgislative,j'udlcial,
and executive opinions .-igainst the bank have
been, probably, to those in its favor, as four
toonc.-'_1‘h_ere is nothing in preceileiit,thoro-
fore, which, if its authority were udinitted,
ought to weigh in favor ‘of the act before me-
If the opinion of the Supreiue.'C_o|ll‘.l °°V'—°"‘
ed the whole ground of this act..i‘t'ouglil::not to
‘control the co-orilinate, authori,tiaI-,of.l_lIl8_ E’)?-
ernrncnt. The Congress, the Exeg.utivc_, and
the court, ‘must each for itself be guided"by its
own opinion of the constitution." Each pub-
‘lic o_fiicer._wlio takes an oath to support tho‘
Constitution, swears that he will support it
as he understands it, and not a.s*1t is under-
stood by others. It is as much‘ the duty oi
the House of representatives, of the Senate,
and of the Pro-‘ideiit, to decide upon the con-
stitutionality of any bill or resolution which
may be presented to them for passage or zip-
proval as it is of ‘the Supreme Judges, when
it may be brought before them for judicialdc-
cisiou. The opinion of the judges has no
more authority over Congress than the opinion
ofcongress has over the judges; and -on that
point,tl1.s [’r :Sl(l8i'll is iuilepcrident of hoth.——
The authority of the Supreme Court must not,
therefore, be permitted to control the Con-
gress or the Executive, when acting i_n their
legislative capacities, but to have only such
influence as the force of their reasoning may
dcscr ve. ' 0
But in the case relied upo_n,thc siip,g_:m,eCourt
have not decided. that all the featiircs ‘of. this"
corp aratioii arc._c'ompatib_le with the constitu-
tion. . It is true that the court have-said, that
the law incorporating the bank, is a cojistitii-
tional exercise of powei in Congress. But
taking into view the whole opinion of the
court, and the reasoning by ‘which they have
come to that conclusion,I uuderstiiiid them to
have decided that in-as-much as a bank is an
appropriate iiicuns_fur carrying iuto effect the
enumerated powers of the General‘ ‘Govern-
ment, therefore, the law iiicorporating it is in
accordance ivitli that provision of the consti-
tution which declares that Congress shall have
power "to make all laws which shall be neces-
sasy and prnpcrfor carrying those powers into
execution.” ‘Having satisfied themselves
that the word “ucce.'sary," in the constitution
means "noedful," “requisitc," ‘es_seiitiai,"
“conducive to," and that “I. bank” is conven-
ient, a usefu', and essential inslruincnt-in_ the
prosecution oftlie t‘i‘mverui_c_nt’s ‘rfiscal ope-
rations," they conclude that, to “use one must
be within the discretion of Congress;” ;and,
Qtbat, “the act to inco:-p.~rate the -Bank of the
United States, -is -a -law mrideiin f'pu‘i'sérajiiice"or'
the coastitut-ioii." ‘‘But,-“‘ any llliéi}.f:i“‘Wll8re
the law is not prohibited‘, and is‘ really ‘calcu-
lated to ofibct any ofthe objects ,anl,rusted to
the Government, to undertake lierekito eu-
quire into the degree of its necessity, would
be to pass the line which circumsoiibes the
judicial department,and to tread onlegislativo
ground." '
The principal here afiirmed. i=.7 that the
“degree ofits necessity,” involving all -the de-
tails of a banking institution, is-.a qucstioii
exclusively for legislative consideration. A
bank is con’-titutional; but it is the province
ofthe legistature to deferiiiino ivlietlierjliis or
that particular power, privilege, or exeinplion,
is ‘-necessary and proper” to enable the bank
to discharge its duties to the Goveriiuicnt, and
from their decision there is no appeal to the
council ofjustice. Under the decision ofthc
Supreme Court therefore, it is the exclusive
province of C zngress and the Presidoqt to de-
cide, wliether the particular fe:it‘tiie.s‘--of this
act are necessary and proper," in order to en-
able the bank to perform, convenierit-ly and
efficiently, the public duties assigned to it as
I. fiscal agent, and therefore, constitution.'il,or
unnecessary and improper, and, tlicrefore,
unconstitutional. « . _
Without commenting on the general prin-
ciple alfirmed by tho.-Supreme Court, let. us
examine the details of iliis act, in accordance
with the rule oflegislativo action, whlchthey
have laid down. It will be found. that many
of the powers and privileges conferred oi it,
cannot be supposed necessary for the purpose
for which it is proposed to be created, and
are not,tliereforc. means necessary to. attain
the end in view, and, consequently, not justi-
fied by the constitution.’ _
Tbe’origiiial act. ofincorporation, section
21, enacts, “that no other bank shall he es-
tablished by any future law of the’ United
States, during the continuance -o_f..tlir:‘=*ti‘.)rpo-
ration, hereby created, for which the faith of
the United States is hereby pledged: Prom’-
ded, Congress may renew existing charton
for banks within the District ofColnrnbia, not
increasieg the capital thereof, and may, also.
establish any other bank or banks in said Dis-
trict, with capitals not exceeding, in the
whole, six millions of dollars, if they‘ shall
deem it expedient.'»'. This provision is con-
tiiiued in force bv the act before me fifteen
"years" from the 3d of March, 1836.
If Congressipossesscd the pon{cr«to establish
one bank, they had power to establish more
than one, if, in their opinion. two or more
banks had been -" necessary” to facilitate the
execution of the powers delegated to them in
the constitution. If they possessed the power
to establish a second bank, it was a. power de-
rived frnm the constitution, .to be exercised
from tiois to time, and at any time when the
interests of the country, or the emergencies of
the government might make it expeilient. It
was possessed ‘by one Congress as well as an-
at every session. But. the Congrc§s"of I816
have taken it away from their successors for
20 years, and the Congress of 1832 proposes
to abolish it for 15 years more. It cuiinot be
“ necessary" or “ proper" for Congress to
barter away or divest themselves of any-pom
or vested in them by the constitution, to be
exercised for the public good. It is not "_ ne-
cossary" to the eflic ency of the bank, nor is
it “ proper" in relation to themselves and their
successors. They may properly use the dis.-
cretion vested in'them. but they may not lim-
it the discretion oftheir successors. This re-
strictidn on theinselves.iind grant ofa monop-
oly to’ the bank, is therefore unconstitutional.
In another point of view, this provision is a
palpable attempt to amend the constitution by
an act of legivlation. ’I‘he ‘C02ISlllll'l0!l de.
clareii that “ the Congress shall have po_wer"_
to exercise exclusive leg'lSl5!ll‘)_fl in.all.(;ase.;-
whatsoever over the District_ofCol_umbi,a,git..
constitutional power, therefore, to establish
banks in ‘the District of ..Coluinb_ia, ,.aiid.,in_-.
crease their capital at’ will, "is: lfPIII!]ne_d'7!il‘Id.
'“"°°““‘°ll‘l?l° lo’ "11 t5ll1€l' Poiver_.tlIas:.that
which gave autliairityto the constitution. Yo!
this act declares that Congress shall iiorr iii-'
crc:iso'tlio capital of existing banks," nor cu.
ate other banks with capitals exceeding‘ iii the
whole six millions of dollars. The Constitu.
t ion declares, that Congress shall have power
to exercise exclusive legislation over this.dis.
tricr, ‘°-.z'n all cane: whzitsoever," not this not
diz-elaresithatitliey shall not. Whiclif is the
Supreine law of the land?’ This provision
otlie_r,~and by-all Goiigresseis nlikc, and.ii-like -
cannot be “necessary” or ‘‘proper‘’ 0l"“Col!'l
stitutional," unless the absurdity be admitted»
that whenever it be " necessary and proper"
in the opinion of Congress, theyhave a right
to barter away one portion of the powers
vested in them by the Constitution as a means
fexccutiiig the -rest.
- ['The' President proceeds to say that the pow-
er to grant copy rights and patents, is the only
oxclusivc ‘privilege which the Constitution an-.
thorises to be granted to individuals ;-and that
cver_y.otber monopoly or exclusive privilege, is
“ palpably iiiiconstitut‘ioiial." -
Most or all of the states, he says, have laws dis-
qualifying aliens from holding real estate within
their limits. But this act gives to aliens, stock-
holders. an iiitcrest and title to all the real prop-
crtv the bank may acquire witliin the states.——-
Tliis is subversive ofthe rights oftlie states, and
tliercfoic unconstitutioiial. >
He says the government have no constitution-
al right to purchase land in any of the states, ex-
cept. for the erection of forts, arsenals, «Inc. By
making themselves stockholders in the liiuik,and
acquiring an interest in the real estate held by
the bank, they assume a power not gia. nted by
the Constitution.) _
The bonus which is exacted from the bank,
is a confession,‘ upon the face of the act, that
the powersgrauted by it are greater than are
"necessary" to its character to a fiscal agent.
The_ Government does not tax its officers and
agents for the privileges of serving it. The
bonus ofa million and it half, required by the
original cluirter, and that of three millions
proposed by this act, are not exacted for the
privilege of giving "the necessary facilities
for t"aiisferr.ng the public funds from place to
place, within the United States or the territo-
ries thereof, and for distributing the same in
payment of the public crediiorr, without char-
ging commission or claiming allowance on ac-
count of the difference of exchange,” as re-
quired by the act of incorporation; but for
soincthlng more beneficial to the stockhold-
ers. The or-giusl act declares. that it (the
bonus) is granted -‘ in consideration ofihe ex-
clusive privileges nnd benefits conferred by
this act upon said bank ;" and the act before
me declares it to be “in consideration of the
exclusive benefits and privileges continued by
this act to the said corporation, for. fifteen
years as afor!-.sai_d.” It is therefore, for “ex-
clusive privileges and_ benefits," conferred for
their own use" and emolument, and not for the
sdvalftage of the Government, that a bonus is
exacted. These surplus powers, for
which the bank is rrquired to pay, cannot
be “necessary” to make it the fiscal agent of
'.ll8llI(’I3l1l'_)'. Ifthey were, the exaction of
3 bonus for them would not be “propcr."
It is maintained by some that the bank is a
means ofcxecuting the constitutional power
“to coin money, and regulaletlie value there-
of." Congress have establislied a mint to
coin money, and passed laws. to regulate
the value thereof. The money so coined,witli
its value so regulated, and such foreign coins
as Congress may adopt, are the only curren-
cy known to the Constitution. But. if they
have other power to regulate the cui'rency,_it
was conferred to be exercised by themselves
and not to be transferred toa corporation.
If the bank be estublislied for that purpose,
with a charter unalterable witlioutits consent,
Congress have parted with their power for a
term of years, during which the Constitution
is a dead letter.-—-It is neither necessary nor
proper to transfer its legislative powerto such
a baiik, and therefore unconstitutional.
By its silence, considered in connexion with
the decision of the Supreme Court, intliecasc
ofMcCu1lnck against the State of Maryland,
this act takes from the States the power to
tax a portion of the banking business carried
on within their limits, in subversion of one of
the strongest barriers which secured them a-
gainst federal encroachinents. Banking,like
farming, niaiiufacturiug, or any other occupa-
tion or profession, is a busiiiess, the right to
follow which is not originally derived from
the laws. Every citizen, and every compa-
ny of citizens, in all of our states. possessed
the right until the State Legislatures deemed
it a good policy to prohibit private banking
by law. lfthe proliibitory State Laws were
now repealed, every citizen would again pos-
sess the right. The State Banks are a qualifi-
ed restoration of the right which has been ta-
ken away by the laws against banking. guard-
ed bjr such provisions and limitations as, in
the opinion of the State Legislatures, the pub-
lic interest requires. Those corporations,
unless there be an exemption in their cliurter.
are like private bankers and banking compu-
iiios, subject to State taxation. The manner
in which those taxes shall be laid, depends
-wholly on legislative discretion. It may be
upon the banlr, upon the stock, upon the prof-
its, or in any oilier mode which the sovereign
povvejr shall will." -
Upon the forrriation of the Constitution, the
States guarded their taxing power with pecu-
'iarjealousy. They surrendered it only as it
regards imports. In relation to every other
object within theirjurisdiction, wlietlier per-
sons, property, business, or professions, it was
secured in as ample a manner as it was before
possesssod. -
[And nothing, he argues, comes more fully
_withi_n the scope of the taxing power of the states
than banks and the business of banking-, by
wliomsocver carried on. II: concedes that the,
state: cannot rightfully tax the operatic us of the
General Government, nor the money of the gov-
ernrrielnt deposited in the state banks, nor the is-
gciicy_ of those banks in remitting it, but no man
would contend that the mere selection of theiic
banks to perform this servicc,would exempt them
and their ordiiiary business, from state taxation.
From this, and the like sources, must the states,
since their surrender oftheir right to raise a iev-
enue from imports and exportii,dru§v all the mon-
ey necessary for the support of the government.
He nddu-
If our power over means is so absoliitejhat
the Supreme _Court will call in question the
constitutionality of an act of Congress. the
subjecrof which ‘_‘is not proliibitcd, and is re-
ally calculated to affect any ofthe objects on-
trusted to the Government," although, as in
the case before ,me,_.it takes away powers ex-
pressly g-‘rant_e_¢_1 -to Congress, and rights scru-
pulously ,r‘es'or_vod‘to the States, it becomes
us.to’ proceed .iu..ou'r-._le_g'i_slat.ioii w_itli_. the ut-
inost-caution. Tlioiigli not directly, our own
powers,-and the rights of the States, may be_
indirectly legisl-.itii'd away in the use of means
to execute substantive powers. We may not
ondct that congress shall not have the power
of e_xc'lusivo‘logislution over the District of
Columbia. but we may pledge the faith of the
United Stntosthat a means of executing oth-
proliibitiug the States to tax the banking bu-
siness carried on wi hit: their limits, but we
may, as a means of executing our powers 0-
vcr other objects, place that business in the
hands of our agents, and then declare it‘ ex-
empt from-Stato taxation in their liaiids._-7
Thus may our own powers and tlie:riglits of
the States, which we cannot ‘directly curtail
or invade, be frittcrod away and extinguished
in the use of means employed by us to exe-
cute other powers. That a bank of the Uni-
ted States, competent to all duties which may
be required by the GOV8l'lI|lI*‘ll', m’glit be so
organized as not to infringe on our ow ii dele-
gatod powers or the reseived rights of the
Stator, I do not entertain a doubt. Had the
Executive been called upon to furnish the
project of such an institution, the duty would
have been clieerfully performed. In the ab-
sence of such a call, it is obviously proper that
he should confine himself to pointing out those
prominent features in the act pi'eseiited_.which,
in his opinion, niako it incompatible with the
constitution and sound policy. A. general
discussion will now take glacc; eliciting new
light, and setting important principles; and
a new Congress, elected in the midst. of such
discussion. and furnisliing an equal represen-
tation of the people according to the last cen-
sus, will bear to the Capitol the verdict of
public opinion, and I doubt not, bring this im-
purtant question to a satisfactory result.
Uiidei such circu_ms_'.aiices, the bank comes
forward and asks for a renewal ofits cliarter
for It term of fifteen years, upon conditions
which not only operate as a gratuity to the
stockholders of iriaisy millions of dollars, but
will sanction abuses and legalize any encroach-
mcnt.
Suspicious are entertained and charges are
made of gross abuses and violation of its cliar-
ter. An investigatioii unwillingly conceded.
and so restricted in time. 85 "€635-“Ill! ,l-°
make it incomplete and unsatisfactory. Cl|3-
closes enough to excite suspicion and alarm.
In the practices of the principal bank, par-
tially uiivciled, in the absence of.iinportant
witnesses, and in num.-rous charges confi-
dently made, and as yet wholly ui_iinvestiga-
ted, there was enough to induce a irizijority of
the Coinmitteu of Investigation, a committee
which was selected from the most able and
lionoruble members of the House of Repre-
sentatives, to recommend a suspension of fur-
ther action upon the bill, and a prosecution of
the inquiry. As the charter had yet 4 years
sary to the successful prosecution ofils busi-
ness, it was to have been expected that the
bank itself, conscious of its purity, and proud
ofits character, would have withdrawn its ap-
plication for the present, and demanded the
severest scrutiny into all its transactions. In
their declining to do so, there seems to be an
adlitioiisl reason why the functionaries of the
Government should proceed with less haste,
and more caution, in the renewal of their mo-
uopoly. '
The bank is professedly established as an
agent oftlio Executive branches of the Gov-
crnmcnt, and its constitutionality is main-
tained on that ground. Neither upon the
propriety of present action, nor upon the pro-
visions of this act, was the Executive cou-
sulted. It has had no opportunity to say that
it neither needs not wants an agent clothed
with such powers, and favored by such ex-
emptions. There is nothing in its legitimate
i'i_inct.ions whiclrmake it necessary or proper.
'VVliatever interest or intliieiicc, wliether»pub-
lie or private, has given birth to this act, it
ca iiiot be found either in the wishes or neces-
sities oftlic Executive Depariinent, by which
present action is deemed premature, and the
powers conferred upon its agent not only no-
necessary, but dangerous to the government
and country.
It is to beregretted that the rich, and pow-
erful too, often bend the acts of government
to their selfish purposes. Distinctions in so-
ciety will ulways exist under every just gov-
emmeiit. ' Equality of talouts,of education,or
of ivcaltli, caiinnt be produced by human in-
stitutions. In the full enjoyment of the gifts
of ll.-iaven and the fruits of superior industry,
economy and virtue, every man is equal'y eu-
titled to protection by law. But when the
laws undertake to add to these natural and
just advantagel, artificial distinctions, to
grant titles, gratuities, and exclusive privi-
leges, to make the rich richer, and the potent
more powerful. the humble members of socie-
ty, the farmers, mechanics, and laborers, who
have neither the time nor the means of secu-
ring like favors to themselves, have a right to
conipl.-iin of the injustice of their Government.
There are no necessary evil: in government.
its evils exist only in its abuses. If it would
confine itself to equal protection, and, as
Heaven does its rains, shower its favors alike
on the highand the low, the rich and the
poor,it would be an unqualified blessing.“ In
the act before me, there seems to be a wide
and unnecessary departure from these just
principles. ,
Nor is our government to be maintained, or
our Union preserved byinvasioiis ofthc rights
and powers of the several States. In thus at-
tempting to make our general government
strong, we make it weak. Its true strength
consists in leaving individuals and States, as
much as possible, to themselvos—in making
itself fell, not in its power, but In its benefi-
cence, not in ii_s.cou_trol but in its protection,
not in binding the States more closely to . the
centre, but leaving each to move unobstruc-
ted in its proper orbit.
Experience should teach us wisdom. Most
of the difliculties our Government now er.-
oounters, and most of the dangers which im-
pend over our Union, have sprung from an
abandonment of the legitimate objects of ‘Gov-
ernment by our uational legislation. and the
adoption of such principles as are embodied in
this act. Many of ourrich men have not
been content with equal protection and equal
benefits ; but have besoiiglit us to make them
richer by not ot'Congress. By attempting to
"gratify their desires, we have in the results of
our legislation. arrayed section against sec-
tion, interest against interest, and man against
man, in a fearful commotion which threatens
to shake the foundations of our Union. It is
time to pause in our career, to review our
principles, and if possible, revive that devoted
patriotism and spirit of compromise,‘ which
distinguish the sages of the revolution, and the
fathers of our Union. If we cannot at once.
in justice to interests vested‘ under improvi-
dent legislation, make our-government "what
it-ought to be, we can at least take a stand
against. all new grants of monopolies, and ex-
c usive priv-iliges against .any prostitution of
our government, to the advancement of the
few, at the expense of the many, and in favor
ofcoinpromise and gradual reform in our code
of laws and system of political economy.
I have now done‘ my duty to my country.-
If sustained by my follow-citizens, I shall be
or power: shall not be exercised for twenty j
years or for ever. We may not pass _an act
grateful and happy ; if not, I shall fiud in the
to ‘run, and as a renewal now was not neces- ‘
motives which iinpelmeaimple grounds forcon-
tentment and peace. In the difficulties whit-li
surround us, and the dangers which tlireatul
our institutions, there is cause for neitlier dis-
may nor alarm. For i'eliefand' deliverance,
let us firmly rely on that kind Providence,
which I am sure, watclies with peculiqr card
over the destini-s of our republic, and on the
intelligence-. and wisdom of our countrymen.
Through His abundant goodness and their
patriotic devotion, our_ liboity, and Union will‘
be preserved. ANDREW JACKSON. ..',
VVASHl.\'G'!‘0l\', July I0, 1832.
‘
concur‘-iss.
SATURD.-XY. Juror 7.-—-Iii the Senate. /after
various modifications the tariff bill was order.
ed to a third reading, yeas 31, nays 15. Be-
fore putting the-questinuof adjouriitncnt on
Saturday evening, the Vice-Presidtent took
.occasioii to say, tliathc should not agriirrbe in
his place for the remainder ofthe sessioii ; and
taking leave of the Senators, w'slicd them a
happy return to their homes and families, af-
ter a very laborious session. ' . /
The House was engaged, most of-tho" day,
in the consideration of private bills.. --
to order by the Secretary, and, on motion,
proceeded to the election ofa President pro
stood for Mr. '1‘-azcwoll ‘24, Mr. -Poindvxter
‘Zl, Mr. Hsyne l._. Mr. Bibb I‘. *'M,r. T329-
well was therefore declaretfelected, and con-.
ducted to the chair.
The Ti_xri'fl' bill was read a
piused, as fbllows :
.Y -as—-Messrs. Bell, Benton, Buckner,
Ci"“"l19|‘*'- Clay. Clayton, Dallas, Dickerson,
third time and
dricks, Hill, Holmes. Johnson, Knight, Mar- '
cy, Naiidain, Prentiss, Robbins, Robinson,
Ruggles, Seymour, Silsbce, Smith, Sprague,
Tiptoii, Toinlinsoii, VV.-iggainan, Webster,
Wilkins—32. - I
N ays—Messrs. Bibb, Brown, E llS]F0l'sytll,
Grundy, Hayne, Kaine, King, Manguu-., Mil.
ler, Moore, Poindcxter, Tazeivell, Troup, 'I'v-
ler, White—- 16. " - ‘ ‘ °
of-Representatives -for the adjournment of
Congress on the 9th day of July, was consid-
ered, and, after some discussion,'it‘v/as amen-
ded by strikiog out the 9th and inserting
16th ofJuly, and, as amended, agreed to.
On mutiori of Mr. Smith, the Senate took
up the bill, from the I-Iousr, supplementary to
the! several acts, making appropriations for
the civil and military service of the United
States for the your 1332, and, after the adop.
tion of the amendments, it was ordered to is
third reading. .
In the House, the joint resolution respect-.
ing the appointment ofa Fast Day was taken
up, and after considerable discussion, commit-
ted to a select committee to fix upon rider to
be set apart for that purpose." ‘-
Mr. Foster moved to suspend the riiles of
the House to enable hi ii to offer the fol),
ing resolution :—Rosolved. That the insinua-
lions made in debate this morning bythe flog‘,
\Villiain Stanberry, charging tlic‘Speskcr of
this house with shaping his course, as pmsi.
ding officcr oftlio House, with .a view to th
obtainmcnt of office froin the Presidentof th
U.States,wari an indignity-both to the Speak-
er and to the House, and merits tbe"decldod
censure Of-xl.I|8 house. -' Ne'gativcd,”"Aycs
95, Noes.'63. [Not two-thirds.) ' V-
The House spent the rest of the session in
committee on the tariff. The amendnieiits of
the Senate raising the duty on woolen-, ken-
dall cottons, cotton bagging, sugar, and com.
mon tin and japannedsa-zlillery were rejected.
The amendments relative to the duty on silk
goods, and sail duck were agreed to. '
TueI:Ia_i/,’Jul_y t0.—-In the Senate, a mes-
sage was rec'd from the President, returning
the Bank bill, with his objections, 6000 cop-
ies of which were ordered to be printed.
Several private bills were passed, and the
Senate went into Executive business.
In the House, Mr. Bell, from _ the select
comm ittec, reported a joint resolution setting
apart a day for a Public F.ist,laid on the table.
The Tariff bill was taken up, and the house
concurred in the smcndiuents of the Senate.
to rate felts, on hat bodies made of wool, at I
duty of 18 cents each ; to strike out the duty
of 1-2 ct., per lb., on Coffee; to abolish all
duties on Teas imported from beyond the
Cepc of Good Hope; to reduce the duty on
all wines, to half their present rates, after the
3d March 1834 ; to strike out-Palm leafhats
from tiiclist of articles subject to 15 per cent;
to strike out 4 cts.-, per bushel on crude ‘and
mineral Salt, and insert 15 per ct., ad valorem:
to prohibit drawback on a less quantity offj:6f.
dare than 5 £008 : Ind» non-‘concurred with
various other ainen'dments,“and 't.he'bill' hav-
ing been gone through with, the house adj.
Wednesday. ‘July ll.-Tlie Senate appointed
Messrs. Wilkins, Dickerson, and Hayne, ll cbin- »
mittee of conference with the House on the sub-
ject oftlieir difference on the Tarifi'bill.
,'1‘lie BXNK bill was then taken up, and the
question being shall the bill pass. the President's
objections. iiotwithstanding, Mr. WEBSTER
took the floor,ai.id in a speech of something more
than an hour, examined and commented upon
the contents of the Message. The President, he
said, had given a clear expression of his own
judgement, tliatfuiidcr no eircumstaaces,.uovv or
liereafter; should " liisapprobation ever be given
to any bill for‘the renewal of the charter oftho
present bank, or for the constitution of any sign. -
jilar one.» It appeared to him, Mr. W. said, that
we are now approaching I crisis, not only equal-
ly dangerous..but equally likely to be embarras-
sing, disastrous and distressing. as any that has
occurred under this government. It was now
certain,that, without a change in the public’coun-
cils, the charter of the U. S. B_ank wouldbe suf-
fered to expire by its own liinitation. .Witliiii 3
"years and 9 mouths‘arrangements,would,have to
he made for calling in its debts, withdrawing ill
notes from circulation, and ceasing its operiitiono;
It behooved all who were interested in public at‘-
fairs, withaut exaggeration on the one side, or
delusion ',on the other, to prepare themselves to
meet the crisis. He then went on to show thq’
great importance of the present question. espe-
cially to the western states, within whose limits
thirty millions of active capitol had been furnish-.
ed for buiiincssjby the bank. _He drew I picture-.
of the consequences. likely to flow from all this
facility being withdrawn within’ four years, and,
of the deep distress which must. inevitably fo,llo_ii
its witlidrasvnl. . «To the people of ~ the Unite
States, he said it was _now plainly put. wbeth"
in one way, and inone~w:_iy onl ,“(-for the "
sage left no alternative) this evi was to be .
ed. Mr. W. then proceeded some I-
upon the I_’rosidciit’s objections to the bill.
first which lye advcrtod to was the object’
the application of the Bank for the renewal of
charter, on the ground that it was pcrmature. So
far from this objection being I just one,.hc said,
that the time of the application was the latest do}-
at which the Bank could, with any justice to the
public, or any regard to the interest of the stock-
holders, come forward, it‘- the question,‘ wlicthcr A
‘its charter was to be renewed or not, was it at all
doubtful.
Jllonday. July 9. —'I‘he Seuatcwa: called .
teui, by ballot." ‘On the 5th ballot the vote -
Dudley, Ewing. Foot, Frclinghuyseii, Hcn- ‘
..da_ljournment.—'I'he resolution oft.lie' House ‘
{ho'\
I
4
K
2'
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Norwalk Chronicler