L. -J PUBLISHED WEDNESDAYS AND SATWJ' DAYS' !SY 7OHN F£\>.\'o, No. '69, HIGH-STREET, BETWEEN SECOND AND THIRD STREETS, PHILADELPHIA. [No. 86, of Vol. ll.] Wednesday. February 25, iOR THE GAZETTE OF THE UNITED STA TES, ON THE NATIONAL BANK IT has been questioned by -foirie, whether the act of Congress, for eitablifhing the Bank cf the United States, is conllit.utional ; but it it is a iifefiil mean for carrying into effect any of the powers specially veiled in tiie government of the United States, and does not infringe the rights of any individual state or person, on what prin cipal can it be unconllitutional ? Congress are expressly authorised to make all laws that shall be necell'ary and proper for carry ing into execution all the powers veiled in the government of the United Stares ; and the means for efFeiliing these purposes not being specially pointed out, is it not left to the discretion of Consrefs to chufe the moll, fit and proper means ? AndTif incorporating a Bank is by them judged a necefl'ary and proper measure to carry into ef fect the fil'cal operations of the Union, why is not that as confident with the confutation as any other mean ? The incorporation is only enabling a number of persons to aid the government, and improve theirown property with greater ease and feciiriry than they could do in their individual capacity : Their bye-laws will be only rules to govern themselves in the management of their own affairs. This artificial person will be fubjedt to the go vernment of the laws as much as a natural per son—it may be retrained from doing injury, tho its rightsinay not be violated : And will not the time limited for its duration be short enough to make a' fair trial of its utility ? Legiilative power is not absolutely requisite to create a Corporation—it is a power often exerci fedby the Executive Magistrate, without any po sitive law, or other express authority to autho- nze it, The ufefulnefs ofßanks has been ling experi enced in England, and other parts of Europe. The Bank of England was eitabliihed by act of Parliament to aid the national finances, when other efforts to fupporc the public credit had pro ved ineffectual. The establishment of a Bank was thought ne ceiiary, and found ufeful in aid of the finances of the United States, in the time of the late war. And Banks have been resorted to, and likewile found ufeful under the prefentgovernment; and will doubtless be found mote neceiiary, as the demands for money enci and the occasions for the circulation thereof, become more exten sive. The celebrated Mr. Burkf., speaking of the Bank of England, fays, " i hat in England, not " one (hilling of paper money of any description " is received but of choice ; that the whoW has " had iis origin in cafli actually deposited ; and " that it is convertible at pleasure, in aninftant, " (without the least loss) into cash again. " Indeed it might be ealily lhevvn, that our pa " per wealth, inltead of leflening the real " has a real tendency to increase it inflead of " being a substitute for money, it only facilitates " its entry, its exit, and its circulation ; that " is a symbol of prosperity, and not a badge of " difViefs." Such is the conllitution, and (if properly ma naged) fueh will bethe operation of the Bank of the United States. It has been objetfted, that funded securities being deposited as part of the flock, will not secure thecredit ofthe Bank Bills : But a large funi in specie will likewile be depo lited—which, together with theiritereft, payable on the securities quarter-yearly, will make a fund fufficient to support as much bank paper as will be neceflary for common circulation ; and it there Ihould at any time be a demand on the Bank be yond the amount of the specie deposited, the money may be raifedby sale of the securities, at I he market price. If the proprietors of the flock underftaiul then own inierelt, they will not subject thcni.eives to inconvenience, or risque, by illuing too much paper. The deposits of specie that will be made by she United States will also give great aid to the credit of the bank. Some have supposed that the stockholders will make too much profit by it, but that is uncertain—they take upon themselves the management and risque, and il it is profita ble to them, it will likewile be so to the United States, vyho will be part owners of the (lock. It will not infi inpe the rights of the individual States, for tliev will be at liberty to make like inffitutions within their refpedtive jurisdictions. 111 cases wherein t'te United States and indivi dual States have a right to legijlate,¥efpe>iling the fame objeAs, (for inlVarice,' in drawing revenue from the fame Sources, for ilteir different f>tnpo~ les) their laws will not oppt)le each other. Both irovernmSnts aue inffituted by the people For their benefit—iand so long as each, exercise their trust with wiSdom and fidelity, there will be no dan ger of an interference <jf their jurisdictions. , No rights of individual persons will be infring ed by this acft ; but all the citizens of the United' States will (hare in the public benefits (derived from it ; arid many of them \yill derive further benefit from it in their commercial and other em ployments. Does it not evidently appear, from the forego ing remarks, that a well regulated Bank will be a lieceflary and uteful mean to aid the fifcal ope rations of the United States : and that the act of Consrels eftablifiiinjy one is therefore conftitu- O O on al ? „ The Bank bills, which are receivable only of choice, and for convenience, and may at any.time be exchanged for real money, are of a very dif ferent nature from thole bills of credit mention ed in the constitution, the einiffion whereof is prohibited to the several Hates, and not delega ted to the government of the United States. The milcliievous confequnces of that kind of paper currency has been severely felt by these states ; therefore it was thought inexpedient to autho rize the introduction of it in future in any cafe A CONSTITUTIONALIST. whatever FROM THE NEW-HAMPSHIRE SPY. " What reproachsth reafou more than to aB con trarieties." THERE is, as I have heard some one express it, "an eternal fitnefs of things' which I apprehend to be the perfection of beauty. The contrary may be seen in a minister whose beha viour is diametrically bppofueto the dotfxinehe preaches. In a judge who cannot diftinguiih be tween right and wrong. In a justice of the peace who is forward to break those laws which he was appointed to. have duly observed. In short, all men in refpedrable offices shew lis the contrary, when rhey are immoral in their conduct vicious in their practice—unfaithful wlren they promise obscene and profane in their conversation— a)) d—when they are above doing the duties ot their office—or when the duties of their office are above their comprehension, —Some will alk—- Are there any luch incongruities in this Itate . 1 think there are-In this state and every state and kingdom in the world, and forever will be, till mankind are as willing to be govern'd as to go vern —The evil cannot be wholly remedied—yet I have not the least doubt but those in office may behave with so much prudence, as to do credit to the office which does them honor. B. PROM THE VERMONT GAZETTE IN proportion as profpedis open for public ho nors, in the fame ratio'anxiety rises. He that is a candidate for public honors, is a candidate for public mortification. He who has risen to the pinnacle, has nought to fear but a fall. ''. He who electioneers for his friend, becaule lie is his friend, is oathlefs. Lust of power, and intoxication of glory, lead to trloriousand inglorious deeds. ° CLERGYMAN. DURING Lord North's administration, a chf pute happened one evening at the Smyrna whe ther the premier had any honor. A gentleman, who had been heartily piqued at a refulal from Lord North, would not allow him any fliare of it ; whillt another as warmly espoused his having pretentions to every virtue. The fubjeift created much wanntli on both fides, and might perhaps have terminated very disagreeably to one or other of the parties, had not one of the company play ed the mediator, and very archly said, —" There was no doubt of his honor, who had porcliafed half the honor of the nation." A general laugh ensued, at which my Lord's advocate seemed net tled, and, turning upon his heel, said, —" It was a ptirchafe very calily made." 757 ANECDOTE [Whole No. 190.] CONGRESS. HOUSE OF REPRESENTATIVES. WEDNESDAY, Feb'. 2. The BANK BILL under confederation.. MR. MADISON began with a general resview of the advantages and di fad vantages-os banks. The former he stated to confi.ft in,firft,the aids they afford to merchants who can thereby push their mercantile operations farther with thfefaine capi tal.—2d.The aids to merchants in paying punctu ally the customs.—3d. Aids to the government iu complying punctually with its engagements, when deficiencies or delays happen in the reve nue.—4th. In diminifliing uf'ury.—sth. In lav ing the wear of the gold and lilver kept in the vaults, and reprefenied by notes.—6th. In fa cilitating occafiona! remittances from different places where notes happen to circulate. Theef fecft of the proposed bank, in railing the value of stock, he thoughf, had been greatly overrated. It would no doubt raifethatof the stock fubferib ed into the bank; but could have little effeCl on stock in general, as the interest on it would re main the fame, and the quantity taken out of the market would be replaced by bank stock. The principal diladvantages confitted in, ifr. banishing the precious inetals, by fnbftituting anotlier medium to perform their office : This effect was inevitable. It was admitted by th£ nioft enlightened patrons of banks, particularly by Smith 011 the Wealth of Nations. The com mon anf'wer to the objection was, that the money banished was only an exchange for something equally valuable that would be imported in re turn. He admitted the weight of this observa tion in general, but doubted whether, in the pre fe»t habits of this country, the returns would not be in articles of no permanent ufeto it. 2d. Expoling the public and individuals to all the evils of a run on the bank, which would be par ticularly calamitous in so great acountry as this, and might happen from various causes, as falfe rumours, bad management of the institution, &ji unfavorable balance of trade from fliort crops, &c. It was proper to be considered alfb, that the mod important of the advantages would be bet ter obtained by feweral banks properly distri buted, than by a single one. The aids to com merce could only he afforded at or very near the feat of the bank. The fame was trhe of aids to merchants in the payment of customs. Antici pations of the' government would also be niolt convenient at the different places where the in terest of the debt was to be paid. The cafe in America was different from that in England : the interest there was all due at one place, and the genius of the monarchy favored the concentra tion of wealth and influence at the metropolis. He thought the plan liable to other objections r Tt did not make so good a bargain for-the public as was due to its iuterefts- The charter to the bank of England had been granted for it years only, and was paid for by a loan to the govern ment on terms better than could be elfewliere got. Every renewal of the charter had in like manner been purchased ; in some instances, at a very high price. The fame had been done by ihe banks of Genoa, Naples, and otherlikebanks of circulation. The plan was unequal to the public creditors—it gave an undue preference to the holders of a particular denomination of the public debt, and to those at and within reach of ihe feat of government. If the fubl'criptions should be rapid, the diflant holders of paper would be excluded altogether. In making these remarks on the merits of the bill, he had°referved to himfelf, he said, the right to deny the authority of Congress topafsir. lie had entertained this opinion from the dare of the constitution. His impression might perhaps be the stronger, because he weil recollected that a power to grant charters of incorporation had been proposed in the general convention and re -3 Is the power of eftablifiiing an incorporated bank among the powers veiled by the constitution in the legillature of IHe United States? This is the question to be examined. Q
Significant historical Pennsylvania newspapers