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