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PUBLISHED WEDNESDAYS AND SATURDAYS BY JOHN FFNNO. *•-. 69, HL,H STREET, BETWEEN SECOND AND THIRD STREETS, PHILADELPHIA,
[No. 89, of Vol. ll.]
CONGRESS.
HOUSE OF REPRESENTATIVES
FRIDAY, Feb. 4.
I'he BANK BILL under conjideration.
MR. SEDGWICK said lie would cndeavournot
to fatigue the patience of the house 111 the
observations he fliould make on the important
fubjeJt now under consideration. Without en
tering into the difcuflion on a scale so extensive
as had been indulged by some gentlemen—he
•would dwell only on a few important principles,
and fucb confeqtiences as were conclufiytly de
ducible from thein, which had made a ltrongiin
preilion on his own mind. The opposition to the
bill had called in queltion theconftituLional pow
ers of Congress, to eitablifh the proposed corpor
ation, and the utility of Banks, neither of which
till within a few days, did hefuppofe was doubt
ed by any intelligent man in America ; and had
charged the present system with holding out un
equal terms against the government tothofewho
should subscribe to the proposed flock.
With regard to the question of constitutionali
ty much had been said, which in his opinion, had
not an intimate relation to the fubjetft nosv before
the house. "We have with great earnestness
been warned of the dai ger of grasping power,
by conftruc f tion and implication ; and this warn
ing has been given, in very animated language,
by the gentleman from Virginia, (Mr. M.) Ido
not wilh to deprive that member of the honor of
consistency ; but I well remeinber_the-time. when
the energy of his reaC.nnrg. imprefied 011 the
miirds of a majority of this house, a cpnvitftion,
that the power of removal from offices, liolden
at will, was by conftrutfiion and implication, veil
ed, by the .constitution, in the President—so
there could be no pretence that it was expressly
granted to him."
He said he would only observe in answer to
every thing which had been said of the danger
of extending conftrudUon and implication, That
the whole business of legislation, was a practical
conftruc r tion of the powers ofthe legislature ; and
that probably no instrument, for the delegation
of power, could be drawn with such p. ecilion and
accuracy, as to leave nothing to neccjfary implica
tion. That all the different legiflacures in the
United States had, and this in his opinion indis
pensably mult, conltrue the powers which had
been granted to them, and they mult aflume such
auxiliary powers, as are neceflarily implied in
those which are expressly granted. In doing
which,it was 110 doubt their duty, to be careful
not to exceed those limits within which it was in
tended they should be reftridied. By any other
limitation, said he, the government would be f>;
{hackled, that it would be incapable of operating
any ofthe effects which were intended by itsin
ftiturion,
He übferved, that on almost all the great and
important measures which come under the deli
beration of Cotigrefs, there were immense dilTi
cnlties to be surmounted. "If we attempt,"
said he, " to proceed in one direction, our ears
are allailed v\iih the exclamation of the confiitution
is in danger ; if we attempt to attain our objects,
by pursuing a different course, we are told the
pals is guarded by the /tern spirit of democracy.—
Did I concur with gentlemen in opinion on this
subjeCt, Ifnould think it my duty to go home to
my constituents, and honestly declare to them,
that by their jealouly of power, they had so res
trained the operations of ihe government, that
we have not the means of effecting any of the
great purposes for which the onftitution was de
ftgned—without attempting, what perhaps would
be found impracticable, to fix by general rules,
the nice point within which Congress would be
authorised to assume powers by con ft ru eft ion and
implication, and beyond which they may be justly
considered as usurpers."
He wished gentlemen to reflecfi, what effect a
lingle principle, universally acknowledged, would
have, in determining tlie question now under
consideration. It is universally agreed, That
■whtrs'jer a power is delegated, for express purposes,
Saturday. March 5, 1791.
ill the known and ttfua mjaus for the attainment oj
he obj.-lls exprcjfcd, are conceded also. 1 hat to de
-ide what influence (bis acknowledged principle
would have, on the fukjetfl before the house, it
would be neceilary to i eflect on tile powers with
which Cotigrefs are 'tprsfsly invelted. Pie then
epeited that Coiigrefs was authorised, to lay and
collect taxes, to borrow money on the credit of
lie United Stares, to raif? ■ and support armies,
provide and maintain navies, to regulate foreign
and domestic trade, and to make all laws neceilary
:nd proper to carry these and the other cnume
ated powers into effect ; they were, in fine, en
t: ufted with the exercise of all those powers,
>vhich the people of America thought neceilary,
.o secure their fame and happiness, against the
attacks of internal violence, and external inva
lion, and in the exercise of those powers the le
j;i/lature was authorised, agreeably to the princi
ple which he had mentioned, to employ all the
ki/ovj/i and usual means, nectjfary and preptr> toes
fectuatethe ends which are exprefled. I: might
be of life to determine with arecifion, what was
the meaning of the words nectary and proper : —
They do not reftrid: the powrrofthe legislature,
to enacting such laws only, as are indifpenfible :
Such a confirmation would bf infinitely too nar
row and limned—and to apply the meaning ftritfl
ly, it would prove, perhaps that all the laws,
which had been palled, wer? unconltirurional ;
for few, if any of them, could be proved indif
penfible to the exirtenceof tJiegovermnent. The
conduct of Congress had a con It ruction on those
words more rational, and consistent with common
sense, and the purposes for which the government
was instituted ; which he conceived to be, that
the laws should be eftablifherl on such principles
and such an agency, in the known and usual
means, employed in the execution of them, as to
effecft the ends expreflediti the confHtution, with
the great eft poflible degree of public utility. If
Banßs were among the known and usual means,
to efFec'luare or facilitate the-»«<4»-Thictr had been
uiemiomnl—to enable the government with the
greatest ease, and least burden to the people, to
collect taxes, borrow money, regulate commerce,
raise and fu]>port armies, provide and maintain
fleets, he thought the argument irref agable and
conclusive to prove the conllitution lity of the
bill. Pursuing farther the fame idea, he alked,
for what purposes were Banksindituted and pa
tronized by governments, which were unreitri&-
ed by conltitutional limitations ? Were they not
employed as the means, and the mod ufeful en
gines to facilitate the collection of taxes, borrow
ing money, anAthe other enumerated powers ?
Besides, he was to be observed, that the
con dilution expressly declared the ends of
legislation ; but in almolt eveiy inttance had left
ihe means to the honest and lober discretion of
the legislature. From the nature of things this
must everbe the cafe ; for otherwise, the conlti
rution mult contain, not only all the necefl'ary
laws under the exiltingcircumftatices of the com
munity, but also a code so extensive, as to adapt
itfelf to all future pofli'ule contingencies. By our
conllitution, Congress has power to lay and coiled
taxes, but every thing subordinate to that end,
such as the objei'ts, the means, the instruments,
and the purposes are left to the honest and sober
Jifcretion of the legislature. The power of bor
rowing money was expressly granted ; hut all
he known andufual means totharend were lefi
in silence. The fame observations might with
truth be made refpecfiing the other delegated
powers. The great ends to be obtained, as means
ro effectuate the ultimate end—the public good,
and general welfare, are capable, under general
erms, of conltitutional fpecification ; but the
subordinate means are so numerous, and capable
of such infinite variation, as to render an enume
ration impracticable, and innft t here fore be left to
c nflrufiicn, and ncc Jjary implication. He said 01
.his ground he was willing to Jeave the general
argument —it was simple—intelligible, and he
hoped would be thought conclusive.
He said the conftirutionalitv hud been attack
ed from another quarter. It was said we could
not give commercial advantages to one port above
another. Theconftitutional provision which had
been quoted, was undoubtedly intended to pre
vent a partial regulation of commerce ; if ex
tended to the cafe under confederation, it would
much more ftro:i«ly prove, that Congrefi ough
not to reside in any commercial ciiy ; sot he verily
believed, that the commercial advantages of Phi
ladelphia were incomparably greater, from the
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[Whole No. 195.]
i-efidence, than they could befuppofed from the
initiation of a National Bank. Indeed, it was
his opinion, that considering that this city had a
Bank, the capital of which was adequate to all
her commercial exigencies, that Ihe could enlarge
that capital as her necetfity Ihould require, and
that her Bank will, if this bill Ihall be rejeifted,
receive the benefit of national operations, that
the measure will not advance her individual in-
tereft
With regard to the utility of Banks, he obser
ved, that he would not attempt todifplaya know
ledge of the fubjeft, by repeating all lie had read
and heard in relation to it, nor fatigue the house
by a detail of his own reflections and reasoning
upon it ; the causes were unnCcedary to be ex
plained— the effetfis had been such, in all coun
tries where Banks had been instituted, as to pro
duce an unanimous opinion, that ihey were alike
ufeful for all the great purposes of government,
and to promote the general liappinelS ofihe peo*
pie. Nor was our own experience wanting to the
fame purpose. .At a time when our public re
sources were almost annihilated, our credit pros
trate, our government imbecile, and its patron
age inconsiderable, a Bank, of small capital, was
among the most operative causes, which produ
ced that firft dawn that ultimately terminated in
meridian splendor, by the ellabliftiment of peace,
independence and freedom. There were two
ciicumftances which he would take theliberty to
mention, which would render Banks of more
importance in this country, than in any where
they are at prefent'in use. The firft, the com
mercial enterprise of our merchants compared
with the (niallnefs of their capitals, which, as we
had no large manufacturing capitals, 1 whereby
the precious metals would be retained in circu
lation, would ft equently, by their exportation,
greatly dillrefs the people; the other originated
from a measure of the government—Congress,
from a laudable intention of accommodating
their condiments, instituted treafories in all the
Stares : In some ofthefe there would be, in the
ordinary course of events, a deficiency, and in
others a redundency. To keep them in equiii
brio by the transportation of the pi ecious metals,
or by the purchase of bills in the market, would
be not only inconvenient andexpenfive, but would
keep out of circulation a confiuerable part of the
medium of the country.
Gentlemen, he said, had been pleased to consi
der the proposed terms as giving an undue ad
vantage to the Hock-holders. He would leave this
part of the fubjecft to gentlemen who better un
derltood it—only observing, that as government
tnuftrely principally on merchants to obtain the
proposed stock, ir would be neceflary to afford to
thein fufficient motives to withdraw from their
commercial put suits, a part of their capitals.
He said he would attempt an answer to some
of those desultory objections which had been
made—and in doing this, he would omit to ans
wer such as had been in his opinion already refu
ted. He observed, that it had been said, that
granting charters of incorporation was a high,
pterogative ofgovernment. He supposed it was
not intended that it was, in the nature of things,
too tranfeendant a power to beexercifed by a na
tional government ; but that the exercile of it
(hould only be in consequence of express delegal
- Let this objection be compared with the
conduc't of Congress on another fubjetft, in all
i efpetfts at lead as important. There is not by
the constitution any power expressly delegated
to mortgage our revenues, and yet without any
qi eftion being made on the constitutionality of
the measure, we have mortgaged them to an im
mense amount—From whence he asked, do we
acquire the authority to exercise this power ?—
Not from express grants, but being empowered
to borrow money on the credit of the United
Mates. We have very properly considered the ,
pledging funds as among the known and vfual
means, nectary and piopcr to be em ployed for the
attainment of the end expressly delegated.
It had been said, that the bill auhorifed the
(lock-holders to purcliafe real estate. He consi
dered the provision in the bill in that regard,,
not a grant, but a limitation of power. Any man
or body of men, might, by theexifling laws, pur
diafe, in their private capacities, real eltaie to
nny amount. Tiiis 1 ight was limited asitief
pected the proposed corporation.
It is said there are banks already, and therefore
the proposed ii.corporation is unneceflary. To
this he anfwercd, that if the government fliould