H. OF R. Bank of the United States. JANUARY, 1811. hands of collectors, and affords one of the best securities declared that upon the question of incorporating against delinquencies. this bank. in 1791, originated the division of par2. Transmission of public moneys-from one quar-ties which has since existed in this nation. Uater of the Union to another. This is done by the bank at its own risk and expense. 3. Collection of the revenue. The punctuality of payments introduced by the banking system, and the facilities offered by the bank to importers indebted for revenue bonds, are amongst the causes which have enabled the United States to collect with so great facility and with so few losses the large revenue derived from impost. til this time sir, this discovery has not been made. I had understood a very different history of the origin of party. I have heard, I have read, for youth did not permit me to witness, that at the formation of our present Constitution many permation and adoption, preferring that shadow of sons with different views were opposed to its forunion in which the States, as with a rope of sand, "4. Loans. The bank has been eminently useful were attempted to be bound under the Confederin making the advances, which, under different circum-ation, to the strength, firmness, and unity, in which stances, were necessary. At one time Government we are knit by the Federal Constitution. The owed it $6,200,000, exclusive of 6 per cent. stock ori- good sense and good fortune of our country preginal subscription, and a similar disposition to accom- vailed, the Constitution was adopted, and those modate has been repeatedly evinced whenever the aspect who as anti-federalists had opposed the adoption of public affairs has rendered it proper to ascertain of the Constitution were organized with very few whether new loans might, if wanted, be obtained." exceptions under the name of Republicans, in opposition and decided uniform hostility to the measures of the Federal Government. The report then states, that although the banks established under authority of the States might afford considerable assistance to the Government The charter to the bank thus indeed became in its fiscal operations, there is none which can with some of its opponents a question of party, transmit moneys with the same facility or to the although it received the support of others who same extent; none which can afford so great se- were anti-federal. In this party opposition it curity against any possible losses, or greater re-only met the fate of every other measure, howsources in relation to loans. "Nor is it eligible that the General Government should, in respect to its own operations, be entirely dependent on institutions over which it has no control whatever." He also notices the objection of foreigners holding stock, but this he declares "does not at all events appear sufficient to outweigh the manifest public advantages derived from a renewal of the charter." ever wise and salutary, originated and perfected at that period. Let us hope sir, that the blindness and injustice of such rule of action is not again to be revived. Let me now, sir, rapidly glance at the consequences which are to attend the rejection of this bill. The intercourse between the States, and the dealings of the citizens of a State with those of different parts of the same State, require a eirculating medium far above the quantity of gold and silver which exists amongst us. No man contends that the demands of commerce, or even Mr. Speaker, gentlemen may disregard, but they cannot despise, nor can they destroy, this high testimony, which, while it establishes the utility of the bank, bears honorable testimony to the up-the ordinary transactions of individuals, can in the right and patriotic spirit in which its operations have been conducted. This testimonial outweighs all that the bickerings of interest, the suggestions of jealousy, or the apprehensions of the uninformed. can assert against the institution. For myself, sir, had I no other knowledge of the subject, I should feel no hesitation upon the question of constitutionality and necessity of a bank which Hamilton recommended, WASHINGTON approved, and Gallatin, after twenty years experience, continues to advocate. The shade which has been attempted to be cast upon the fame of Hamilton as the "progenitor of the bank" must when examined, like every other attack upon it, but add to its lustre. Sir, I shall not attempt to eulogize the name of that great man; were my feeble powers equal to the task I should deem it unnecessary: Party rancor, which impotently followed him to the grave, cannot now obscure one ray of that sun of glory which shines upon the tomb of the illustrious dead. As if satisfied or fearful that no argument against the bill could be urged which would plausibly destroy its claims to support, the question has been called a party question. To rally a party 'round its standard, to excite the pertinacity and awaken the severity of party feeling, it has been present scarcity of gold and silver be carried on without the intervention of bank notes. Hitherto, sir, the notes issued in each State have answered some of the domestic uses; but for the purpose of remitting to, or receiving payment from other States, no reliance has ever been placed upon the notes of State banks. It has frequently happened that notes have got into circulation, purporting to be issued by a bank which in fact never existed, and others issued by banks which had failed. The difficulty of knowing the real from the spurious, and the solvent from the insolvent, has so far restrained the circulation of the notes of State banks within the limits of their own State, as to have prevented any late frauds and losses except among the very uninformed part of the community. In these circumstances, the known ability of the Bank of the United States, the receipt of its paper in payment of debts to the United States, has given it a currency and credit equal to gold and silver in every purpose of domestic or foreign use, and its frequency among us has so far familiarized all men of business with the notes as, if not entirely to prevent frauds from counterfeits, at least greatly to diminish the injury. In destroying this bank, you are about, sir, to strike all this most valued paper medium out of exist JANUARY, 1811. Bank of the United States. H. OF R. of the United States would have progressed to the end undisturbed by any intervention of mine. If a train of reasoning be adopted that tends to disturb this Constitution, and to give to it a construction and interpretation that it will not bear, it then becomes a duty to state opinions respecting it, and to vindicate the true intent and express understanding thereof. ence; to dissolve an artificial capital of the Bank of the United States of ten millions of dollars, and not merely this capital of the Bank of the United States, but, by withdrawing from the other banks the very large portion, if not the whole of their specie capital. with which they must part to pay the Bank of the United States the debts daily increasing against them, by the receipt of their notes in discharge of individual debts to the Bank of the United States, you inevitably renderately made by wise men, who composed the Conthe State banks less able to accommodate, and diminish greatly that portion of the circulating medium emitted by these banks. The Constitution was solemnly and deliber vention, in the name of the people of the United States, and it was solemnly and deliberately ratified by conventions of the States, respectively. It is simple and easy to be understood by any one who, knowing the objects and ends for which it was ordained, will candidly examine it. A defence of the Constitution is a defence of the great and good men who made it what it is; for, if the Constitution be dark, of obscure intent, and du been. If it be dark, obscure, and dubious; if it be capable of inconsistent or contrary interpretation, the conventions of the ratifying States have not examined it with that careful attention which it required. Vain and empty surmises will evaporate, the characters of the men who made it being considered; the scrutinizing inquiries of the several ratifying conventions being contemplated, and by a candid examination, without prejudice, of the Constitution itself. Of the distress which this measure will occasion, I need say nothing. The evidence of its existence and magnitude surrounds you, and have been already repeatedly pressed upon your attention. You are in fact to destroy all confidence in bank paper. Can my constituents know whether the bank note of New Hampshire or Geor-bious meaning, it is not what it ought to have gia, which is offered them, is genuine or spurious? Can they know whether a bank is in credit, or insolvent, of which they have never before heard? Yet, sir, as gold and silver is not to be had, and the United States' Bank notes will no longer exist, you reduce the people to this dilemma; either they must receive the notes of State banks, ignorant as they must be of their genuineness of credit; encounter the daily risk of being defrauded, or keep on hand their produce. In this state of uncertainty, bank notes must lose their credit; will cease to circulate; must soon depreciate, and scenes of speculation and embarrassment will ensue not unlike those which have heretofore nearly ruined our country. Mr. Speaker, the present is not a time for dangerous experiments upon the prosperity of our country. With foreign nations our relations are more than at any other period perplexed. In my apprehension the nations of Europe, with more than one of whom we have advanced in a warlike attitude, will have more forbearance and less temper than is usual with them, if they do not meet us with decided, not secret hostility. And, in this time of danger from abroad, while with a non-intercourse law in one hand, you fetter all external commerce, sink your revenue, and reduce the value of property; with the other, by destroying the bank, deranging the finances of the Government, overturning private credit, and destroying commercial confidence, you press with the deadly weight of an incubus upon the exertions of domestic industry and enterprise. The inevitable effect of these measures must be to turn loose a torrent of overwhelming calamity, the extent of which you cannot estimate, and the force of which you cannot stay. The consequences are awful, and the responsibility serious. Let gentlemen look to it. The Constitution is a compact between the individual States and the United States. It is the great charter and bill of rights delegated and given by the several States composing the Union to the United States. It contains rights, powers, and principles, to be acted on by the United States, in order to form a more perfect union, establish justice, insure domestic tranquillity, provide for the common defence, promote the general welfare, and secure the blessings of liberty; and we, the people of the United States," have ordained and established it the Constitution of the United States of America. The rights, powers, and principles, enumerated in the Constitution, are void of elasticity; they are firm, fixed, and unbending; they will not yield to discretion on various assumed constructions; unchangeable in their nature, intent, and object, they are mutable only by the Constitutional authorities. "The enumeration in the Constitution of cer-. tain rights shall not be construed to deny or disparage others retained by the people"-article eleventh of the amendments to the Constitution. This article manifests that all the rights delegated to the United States are enumerated in the Constitution, and the enumerated rights shall not be construed to deny or disparage, to bring into disrepute, or diminish, other rights retained by Mr. RHEA, of Tennessee.-If, in the course of the people; and to that end it is absolutely neces this debate, observations had not been made whichsary that the rights delegated be expressly and appear to deprive the Constitution of the United States of its innate virtue and honor; to destroy its beauty and simplicity; and to transform it into a deformed and distorted something, the debate on this bill to renew the charter of the bank distinctly enumerated, otherwise it would be impossible to ascertain and distinguish the rights delegated to the United States, and the rights reserved to the people. "The powers not delegated to the United States by the Constitution, H. OF R. Bank of the United States. JANUARY, 1811. nor prohibited by it to the States, are reserved to tain a navy," and to make rules for the governthe people"-article twelfth, amendment to the ment and regulation thereof; and to define and Constitution. By this article it is manifest that punish piracies and felonies committed on the a power, not distinctly and expressly delegated to high seas, and offences against the laws of nathe United States by the Constitution, nor ex- tions;" and consequently to make rules and regpressly and distinctly prohibited by it to the ulations for the government of seamen of every States, is reserved to the States respectively, or description. It has been asked, by what deleto the people. These amendatory articles ex- gated power does Congress make laws to prevent clude and prohibit an assumption of discretion-settlers on lands, the Indian title whereof has not ary powers; of constructive powers; and of all been extinguished? If the gentleman who made powers and rights not expressly and distinctly the inquiry had considered that land, the Indian enumerated in the Constitution. By the word title whereof was not extinguished, remained by "power," or the word "right," is understood a treaty for the use of the Indian tribe until the fundamental principle of the Constitution; the extinguishment of title, and that, a treaty being Congress cannot change, alter, vary, or destroy a supreme law of the land, the Congress is em it, it assumes form when it is clothed with a le- powered to give it complete effect, the inquiry gislative act of the Congress, and ordered to probably would not have been made. operate. It is urged that a discretionary power is necesIt may be proper to notice some observations sary to carry the enumerated powers into effect. made in the course of this debate, which ap- If the discretionary power alluded to intends only peared to evidence a disposition to show that the a power to legislate on the delegated right or Congress was vested with discretionary or con- power, in a proper time and adequate manner, this structive powers in matter of principle. It has is no more than a power to make laws to carry been intimated that Congress had not power to the delegated power into execution; but if by disband an army, if the power was not assumed."discretionary power," is intended a power to If the Constitution had been well considered, assume at discretion a right, or principle, not this and other similar intimations would have enumerated in the Constitution, under pretence been omitted. An army is raised in consequence of carrying a delegated power into execution, it of a law, bottomed on the clause in the eighth is denied that the Congress has that power; for section of the said article, which empowers Con- if a delegated power cannot be carried into exgress to raise and support armies. By the eighth ecution without assuming at discretion a right section, the Congress is empowered to "make not delegated, it will only prove, that the Constirules for the government and regulation of the tution in this respect, is deficient and requires land and naval forces." And the Congress is amendment, and will not prove, that Congress prohibited to make an appropriation of money to to effect a measure, may at discretion do an unsupport an army for a longer term than two years. constitutional act. The Congress, acting on these powers, will disband an army. A law may be made to expire by a limitation in itself; if not, the Congress will make a law to repeal it. A law may be enacted to repeal the law whereby an army is raised, and then that army will be disbanded. The writ of habeas corpus is a prerogative writ of the people of the United States, and was in use previ ous to the existence of the Constitution; it is not prohibited by the Constitution to the people; it is a duty of the judiciary to issue writs of habeas corpus, proper cause being shown. The privilege of that writ does not depend on the clause in the ninth section of the first article of the Constitution; that clause only contains an express condition or reservation, that the Congress shall not suspend the privilege of the writ of habeas corpus, except when, in cases of rebellion or invasion, the public safety may require it. A writ of habeas corpus being issued by the judiciary, a law suspending the privilege of that writ is a law regulating the proceedings of the judiciary, and is bottomed on the powers vested in the Congress by force of the third article of the Constitution. "No bill of attainder or ex post facto law shall be passed." This is an express prohibition, and requires no illustration. "No title of nobility shall be granted by the United This is the clause which is called the sweeping States." This, also, is an express prohibition. clause, pretending to vest all powers and authorThe Congress have power "to provide and main-ities, although not expressly enumerated. It may 6 It has been argued, that the Convention left Congress to adopt the means, as circumstances might admit, to carry the delegated powers into effect. What is intended by the word means ought to have been explained in a Constitutional, not a discretionary manner. To produce an effect of a general nature the means ought to be commensurate and co-extensive. Water is a means to allay the thirst of all mankind; and there is no substitute. Ships and sea-vessels are a means of carrying on commerce between nations separated by the ocean, and there is no substitute. The Constitution vests Congress with power to regulate commerce with foreign nations, but no man will believe that, in virtue of that power alone, the Congress would attempt by a discretionary or a constructive power to adopt another principle, that is, to provide and maintain a navy to protect commerce. The last clause of the eighth section is in the following words-"And to make all laws (that is, Congress shall have power to make all laws) which shall be necessary and proper for carrying into execution the foregoing powers, and all other powers vested by the Constitution in the 'Government of the United States, or in any department or officer thereof." be proper here to inquire what is intended by the H. OF R. difficulty; and this Constitution is not elastic, it will not bend to discretionary opinions. I will now, said Mr. RHEA, with all due respect, approach the main point of inquiry, viz: is a powor right to create the Bank of the United States, expressly enumerated, to be vested or intended to be vested in Congress by the eighth section of the first article of the Constitution. It may be previously observed, that if in the ninth section of the first article there had been even a negative expression or enumeration of power, or right inserted, empowering Congress to create the Bank of the United States; as if it had been stated in the words following, or words to the same effectCongress shall not create the Bank of the United States prior to the year one thousand eight hundred"-there might have been some reason to presume upon. But a negative expression of a power or right of that import is not in the ninth section enumerated, nor in any other section of the Constitution. The words in the eighth section of the first article of the Constitution, which have caused such amazing solicitude and inquiring anxiety to discover some obscure occult power or right to create the Bank of the United States there, are the following: "Congress shall have power to lay and collect taxes, duties, imposts, and excises, to pay the debts, and provide for the common defence and general welfare of the United States," "and (as expressed in the last clause of the section) to make all laws which shall be necessary and proper for carrying into execution "To make laws respecting the District of Co- the foregoing powers, (that is, the powers enulumbia." "To declare the punishment of treason." 'merated in the eighth section) and all other powSeveral of those powers denominated "other pow ers (that is, powers enumerated in other sections ers," are enumerated in the ninth and tenth sec- ' of the first article, and enumerated in other artitions of the first article of the Constitution. Con-cles of the Constitution) vested by this Constigress have power by law to establish courts inferior to the Supreme Court. Congress have power toor in any department or officer thereof." make all needfui rules and regulations respecting the territory and other property of the United States. This enumeration may at present be sufficient to show what powers are intended by the words "other powers," and also to manifest incontrovertibly that the words "and all other powers vested by this Constitution in the Government of the United States, or in any department or officer thereof," refer only to powers expressly and positively enumerated in the Constitution, and by it vested in the Government of the United States-that by these words are not un-imposts, and excises." Here, said Mr. R., a derstood, as some may have fondly imagined, any powers of discretion, fitted, when discovered, to fill chasms in the Constitution of the United States; and that by these words are not to be understood some concealed occult powers, waiting to be revealed by superior wisdom to meet particular purposes, for instance, the creation of the Bank of the United States, or to be dragged out by main force to support unconstitutional pretensions. In the Constitution are clearly expressed and enumerated all the powers, rights, and principles, which have been vested in the Government of the United States or in any department or of ticer thereof, by the individual States ratifying the Constitution. Nothing is left in obscurity or tution in the Government of the United States, Let these words be carefully and attentively examined, and all obscurity and difficulty will be removed; let them be connected in the manner they were intended to be connected, and no reason will be, to presume some unknown occult power, on which a pretension to create the Bank of the United States can exist. "Congress shall have power to lay and collect taxes." Let the words be connected, so that they shall read, "Congress shall have power to make all laws necessary and proper to lay and collect taxes, duties, question presents itself, that is to say, for what purpose shall Congress have power to make all laws which shall be necessary and proper to lay and collect taxes, duties, imposts, and excises? The first clause gives the answer-"To pay the debts, and provide for the common defence and general welfare of the United States." The expression of the delegated power or right will then in plain and intelligible language be-" Congress shall have power to make all laws which shall be necessary and proper to lay and collect taxes, duties, imposts, and excises, to pay the debts, and provide for the common defence and general welfare of the United States." This reading presents to the mind clear and distinct ideas, re H. OF R. Bank of the United States. JANUARY, 1811. A moves doubtful interpretation, and establishes the sary and proper to promote the progress of scitruth contained in this section of the Constituence and useful arts, by securing for limited tion. Let this reading be prefixed to every clause times to authors and inventors the exclusive in the 8th section, and the propriety thereof willright to their respective writings and discovebe more apparent; for instance, Congress shallries." The insertion of that right or power afhave power to make all laws which shall be ne- fords sufficient reason to conclude, that if the cessary and proper to borrow money on the credit Convention had intended to delegate to the Conof the United States, to pay the debts, and pro- gress a power or right to create the Bank of the vide for the common defence and general welfare United States, the right or power to establish it of the United States. And here let it be ob- would certainly have been expressly enumerated served, that the words "for the common defence, in the Constitution. "The enumeration in the and general welfare of the United States," are Constitution of certain rights shall not be conwords of limitation and restriction, and not of strued to deny or disparage others retained by amplification of powers; these words direct to the people."-11th article of amendments to the the end for which all taxes, duties, imposts, and Constitution. Here, then, it may properly be excises, shall be laid and collected, and it follows observed, that the rights enumerated in the Conthat taxes, duties, imposts, and excises, shall not stitution are certain, that is, identically and disbe laid and collected for any purpose whatever tinctly enumerated rights, and that those rights other than to pay the debts and provide for the shall not be by discretion construed to deny or common defence and general welfare of the Uni-disparage other rights reserved to the people. ted States. right or power to establish the Bank of the UniThe rights, powers, and principles, delegated ted States is not enumerated in the Constitution; by the individual States to the United States, that right or power, therefore, is not denied to the and enumerated in the Constitution, are substan-people, and the certain rights enumerated in the tial, not formal; and, being substance, are unchangeable in their nature, and must continue until altered by the Constitutional authorities. An institution or principle which has power to put bank paper in the place of gold and silver, is substantial not formal-and never can be fixed as a form, by way of appendage to the business of collecting taxes, duties, imposts, or excises, or by way of appendage to aid commerce, or to borrow money. With as much propriety may it be said to aid in establishing an uniform rule of naturalization, or in making uniform laws on the subject of bankruptcies throughout the United States. A principle, or a right or power to create the Bank of the United States is not inserted or enumerated among the rights and powers enumerated in the eighth section of the first article, nor in any other section of the Constitution. Let it not then be presumed that the Convention who made the Constitution, or the ratifying States, did, in an occult and obscure manner, vest the Government of the United States with a right or power to create the Bank of the United States in the manner and form belonging to the bank, the charter of which labors to be renewed. The Constitution contains no enumeration of a principle which can give any pretence for such presumption. In the eighth section of the first article are enumerated rights and powers of minor importance than a right to establish the Bank of the United States. The right to establish uniform laws on the subject of bankruptcies throughout the United States is of minor importance-that right is enumerated. Certainly, then, if the Convention, or the ratifying States, had designed to vest Congress with the right to create the Bank of the United States, that right would have been expressly enumerated in the Constitution. Constitution shall not be construed to deny that right to the people, that is, to the people in their individual State capacities. "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively or to the people."-12th_article of amendments to the Constitution. The eighth section of the first article of the Constitution enumerates certain powers or rights delegated to the United States. The 10th section of the first article enumerates certain rights prohibited expressly or conditionally, to the respective States; but in the tenth section, or in any other section of the Constitution, a right to create bank institutions is not prohibited absolutely or conditionally to the respective States or to the people; that right therefore is not delegated to the United States, but is reserved to the respective States or to the people. The States respectively have legislated on that power and right reserved, and have established bank institutions, and the United States have not interfered to prevent them. In the eighth section of the first article of the Constitution a right is enumerated. "The Con'gress shall have power to exercise exclusive legislation in all cases whatsoever, over such district (not exceeding ten miles square) as may, by cession of particular States, and the acceptance of Congress, become the seat of Government of the United States." The power delegated to the Congress by virtue and force of this clause, is eminently great, and requires no illustration to prove that Congress has power to create bank institutions in the District of Columbia. In favor of a renewal of the charter of the Bank of the United States it is argued, that the Congress, having power to lay and collect taxes, duties, imposts, and excises, has also power to By virtue of the eighth section of the first ar- establish the Bank of the United States as a means ticle of the Constitution: "Congress shall have to aid in collecting taxes, duties, imposts, and excipower to make all laws which shall be necesses. It will not be said that the Bank of the Uai |