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second MPeciarat ion
of independence ?
‘msqsA&'jz
Of the President of the United Statesretzmiat
tlio 11a aL. Bill.
>'• flic & infe:
The IT; "to modify an 1 cenueue'* the act
nlitled An act to incorporate tiie subscri
"hers to Bank of the United States,” was
/repented t > mo on the J*.!i July instant. —
I laving cor si (it and it with that solemn regard
to the principles of tho constitution which
•he day wa3 calculated to inspire, and come
to the conclusion that it ought not to become
i hvr, I herewith return it to the Senate,
i:j which it originated, with my objections.
A Bank of the United States is, in many
respects, convenient for the Government, and
useful to the people. Entertaining this opin
ion, and deeply impressed with the belief
that some cf the powers and privileges pas
.-cssed by the existing bank are unauthorised
by the constitution, subversive of the rights
of the State., and dangerous to the liberties
of the people, 1 felt it my duty, at an early
period of my administration, to call the at-!
*®ution of Congress to the practicability of
organizing an institution combining all its 1
advantaaes, and obviating these objections.— '
1 sincciely regret, that, in the act before me, j
i can pbrecive none of those modifications of]
tho bank charter which arc necessary, i;i my j
opinion, to make it compatible with justice, i
with sound policy, or with the constitution
of our country. |
Tiie present corporate body, denominated ;
the President, Directors, and Company of the
"Bank of the United States, will have existed, I
at tim time this act is intended to take effect, l
twenty years. It enjoys an exclusive privt-i
!cge of banking, under the authority of the !
Genera! Government, a monopoly of its fa*!
vor and support, and, as a necessary comic-'
Xtucncc, tmu" a nionrpoly of the foreign
and dome' tic exchange. The powers, nrivi-
1 ' ’'MlgUI ill'. UUtH. lO) ll i * 1*
’ages, and favors bestowed norm it in the
original charter, by incr nsing the value of j
the stock far above its par value, operated a ■ j
a gratuity of many millions tr, t|:c stock-1
holders.
An epolsgy may be found for the failure ]
to guard against this result, in theconsidera
thin (Lat tho olieet o; the original ect of in- ‘
corporation could not be certainly foreseen |
at the time of its passage. The net before
sue proposes another gratuity to the holders
"1 tile same stock, and, in many cases, to the
same men, of at least seven millions more.—
This donation finds no cpologv in any uncer
tainty an to the effect of tlio act. On all
bands it is conceded that its passage will in
■roasc, at lev. ' 1 twenty or thirty per cent,
more, tiie market price of the stock, subject
•o the payment of the annuity of $200,000
per year, secured by (he act; thus adding,
tii a moment, one-fourth to it3 value. If is
"not our own citizens only who are to receive
t tic Ixmnty of our Government. More than
eight millions of the stock of this bark are
held by foreigners. By this act, tlio Amen
can Republic proposes virtually to make
farm a present of some millions of dollars.—
Tor these gratuities to foreigners, and to
•o;ne ci our own opulent citizens, (be act
secures tio equivalent whatever. Theyaro the
• •rrlain gains cf the present stockholders tin
<'■ r the operation of this act, after making full
al'.'nrar.cte for the payment of the bonus.
v . very monopoly, and all exclusive privi-j
Xcges, arc granted at the expen ;o of tho pub- j
•’i which ought t j ref eive a fair equivalent- !
f!;e many millions which this act proposes to j
bestow o.i tho; stockholders of the existing!
hank, rust come directly or indirectly out (
of the American people. It is due to them,;
jhcrcfore, if tlicir Government sell inonopo-1
tics ryul exclusive privileges,that thoy should'
t!; u.t exact for them as much as they are*
worth iii open market. The value of the!
monopoly in this case may bo fcorrectly ascer- j
unicd. The millions of stock!
would probably beat a;i advanco of flfty per]
cut. and command in market at least forty-]
two millions of dollars, subject to the pay-<
'! I'.t of tile { rc .v ntba;uii=. Tfe pr: cut valil i
<X too monopoly, therefore, is seventeen!
millions of dollar.-:, and this the net proposes 1
to sell for three millions, payable in fifteen J
uununi instalments of 821)0,690 each.
It is not conceivable how tho present stock
-Jioldcr ; can have any claim to the special fa
vor of the Government, The present corpo-
ration has enjoyed its rnoiinpoly during the
period rtipn,’ ited in (ho original coat:act. Ji
wo must have sue!) a corporation, why should
not the Government sell out the whole stock,
..mi thus secure to the people the full market
vduoofthc privileges granted '! \\ hy slicuul
tan Gongress create and sell twenty-eight
inilhoiisot slock, incorporating the purchasers
with all the powers and privileges secured in
sis act, aud putting the premium upon the
sales into the’j’rt?asury ?
Jlutthis act docs not )yrmit. competition in,
•;ie purchase of tins monopoly. It seems to]
•:>e predicated on the erroneous idea, that the)
present stockholders have a prescriptive right]
• ot only to the favor, but to the bounty of
Government. It appears that more than a j
fourth park ot the stock is held L. foreigners,
a.'d the residue is held by a few hundred ol i
■ tr own citizens, chiefly of the richest class.
i or their benefit does this act exclude the,
whole American people from competition in l
L iu purchase of this monopoly, aud dispose
-fit for many millions less than it is worth.— j
its soems tnc less excusable, because sonic
•*' our citizen?, net now stockliolders, peti
■ .oited that the door of competition might be
uciir.f, and offered to take a charter on terms
-’'•veil more favorable to the Government and
‘ountry.
i'ur ibis proposition, although made by
ic ,i whoso aggregate wealth is believed to
. equal to all the pria .itc stock in the c.x
i;ug bank, has been .si t aside, and the
f otnily of our Government is promised to he
'* '..in bestowed on the few who have been
l otunato enough to secure the stock, and
a t,us moment wield the power of the exist*
*>g institution. I cannot perceive the justice
nr-poiicv of this course. li'*our Government
.mist seh monopolies, it Would seem to he inf
.'r ; to-:Ao - ..tiling Jess than tlntir full iafo !
; and if gratuities must be made once in fifteen
jor twenty years, let them not be bestowed on
’ tiie subjects cf a foreign government, nor up*
•on ;t designated and favored class of men in
! our country. It m but justice and good poli
as far as the u iture of tiie ease will admit,
i to confine cur fivers to our own feliow-citi*
• ns, an.! let crml; in his turn enjoy an op-,
! portunity to profit by cer bounty. In the bear-
S itigs of the act before rue, upon these points,
i I find ample reasons why it should not become
| a Jaw.
i If has born urged as an argument in favor
lof rechnrtering the present bank, that the
calling in its loans will produce great cm
! harrassment and distress. The time allowed
, to close the concerns is ample ; and if it has
been well managed, its pressure will be light,
and heavy only incase its management has
j been bad. If, therefore, it shall produce
j distress, the fault will ho its own; and it
j would furnish a reason against renewing a
! power which has been so obviously ahus'. ;
But will there ever boa :une when this reu
//on will be less powerful ? To acknowledge!
its force, is to admit that the bank ought to
be perpetual; and, as a consequence, the 1
present stockholders, and those inheriting j
their rights as successors, be established a
privileged order, clothed both with great]
political power, and enjoying immense pc- (
cuniary advantages, from tiie if connection I
with the Government.
The modifications of tlio existing charter,;
proposed by tliis act, are not such, in mv ]
view, as make it consistent with the rights of
States or tlfc liberties of the people. The
qualification of the right of the bank to bojd
real estate, the limitation of its power to es
tablish branchqg, and tiie power reserved to
Congress to forbid the circulation of small
notes, are restrictions comparatively oflittie
vaiuc or importance. All the objection
able principles of the exising corporation
and most of its odious features, are retained,
without alteration.
The fourth section provides :t that the notes
or bills ot the said corporation, although the
same bo on tlio faces thereof,'respectively,,
made payable at one place only, shall, never
theless, bn received by the said corporation
at the bank, or at any of the offices of discount
and deposite thereof, if tendered in liquidation
or payment of any balance or balances due
to said corporation, or to such office cf dis
count and deposite, from any other incorpo
rated bank.” This provision secures to the
'State banks a legal privilege in the Bank of
the United States, which is withheld from all
| private citizens. If a Slate bank in Phila
[ delphia owe the Bank of the United States,
; and have notes issued by the St. Louis
i branch, it can pay the debt with those notes ;
but if a merchant, mechanic, or other private
citizen bo in like circumstances, lie cannot,
by law, pay his debt with those notes, but
must sell them at a discount, or send them to
St. Louis to be cashed. This boort conceded
to the State banks, though not unjust in it
i self, is most odious; because it docs not
‘ measure out equal justice to the high and
j the low, the rich and tlio poor. To the ex
tent cf this practical effect, it is a bond of
union among the banking establishments of
the nation, erecting them into an interest
separate from that of tho people: and its j
necessary tendency is to unite the Bank off
the United States and the State banks in any j
measure which may be thought conducive to!
their common interest.
Tiie ninth section of tlio act recognizes
principles ot worse tendency than any provis
ion of the present charter.
it enacts that “ tho cashier of the bank
shall annually report to the Secretary of the!
Treasury tho names of all stockholders who'
are not resident citizens of the United States; 1
anti, on tlio application ot the Treasurer of
any State, shall make out and transmit to!
such Treasurer a list of stockholders residing ;
in. or citizens of such State, with tho amount;
ot stock owned by each.” Although 'this
provision, taken in connection with a decis
ion ot the Supreme Court, surrenders, by its
silence, the rights of the States to tax the
banking institutions created by tliis corpora
tion, under tlio name ot branches, throughout
the Union, it is evidently intended to be
onstrued as a concession of their right to tax
that portion of tiie stock which may be held
by their own citizens and residents. In this
liglit, if the act becomes a law, it will be
understood by the States, who will probably
proceed to levy a tax equal to that paid upon
;!m stock ot banks incorporated by them
-olvcs. In some States that tax is now one
per cent, either on the capital or on the
shines., "fid that may by assumed as the
amount which all citu.cn or resident stock
holders would bo taxed under the operation
ot Hi is act. As it is only the stock field
in the St tes, arid not that employed within
tlnum which would l.c subject to taxation,
and as the names of foreign stockholders are
cot to be reported to the Treasurers of the
States, it is obvious that the stock held by
tiicm will be exempt from this burden.—
Their annujil profits will, therefore, be one
per cent, more than the citizen stockholders;
and, as tire annual dividends of tho bank may
>e safely estimated at seven per cent., the
sloe.; v.ill he worth ten or filtceu per cent,
more to foreigners than to citizens of the
United States. To appreciate tho effects
wuicii tins stuff? ot tilings will produce, we
hue a brief review of the operations and
present condition of the Bank of tho United
States.
the present session, it appears that, on Ist of
.. muarv, lc.hi, ol tho twenty-oiglit millions
ot private stock in the corporation, $3,403,-
.•'->0 were held by foreigners, mostly of Great
j Jr.tain. Iho umount of stock hci.i in the
i^Mnon,f e n m i and ,. sou , thwcstcrn Sta te3, is
•„>1 li ,-ih), and in tho lour southern States,
is &5, tig,S, 100, and in the middle and eastern
•'tales is about 81:1533,000. The profits]
ol the bun.'; in 1 1, as shown in a statement
to Congress, were about 83,455,598: of this]
there accrued, in the nine western States,
about 81,G-10,()ia; j n t| ic f otlr southern I
States, about 8352,607; and in the middle
and eastern States, about 81,403,041. A.sj
little stork is held in the lvcs. it is obvious'
that the debt of the people, in that lection, j
to the bank, is principally a debt to thqcastenW
and foreign stockholders; that the/interest
they pay upon it, is carried into the eastern
States, and into Europe; and that it Is a bur
den upon their industry, and a drnia of their;
, currency, which no country can baaijwithout j
i inconvenience and occasional distrfss. To,
j meet tliis burden, and equalize the exchange;
| operations of the bank, the amount |>f specie j
; drawn from those States, through its hrancli
! os, within the last two years, as shown by!
! its official reports, was about $b,000,000. — ’
i More than half a million of tliis amount docs ,
not stop in iho eastern States, bijt passes on |
j to Europe to pay the dividends of the foreign i
j stockholders. In the principle of taxation re-:
! cognized by this act, the western States find l
no adequate compensation for tlss perpetual j
burden on their industry, and drain of their I
; currency. The branch bank at Mobile made j
last year CA,140 dollars ; yet, under the pro- j
visions of this act, tiie State of Alabama can )
raise no revenue from these profitable opera-!
tions, because not a share of the stock is held j
by any of her citizens. Mississippi and!
Missouri are in the same condition in relalion j
to the branches at Natchez and St. Louis; j
and such, in a greater or less degree, is the!
condition of every western State. The ten- j
dcncy of the plan of taxation whic)t this act j
proposes, will lie to place the whole United 1
States in the same relation tc foreign countries !
which the western States now heir to the
eastern. When, by a tax on residait stock
holders, the stock of this bank is mldo worth 1
ten cr fifteen per cent, more to fireigners I
than to residents, most of it will Mevitably j
'leave the country.
Thus will tliis provision, in its practical
effect, deprive the eastern as wcl as the j
southern and western States of tlio beans of
raising a revenue from the extension of j
business and great profits of this institution, j
It will make the American people debtors to j
aliens, in nearly the whole amount due to this)
bank, and send across the Atlantic fjotn two
to five millions of specie every year to pay;
the bank dividends.
In another of its bearings this provision is!
fraught with danger. Of the twenty-live!
directors of this bank, five are chosen by the!
Government, and twenty by the. citizen)
stockholders. From ail voice iu these, elec
tions, the foreign stockholders are excluded
by the charter. In proportion, therefore,;
as the stock is transferred to foreign holders, I
the extent of suffrage in the choice of dircc- 1
tors is curtailed. Already is almDst a third!
of the stock in foreign hands, and not repre-l
sented in elections. It is constantly passing
out of the country ;and this act will accelerate
its departure. The entire control of the in
stitution would necessarily fall into tMi hands
of a few citizen stockholders; and ho ease
with which the object would be accomplish
ed, would be a temptation todesigiing men
to secure that control in their own lands, by
monopolizing the remaining stock. There
is danger that a president and directors would
then be able to elect themselves from year to
year, and, without responsibility o- control,]
manage the whole concerns of the iank du
ring the existence of its charter. It is easy
to conceive that great evils to our country
and its institutions might How frofi such a'
concentration of power in the handsiof a few j
men, irresponsible to the people.
ks there no danger to our liberty and in- 1
dependence in a bank, that, in itsmlure, has
so little to bind it to our countn 1 The;
President of the bank has told us tiat ir.ost i
of the State banks exist by its forbcxiance.— i
Should it3 influence become concenfrated, as I
: it may under the operation of simh an act as
this, in the hands of a self-elected <frectory, j
whose interests are identified with those off
the foreign stockholder, will there not jo j
! cause to tremble for the purity of our che-j
| tions in peace, and for tlio independence of J
1 our country in war? Their power would be!
great whenever they might choose to exertit; j
but if this monopoly were regularly reneved j
every fifteen or twenty years, on terms jro-1
posed by themselves, they might seldom in j
peace put forth their strength to influence I
! elections, or control tiie affairs of the'nation, j
! But if any private citizen or publib/anctiorla-
I ry should interpose to curtail its ftoveas, or
l prevent a renewal of its privilege/, it cannot
be doubted that be would bo mail to foci its i
influence.
Should the stock of t'no hank principally !
pass into the hands of the subjecn of a foreign
country,and we should unfortuniely become
involved is a war With that cjuntry, what
would be our condition 1 (J the course
which would be pursued by a vatii; almost
wholly Owned by tho subject: of a foreign
power, and managed by whose interests, if
not affections, would run in the sane direc
tion, there can be no doubt. Ail tsoperations
within, would be in aid of the (loitilc fleets
and armies without. Conlrolli ig our cur
rency, receiving our public ;oncys, and
holding thousands of our ciiizcU independ
ence, it would be more formidable and dan
gerous than tho naval and militrry power of
the enemy.
If wc must hare a bank with private stock
holders, every consideration ofsound policy,
j every impulse of Americar feeling, ad
: monishes that it should be purhj American.
j Its stockholders should lie composed ejclu
i sivcly ofour own citizens, who, it least, ought
j to he friendly to our Governnunt, and wil
; ling to support it in times of tilliculty and
! danger. So abundant is domestic capital,
i that competition in subscribing far the stock
of local banks lias recently lid almost to]
riots. To a bank cxclusivuly if American
stockholders, possessing the povvarsand privi- i
leges granted by this act, subscriptions for ]
two hundred millions of dollars could be !
readily obtained. Instead of serding abroad 1
the stock of the bank in which the Govern
ment must deposite its funds, and on which
it must rely to sustain its credit in times of!
emergency, it would rather seem o be ex-!
pedient to prohibit its sale to aliens under '
penalty of absolute forfeiture.
It is maintained by the advocates of the
bank that its constitutionality in all its fea-'
hires ought to bo considered as settled by
precedent, and by the decision of the £u-‘
promo f\>urt. To this conclusion I cannot '
assent. Mere precedent is a dangerous .source
of authority, and should not be regarded as
deciding questions of constituional power,
except where the acquiescence of the people
and the States cari be considered as well set
tled. So far from this being the case on this
subject, an argument against the bank might
be based on precedent. One Congress, in
17!H, decided in favor of a bank; another,
in ISI 1, decided against it. One Congress,
in 1315, decided against a bank ; another, in
181(5, decided ia its favor. Prior to the pre
sent Congress, therefore, the precedents
drawn from that source were equal. If wo
resort to the States, the expressions of legis
lative, judicial, and executive opinions a
gainst the bank, have been, probably, to
those in its favor, as four to one. There is
nothing in precedent, therefore, which, if its
authority were admitted, ought to weigh in
favor of the act before me.
If the opinion of the Supreme Court cover
ed the whole ground of this act, it ought not
to control the co-ordinate authorities of this
Government. The Congress, the Executive,
and the Court, must each for itself be guided
by its own opinion of tiro constitution. Each
public officer, who takes an oath to support
the-constitution, swears that ho will support
it as ho understands it, and not as it is un
derstood by others. It is as much the duty
of the House of Representatives, of the
Senate, and of the President, to decide upon
the constitutionality of any bill or resolution
which may bn presented to them for passage
or approval, as it is of the Supreme Judges
when it may be brought before them for ju
dicial decia; •• . Tho opinion of the judges
has no more authority over Congress, than
tiie opinion of Congress has over the judges ;
and, on that point, the President is independ
ent of both. The authority of the Supreme
Court must not, therefore, bo permitted to
control the Congress or the Executive when
acting in their legislative capacities, but to
have only such influence as the force of their
reasoning may deserve.
But, in the case relied uoon, the Supreme
Court have not decided that all the features
of this corporation are compatible with the
constitution. It is true that the court have
sail* that the law incorporating the ban!; is a
constitutional exercise of power by Congress,
lint, taking into view the whole opinion of
the court, and the reasoning by which they
have come to that conclusion, 1 understand
them to have decided that, inasmuch as a
hank is an appropriate means for carrying in
to effect the enumerated powers of the Gen
eral Government, therefore the law incorpo
| rating it is in accordance with that provision
of the constitution which declares that Con
gress shall have power “to make all laws
which shall bg necessary and proper for car
tying those powers into execution.'’ Hav
| ing satisfied themselves that the word
| “ necessary'' in the constitution, means “need
| ful” “ requisite ,” “ essential ,” “ conducive
to” and that “a Iwnk” is a convenient, a
j useful, and essential instrument, in the pro
! secution of the Government’s “ fiscal opera-
I tions,” they conclude, that to “use one must
be within tho discretion of Congress,” and
that “ the ccj to incorporate the Bank
of the United States is a law made in
pursuance of the constitution but” say
i they, “ where the law is not prohibited, and
! is really calculated to effect any of the objects
■ entrusted to the Government , to undertake
here to inquire into the degree of is necessity,
j mould be to pass the line which circumscribes
I the judicial department, and to trend on legis
i iatice ground.”
I * The principle here affirmed is, that, the
j “ degree of its necessity,” involving all the
j details of a banking institution, is a question
| exclusively for legislative consideration. A
i bank is constitutional; but it is the province
| of the Legislature to determine whether this
'or that particular power, privilege, or ex
j emption, is “necessary and proper” to enable
j the bank to discharge its duties to the Gov
jernment; and, from their decision, there is
!no appeal to the courts of justice. Under the
j decision of the Supreme Court, therefore, it
j is the exclusive province of Congress and the
! President to decide whether the particular
features of this act are necessary and proper
in order to enable the bank to perforin con
veniently and efficiently tho public duties
assigned to it as a fiscal agent, and therefore
J constitutional; or unnecessary and improper,
I and therefore unconstitutional. Without
| commenting on tho general principle affirmed
; by the Supreme Court, let us examine the
j details of this act in accordance with the rule
lof legislative action which they have laid
down. It will lie found that many of the pow
j era and privileges conferred on it cannot be
; supposed for the purpose for which it is pro
posed to be created, and arc not, therefore,
means necessary to attain the end in view,
jand consequently not justified by the consti
i tution.
The original act of incorporation, section
21, enacts “ that no other bank shall be
established, by any future law of tho United
States, during the continuance of the corpo
ration hereby created, for which the faith of
the United States is hereby pledged: Pro
rided, Congress may renew existing charters
for banks within the District of Columbia,
not increasing the capital thereof; and may
also cstabii. li any other bank or banks ill
said district, with capitals not exceeding in
tho whole Fix millions of dollars, if they shall
deem it expedient.” This provision is con
tinued in force, by the act before tnc, fifteen
years from the 3d of March, 1830.
, If Congress posscescd the power to estab
lish more than one, it, in their opinion, two
lor more banks had been “necessary” to fa
cilitate the execution of the powers delegated
to them in the constitution If they posses
sed tfie power to establish a second bank, it
was a power derived from the constitution, to
be exercised from time to time, and at any
time when tlie interests of the country or the
emergencies of the Government might make
it expedient, it was possessed by one Con
gress as well as another, and by all Congres
ses alike, and alike at every session. But the
Congress of 1816 have taken it away from
their successors for twenty years, and the
Congress of 1332 proposes to abolish it for
fifteen years mors. It cannot bg necessary
or preper” {or Congress to baler away, or
divest themselves, of any of tne powers vest
ed in them by the constitution to be exercis
ed for the public gcod. It is not “necessary”
(o the efficiency of the bank, nor is it “prop
er” in relation to themselves and their suc
cessors. They may properly use the discre
tion vested in them ; but they may not limit
the discretion of their successors. This re
striction on themselves, and grant of a mono
| poly to the bank, is, therefore, unconstitu
tional.
In another point of view, this provision is a
palpable attempt to amend the constitution
by an act of legislation. The constitution
declares that “the Congress shall have power
toexereiso exclusive legislation, in all cases
whatsoever,” over the District of Colombia.
Its constitutional power, therefore, to estab
lish banks in the District of Colombia, and
increase their capital at will, is unlimited
and uncontrolable by any other power than
that which gave authority to the constitution.
Yet this act declares that Congress shall not
increase the capital of existing banks, nor
create other banks with cap'tals exceeding,
in the whole, six millions of dollars. The
constitution declares that. Congress shall have
power to exercise exclusive legislation over
this District “in all cases whatsoever,” and
this act declares they shall not. Which is
the supreme law of the land? This provision
cannot l>a “ necessary,” or “proper,” or
constitutional, unless the absurdity be ad
mitted, that, whenever it be “necessary and
proper,” in the opinion of Congress, they have
a right to barter away one portion of the
powers vested in them by the constitution, as
a means of executing the rest.
On two subjects only does the constitution j
recognize in Congress the power to grant ex-j
elusive privileges or monopolies. It declares I
that “ Congress shall have power to promote
the progress of science and useful arts by se
curing, for limited times, to authors and in
ventors, tho exclusive right to their respec
tive writings and discoveries.” Out of this
express delegation of power, bavo grown our
laws of patents and copy-rights. As the con
stitution expressly delegates to Congress the
power to grant exclusive privileges, in these
cases, as the means of executing the substan
tive power “to promote the progress of
science and useful arts,” it is consistent with
the fair rules of construction, to conclude
that such a power was not intended to be
granted as a means of accomplishing any
other end. On every other subject which
comes within the scope of Congressional
povver, there is an ever living discretion in
I the use of proper means, which cannot be
I restricted or abolished without an amendment
iof the constitution. Every act of Congress,
therefore, which attempts, by grants of
j monopolies, or sale of exclusive privileges
for a limited time, or a time without limit,
j to restrict or extinguish its own discretion in
1 the choice of means to execute its delegated
I powers, is equivalent to a legislative amend
ment of the constitution, and palpably uncon
stitutional.
This act authorizes and encourages trans
fers of its stock to foreigners, and grants them
an exemption from all State and national
taxation. So far from being “ necessary and
jwoper” that the bank should possess this
power, to make it a safe and efficient agent
of the Government in its fiscal operations, it
iscalcuiafed to convert the Bank of the Uni
ted States into a foreign bank, to impoverish
our people in time of peace, to disseminate
a foreign influence through every section of
the Republic, and, in war, to endanger our
independence.
The several States reserved tho power, at
the formation of the constitution, to regulate 1
and control titles and transfers of real proper
ty; and most, if not all of them, have laws
disqualifying aliens from acquiring or holding
lands within their limits. But this act, in j
disregard of the undoubted right of the States j
to prescribe such disqualification, gives to;
aliens, stockholders in this bank, an interest j
and titles, as members of the corporation, to
all the real property it may acquire within
any of the States of this Union. This privi
lege granted to aliens is not “ necessary ” to
enable the bank to perform it? public duties,
nor in any sense “ propter,” because it is
vitally subversive of the rights of tho States.
The Government of the United S ates have
no constitutional power to purchase lands
within the States, except “ for the erection
of forts, magazines, arsenals, dock yards, and
other needful buildings;” and eVen for these
objects only “ by the consent of the Legisla
ture of the State in which the same shall he.”
By making themselves stockholders in the
Bank, and granting to tho corporation the
power to purchase lands for other purposes,
they assume a power not granted in the con
stitution, and grant to others what they do not
themselves possess. It is not necessary to
the receiving, safe keeping, or transmission
of the funds of the government, that the hank
should possess this power; and it is not pro
per that Congress should thus enlarge the
powers delegated to them in the constitution.
The old Bank of the United States possess
ed a cap 1 m >f only eleven millions of dollars,
which was found fully sufficient to enable it,
with despatch and safety, to perform all the
functions required of it by the government.
The capital of the present bank is thirty-five
millions of dollars, at least twenty four more
than experience has proved to be necessary
to enable a bank to perform its public func
tions. The public debt which existed during
the period of the old bank, and on tho estab
lishment of the new, has been nearly paid off',
and our revenue will soon he reduced. This
increase of capital is therefore not for public,
but for private purposes.
The Government is the only “ proper ”
judge where its agents should reside and
keep their offices, because it best knows
where their presence will be “ necessary.'’'
It cannot, therefore, he necessary” or “ pro
per” authorise the bank to locate branches
where it pleases to perform tho public ser
vice, without consulting the Government,
and contrary to its will. The principle laid
down by the Supreme Court concedes that
Congress cannot establish n bank for purpo
ses of private speculation and gain, hut only
as a means of executing tho delegated powers
of the General Government. B the
principle, a branch bank cannot coi
ally be established for other than ptTbli
poses. The power which this act '
establish two branches in any State with '
the injunction or request of the Govern* -
and lor other than public purpose-,
“necessary'' to the due execution of tin/ r j° l
ers delegated to Congress.
The bonus which is exacted from the!...
is a confession, upon the face of the ret
tne (lowers granted bv it are greater ?hV
“necessary” to its character of a fiscal J*
i be Government does not tax its ota C er°- '
agents for the privilege of serving it.
bonus of a million and a half required'h v ,
original charter, and that of three , ni j.- 8
proposed by this act, are not exacted
privilege of giving “ the necessary f aci ] ,
for transferring the public funds from i*,u
to place, within the United States or the 'f
ritorics thereof, anJ for distributing thW"
in payment of the public creditors, wrk?
charging commission or claiming allo Va nf
oh account of the difference of exehanTi
as required by the act of incorporation U
tor .something more beneficial to the sti*
holders. The original aet declares, that i
(the bonus) is granted in consideration olti
exclusive privileges end benefits confers
by tins act upon the said bank,” and the™
before me declares it to be “in consideraiS
of the exclusive benefits and privileges c
tinned by this act to the said corporation rj
fifteen years as aforesaid.” It is, tberef 1
for ‘exclusive privileges and benefits’ confol
red for their own use and emolument aiJ
not for the advantage ol theOovernmen* thal
a bonus is exacted. These surplus poLl
for which the bank is required to pay, canrj
surely be “necessary ” to make it tim fjJJ
agent of the Treasury. If they were, the ex J
action of a bonus for them would nut hi
“proper” “I
It is maintained by some that the bank i
a means of executing the constitution!!! poivi
or “to coin money, and regulate the val*
thereof.” Congress have established a Mini
to coin money, and passed laws to remilam
the value thereof. The money so coined]
with its value so regulated, and such for e jJ
coins as Congress may adopt, are the oulj
currency known to the constitution. foj
they have any other power to regulate im
currency, it was conferred to he exercised J
themselves, and not to transferred to a eo|
poration. If the bank be established forthj
purpose, with a charter unalterable witlJ
its consent, Congress have parted with the!
power .'or a term of years, during which J
'constitution is a dead letter. It isneithJ
\ necessary nor proper to transfer its le<jisl|
| tivc power to such a bank, and therefore uj
| constitutional. I
By its silence, considered in connexio
j with the decision of the Supreme Court \
j the case of McCuilock airainst the State ]
j Maryland, this act takes from the States:.]
j power to tax a portion of the banking id
ness carried on within their limits, insubd
si on of one of the strongest barriers nld
secured them against federal encroachm]
Banking, like farming, manufacturing,ora
j other occupation or j rofcsskm, is a
the right to foi!o\v which is not origins
derived from the laws. Every citizen, aj
every company of citizens, in all ofonrSta]
possessed the right, until the State LcgiJ
. tores deemed it good policy to prohibit ■
I vate banking, by law. it' the prohibit!
i State laws were now repealed, every cit!
j would again possess the right. The ft!
banks are a qualified restoration of then!
which has been taken away by the laws |
gainst banking, guarded by such provisiol
■ and limitations ns, in the opinion ot thcl'tJ
j Legislatures, the public interest requires.!
j These corporations, unless there be an J
! eruption in their charter, are, like prii!
| hankers and banking companies, subject I
j State taxation. Tim mariner in which till
: taxes shall be laid, depends wholly on b!
j intive discretion. It may be upon thobal
upon the stock, upon the profits, or anyoil
mode which the sovereign power shall wifl
Upon the formation of the
States guarded tlicir taxing power ■
peculiar jealousy. They surrenderee
only as it regards imports and exports.*
relation to every other object within 111
jurisdiction, whclh; r person?, property, hi
ness, or professions, it wa3 secured’if) asl
pica manner ;?s it was Before po-seescd.l
persons, though United States’ officers artl
able to a poll tax by the States within
they reside. The lands of the United M
are liable to the usual land tax, except icfl
new States, from whom agreements that 111
will not tax unsold lands, are exacted ffl
' they arc admitted into the Union ; L'-*
waggons, any beasts or vehicles, tosifß
property, belonging to private citizens,tbß
employed in the service of the United
are subject to State taxation. Every pfjß
business, whether carried by an officercifl
General Government or not, whether it J
mixed with public concerns or not, cvcs'H
be carried on by the Government of the V
ted States*itsclf, separately or in partners®
falls within the scope of tho taxing r° ;rc ß
llic Stale. Nothing comes more folly "B
it than banks, and the business of
by whomsoever instituted ar.d carried >''■
Over tliis whole subject r,.after, it is ji'*®
absolute, unlimited, and
the constitution lioci never been
cause, in tnc formation of that instruct*®
was reserved without qualification* .1
The principle is conceded that the ■
cannot rightfully tax the operations >'!V
General Government. They cannot t*B
'fiouey of the Government deposited i s ®
Slate banks, nor the agency of those
remitting it ; but will any innn main” 111 ®’
their mere selection to perform this P|B
service for tho General Government
exempt the State banks, and their
business, from State taxation ! I Lid l '
nited States, instead of establishing ß yß)
at Philadelphia, employed a privatehaaß
keepand transmit their funds, would 'tßi
deprived Pennsylvania oft he right to |l ßt
hank, and his usual banking
a ill not be pretended. 1 tpon what |Hi.'*Bv
tlien, arc the banking establishments '
•B-mfc of the Untied State®. I tv"’*