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Bank of the United States.

the common law to be in force in the United States? They are certainly not recognised by the Constitution of the United States. The principles of that law, he said, were not suited to such a Government as ours. They were generally of a character strictly municipal; they had never been adopted by legislative enaction; they had never been adopted by the only branch of the Government capable of giving law to the people of this country, as a nation-the Congress of the United States. We therefore, said Mr. J., have neither the common law nor the civil law, by which to test this charter.

But, sir, said Mr. J., we have the charter before us. Let us apply the fundamental rules of the charter, under the guidance of reason and common sense, to the conduct of this corporation. Those rules which, at its creation, were imposed on it, to govern and direct its course, without a due observance and obedience to which rules it must cease to exist. This charter has been violated; and the question now occurs, has Congress the power, the moral power, to repeal the charter, or must the question be submitted to the judiciary? Is the provision in the act of incorporation which provides the remedy by scire facias for breaches of the charter obligatory on the Congress of the United States? Cannot the power which created this corporation dissolve it? Can the faith of this nation be pledged by an act which is contrary to the Constitution of the country? Can this corporation surrender its charter? To whom would the surrender be made? Would it be to a member of the judiciary, or to a court, in session? If so, to which member, or to which of the Federal courts? Or would the surrender be made to the Congress of the United States? He humbly conceived that the corporation had the right to surrender its charter; that the surrender, if made, must be to the power by which it was created. He presumed that it would be conceded to him, that the individual members composing the corporation had the power and the right to dissolve it. Put the case, that they failed or refused to elect directors, by what process could they be coerced or compelled to perform this duty? Some member had suggested that a mandamus might be awarded. What, resort to a mandamus against an individual? Who would sue out the process? Such a process was sometimes resorted to by a superior court to compel an inferior court to discharge its duty. But it was the first time that he bad heard of sueing out a mandamus against an individual. If the members of this corporation neglected or refused to appoint directors, it would, as a necessary consequence, be dissolved. Mr. J. asked if this institution-if its membershad power over its duration and legal existence which Congress had not? Had they created a power greater than the creator? Had not the power which spoke this charter into existence also the power to destroy it? Mr. J. denied that a precedent Legislature could, by any act, bind its successors; contended that it was at all times competent for a legislative body to repeal the

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acts of its predecessors. That this Congress, that this House, would always be actuated by the strictest regard to propriety-to the immutable principles of justice-was fair, was proper to presume. But that it ought never to be restrained from repealing any of its own acts, or those of its predecessors, when the welfare and happiness of the people required such repeal; or from dissolving any corporation, or supposed corporation, which claimed to exist by some law of the United States, when that very law had been grossly and palpably violated. He considered the right clear and indisputable. Is it expedient, under existing circumstances, to exercise this right? He considered the policy equally clear and indisputable. He understood the bank was now able to pay all its debts, and to meet all its engagements. The claims of innocent stockholders can now be secured; they can now be protected from injury, if the corporation be immediately dissolved. Permit it to go on, judging from its past conduct, no man can tell what will be the result. If, in the three first years of its existence, it be convicted of such misuse and abuse of its powers; if, during that period, the whole tenor of its conduct be marked with acts of the most glaring impropriety; and if it be permitted to escape with impunity, who can estimate the consequences? Will it not hereafter put the power of this House at defiance? What reliance could be placed on the directors of the Government ? From the report of the committee of investigation, it would be found that they, or a portion of them, had been guilty of as many violations of their duty as the private directors, and characterized by the same culpable regard for their individual interests, at the expense of the institution, and of the small and innocent stockholders. A due regard for the interests of the small and innocent stockholders would induce him to give his vote for the repeal of the charter. Let the corporation continue, and the interests of this class will still be sacrificed to the interests and views of the large and influential stockholders. He would, then, secure the innocent by dissolving the charter; and they would, moreover, Mr. J. contended, have another security; for he held it a clear principle, that the president and directors were responsible, in their private fortunes, for all their iniquitous and fraudulent acts, to those who had sustained injury; that the injured party had a clear remedy. These directors had undertaken to negotiate for specie in Europe. The necessity to resort to this mode of procuring the specie part of the capital, was the result of mismanagement of abuse of their powers-of a violation of their charter-of an inordinate thirst for wealth-of an ill-judged desire to put their machine into motion. By evading the payment on the part of the favored stockholders of the second specie instalment, this negotiation was rendered necessary. How was this business conducted? On principles of equity and justice? No, sir. An agent was sent to Europe to purchase specie; the contract was negotiated, and the specie delivered in this country, at an expense

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there appeared to be an effort to attribute motives much less noble, honorable, and disinterested. He could not but believe that those who sought with so much solicitude to establish impure motives, were beguiled and led astray, by glancing at the mirror which reflected the motives of their own bosoms.

Mr. J. said, he disliked to speak of himself: he would, however, to avoid the imputation of any interested or undue influence, take this occasion to remark, that he had, on all occasions, voted against the incorporation of banks; that he voted against the charter of the Farmers' Bank of Virginia-the extension of the charter of the Old Bank of Virginia; that he was not a stockholder, nor ever had been a stockholder, in any; that he had never applied for, nor received, any species of accommodation from any bank whatever.

to the bank of $525,297 38; an expense which resulted from mismanagement, and a fraudulent and culpable system of favoritism, extended to the large stockholders. Mr. J. said, as the large stockholders received indulgences and benefits, which made the expenditure of this sum necessary, it ought to have fallen exclusively on them, and not equally on the innocent stockholders, and the Government, which appears to have been the fact. And this act rendered necessary by a total disregard of the fundamental articles of the charter, and for the purposes of individual speculation, was one for which the directors claimed credit from the nation. Those humane gentlemen, said Mr. J., who have such claims on our justice; those artful gentlemen who can divide thirty shares so ingeniously as to enable them to give almost as many thousand votes; who can now weep for the widow and the orDuring the late war, at a period when the phan, who will be ruined by the dissolution of Treasury was empty; when the energy of the this charter; who had hearts as hard as stone nation appeared to be paralyzed; when ruin when in pursuit of their favorite object, their seemed to stare us in the face, we were told, he idol, and their god-money; who, to obtain that said, that we must have a National Bank; that desired and loved object, wealth, and its concom- without it the war could not be prosecuted-the itants, power and influence, would have feasted soldiers could not be fed, or clothed, or paid, to on the blood, and battened on the bones of those fight the battles of the country. Great efforts for whom they now affect so much sympathy were made; a bank charter was successfully carand sorrow; those disinterested, compassionate, ried through both Houses of Congress, and prehighminded, honorable gentlemen, who could sented to the President of the United States, for soften their president by a douceur of $15,000; his signature. Surrounded, as he was, by all the those gentlemen, who, we are told, have strong gloomy circumstances of the day, Mr. Madison claims on the forbearance of this House. Mr. J. returned the charter, on the express ground that regretted that this picture, this horrid picture, it did not provide sufficiently for the interest of would be seen not only in this country, but would the Government. The Constitutional difficulties necessarily be presented, in all its deformity, to were removed from his mind; the subject had the gaze of the world. It would attract the eyes been adjudicated, and put to rest. What was the of all nations to the United States. That coun- consequence? Some Republican gentlemen, Mr. try which heretofore had claimed, and received, J. said, now within the sound of his voice, must so much credit for the purity of its character; recollect the course pursued. A meeting was had that country which we have been told is still so by the Republican members of Congress, in order prosperous and so happy, in the forty-third year to agree upon principles, to determine upon a charof its age, to have produced a monster of fraud ter which would be acceptable to the then Presiand corruption without hout parallel. par Even Eng-dent of the United States. Before this compro

land, bad as he believed her, could not furnish an institution more distinguished for adroitness in swindling and fraud than this corporation. Sir, all Europe will point the steady finger of scorn at this grand shaving shop.

Mr. J. called the attention of the Committee to the struggle which was made to recharter the old Bank of the United States, and the arguments which were used on that occasion. He adverted to the feelings which were imparted to the General Assembly of Virginia, when a letter was received from Mr. Giles, a Senator from that State, on the subject of his instructions to vote against the renewal of the charter of the bank. Mr. J. said he opposed the reading of that letter; but curiosity prevailed-it was read. It seemed to him, Mr. J. said, that all acts were referred to the standard of motive. All actions appeared to be traced to some motive of interest or design. Instead of looking to the one single and grand motive which ought to be presumed to animate all in this House, the ardent and pure desire to promote the public interest and happiness,

mise of opinion could take place; before a new and unexceptionable charter could be manufactured, the messenger of peace came, with healing in his wings. Nothing more was done at that session of Congress, on the subject. The nation's joy was testified, at the seat of Government, by illuminations and bonfires. The solemn farce performed, of illuminating the monuments of our disgrace, the evidences of the vandalism and barbarism of our enemy. Every window in the city was gaily illuminated, and the ruin and desolation of the Capitol and other public buildings and edifices rendered more strikingly conspicuous by this extravagant evidence of joy at the return of a peace which the prowess of the nation had achieved.

But, Mr. Madison's objections produced at the succeed succeeding Congress another experiment, which proved more fortunate, not for the nation, but for the interests of speculators. The charter to the existing bank was obtained. Nothing, Mr. J. said, did he more sincerely regret than that Mr. Madison should have put his signature to

such an act. That honest, that respectable, enlightened, and patriotic statesman, who had so long and so faithfully served his country, had, in this single instance, cast a shade on the hitherto bright and unclouded orbit, in which he had moved. Mr. J. said, it was extremely painful to him to refer to any act of that distinguished statesman, who had retired to private life, in any other terms than those of respect and approbation. Nor would he on this occasion have done so, except from a sense of duty; and with a view to the history of the banks of the United States, which he felt himself bound to give.

When the question first arose in this country, continued Mr. J., as to the powers of Congress to incorporate a National Bank, the wisest men in the nation differed in opinion on the Constitutional powers of the Government to create such corporation. General Washington himself, as appeared from the history of that day, labored under great difficulty-he called for the opinions of his secretaries, and doubted, and doubted, until the time had almost elapsed, which would have made the act of incorporation a law, without his signature. The difficulties and doubts which at that time surrounded the mind of the Chief Magistrate, produced a most elaborate and able investigation into the Constitutional powers of Congress to create corporations. We have not only the opinions, but the testimony of two of the most enlightened men of any age or country, Mr. Jefferson and Mr. Madison, on the Constitutional question, whether Congress has the power to incorporate a National Bank? Mr. Jefferson's opinion and testimony will be found in the written opinion given by him to General Washington on the question. In the year 1791, Mr. Madison, in a very eloquent speech delivered in Congress, stated the following important fact, speaking of the power to incorporate a bank. "This power was proposed to be vested in Congress, in the original plan reported by the com'mittee of the convention, among the enumera'tion of powers which now form the 8th section ' of the 1st article, but that, after three days ar'dent debate, on the special subject, in that body, the power was rejected and stricken out, upon 'the principle that it was a power improper to 'be vested in the General Government." Mr. J. said, that he was aware that an instrument of writing might convey more or less power than was intended by the contracting parties-that this result might be produced from the want of sufficient accuracy and precision in the terms

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charter a National Bank. But, he demanded of those who held the affirmative proposition to establish, by clear and indisputable reasoning, that the bank had been constitutionally establishedor, that the faith of the Government could be pledged by an act not sanctioned by the Constitution. The act of incorporation, he said, was a dead letter; it was worse-it was an act of usurpation. It was idle to talk of the faith of the Government being pledged to sustain it.

How, then, Mr. J. asked, did the question present itself? The Supreme Court, as he had before remarked, had declared the common law not to be the law of the United States; and, consequently, in making the inquiry, whether forfeiture had been incurred by this corporation of its charter, the question could not be tested or settled by the application of the principles of this system of law. According to the settled and well established principles of the common law, settled by frequent adjudications, no doubt can exist that the charter of the Bank of the United States is forfeited. In support of this doctrine, he begged leave to refer to the case of the King against the city of London, and the cases there cited. And, said Mr. J., after the disclosures which have been made, will the House permit this violated act to remain on the Statute Book a disgrace to the nation? Are we, said he, not to support the Constitution; and can the immaculate and patriotic gamblers in this bank induce us, for a single moment, to prolong an act which violates this instrument?

Mr. J. said, if this proposition to repeal the charter should be negatived, he could not vote for the bill reported by the bank committee, as he should, by so doing, recognise the legal existence of the bank. This, according to his most solemn convictions, would amount to a violation of his oath. He trusted there would be neither difficulty nor hesitation in putting down this corporation. He hoped in God his country would not present the melancholy, the degraded picture, sketched by the masterhand of Byron, when surrounded by the gloom resulting from a view of the glorious decay and splendid ruins of Rome.

"There is the moral of all human tales,
'Tis but the same rehearsal of the past;

First freedom, and then glory-when that fails,
Wealth, vice, corruption-barbarism at last."

Such a charge, he presumed, could scarcely exist in reference to the Constitution of the United States. He denied that by a fair and clear deduction; that by any rational construction, this power could be derived from the Constitution. It did not belong to any of the enumerated Mr. J. said, he had hoped much from the fair des

powers. Nor was it fairly referable to any of the implied or resulting powers of the GovernHe did not mean to enter on the discussion of the Constitutional powers of the Congress of the United States to create corporations, or to 15th CON. 2 SESS.-40

We had enjoyed the blessings of freedom. We had had a reasonable share of glory. Our arms had been triumphant on the land and on the ocean. All seemed animated, now, by the desire to accumulate wealth. He hoped the nation would still pause, and reflect, seriously reflect, on the consequences of changing the pursuit of a national character, distinguished by liberality, magnanimity, and honor, for the sordid pursuit of wealth, at the expense of vice and corruption. tinies of this nation, but those would be marred and destroyed, if a miserable corporation could hold the Government in check, influence its operations, plunge it into corruption, or cover it with vice and shame whenever it should please.

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Mr. PINDALL, of Virginia, took the floor. He fundamentals, it departed from the orbit within was confident, he said, that the House, as well as which Congress had confined its operations. himself, was willing to acknowledge its gratitude to the honorable members of the select committee, who, by a laborious and deep investigation of the affairs of the National Bank, had been enabled to present to our view an elaborate statement of facts, not less interesting to the nation than important with regard to their consequences. But, whilst he remained sensible of the exalted merit of the committee, he would claim the privilege of judging for himself, by deducing his own conclusions from the facts contained in the report, and, in so doing, he would frankly acknowledge that the report sought to inculcate a principle to which he was unable to subscribe. The committee had asserted, that there might be many violations of the bank charter, which should not be considered as producing a forfeiture. Against the assumption of such principle, Mr. P. would take leave to enter his decided protest. The Legislature had enacted certain fundamental rules, to which this bank corporation was bound to conform, and, by infracting those fundamental canons, the corporation violated its charter, and thereby incurred a forfeiture of that charter. He was not prepared to say, that this House would always feel itself disposed to enforce a forfeiture for every violation of the charter, as a departure from the terms of the law might possibly be imagined, under circumstances which would induce the Legislature to commiserate the institution, or excuse the error, but he would contend, that every palpable violation of the fundamental principles of the institution would subject it to the discretion and mercy of the National Legislature (the author of its existence) which would decide on the justice and policy of enforcing the forfeiture, or excusing this offence. The select committee had supposed that some violations of the charter would induce its forfeiture, whilst other violations would not produce that effect, and, among the former, the committee had classed those violations which defeated the very objects of the institution, as expressed in the charter itself. But, it was evident, this sort of indefinite classification could afford no aid to our investigation. There was no preamble to the act of incorporation expressive of the objects of the institution. One gentleman would see, in one given violation of charter, a prostration of the objects of the institution, whilst other gentlemen, attaching less magnitude to the same crime, would look in a different avenue to find what are called the objects of the institution, and, in that predicament of vexation and perplexity, it would be seen that neither the Legislature nor the honorable select committee had been kind enough to furnish a thermometer for the true admeasurement of the objects of the incorporation. In relation, however, to one circumstance, there could arise no difficulty of opinion. Certain principles were prescribed for the control and government of the corporation, which had been dignified by the Legislature as fundamental rules and articles, and it would be equally manifest that, whensoever the corporation transcended those

I will now, (said Mr. P.) pray the House to accompany me, in the review of another part of the report, where will be found a feature, which cannot fail to excite in the House a degree of regret and disappointment. The report manifests that the honorable committee have deemed themselves clothed with authority to pass an unqualified censure upon the conduct of the State banks. Gentlemen are now invited to show the power of the committee to investigate the concerns or proceedings of State banks, with which it would seem the violation or non-violation of the charter of the United States Bank had no connexion. With the most profound respect for the motives and talents of the committee, I must assume the liberty of declaring that I consider this public and official condemnation of the respectable banks, which pervade the respective States, as ill-timed and unjust-as produced by the statements, and probably partial complaints of their formidable rival, who was fully heard by the committee, whilst the many respectable State institutions have incurred a heavy and cruel censure, without being summoned, or having any opportunity, to be heard in their defence. This subject, however, has been presented to us by the report, and must, therefore, demand the attention which seems due to its importance. I am sensible that the House would not, at this late day, relish a discussion of the remote and complicated causes which led the way to a suspension of specie payments by the State banks, during the late war; topics that have given birth to arguments, or rather disputes, by which public patience has been long since exhausted. Yet, there were some circumstances connected with the suspension of bank payments, with regard to which there could exist no difference of opinion. It is deemed proper to remind the House of these circumstances, the uncertainty of which will beguile us into no disputation, although their remembrance may enable us to account, in some measure, for our present embarrassment. It is certain, that, previous to the close of the late war, the disorder of the currency distressed the community, and imposed an evil not only on every quarter of the country, but afflicted almost every operation of trade. It is equally certain that the superabundant issue of bills by the moneyed corporations of the States, coeval with, and after the suspension of specie payments, produced the disorder in the state of the currency. If it be charged, that the State banks, in their over issues of paper, were prompted by an unwarrantable thirst of gain, I would not feel myself authorized to make a total denial of the charge, nor find it necessary to contend, that those banks were exempt from the prevalent appetite which has since so remarkably characterized the Bank of the United States, and which seems more or less to guide the deliberations of all corporations of trade. In truth, it may be affirmed that the spirit which instigated or enticed the commercial classes of our community to overtrade their means, insinuated itself into the count