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H. OF R.

Bank of the United States.

FEBRUARY, 1819.

spond to the confidence or business of the country. It would, on the cessation of the currency of State paper, have been involved in the necessity of emanating its notes to supply the vacuum occasioned by the banishment of State paper; and to have ventured on that measure as sud-struction of the bank resolution of 30th January, denly as the crisis would have required, must have insured certain ruin, as it could not have commanded the specie to redeem such abundant issues, which would, however, have been speedily returned to it for specie, by the numerous State banks, that must and would have combined against their common enemy.

an unjust and unlawful gain. The gentleman has not denied, that the post note of $20,000, at sixty days, the loan of which is mentioned in the report, was payable at the place where issued. But, suffer me to yield to the gentleman's con1817, that is to say, that it only warranted the issuing of post notes payable at different places than where issued, and mark the consequences. Then, as we know that such notes payable at the place of issuing, were loaned, there was either some other resolution to warrant these loans, or there was not. If there was another resolution to warrant these loans, that other resolution subjects the bank to every criminal imputation that it would have been subjected to in case the resolu tion of the 30th January, 1817, had authorized the same same unlawful loans. But if there was no other resolution to authorize such loans, yet, as we know the loans were made, the bank incurred a still greater turpitude by resorting to an illicit practice, and adroitly omitting to spread any resolution or distinct account of it, on the journal of its proceedings; hiding the transactions from the Government, which had reserved the right of examining all its transactions. It is possible I have not understood the object of the gentleman from South Carolina, when on this head he referred to the statement of the cashier. That officer deposes, that post notes were directed to be issued, on application, at sixty days, to be paid for out of the proceeds of discounts, if required. This certainly had a reference or at least was applicable to post notes payable at the same place; they were to be paid for out of the proceeds of discounts, which ought to have been ready money to the borrower, and would of course afford unjust gain to the bank, unless it had directed the borrower's note to bear date at the end of the sixty days, when the post note would be equal to cash, which direction the bank never gave.

Had the bank divided and distributed all the specie it possessed, at an early period after its commencement, among its fifteen branches, and issued its paper in the quantities requsite to supply a currency, a few weeks, or indeed days, would have emptied the vault of its last dollar, or obliged it to withold the payment of specie, and thereby reduced its credit to the level of the State banks. Why, then, is the bank applauded for its forbearance of a rigor to which it never dared to resort, or praised for a moderation to which it was confined by its own delinquency and weakness? To the charge that the bank had resorted to usurious practices, in loaning post notes payable at sixty days, at an interest, as though the money had been immediately advanced, when in fact it would never be advanced by the bank, as the borrower's notes would be payable as soon as the post notes, and that there was no authority to suppress such extortions, the gentleman from South Carolina replies, showing the great convenience of post notes for transmission by mail, in lieu of specie, and the security they afford against losses, as they were not payable to bearer. But I ask, whether this answer should be urged? The bank, on the loan of silver dollars, should only be entitled to the same interest to which others are entitled. Post notes are more convenient than dollars; and if, on account of that convenience, the bank may receive more than legal interest, it may also receive more than legal interest on loans of its own ordinary bank bills, for they, too, are more convenient for transmission than silver. [Here Mr. LOWNDES explained, stating that his observations had been applicable to the resolution of the directors of the 30th January, 1817, which only seemed to authorize the ad vance of post notes at sixty days, when payable at a place other than that at which they were issued.] I am apprized, said Mr. P., of the distinction in this respect, between post notes pay- The 22d section designates the event on which able where issued, or at a different place; and Congress may annul the charter, and the 23d secthat on the latter an additional sum may be re- tion, the circumstances under which the court quired by the bank, equal to the premium on ex- may annul it by judgment. But if we have shown change. But I do not concur with the gentleman that, without either of these sections, Congress from South Carolina, in his interpretation of the would have possessed power to repeal the act of bank resolution of the 30th January, 1817, nor incorporation, that power is not impaired by will I criticise that resolution to find its literal either section; for, if either Government or an import, for the same bank that made the resolu- individual having a right is entitled to a remedy tion had, or at least assumed, the right to inter- or certain means of justice and thereafter a law pret its own resolution, and, as it appears by the be made conferring a new remedy without sayreport, did issue post notes payable at the place sing anything of his previous rights, the Governwhere issued, and on these post notes did receivement or individual will have his election to pur

The honorable member from South Carolina has shown us the 22d and 23d sections of the act of incorporation. By the 22d section, in case the bank did not commence operations by April, 1817, Congress were authorized, within twelve months, to declare the charter void. But this section eertainly does not prove that Congress can under no other circumstances repeal the law. It was inserted as a restraint on the bank, and not as a limitation of legislative authority. It was a penalty denounced in terrorem to hurry the bank to its duties.

FEBRUARY, 1819.

Bank of the United States.

H. of R.

stroy the corporation, but he had not admitted that Congress had the visitatorial power, and he doubted whether it could be said to possess it.] I had mistaken the gentleman, continued Mr. P., and accepting his meaning as now explained, his error remains: he contended that the visitatorial authority could only punish or correct abuses of corporations, and could not destroy them; and instanced the King's Bench, which was the visitor of lay corporations, and yet could not destroy them. The King's Bench, however, can, and frequently does, for sufficient cause, destroy as well as correct the corporate bodies. It corrects by mandamus, and destroys by quo warranto. If, then, Congress has the visitatorial power over the bank, it may, for sufficient cause, repeal the law of incorporation; and that Congress is the visitor, I am convinced, by considerations which I had the honor to submit on Thursday.

sue the old or new remedy, the latter being considered as cumulative. This proposition is sufficiently evident to all professional gentlemen. If, then, it were possible for the Fourteenth Congress to make a law to bind and govern the Fifteenth Congress, yet it has not attempted to do so by the 22d or 23d sections, which the Government may resort to as a cumulative remedy against abuses of charter, or assert the prior and unimpaired pow. er of repealing the law. Ask me why the 22d section was inserted? I answer, to prompt the bank to an early operation. Ask me why the 23d section of the scire facias was enacted? I answer, to enable the courts to repeal the charter. But, do you ask, why then a power to repeal was not reserved to Congress? The answer is plain. It was unnecessary to give to Congress a power it already possessed. If this Congress does not possess the power under the Constitution, it cannot derive it from the gift or grant of The Government of the United States susthe Fourteenth Congress. The gentleman from tains a two-fold capacity in its relations to the Delaware (Mr. McLANE) opposes our power to bank corporations: first, the Government is a repeal the act of incorporation by deductions from co-partner in trade with the other subscribers, the principles of the common law, which he al- and the owner of 70,000 shares of the capital leges are applicable in construing the charter. stock; and, if it stood only in the relation of partHaving myself embraced a view of this questionner, would be legally as well as morally subject which places me in opposition to that gentleman, to municipal law equally with the other stockit is not my province to warn him of the strong holders. But, secondly, the Government, in its force he must contend with here, in supporting sovereign capacity, cannot be subjected against his negative proposition on common law princi-its will to municipal law; for municipal law is ples only. There are many gentlemen on the floor who think with my colleague (Mr. JOHNSON) that there is no common law appending to the Federal Government, on the ground that the common law, being different in different States, is not sufficiently uniform for adoption by the General Government, which, extending itself over all the States, finds no common law commensurate with its surface. Although I disapprove of this doctrine, I shall not discuss it, as it is believed that the gentleman from Delaware and myself entertain the same opinion of the application of the common law; but I cannot avoid the remark of the peculiar applicability of the reasons for negativing the common law, to the interpretation of this charter, for, if the extension of any measure of the National Government into several States annuls the force of the common law as to that measure, because the common law being different in the respective States, would be Now, sir, there is something oppressive, some productive of conflicting constructions of the thing painful, cruel, and almost horrid, in the same public measure, how can the common law very idea of a Government being a partner in have any application to this charter, which is trade, and at the same time legally exempt from made to exist in every State of the Union? If this the rules of municipal justice, which usually govbe so, the gentleman will find himself opposed by allern such concerns; nor can you be relieved from who deny the common law. But the gentleman is incorrect in his common law argument, and therefore ought not to have the support of those who subscribe to the force of that law. He admits that every corporation must be subject to some visitatorial authority, and that Congress is the visitor of this bank, as the King, through the King's Bench, or Parliament, is of civil corporations in England. [Mr. McLANE explained. He had argued that, if Congress had the visitatorial power, it would not follow that it could not de

subject to it, and enacted, repealed, or modified, by it. The frequency of forensic debate on the constitutionality of State laws, prepares the minds of gentlemen for the admission of an erroneous principle as regards this Government; for, while the Constitution expressly prohibits any State from the passage of laws impairing the obligation of contracts, it imposes no such inhibition on Congress. Adam Smith, or some other popular writer, informs us that one of the petty sovereigns of Italy entered a partnership with a Jew to keep a wine cellar, and for a division of profits, &c. Had the sovereign refused, on closing the concern, to account according to munici pal law, all would exclaim at the injustice, but no one would doubt his power or give the Jew a right to control him by municipal force, which would be in that instance to convert the Jew into the sovereign.

this disagreeable idea by seeking to subject sovereignty to the physical and legal force of a municipal law, because it would then cease to be sovereign. Even yet some oppressive wrong seems to haunt the question, or the subject in which the question originates; it is the last. It is wrong, radically wrong in the nature of things, that Government should combine in partnerships of trade with its subjects or citizens, inasmuch as the relations of such concern are controlled by laws, to which the sovereign is not subject. The

H. or R.

Bank of the United States.

FEBRUARY, 1819.

Government is a partner in trade, may look to vania. Not only so, but the old reports which distant and enormous speculations, and in its sov- are so corrupt and detestable in the eyes of our ereign capacity enact laws to secure the result of opponents, are quoted by the modern writer whom such views, and proving too mighty for all com- they applaud, as the authority on which he adpetitors, and having enriched the trading com-vances the very doctrine of corporations on which pany, finds no power on earth of sufficient abil- they seem to rely. ity to enforce justice against it, on a settlement The gentleman from Pennsylvania quotes a of the partnership. My views on this part of the number of circumstances in support of his opinsubject must not be misconstrued. I insist that ion, that the judgment of the King's bench, in the legislative power may repeal as well as make the reign of Charles II., which virtually revoked all laws, including laws of incorporation. And the charter of incorporation of the city of Lonthe objection that such a power is susceptible of don, was obtained by political intrigue, and to abuse or perversion is untenable, for that would serve the King, who wanted money, and could operate to show that there was no legal, civil, or get it for a new city charter, in case the old one political capacities, whether Legislative, Execu- was revoked. I am unwilling and vexed to find tive, or Judicial, as any of them may be perverted. such imputations cast on the ancient common But, having acquired or derived a legal and prop-law tribunals of our ancestors. Such charges are er power or jurisdiction over the subject-matter, not proved or probable. But let the decision, and I then will meet gentlemen in a concurrence, the report of the case, which is now in this that we are bound by the precepts of justice and House, speak for themselves. The charter emmorality in the exercise of our powers and juris-powered the corporation of the city only to make diction. The imprudence of creating or sub- by-laws, rules, &c., for the government of itself, scribing to the corporation has no weight with its officers, and its citizens; but the corporation me for, in the exercise of our legitimate powers, usurped and exercised the power of imposing we should not by compulsion, but of choice, be taxes on all the subjects of England, and indeed governed by the same rules of justice as individ- on aliens, and all the inhabitants of the world uals. The bank charter, if a contract, was en- who should visit the city; in truth, the corporatered into freely on the part of Government; and tion thereby usurped sovereign authority, claimthereby imposed a moral obligation, to which ing, and actually enforcing a power which could Government will adhere, while that obligation only be exercised by the King and Parliament. remains. But, when the conditions of the incor-Yet the gentleman from Pennsylvania thinks this porating law are forfeited, and its fundamentals violated, by the party now demanding a performance, as has been done with respect to this charter, I say the moral obligation has ceased to

exist.

Gentlemen speak of our destitution of power to repeal the act, alleging that it is a contract; and yet they are willing to pass a law so to modify the charter as to prevent future abuses; but, if we are yet bound by it as a contract, it cannot be modified by Congress. How can Congress, (if these gentlemen reason correctly,) being but one party, modify its contract without the consent of the other party?

circumstance so trivial as to be almost innocent, and is so astonished at the decision of its being a violation of the charter, that he can only account for it by the imputation of intrigue and corruption to the English Government and judges. The gentleman has informed us that King Charles II. wanted and received money for a new charter of incorporation of the city. And did the King receive money for a charter? And was this an evidence of corruption? Let the question be answered. The King received money for a charter! and his conduct in this, it seems, we abominate. Now, sir, you may define, turn, examine, and reexamine this money-this price of the charteras you please, and you will find it was nothing more or less than a bonus-the very thing of which I had the honor to speak when addressing you on Thursday-and only differs from the bonus the speculators of the United States Bank offered and paid to this Government, in this, that this Government agreed to receive a million and an half of dollars as the price of its charter, whereas the King was more moderate, and received a less sum for his charter. Then, the merit or demerit of selling chartered privileges, exists not in the thing itself, but in the personages concerned; thus, it was honorable in this Government to receive a bonus for a charter, but abominable in the English Government to do so.

The gentlemen from Delaware and Pennsylvania, (Messrs. MCLANE and SERGEANT,) who are both opposed to the resolution before us, seem to concur, and yet conflict most strangely with regard to the same source of argument. The gentleman from Pennsylvania, in answer to my colleague, (Mr. TYLER,) travelled into the history of the ancient English decisions concerning the violation and forfeiture of charters, for the purpose of showing that those decisions were made in evil times, and under the influence of corrupt motives. The gentleman from Delaware, speaking also in opposition to our resolution, produced and read a modern elementary law book, which he affirmed contained correct principles, and supported his position. Yet, sir, the doctrine, with The gentleman from Pennsylvania insists that regard to corporations, found in the modern book no offence of the board of directors, in the manof my friend from Delaware, and so highly ex-agement of the bank, can be imputed as a violatolled by him, consists of the same identical prin- tion of charter, inasmuch as the directors are not ciples of the old English decisions, condemned as the corporation, for the subscribers are the corwicked and corrupt by my friend from Pennsyl-poration, and that the offence must be by them.

FEBRUARY, 1819.

Bank of the United States.

H. OF R.

But how is this? The board of directors are the clusive privileges, at the expense of their comauthorized agents and representatives of the sub-mon rights, they are to be informed that their scribers, and the subscribers, like all other men, importunities are idle; that they have no concern are accountable, not only for their own conduct, with the subject, and that none are to inquire of but for the acts of their agents; hence, by the it but the Treasury Department, and the stockgentleman's own principles, the board may vio- holders, bank directors, brokers, &c. late the charter. The board of directors has the Mr. BARBOUR, of Virginia, succinctly stated the sole and exclusive control of the corporation and reasons which would induce him to vote for the all its concerns, and if the corporation is not ac-resolution to repeal the charter. countable for their actions, there can be no such thing as a violation of charter; the constitution itself could in no shape be reached, and would consequently be superior to all law, and not subject to the Government of the country. Is it possible that the subscribers must receive all the advantages of the management of the board, and abide by none of the disadvantages of that management?

Mr. STORRS, of New York, briefly replied to Mr. BARBOUR; when the Committee rose, and the House adjourned.

WEDNESDAY, February 24.

Mr. NEWTON, from the Committee of Commerce and Manufactures, to which was referred the bill from the Senate, entitled "An act to increase the compensation of the surveyor of the port of Patuxent, in Rhode Island," reported the same without amendment; and the bill was ordered to lie on the table.

Mr. POINDEXTER, from the Committee on the Public Lands, to which was referred the bill from the Senate, entitled "An act to designate the boundaries of districts, and establish land offices for the disposal of the public lands not heretofore offered for sale in the States of Ohio and Indiana," reported the same with an amendment; which was read, agreed to, and ordered to be engrossed, and the bill read a third time to-morrow.

Mr. POINDEXTER, from the same committee, to whom was also referred the bill from the Senate, entitled "An act respecting the location of certain sections of land to be granted for the seat of government in the State of Indiana," reported the same without amendment; and the bill was ordered to be read a third time to-morrow.

The gentleman from South Carolina apprehends that a dissolution of the bank will involve the Treasury in embarrassments. I acknowledge the Treasury has found its operations in some measure facilitated by the bank; but these aids are not of magnitude, and could be obtained from other sources for instance, extend to the receiving banks of the States, (and some of them are certainly solvent,) the advantages that have been afforded to the United States Bank, by leaving the public moneys in their vaults, as a capital to deal with, until wanted by the Treasury, which would afford a continual deposite, and would be what is afforded to this bank, and those banks would doubtless agree to pay the moneys in any part of the country; and, as the receiving banks would be in different quarters of the Union, it would not be always necessary for each of them to pay money at the most remote points. Besides this advantage to the National Bank, Government pays it annually $350,000, the interest on the Mr. PLEASANTS, from the Committee on Naval $7,000,000 subscribed to it. But this $350,000 Affairs, to which was referred the bill from the per annum, or part of it, is expected to be refund- Senate, entitled "An act authorizing the pured in the shape of the Government Bank divi-chase of live-oak timber for naval purposes," redends; and this Government, discarding its own dignity and old-fashioned simplicity, enters the counting-house, and becomes a partner with a company of money changers and speculators, to save a penny to offset against the small wastage of transmitting moneys from place to place within The Committee of the Whole, to which is its own limits. Gentlemen treat this important committed the bill to reduce the duties on cersubject as an affair merely between the stock-tain wines, and to declare free of duty books holders and the Treasury, and as if the public printed in foreign languages, were discharged, were not to complain whilst these other two par- and the bill was laid on the table. ties were content. It should, however, be remembered that Congress, having acknowledged its own right to grant bank charters for the public good, granted this charter to a few individuals, with many exclusive privileges, and tied its own hands from granting, or shut the people's mouths from asking any other charter for twenty years, on the ground that this exclusive charter would Bills from the Senate of the following titles, enable its possessors to afford the country, as well to wit: An act for the relief of Jacob Purkill; as the Treasury, facilities and comforts to which An act to repeal part of an act passed on the they had before been strangers. And now, when 27th day of February, 1813, entitled "An act the people find themselves disappointed, and in- in addition to an act regulating the Post Office quire of their Representatives for the recompense Establishment;" and, An act respecting the transthey were to receive for the grant of these ex-portation of persons of color, for sale or to be held

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ported the same without amendment; and it was committed to the Committee of the Whole, to which is committed the bill authorizing the purchase of live-oak timber for building small vessels of war.

On motion of Mr. TRIMBLE, the President of the United States was requested to cause to be laid before this House, at the next session of Congress, any information which may be in his power, touching the causes of the imprisonment of White, an American citizen, at Buenos

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to labor, were severally read twice, and referred; the first, to the Committee of Claims; the second, to the Committee on the Post Office and Post Roads; and the third, to the Committee on the Judiciary.

FEBRUARY, 1819.

But this desirable coincidence in opinion and practice is not within our control, and probably never will take place.

Your committee are therefore of opinion that it would tend to the promotion of science and national credit to fix a first meridian for the United States somewhere within their territories; and as the Capitol was originally contemplated by the plan of the City of Washington for that purpose, it may be proper to select it, or some convenient place in its vicinity. recommend that an observatory be erected, but they The committee will not take upon themselves to deem it advisable to comply so far with the request of the memorialist as to submit to the House the follow

An engrossed bill, entitled "An act for the relief of George M. Brook and Edmund P. Kennedy," was read the third time, and passed. A message from the Senate informed the House that they have passed the bill of this House, entitled "An act making appropriations for the sup port of Government for the year 1819," with amendments. They have also passed bills and a resolution of the following titles, to wit: An acting resolution: providing for the better organization of the TreaResolved, by the Senate and House of Representa sury Department; An act in addition to "An act tives of the United States of America in Congress concerning tonnage and discriminating duties in assembled, That the President of the United States be certain cases;" An act to protect the commerce requested to cause such number of astronomical obserof the United States, and to punish the crime of vations to be made, by methods which may in his piracy; and, a resolution requesting the Presi-judgment be best adapted to insure a correct determident of the United States to employ an artist to nation of the longitude of the Capitol, in the City of ascertain the latitude of 36 degrees 30 minutes Washington, from Greenwich or some other known north, on the west bank of Tennessee river; in meridian in Europe; and that the data, with accurate which amendments, bills and resolution, they ask calculations, or statements founded thereon, be laid the concurrence of this House. before Congress at their next session.

LONGITUDE OF THE CAPITOL.

BANK OF THE UNITED STATES.

Committee of the Whole, on the subject of the
The House having again resolved itself into a
Bank of the United States-

Mr. H. NELSON, from the committee to whom was referred, on the 23d November last, the memorial of William Lambert, made a report, accompanied with a joint resolution authorizing the President of the United States to cause astro-hours in defence of the report of the Bank Com Mr. SPENCER rose and spoke more than four nomical observations to be made, to ascertain the longitude of the Capitol, in the City of Washington, from some known meridian in Europe; which said resolution was read twice, and ordered to be engrossed and read a third time to-morrow. The report is as follows:

That the subject of a first meridian for the United States was presented by the memorialist to the consideration of Congress in the month of December, 1809, on which a select committee of this House made a report on the 28th of March, 1810. The memorial and other papers relating to it were afterwards referred to the Secretary of State, who also reported favorably thereon, but no decision of Congress had yet been had. In the present case, the committee have attentively examined the subject; and, to enable them more fully to satisfy themselves of the accuracy of the calculations, they have made application to, and received the opinions in writing of, scientific gentlemen, in different parts of the United States, which accompany this report. It rests with Congress to determine on the utility of establishing a first meridian, in conformity to the practice of most, if not all, of the commercial nations of Europe, which appear to have considered the object of sufficient importance not only to authorize observatories to be erected, and furnished with suitable instruments and other apparatus, at the Seats of Government, or some other convenient places within their respective domin

ions, but as an appendage of sovereignty, which they

are not disposed to relinquish.

The committee believe that if a general meridian could be fixed, by the consent of all Powers materially interested in the pursuits of commerce and navigation, it would be attended with advantages which the establishment of many meridians would not afford.

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mittee.

Chair as follows: Mr. Chairman, like my friend Mr. WALKER, of Kentucky, addressed the from Virginia, last up upon this question, I merely want to give briefly my reasons for my vote. I have heard much said about the correct and incorrect management of the bank, and of the expediency and inexpediency of its measures; but, sir, upon all occasions of this nature my inquiries are directed to the constitutionality or unconstitutionality of the institution-of its moral or immoral tendency. And, sir, I do think that the President and Directors of the United States Bank deserve my thanks, not for their correct management of the public funds; no, sir, but for their prompt and decisive manner of giv ing to their country, at one view, almost their tether's length of venality and corruption, to which their measures must inevitably tend, and thereby enabling me decisively to determine the side I ought to take upon the question now before us. I can no longer doubt that the United States Bank is an engine of favoritism-of stockjobbing-of creating and attaching additional consequence to cash, already too powerful-of depressing merit, and giving to money virtue's true reward; and, what I hate, if possible, worse Republic to a detested monarchy-of binding in than that, of coupling the destiny of this fair adamantine chains the blessed, innocent lambs of America to accursed, corrupt European tigers. Yes, sir, the president and directors of the Bank of the United States have convinced me that all banking systems have a direct tendency to de

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