Indiana Palladium, Volume 8, Number 36, Lawrenceburg, Dearborn County, 22 September 1832 — Page 1

By avid V. CuIIcy. Terms $3 PER YEAR 33i PER CENT. DISCOUNT MADE ON ADVANCE, OR llii ON HALE YEARLY PAYMENTS VOIi. Villi. IjAWRETCCEBIJItGBI, (I A.) SATURDAY, SEPTEMBER 22, 1S32. RIO.-

Mr. Clay's Speech, j OX TUE BAXK QUESTION, DELIVERED IN SENATE IN 1811. Mr. President, When tho subject involved in the motion now under consideration was depending before the other branch of the legislature, a disposition to acquiesce in their decision was evinced. For although the committee who reported this bill had been raised many veek3 prior to the determination of that house on the proposition to re-charter the bank, except the occasional reference to it of memorials and petitions, we scarcely ever heard of it. The rejection, it is true, of a measure brought before either branch of congress does not absolutely preclude the other from taking up the same proposition; but the economy of our time, and a just deference for the opinion of others, Would seem to recommend a delicate and cautious exercise of this power. As this subject, at the memorable period when the charter was granted, called forth the best talents of the nation as it has on various occasions, undergone the most thorough investigation, and a3 we ban hardly expect &at it is susceptible of receiving any further elucidation, it was to be hoped that we Fhould have been, spared useless debate. This was. the more desirable because they are, I conceive, much superior claims upon us for every hour of the small portion of the cession yet remaining to us. Under the operation of these motives, I had resolved

to give a silent vote, until I felt myself bound, by the defying manner of the argu ments advanced in support of the renewal, to obey the paramount duties I owe my country and its constitution; to make one . effort, however feeble, to avert the passage of wiiat appears to me a most unjustifiable law. After my honorable friend from Virginia, (Mr. Giles,) had instructed and amused us with the very able and ingenious argument which . he delivered on yesterday I should have still forborne to trespass on the senate but for the extraordinary character of Lis speech. He discussed both sides of the oucstion with great ability and eloquence, and certainly demonstatcd to the satisfaction of all who heard him, both that it was constitutional and unconstitutional, highly proper and improper to prolong the charter of the bank. The honorable gentleman appeared to me in the predicament in which the celebrated orator of Virginia, Patrick Henry, is said to have been once placed. Engaged in a most extensive and lucrative practice of tho law, he mistook in one instance, the side of the cause in which he was retained, and addressed the court and jury in a very masterly and convincing speecli in behalf of 11:3 antagonist. His distracted client came iip to him whilst he was thus employed, and interrupting him, bitterly exclaimed, "you have undone me You have ruined me P' "Never mind, give yourself no concern," said the adroit advocate ; and turning to the court and jury, continued his argument by observing, "may it please your honors, and you, gentlemen of the jury, I hate been stating to you what I presume my adversary may urge on his side. I will now show you how fallacious his reasoning and how ground less his pretentions are." The skilful ora tor proceeded, satisfactorily refuted every argument he had advanced, and gained his cause! A success with which I trust, the e.tertion of my honorable friend will on thi occasion be crowned. It has been said by the honorable gentle man from Georgia, (Air. Crawford.) that this has been made a party question, although the law incorporating the bank was passed prioT to the formation of parties and when congress was not biassed by party prejudices. (Mr. Crawford explained. He did not mean that it had been made a party question in die senate. His allusion was elsewhere.) I do not think it altogether fair to refer to the discussion in the house of representatives, as gentlemen belonging to that body have no opportunity of defending themselves here. It is true that this law ' was not the effect, but it is no less true that it was one of the causes of the political divisions in this country. And, if, during the agitation of tho present question, the renewal has, on one side, been opposed on party principles, let me ask if, on the other, it has not been advocated on similar principles? Where is the Macedonian phalanx, the onposition in congress? I believe, sir, I shall siot incur tho charge of presumptuous prophecy, when I predict we shall not. pick up irom us ranKS one single straggler I And if, on this occasion, my worthy friend from Georgia has gone over into the camp of the enemy, is it kind in him to look back upon his former friends, and rebuke them for the fidelity with which they adhere to their old principles? I shall not stop to examine how far a re prcscntativo is bound by the instructions o his constituents. That is a question be ' tweea the giver and receiver of the instruc tions. But I must be permitted to cxprcs my surprise at the pointed difference wind Ins been made between the opinions and in structions of State legislatures, and the ooin ions and details of the deputations with whicl we hive been surrounded from Philadelphia. Whilst tho resolutions of tiiose legislatures known, legitimate, constitutional and deliberative bodies have been thrown into the baek ground, and their interference regarded r.s officious, these delegations from self--re:Ued societies, composed of nobody knows wi:om, have been received by the

committee with the utmost complaisance

Their communications have been treasured up with the greatest diligence.' Never did the Delphic priests collect with more holy care the frantic expressions of the agitated rythia, or expound them with more solemni ty to the astonished Grecians, than has me committee gathered the opinions and testi monies of these deputies, and, through tne gentleman from Massadiusetts, pompously detailed them to the senate ! Philadelphia has her immediate representatives, capable of expressing her wishes upon the floor of the other house. If it be improper lor btatcs to obtrude upon congress their sentiments, it is much more highly so for the unauthorized deputies of fortuitous congregations. The first singular feature that attracts attention in this bill is the new and unconstitutional veto which it establishes. The constitution has required only, that after bills have passed the house of representatives and the senate, they shall be presented to the president for his approval or rejection, and his determination is to be made known in ten day. But this bill provides, that when all the constitutional sanctions arc obtained, and when according to the usual routine of legislation it ought to be considered as a law, it is to be submitted to a new branch of tho legislature, consisting ot the president and twenty-four directors of the bank of the United States, holding their sessions in Philadelphia, and if they please to approve it, why then is it to become a law! And three months (the term allowed by our law of May last, to one of the great belligerents for revoking his edicts, after the other shall have repealed his) are granted them to decide whether an act of congress shall be the law of the land or not! An act which is said to bo indispensably necessary to our salvation, and without the passage of which universal distress and bankruptcy are to pervade the country. Remember, sir, that the honorable gentleman from Georgia has contended that this charter is no contract. Does it then become the representatives of the nation to leave the nation at the mercy of a corporation? Ought the impending calamities to be left to the hazard of a contingent remedy? This vagrant power to erect a bank, after having wandered throughout the whole constitution in quest of some congenial spot to fasten upon, has been at length located by the gentleman from Georgia, on that provision which authorizes Congress to lay and collect taxes. In 1701 the power is refer red to one part of the instrument. In 1811 to another. Sometimes it is alledged to be deducible from the power to regulate commerce. Hard pressed here, it disappears and shows itself under the grant to coin money! The sagacious Secretary of the Treasury, in 1791, pursued the wisest course he has taken shelter behind general highsounding and imposing terms. He has declared, in the preamble of the act establish ing the bank, that it will be very conducive to the successful conducting of the national finances: will tend to give facility to the obtaining of loans, and will be productive of considerable advantage to trade and industry in general! No allusion is made to the collection of taxes. What is the nature of this government? It is emphatically feder al, vested with an aggregate of specified powers for general purposes, conceded by existing sovereignties, who have themselves retained what is not so conceded. It is said that there are cases in which it must act on implied powers. This is not controverted; but the implication must be necessary, and obviously How from the enumerated powers with which it is allied. I he power to char er companies is not specified in the grant, and I contend is ot a nature not transferable bv mere implication, It is one of tho most exalted attributes of sovereignty. In the exercise of this gigantic power we have seen an East India company created, which las carried dismay, desolation and death throughout one of the largest portions of the habitable world. A company which is, in itself, a sovereignty which has subverted empires, and set up new dynasties; and has not only made war, but war against its legiti mate sovereign! Under the influence of this power we have seen arise a South Sea Com pany, and a Mississippi Company, that dis tracted and convulsed ail Jiairopc, and me naccd a total overthrow of all credit and confidence, and universal bankruptcy. it to be imagined that a power so vast would have been left by the wisdom of the consti tution to doubtful influence ! It has been alleged that there are many instances in the constitution, where powers m their nature in cidcntal, and which would necessarily have been vested along with the principal power are nevertheless expressly enumerated; and the power "to make rules and regulations for the government of the land and naval forces," which it is said is incidental to tho power to raise armies and to provide a navy, is given cs an example. What does this prove? How extremely cautious the convention were to leave as little as possible to implication. In all cases where incidental powers are acted upon, the principal and inciuental ought to be congenial with each other, and partake of a common nature. The Incidental power ought to bo strictly subordinate, and limited to tho end proposed to be attained by the specified power. In other words, under the name of accomplishing one object which is specified, the power implied ought not to be made to embrace other objects which arc not specified

in the constitution. If, then you could establish a bank to collect and distribute the revenue, it ought to bo expressly restricted to the purpose of such collection and distribution. It is mockery, worse than usurpation, to establish it for a lawful object, and then to extend it to other objects which are not lawful. In deducing the power to create corporations, such as I have described it, from the power to collect taxes, the relation and condition of principal and incident are prostrated and destroyed. The

accessary is exalted above tho principal. as well might it be said that the great luminary of day, is an accessary, a satellite, to the humblest star that twinkles forth its feeble light in the firmament of Heaven. Suppose the constitution had been silent as to an individual department of this government; could you under the power to lay and collect taxes, establish a judiciary? I presume not: but if you could derive the power by mere implication, could you vest it with any other authority than to enforce the collection of the revenue ? A bank is made for the austensiblo purpose of aidin in the collection of the revenue, and whilst it is engaged in this, the most inferior and subordinate of all its functions, it is made to diffuse itself throughout society, and to influence all the great operations of credit, circulation and commerce Like the Virginia justice, you tell the man whose turkey had been stolen, that your books of precedents furnish no form for his case, but then you will grant him a precept to search for a cow, and when looking for that, he may possibly find his turkey! You say to this corporation we cannot authorize you to discount to emit paper to regulate com merce no! our books have no precedents of that kind. But then we can authorize ou to collect the revenue, and whilst occu)ied with that, you may do whatever else you please. What is a corporation, such as the bill contemplates? It is a splendid association of favored individuals, taken from tho mass of society, and invested with exemptions and surrounded by immunities and privileges. The honorable gentleman from Massachusetts has said that the original law, csluuusmug uiu uaiiK, was justly liable to tho objection of vesting in that institution an exclusive privilege, the faith of the government being pledged, that no other bank should be authorised during its existence, This objection, he supposes, is obviated by me uui unaer consiueraticn: but all corporations enjoy exclusive privileges that is thc corporators have privileges that no othcis possess; if you create fifty corporations

instead of one, you have only fifty privileged without inquiry or examination into its nobodies instead of one. I contend that the cessity. About the commencement of this states have the exclusive power to regulate year there appears, by tho report of tho secontracts, to declare the capacities and in- cretary of the treasury, of tho 7th of January, capacities to contract, and to provide as to to have been a little upwards of two millions

uio wicu., ui we i wpuuwuimy oi ueutors to uicir creditors, it Congress have the power to erect an artificial body, and say it shall bo endowed with the attributes of an iiidividual; if you can bestow on this object of our own cicauon, me ability to transact, may you not in contravention of State rights confer upon slaves, infants, femes covert, the ability to contract? And if you have the power to say, that an association of individuals shall be responsible for their debts only in a certain limited degree, what is to prevent an extension of a similar cxemption to individuals.' micro is the limitation upon this power to set up corporations? lou establish one in the heart of a State, the basis of whose capital is money. You may erect others whose capital shall consist in lanus, slaves, ana personal estates, and thus the whole property within the jurisdicuon oi a siato mignt no absorbed by these vr-.i irB ti i i political bodies. I he existing bank con -

tends that it is beyond the powers of a State ment, is tho mlna,,cmcnt of our lnJod systotax ii, anu n mis pretension Do well tcm. Tho salc3 have in some years.

sources of state revenue. Ocorgia has undertaken, it is true, to levy a tax on the branch within her jurisdiction, but this law, now under a course of litigation is considered as invalid. The United States own a great deal of land in the state of Ohio; can this government, for the purpose of creating an ability totmrchase it, charter a commnv? w y "-J Aliens arc forbidden in that state to hold land: could you, in order to multiply pur chasers, confer upon them tho capacity to hold land, in derogation of the local law ? I imagine this will hardly bo insisted on; and .w - vuwuu3 tuuucMOH sessed by mis government to sell its land, I : . , ; . j

increasiuguioueiiiauumuw inareei, inanUreator than that of tha Stain lm.ks, tint

there is between this bank and the eollectlie rw..w j ; w j .u.m. IUUIUUUI1S' U1f v,4,tcT. merce, coin money &c ecc. It would not be difficult to show as intimate a connexion between a corporation established for any purpose wnatevcr, and some one or other of mose gieai poe?, aa-ineru is oeuveen tne revenue and the bank ot tlie United States, Let us inquire .into the actual parti ci pation of this bank in tho collection of the revenue. Prior to the passage of the act of 1800, requiring the collectors of those port of entry at which tlie principal bank, or any of its otitcers are situated, to deposito with them tho custom-house bonds, it had not tho smallest agency in the collection of tho duties. During almost one muity ol tue

period to which the existence of this institution was limited, it was no wise instrumental in tho collection of that revenue, to which it is now become indispensable ! The

collection previous to 1S00 was made en tirely by the collectors; and even at present where there is one port of entry, at which this bank is employed, there are eight or ten at which tho collection is made as it was before 1800. And sir, what docs this bank or its branches where resort is had to it? It does not adjust with tho merchant the amount of duty, nor take his bond, nor if tho bond is not paid, coerce the payment by distress or otherwise. In fact it lias no active agency whatever in the collection. Its operation is merely passive, that is, if the obligor, after his bond is placed in the bank, discharges it, all is very well. Such is the mighty aid afforded by this tax gatherer without which the government cannot get along! Again, it is not pretended that tho very limited assistance which this institution does in truth render, extends to any other than a single species of tax, that is, duties. In tho collection of the excise the direct and other internal taxes, no aid was derived from any bank. It is true, in the collection of thosa taxes, the former did not obtain tho same indulgence which the merchant receives in paying duties. But what obliges congress to give credit to all? Could it not demand prompt payment of tho duties? And, in fact, docs it not so demand in many instances? Whether credit is given or not it is a matter merely of discretion. If it be a facility to mercantile operation, (as I presume it is) it ought to be granted. But I deny the right to engraft upon it a bank, which you would not otherwise have the power to erect. You cannot create the necessity of a bank, and then plead that necessity for its establishment. In the administration of the .11 i . i nuances, me uanK acts simply as a payer and receiver. The secretary of the treasury has money in New-York and wants it in Charleston; the bank will furnish him with a check, or bill, to make tho remittance, which any merchant would do just as well, I will now proceed to show by fact, actual experience, not theoretic reasoning, but by tho records themselves of the treasury, that the operations of that department may be as well conducted without as with this bank. The delusion has consisted in tho use of certain high sounding phrases, dexterously used on tho occasion ihn mlltinn i,f the revenue" "tho administration of tho finance" "the conducting of the fiscal affairs of the government," the usual languageof tho advocates of the bank, to extort express assent, or aire intn unn-frsrmrr ana lour hundred thousand dollars in the treasury of the United States; and more than one-third of this whole sum was in the vaults of local bank where opportunities existed of selcctimMhe bank, a preference has been given to the State bank, or at least a portion of tho dc posits has been made with it. In NcwYork, for example, there was deposited with the Manhattan bank 18S,im), although u branch bank is in that city. In this district, $115,580 were deposite'd with the bank of Columbia, although here also is a branch bank, and yet the State banks are utterly unsafe to be trusted! If the money, after the bonds are collected is thus placed with these banks, I presume there can be no difficulty, in placing, the bonds themselves there, il tiiev must bo deposited with some bank for collection, which deny. Am .i . i I Again, one of the most important and comniicafi 'i1P,nriIPS r ,i, i ,i in s of half a million of dob mnilrt ii"rr fr.wlif n.l vt yx-Ln- : .,..- .,r cilitate the collection. After it is made, the amount in some instances, has been deposi ted with bank?, and, according to the secre tary report, which I have before adverted to, the amount so deposited, was in January, upwards of threo hundred thousand dollar?, not one cent of winch was in the vaults of the bank of tho United States, or in any of its branches, but in tho bank oi Pennsylva nia, its branch at Pittsburgh, tho Marie tt; bank, and the Kentucky bank. Upon the iv-ilnt of r.'tnnnsiil illitv 1 rvmnrit c;j,. ,ii)o t tho opinion of the secretary of tho treacuiy ty to pay tho amount of any deposit3 which tho governincut may mat;e, unucr any exigency, is Uk nrrht,. .:.i I vvlinqn rjfFiira nrr nnnifwul lw c'n'il.i L. -wt responsible lor all its members is more s;mplo lhan tm of a uuwber of independent aad unconnected establishments, 1 kail not ,ionv. ,;ii. ,.i r... i' ... lv inclined to lh5nk u is 0 tkldc of the f0. cat banks. Tho corruption or miconduct of lhe p:ircn, or any , 1)rancho,. ,nay bankrupt or destroy the whole system, and tho loss of the "ovemmertin tin t'e vent, will be of the deposits made with each; whereas, in the failure of one Stato bank tha loss will bo confined to the deposit in tho vault of that bank. It is said to havo been a part of liurfs phn to seine on the branch bank at New-Orleans. At that period l.irgo sum., imported from 1t Vera Cru ?, aro alU ded to lave beta den. :ited whh

t. unu u u:;jj

traitor had accomplished tho design, tho

bank of tho United State?, if not actually bankrupt, might have been constrained to stop payment. It is urged bv tho gentleman from Ma-ssa, chusctts, (Mr. Lloyd,) that as this nation advances in commerce, wealth, and population, new encrgioj will be unfolded, new wants and exigences will arisj, end hence he infers that powers must bo implicated from the constitution." Hut, sir, tho question, s shall ire stretch the instrument to embrace cases not fairhi vrithin its ico: r. or shall wo resort to that remedy, by amend ment, wmch the com.tit-.iion proscribes! Gentlemen contend that the construction which they give to the constitution has been acquiesced in by all parties and under all administrations; and theyn ly pirticularly ou an act which pasaod in 1S01, for extending a branch at New Orleans; and another act of 107, for punishing tlioso who should forgo or utter forged paper of the bank. With regard to the liix-t law, jnssed no doubt upon the recommendation of tho treasury department, I would remark, that it vaa tho extension of a branch to a territory over which congress possesses the oyer of legislation uhnost uncontrolled, end where, without any constitutional impediment,' charter! of incorporation may bo granted. As to tho other rxt, it was passed no lets for the benefit of tho community than the bank to protect tho ignorant and unwary from counterfeit paper, purporting to have been emitted by tho bank. When gentlemen ore chiming tho advantage supposed to be deducible from acquiescence, lot mo inquire what they would have had those to do, who believed tho establishment of a bank an encroachment upon Stato rights? Were they to have resisted, and how? Uy forco? Ujwni tho change of parties in 1MH), it must bo well recollected that tho greatest calamities were predicted as a consequence of that event. Intentions were ascribed to the new occupants of power, of violating tho public faith, and prostrating national credit. Under such circumstances that they should act with groat circumspection, was quito natural. They saw in full operation a bank, chartered by a congress who had as much right to judgo of their constitutional powers as their successors. Had they revoked fho law which gavo it existence, tho institution would, in all probability, continued to trans act business notwithstanding. The judiciary would have been appealed to, and from the htoirn opinions and vrcdiUctionsof tho judges then composing it, they would have pronounced the act ot incorporation, as iu the nature of a contract, beyond tho repealing power of tiny succeeding legislature. And, sir, what a scene of confusion would uch a state of thin:i have presented an act of congress, which was law in ihcstututtt bonk, end a nullity on the judicial records! was it not the wisest to wait the natural. dis solution of the corporation rather than uccelorato that event by a repealing hw involving so many delicate considerations? When gentlemen attempt to carry this measure upon the ground oi acnuicicenco or precedent, do thi-y forget that we uro not in WcstmiuL-icr hdi .' Iu courts of justice, tho utility of uniform derision vxrwi of tho jutigo a conformity to tho cdiudxation of Ins prcdecost'or. In the iutciprotation and administration of iho liw. tlii.-. nr..,.! wise ana proper, cud without it every thing depending ujKn tho caprice of tho jud"c! we should have im sricurity f;r our dearest rights. It is fir otherwise v,!:oii n'mli J t tho source of legislation. Here no inle ixists but the constitution, ;uul to legislate upon tho ground merely tint ::r predecessors thought themselves taithoiisul, under similar circumstances to legislate, is to swnttily error ami perpetuate usurpation. Uut if wo aro to bo subjected to tho tranunrls of precedent, I claim on the other hand, iho benefit of tha restrictions under which tho intelligent judgo cautiously ilcuycs thi m. It is an established rule la: t to give to u previous adjudication any ilect, tho mind of tho judgo who pi onoiau cd it must hao been awakened to tho subject, ;Mid it u:ust havo been a dchberato cpinii n Limed after full argument. la tcchu'cM language, it must not havo been .vi.iVs;V..a). 4uw tho acts of V01 and IS 7, relied iqon :.s pledges for the recharterir.g th'.d c:np;'i;y, p;:si d net only wit! unit any dkcu.-aions whatcvri of tho constitutional power i f congres. to establish a bank, but, I venture lotny, with out a ringlo member hiving Ind h!:i .rtt tion drawn to this quest i-i. I had the lienor of a seat iu the urate when tho !.ttt r law parsed, mobabh u U d ii.i it, ;,nd 1 diclare with the utino: i . inceiii, ihit 1 n; a r once thought c f that point, ;.:.d I rje nl confidentially to every houertil le t:,euh( r vln was then present to y y iftUt ur.bl.ot hii situation. This doctrhso ( f prtv; ;demV, rpplir-d to the legislature, apvui. to i:e U; be f,i:e? ht with the mo"it miscmeu.ps n us. p m , s. The great advantage' of om fvmi m ofgovunmentover all others is, that'we h;:ve :i itten constitution defining its limit.-, :;nd prescribing its'iiuthorith :;; :;r.d thut, how v. r, for a time, faction may ionvuh j tjnj ieit! n and passion and paity prejudice- ?.ay its functionaries, the se;.Suii of ivih ctien wdl recur wheu calmly retnctin.j their doul. all aberrations flora f;vid.:i:.-ntul pviucqh:? will bo corrected. ll.lt ci.ee m ! ,.e.';iu1o practice for pti;.c:pK the :;; .-i;"n f r the eohstitiMK'n, ;:t. iu v ;. i : i .;..!! w. !

ii L.,4 h.nun.-.U .u l.u

i.-.;eu.eni

it1.