Abridgment of the Debates of Congress, from 1789 to 1856.

DEBATES OF CONGRESS. 497 JUNE, 1834.] Local Bank Regulation Deposit Bill. [IH. OF R. to the present time. But we are here met at agent to regulate the paper currency of the the threshold, and told, if this be so, why legis- States. It is a power and a check thrown over late upon the subject? "If it is all very well the States, wholly unknown to the constituas it is, why should there be any legislation tion. To create an arbitrary regulator of about it?" In the course of a former debate paper currency, without a competitor, which upon this subject the same gentleman (Mr. may contract or expand its issues at pleasure, WILDE) thus expressed himself: is to put in its power the regulation of the " But it has been said, and will be said, the money money price of the whole property of the counof the nation is in the selected banks-it will do no try. By contracting its issues it makes money good to remove it-will you not provide for its safe- scarce, and, in proportion to its scarcity, the keeping there? I answer, frankly, No! I will not more valuable, and thus reduces the money consecrate usurpation by law. They have seized price of property. By expanding its business upon the Treasury. Unless we, its constitutional it makes money abundant, and raises the price guardians, can restore it to its safe and proper de- of property. A regulator, without any power pository, let them keep it till they can be impeached. reserved anywhere to check or control it, might If tyranny will not rouse the people, ruin will." subject the property of every individual to sudIt is here distinctly avowed, in anticipation den, great, and ruinous depreciation. Is it that such a measure as this would probably be safe to commit the value of the whole property brought forward, that it was to be opposed. of the country to the fluctuations in price which Indeed; there is reason to doubt whether there such a regulator, in the form of an irresponsible be any measure connected with the revenue, corporation, may and certainly would produce? short of the recharter of the Bank of the United We have it from high authority, the president States, or tending ultimately to produce its re- of the Bank of the United States himself, charter, which can receive the support of a that the State banks exist by the forbearance part of'this House. of the Bank of the United States, and that The minority of the Committee of Ways and "' there are very few State banks which might Means, in their counter report upon the sub- not have been destroyed by the exertion of the ject of the deposits, maintain that, "if the pres- power of the Bank of the United States." ent bank is not to be rechartered, something to Ought such a power of destruction to be granted regulate the currency must be provided in its to any corporation? Was such a power deemed to place. The plan of the Secretary gives over the be necessary by the framers of the constitution? regulation to State banks, which will themselves In the memorial of the bank for a renewal of be promoters of the disorder. The country its charter, presented to Congress December 18, requires something that will regulate the State 1810, the same objections were urged against banks." That "State banks and their opera- the employment of State banks that are now tions are to be controlled and not the controlling heard from those who advocate the recharter power, in the execution of such a design." * of the present bank. Now, sir, I affirm that there is no power But this argument of the bank did not congiven to Congress, by the constitution, to create vince the Congress of 1810, and the recharter such a regulator. I am not about to go at was refused. large into the question of the power of Con- In a report made to Congress by Mr. Galgress, under the constitution, to create a bank. latin, then Secretary of the Treasury, on the The power, I will, however, say, is maintained 10th of January, 1811, upon the subject of the by its advocates, upon the exclusive ground recharter of the old bank, it is expressly concedthat a bank is necessary as a Government agent ed that a national bank is not indispensable, in the execution of some express power. The either as a government agent or as a regulator power has never been placed, even by the of currency. In that report it is furthermore boldest of its advocates, upon the ground that expressly admitted that " State banks may be such an institution was necessary to regulate used" as Government agents, " without any inand control the paper currency of the States. superable difficulty." The report states: "That This startling doctrine is now, it is believed, for the public moneys are safer by being weekly the first time assumed in an official paper ema- deposited in banks, instead of accumulating in nating from and having the sanction of a minor- the hands of collectors, is self-evident. And their ity of a committee of this House. What are transmission, whenever this may be wanted, the powers of Congress in regard to the cur- for the purpose of making payments in other rency? Congress may " coin money and regu- places than those of collection, cannot, with any late the value thereof; " but this they do by convenience, be effected on a large scale, in an fixing by law the value of gold and silver coin; extensive country, except through the lnedium and this power is executed by the mint, and of banks, or of persons acting as bankerls. The not by the bank. The argument is, that a question, therefore, is, whether a bank incornational bank is necessary as a regulator of the porated by the United States, or a number of paper currency of the States. If this be so, banks incorporated by the several States, be then Congress have conferred upon a corpora- most convenient for those purposes. State tion of its own creation, a power which they do banks may be used, and must, in case of a nonnot themselves possess. Congress possess no renewal of the charter, be used by the Treaspower, either express or implied, to create an ury. Preparatory arrangements have already VOL. XII.-32

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Title: Abridgment of the Debates of Congress, from 1789 to 1856.
Author: United States. Congress.
Canvas: Page 497
Publication: New York, [etc.]: D. Appleton and company [etc.]; 1857-61.
Subject terms: United States -- Politics and government

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Abridgment of the Debates of Congress, from 1789 to 1856.

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