Bank of the United States: A Peculiar Institution?

By William P. Litynski

From the Grassy Knoll in Washington, D.C.:

Lone Gunman or Patsy?
The Attempted Assassination of American President Andrew Jackson on Capitol Hill on January 30, 183

“I’m just a patsy!”: Richard Lawrence, an unemployed house-painter from England and a “lone gunman , attempts to assassinate !.". President #ndrew $ackson at the entrance of the !.". %apitol in Washington, &.%. on January 30, 1835. The national de t !as paid in "ull on January 8, 1835, 'ust (( days )efore the attempted assassination on #ndrew $ackson. %ongress passed the "econd %oinage #ct on $une (*, +*,-. .he Panic of +*,/ occurred on 0ay +1, +*,/ 'ust after the "econd Bank of the !nited "tates in Philadelphia )ecame a pri2ate )ank on $anuary +, +*,/. #ndrew $ackson is the only president e2er to preside o2er the 2irtual elimination of #merica3s national de)t. #merica3s national de)t has e4ceeded 5+/ trillion in (1+,.

!"y dear sir, # ha$e to thank you for four letters, all $ery interestin% & $ery welcome' The last only re(uires any answer & that # will %i$e $ery e)plicitly' *ou may rely upon it that the +ank has taken its final course and that it will ,e neither fri%htened nor ca-oled from its duty ,y any small dri$ellin% a,out relief to the country' All that you ha$e heard on that su,-ect from .ew *ork is wholly without foundation' The relief, to ,e useful or permanent, must come from Con%ress & from Con%ress alone' #f that ,ody will do its duty, relief will come if not, the +ank feels no $ocation to redress the wron%s inflicted ,y these misera,le people' /ely upon that' This worthy President thinks that e!ause he has s!al"ed #ndians and im"risoned $udges, he is to ha%e his way with the &ank. 'e is mistaken and he may as well send at once and en%a%e lod%in%s in Ara,ia ' ' '0 1 .icholas +iddle 2President of the 3econd +ank of the 4nited 3tates5, in a letter to Joseph Hopkinson 2Jud%e of the 4nited 3tates 6istrict Court for the 7astern 6istrict of Pennsyl$ania5 on 8e,ruary 91, 183:

()!er"ts o* President +ndrew $a!kson,s Farewell +ddress -egarding the &ank o* the .nited /tates 01ar!h 2, 34567

Andrew Jackson !-e!ent e%ents ha%e "ro%ed that the "a"er8money system o* this !ountry may e used as an engine to undermine your *ree institutions, and that those who desire to engross all "ower in the hands o* the *ew and to go%ern y !orru"tion or *or!e are aware o* its "ower and "re"ared to em"loy it. *our ,anks now furnish your only circulatin% medium, and money is plenty or scarce accordin% to the (uantity of notes issued ,y them' ;hile they ha$e capitals not %reatly disproportioned to each other, they are competitors in ,usiness, and no one of them can e)ercise dominion o$er the rest< and althou%h in the present state of the currency these ,anks may and do operate in-uriously upon the ha,its of ,usiness, the pecuniary concerns, and the moral tone of society, yet, from their num,er and dispersed situation, they can not com,ine for the purposes of political influence, and whate$er may ,e the dispositions of some of them their power of mischief must necessarily ,e confined to a narrow space and felt only in their immediate nei%h,orhoods' +ut when the charter for the +ank of the 4nited 3tates was o,tained from Con%ress it perfected the schemes of the paper system and %a$e to its ad$ocates the position they ha$e stru%%led to o,tain from the commencement of the 8ederal =o$ernment to the present hour' The immense capital and peculiar pri$ile%es ,estowed upon it ena,led it to e)ercise despotic sway o$er the other ,anks in e$ery part of the country' From its su"erior strength it !ould seriously in9ure, i* not destroy, the usiness o* any one o* them whi!h might in!ur its resentment: and it o"enly !laimed *or itsel* the "ower o* regulating the !urren!y throughout the .nited /tates. #n other words, it asserted 0and it undou tedly "ossessed7 the "ower to make money "lenty or s!ar!e at its "leasure, at any time and in any ;uarter o* the .nion, y !ontrolling the issues o* other anks and "ermitting an e)"ansion or !om"elling a general !ontra!tion o* the !ir!ulating medium, a!!ording to its own will. The other ,ankin% institutions were sensi,le of its stren%th, and they soon %enerally ,ecame its o,edient instruments, ready at all times to e)ecute its mandates< and with the ,anks necessarily went also that numerous class of persons in our commercial cities who depend alto%ether on ,ank credits for their sol$ency and means of ,usiness, and who are therefore o,li%ed, for their own safety, to propitiate the fa$or of the money power ,y distin%uished >eal and de$otion in its ser$ice' The result of the ill?ad$ised le%islation which esta,lished this %reat monopoly was to concentrate the whole moneyed power of the 4nion, with its ,oundless means of corruption and its numerous dependents, under the direction and command of one acknowled%ed head, thus or%ani>in% this particular interest as one ,ody and securin% to it unity and concert of action throu%hout the 4nited 3tates, and ena,lin% it to ,rin% forward upon any occasion its entire and undi$ided stren%th to support or defeat any measure of the =o$ernment' #n the hands of this formida,le power, thus perfectly or%ani>ed, was also placed unlimited dominion o$er the amount of the circulatin% medium, %i$in% it the power to re%ulate the $alue of property and the fruits of la,or in e$ery (uarter of the 4nion, and to ,estow prosperity or ,rin% ruin upon any city or section of the country as mi%ht ,est comport with its own interest or policy' ;e are not left to con-ecture how the moneyed power, thus or%ani>ed and with such a weapon in its hands, would ,e likely to use it' The distress and alarm whi!h "er%aded and agitated the whole !ountry when the &ank o* the .nited /tates waged war u"on the "eo"le in order to !om"el them to su mit to its demands !an not yet e *orgotten. The ruthless and uns"aring tem"er with whi!h whole !ities and !ommunities were o""ressed, indi%iduals im"o%erished and ruined, and a s!ene o* !heer*ul "ros"erity suddenly !hanged into one o* gloom and des"onden!y ought to e indeli ly im"ressed on the memory o* the "eo"le o* the .nited /tates. #f such was its power in a time of peace, what would it not ha$e ,een in a season of war, with an enemy at your doors@ .o nation ,ut the freemen of the 4nited 3tates could ha$e come out $ictorious from such a contest< yet, if you had not con(uered, the =o$ernment would ha$e passed from the hands of the many to the hands of the few, and this or%ani>ed money power from its secret concla$e would ha$e dictated the choice of your hi%hest officers and compelled you to make peace or war, as ,est suited their own wishes' The forms of your =o$ernment mi%ht for a time ha$e remained, ,ut its li$in% spirit would ha$e departed from it'

The distress and su**erings in*li!ted on the "eo"le y the ank are some o* the *ruits o* that system o* "oli!y whi!h is !ontinually stri%ing to enlarge the authority o* the Federal Go%ernment eyond the limits *i)ed y the Constitution. The "owers enumerated in that instrument do not !on*er on Congress the right to esta lish su!h a !or"oration as the &ank o* the .nited /tates, and the e%il !onse;uen!es whi!h *ollowed may warn us o* the danger o* de"arting *rom the true rule o* !onstru!tion and o* "ermitting tem"orary !ir!umstan!es or the ho"e o* etter "romoting the "u li! wel*are to in*luen!e in any degree our de!isions u"on the e)tent o* the authority o* the General Go%ernment. Let us a ide y the Constitution as it is written, or amend it in the !onstitutional mode i* it is *ound to e de*e!ti%e. The se$ere lessons of e)perience will, # dou,t not, ,e sufficient to pre$ent Con%ress from a%ain charterin% such a monopoly, e$en if the Constitution did not present an insupera,le o,-ection to it' +ut you must remem,er, my fellow?citi>ens, that eternal %igilan!e y the "eo"le is the "ri!e o* li erty, and that you must "ay the "ri!e i* you wish to se!ure the lessing. #t ehoo%es you, there*ore, to e wat!h*ul in your /tates as well as in the Federal Go%ernment. The power which the moneyed interest can e)ercise, when concentrated under a sin%le head and with our present system of currency, was sufficiently demonstrated in the stru%%le made ,y the +ank of the 4nited 3tates' 6efeated in the =eneral =o$ernment, the same class of intri%uers and politicians will now resort to the 3tates and endea$or to o,tain there the same or%ani>ation which they failed to perpetuate in the 4nion< and with specious and deceitful plans of pu,lic ad$anta%es and 3tate interests and 3tate pride they will endea$or to esta,lish in the different 3tates one moneyed institution with o$er%rown capital and e)clusi$e pri$ile%es sufficient to ena,le it to control the operations of the other ,anks' 3uch an institution will ,e pre%nant with the same e$ils produced ,y the +ank of the 4nited 3tates, althou%h its sphere of action is more confined, and in the 3tate in which it is chartered the money power will ,e a,le to em,ody its whole stren%th and to mo$e to%ether with undi$ided force to accomplish any o,-ect it may wish to attain' *ou ha$e already had a,undant e$idence of its power to inflict in-ury upon the a%ricultural, mechanical, and la,orin% classes of society, and o$er those whose en%a%ements in trade or speculation render them dependent on ,ank facilities the dominion of the 3tate monopoly will ,e a,solute and their o,edience unlimited' ;ith such a ,ank and a paper currency the money power would in a few years %o$ern the 3tate and control its measures, and if a sufficient num,er of 3tates can ,e induced to create such esta,lishments the time will soon come when it will a%ain take the field a%ainst the 4nited 3tates and succeed in perfectin% and perpetuatin% its or%ani>ation ,y a charter from Con%ress' #t is one o* the serious e%ils o* our "resent system o* anking that it ena les one !lass o* so!iety88and that y no means a numerous one88 y its !ontrol o%er the !urren!y, to a!t in9uriously u"on the interests o* all the others and to e)er!ise more than its 9ust "ro"ortion o* in*luen!e in "oliti!al a**airs. The a%ricultural, the mechanical, and the la,orin% classes ha$e little or no share in the direction of the %reat moneyed corporations, and from their ha,its and the nature of their pursuits they are incapa,le of formin% e)tensi$e com,inations to act to%ether with united force' 3uch concert of action may sometimes ,e produced in a sin%le city or in a small district of country ,y means of personal communications with each other, ,ut they ha$e no re%ular or acti$e correspondence with those who are en%a%ed in similar pursuits in distant places< they ha$e ,ut little patrona%e to %i$e to the press, and e)ercise ,ut a small share of influence o$er it< they ha$e no crowd of dependents a,out them who hope to %row rich without la,or ,y their countenance and fa$or, and who are therefore always ready to e)ecute their wishes' The planter, the farmer, the mechanic, and the la,orer all know that their success depends upon their own industry and economy, and that they must not e)pect to ,ecome suddenly rich ,y the fruits of their toil' *et these classes of society form the %reat ,ody of the people of the 4nited 3tates< they are the ,one and sinew of the country??men who lo$e li,erty and desire nothin% ,ut e(ual ri%hts and e(ual laws, and who, moreo$er, hold the %reat mass of our national wealth, althou%h it is distri,uted in moderate amounts amon% the millions of freemen who possess it' +ut with o$erwhelmin% num,ers and wealth on their side they are in constant dan%er of losin% their fair influence in the =o$ernment, and with difficulty maintain their -ust ri%hts a%ainst the incessant efforts daily made to encroach upon them' The mischief sprin%s from the power which the moneyed interest deri$es from a paper currency which they are a,le to control, from the multitude of corporations with e)clusi$e pri$ile%es which they ha$e succeeded in o,tainin% in the different 3tates, and which are employed alto%ether for their ,enefit< and unless you e!ome more wat!h*ul in your /tates and !he!k this s"irit o* mono"oly and thirst *or e)!lusi%e "ri%ileges you will in the end *ind that the most im"ortant "owers o* Go%ernment ha%e een gi%en or artered away, and the !ontrol o%er your dearest interests has "assed into the hands o* these !or"orations. 0

7)cerpts on the +ank of the 4nited 3tates under .icholas +iddle
!The atmos"here was growing tense a *ortnight later when, on $anuary 5<, 345=, General $a!kson %isited the 'ouse !ham er to attend *uneral ser%i!es *or the late -e"resentati%e Warren -. Da%is o* /outh Carolina. The urden o* the !ha"lain,s sermon was that li*e is un!ertain, "arti!ularly *or the aged. !There sat the %ray?haired president,0 wrote an 7n%lish $isitor, Harriet "artineau, !lookin% scarcely a,le to %o throu%h this ceremonial'0 The discourse finished, he filed past the casket and with the Ca,inet descended to the rotunda of the Capitol' + stranger o* good a""earan!e, his *a!e !o%ered y a thi!k la!k eard, was standing si) *eet away. >o one noti!ed him draw the small, right "istol he aimed at the ()e!uti%e, ut, as he "ressed the trigger, the re"ort rang through the stone !ham er ?like a ri*le shot.@ Calmly the man "rodu!ed another "istol. $a!kson was one o* the *irst to realiAe what was ha""ening. Clu ing his !ane he started *or the man. “Crack!” went the se!ond wea"on. Bld 'i!kory lunged at his assailant, ut a young army o**i!er rea!hed the man *irst. The President was unharmed. Anly the caps of the pistols had e)ploded, the char%es failin% to %o off, althou%h the weapons had ,een properly loaded !with fine %la>ed duellin% powder and ,all'0 Jack 6onelson recapped one and s(uee>ed the tri%%er' #t fired perfectly' An e)pert on small arms calculated that the chance of two successi$e misfires was one in one hundred and twenty?fi$e thousand' /ushin% to the ;hite House to con%ratulate the President on his narrowest escape from death, "artin Ban +uren found him with the 6onelson children in his lap, talkin% of somethin% else to "a-or =eneral ;infield 3cott' The assailant said he was /ichard Cawrence and that Jackson had killed his father' ;hen it de$eloped that Cawrence was an 7n%lishman whose parents had ne$er ,een in America, the prisoner descri,ed himself as the heir to the +ritish crown' He said that he wanted to put =eneral Jackson out of the way in order to stren%then his claims to the throne' ;hen the prisoner was committed to a lunatic asylum, parti>ans on ,oth sides o,-ected to that undramatic disposition of the case, 8rank +lair hintin% that Cawrence was a tool of JacksonDs enemies and 6uff =reen that the affair had ,een de$ised to create popular sympathy for the President' #t did !reate sym"athy *or him, $ohn C. Calhoun detaining the /enate with a denial o* !om"li!ity, and $ohn Cuin!y +dams "ro!laiming his allegian!e on the *loor o* the 'ouse. 0 1 The Life of Andrew Jackson ,y "ar(uis James, Part TwoE Portrait of a President, +ook 8i$eE The !/ei%n0, Chapter FFFB### 2The 7ti(uette of Collectin% Twenty?fi$e "illion 8rancs5, p' G8 ?G8G !1ore *ortunate in the *ield o* "u li! *inan!e, General $a!kson was a le se%en days later, on $anuary 4 D, 345=E, to "ay the *inal installment o* the national de t. Bwing no one and with a sur"lus in its Treasury, this Go%ernment en9oyed a *is!al standing uni;ue in the history o* the modern world. The fa$ora,le ,alance showed e$ery indication of increasin%, for in ei%ht months the country had passed from a depression to a state of prosperity, with $isions of o$erflowin% a,undance which 8rench war clouds failed to dispel' #n the sprin% of 183 the march of plenty crossed the line into the %reen pastures of speculation' The impetus came in part from a speculati$e wa$e in 7urope, in part from the momentum of o$er rapid reco$ery from the +iddle panic, in part from the Treasury surplus creatin% an e)cess of loana,le funds in the custody of the !pet0 ,anks' The phenomena of inflation ,e%an to appear' .ew state ,anks were chartered ,y the score, most of them ,iddin% for a share of the =o$ernment deposits, many of them %ettin% it, and all printin% their own money' +ad money dri$es out %ood' !JacksonHs yellow ,oys,0 the %old pieces minted in 183:, $anished into the hidin% places of the thrifty who knew that %old could ,e spent any day ,ut were less certain of the current flood of paper' +ank notes flew from hand to hand in fantastic transactions of purchase and sale'0 1 The Life of Andrew Jackson ,y "ar(uis James, Part TwoE Portrait of a President, +ook 8i$eE The !/ei%n0, Chapter FFFB### 2The 7ti(uette of Collectin% Twenty?fi$e "illion 8rancs5, p' GI0

!The President aims at the destruction of the +ank'0 1 .icholas +iddle, President of the +ank of the 4nited 3tates !# am willin% to see the charter e)pire without pro$idin% any su,stitute for the present ,ank' # am willin% to see the currency of the federal %o$ernment left to the hard money mentioned and intended in the constitution'0 1 Andrew Jackson, President of the 4nited 3tates !The remainder of the messa%e contained happier information' The ,est of it concerned the national de,t' As of January 1, 183 , after satisfyin% all the %o$ernmentHs operatin% o,li%ations, the national de,t would ,e totally e)tin%uished and the Treasury would carry a ,alance of J::0,000' >o national de t. >ot a !ent owed to anyone. What an e)traordinary a!!om"lishment. What a "roud oast. +s -oger &. Taney had said to $a!kson 9ust a *ew months earlier, ?it is # elie%e the *irst time in the history o* nations that a large "u li! de t has een entirely e)tinguished.@ Jackson himself could not help crowin% a,out this accomplishment, althou%h he ri%htly credited it to the industry and enterprise of the American people, despite the rude financial shock of last winter inflicted ,y .icholas +iddle'0 1 Andrew Jackson and the Course of American Democracy, 1833-1845 , Bolume ### ,y /o,ert B' /emini, Chapter 1:, p' 918? 91I

!A.6/7; JACK3A. paid his hotel ,ill at the /ip /aps with a personal check for three hundred and ninety?fi$e dollars and se$enty?fi$e cents on "r' +iddleDs ,ank, and on Au%ust 93, 1833, he was at his desk in the ;hite House after an a,sence of twenty?se$en days''' +rmed with stronger e%iden!e than e%er o* the ank,s moral un*itness more se!ret loans to !ongressmen, more editors 0in!luding $ames Gordon &ennett7 F ought u",F si)ty thousand dollars to "rinters *or "ro"aganda, li%ht on the As,ury 6ickins deal' Jackson summoned his Ca,inet on 3eptem,er 10' Presentin% a report from Kendall claimin% sufficient state ,anks a$aila,le for immediate needs, the President said that the =o$ernment would chan%e depositories on Acto,er 1' The meetin% ended in an apparently irreconcila,le disa%reement Taney and ;ood,ury supportin% Jackson< "cCane, 6uane and Cass opposed< +arry a,sent' An 3eptem,er 1:, Jackson su%%ested that 6uane retire in keepin% with his promise' He refused' An 3eptem,er 1I, Jackson read the Ca,inet a statement of his reasons for remo$al which Taney, sustained ,y ,lack ci%ars, had sat up most of the ni%ht re$isin%' 7$en 6uane admitted it a stron% document< ,ut he refused to si%n an order discontinuin% deposits in the +ank of the 4nited 3tates and he refused to resi%n' Had "r' 6uane ,een an officer of the ,ank, it is difficult to see how he could ha$e ser$ed "r' +iddle ,etter' An interestin% fact is that the ,anker knew si) weeks in ad$ance almost precisely the e)asperatin% line the 3ecretary of the Treasury intended to take with his chief' >i!holas &iddle turned the s!rews o* !redit tighter, not in &oston alone ut throughout the (ast, the West and the /outh. 7$ery day of delay stren%thened his hands and weakened those of the President' .ot e$en in his ,ed cham,er could Jackson find refu%e from the incessant pressure, ;' +' Cewis accostin% him there to palliate the ,eha$ior of 6uane and ur%e a postponement until Con%ress should meet' L.o, sir,L the =eneral flashed ,ack' L#f the ,ank ' ' ' Mkeeps the deposits until thenN no power can pre$ent it from o,tainin% a charter it will ha$e it if it has to ,uy up all Con%ress'L To add to these tri,ulations "cCane and Cass threatened to a,andon their posts, which would wreck, as many thou%ht, popular confidence in the Administration' 6e,ilitatin% headaches and a pain in the chest constantly threatened to ,rin% Ald Hickory to ,ed' LOuite unwell today,L he wrote' L.othin% ,ut the e)citement keeps me up'L Throu%h it all the 7)ecuti$eDs for,earance was as remarka,le as his infle)i,ility' Ouarrelin% with no one, he met 6uaneDs whimperin% insolence with di%nity' .ot until 3eptem,er 93 did he dismiss this su,ordinate and name /o%er +' Taney in his stead' The new 3ecretary of the Treasury lost no time %i$in% official notice that =o$ernment deposits would not ,e made in the +ank of the 4nited 3tates after the last day of the month' >i!holas &iddle thought $a!kson would not dare to go that *ar, ut, *oresightedly enough, the anker had long and !are*ully "re"ared *or any e%entuality. He had placed his ,ank in tip?top shape and slyly drawn state ,anks into its de,t' These astute measures were counted on to ,reak up the remo$al campai%n in its early sta%es' L;hen we ,e%in,L he told the head of his .ew *ork ,ranch, Lwe shall crush the Kitchen Ca,inet at once'L The ,e%innin%, which Amos Kendall had witnessed in +oston, ,rou%ht on %reat consternation ,ut failed to achie$e its end' /o, on B!to er 3 1r. &iddle turned the s!rews again, and hardest in the West and the /outh. Dis!ounts were *urther redu!ed, more alan!es against state anks !alled in, the re!ei"t o* the notes o* state anks restri!ted, ills o* e)!hange limited to si)ty days., e)!hange rates raised and rigged in *a%or o* the (ast to draw !a"ital in that dire!tion. 3i)teen days later western offices were re(uired to s(uee>e their communities ti%hter still' The ,ank claimed these harsh measures necessary to its security, and this false statement contained a decepti$e element of truth' 3ome contraction was necessary, the e)act e)tent of which pro,a,ly no two persons could ha$e a%reed on' 4nder the co$er of this necessity +iddle went far and away ,eyond anythin% re(uired ,y conser$ati$e ,ankin%' At the outset his ,ank was in an e)ceptionally stron% position' An Acto,er 1, =o$ernment money in its $aults amounted to nine million ei%ht hundred and si)ty?ei%ht thousand dollars, to ,e drawn out %radually o$er a period of se$eral months' The ankerGs deli erate "ur"ose was to make "eo"le su**er, to ring u"on the +dministration a storm o* "rotest y the threat o* "ani! and, i* that did not su**i!e, y "ani! in *a!t. The lame, he *elt, would *all on $a!kson and ruin him. Had not the then 3ecretary of the Treasury, "r' "cCane, solemnly warned the President of this identical calamity si) months ,efore@ 3o "r' +iddle sowed the wind, toppin% off that achie$ement with a manifesto in his -auntiest style, representin% Jackson as an an%ry i%noramus intent upon the demolition of an institution whose aim was to scatter seeds of ,ene$olence amon% a prosperous, a happy and a $irtuous people' +iddleDs o,-ect was measura,ly assisted ,y the lame start the Lpet ,anks,L to use the oppositionDs term, made at takin% o$er the work of the Lmonster'L Amos Kendall, who did much of the actual work of erectin% the new system, was a keen man and a capa,le or%ani>er' 8our years as 8ourth Auditor of the Treasury, a post ,eneath his talents, had tau%ht him somethin% of the mysteries of ,ankin% and finance< and his constant thou%ht had ,een to supplant the +ank of the 4nited 3tates' "cCane and 6uane so retarded his efforts, howe$er, that in 3eptem,er he had ,rou%ht Jackson an instrument admittedly imperfect' Con*ronted y the alternati%es o* gi%ing attle with hal* an army or retiring *rom the *ield, Bld 'i!kory !hose to *ight. /o%er +' Taney, takin% o$er the su,ordinate command, sou%ht to arm a few of the state ,anks with the means of defense should +iddle suddenly call on them to redeem lar%e (uantities of their notes in specie' Accordin%ly he issued to each of the .ew *ork depositories and to one depository in Philadelphia a draft for fi$e hundred thousand dollars on the +ank of the 4nited 3tates' A +altimore depository %ot three drafts for a hundred thousand each' These transactions were unnoted in the reports of the Treasury to the +ank of the 4nited 3tates, the strict understandin% ,ein% that the drafts should ,e presented only in e$ent of a%%ression ,y "r' +iddle' Temptation o$ercame some of the recipients of this ammunition' 8indin% itself ad$ersely in$ol$ed in speculation, the 4nion +ank of +altimore cashed one of the one?hundred?thousand?dollar drafts' The situation was made worse ,y the fact that Thomas 7llicott, president of this institution, was a close friend of Taney, himself a small stockholder' Then, in defiance of renewed pled%es, 7llicott cashed the other two' The Philadelphia ,ank followed with its fi$e?hundred?thousand?dollar draft, as did one of the .ew *ork ,anks' +iddle met these demands on the spot ,ut filled the air with entirely -ustified remonstrances ,ecause of the intentional omission of the drafts from the Treasury statements' 8or awhile it looked as if the +altimore ,ank

would fail and, all in all, "r' Taney was in an u%ly fi) as he deser$ed to ,e' +ut he pulled out, no more emer%ency drafts ,ein% presented' =radually additions were made to the chain of depositories until the country was co$ered' +y day?and?ni%ht industry, the Treasury chief ,e%an to co?ordinate their acti$ities' >i!holas &iddle was e;ually usy, and the results o* his handiwork made the im"ro%ements in 1r. TaneyGs system di**i!ult to a""re!iate. The re"ressi%e "ro!eedings o* the great ank were earing *ruit. Commer!e sla!kened, industry droo"ed, "ri!es o* se!urities and o* agri!ultural "rodu!ts slum"ed: hands were laid o**: wages !ut: gold and sil%er were hoarded, money rates !lim ed *rom eight to twenty8*i%e "er !ent and usiness houses egan to go to the wall. .or could all the incon$eniences ,e attri,uted directly to "r' +iddle, thou%h it was in his power to relie$e them' As the =o$ernmentDs fiscal a%ent the %reat ,ank had pro$ided a national currency that was fairly uniform' A ,ill on an Atlantic sea,oard ,ranch was honored on the "ississippi /i$er for a,out ninety?ei%ht cents on the dollar' "r' TaneyDs thrown?to%ether %roup was una,le to duplicate this arran%ement' Troops transferred from Bir%inia to Ala,ama found their money had depreciated twel$e and a half per cent' =o$ernment employees and creditors in "issouri and #llinois, heretofore paid in notes of the %reat ,ankDs 3t' Couis ,ranch recei$a,le locally at par, %ot the paper of the LpetL ,ank in ;ashin%ton, 6' C', which they found hard to dispose of at a fi$e percent sha$in%' 3uch thin%s discomfited a stratum of society where JacksonHs supporters were most numerous' 1r. &iddle eat the drums and let the "eo"le know. 1ore manna *or !ongressmen, editors and "am"hleteers ;ui!kened the s"read o* his gos"el. The waters o* "u li! dis!ontent egan to rise and some o* $a!ksonGs "ersonal *ollowers to *all away. Clayton o* Georgia, 'ouse leader o* the anti8 ank *or!es in GThirty8one, a!!e"ted a loan and a"ologiAed *or his error. 0 1 The Life of Andrew Jackson ,y "ar(uis James, Part TwoE Portrait of a President, +ook 8i$eE The !/ei%n0, Chapter FFFB# 2"r' +iddleHs +i%%est =am,le5, p' G:P, G:I?G 9 !A tall and still room in a replica of a =reek temple facin% Chestnut 3treet, Philadelphia, sheltered another man who pondered the affairs of the +ank of the 4nited 3tates tireless, ele%ant .icholas +iddle, his ima%inati$e mind em,oldened ,y success' After ei%ht years as the presidin% officer of that institution, .icholas +iddle could contemplate a record of sin%ular achie$ement' Throu%h its twenty?se$en ,ranches and a%encies, the +ank of the 4nited 3tates ruled the commerce, the industry, the hus,andry of a nation< and +iddle ruled the ,ank' His control of the circulatin% medium was nearly a,solute' +y e)pandin% or contractin% credits he could make money plentiful or scarce, ,usiness ,risk or dull in any locality in the land sa$in%, to a certain e)tent, .ew 7n%land whose independent ,anks were stron% and well?mana%ed' .othin% short of a declaration of war could effect the e$eryday concerns of Americans as profoundly as this man, who looked more like a poet than a financier, could affect them ,y a stroke of the pen with which he had, indeed, struck off some passa,le pentameters'0 1 The Life of Andrew Jackson ,y "ar(uis James, Part TwoE Portrait of a President, +ook 8i$eE The !/ei%n0, Chapter FFF# 2A =reek Temple in Chestnut 3treet5, p' 3 !The terms of this institutionDs charter fa$ored a re$i$al of the Hamiltonian ideal of concentratin% control of the financial affairs of the people of the 4nited 3tates in the hands of a few men' The capital was thirty?fi$e million dollars of which the %o$ernment su,scri,ed se$en million' Control resided in a ,oard of twenty?fi$e directors, fi$e of whom were appointed ,y the President of the 4nited 3tates, the remainder ,y the outside stockholders' The ,ank was desi%nated the depository for all =o$ernment funds, thou%h the 3ecretary of the Treasury mi%ht deposit such funds elsewhere pro$ided he informed Con%ress of the reason' An these deposits the ,ank paid no interest, ,ut it was re(uired to pay a ,onus of a million and a half dollars, to transfer pu,lic money without char%e, and to perform other ser$ices' The ,ank mi%ht issue currency, pro$idin% each note was si%ned ,y the president of the institution and redeemed in specie on demand' 3uch currency was recei$a,le for =o$ernment dues, a pri$ile%e e)tended to the notes of only such state?chartered ,anks as redeemed in specie' +iddle made the most of these monopolistic concessions' +y refusin% to reco%ni>e the notes of state institutions which did not redeem in specie, the %reat ,ank did much to end the fantastic era of American ,ankin% ,orn of the post?war ,oom and su,se(uent depression' =o$ernment patrona%e kept the %reat ,ankDs notes at par' The %reat ,ank made state ,anks toe the mark ,y callin% on them, at the first si%n of undue e)pansion, to redeem in coin' The result, in a few years, was the most satisfactory currency the country had yet known' +road as was its charter, +iddle enlar%ed the domination of his ,ank ,eyond anythin% intended ,y the compact' ;hile the charter specified no limit to the currency of the ,ank, the pro$ision that each note must ,e si%ned ,y the ,ankDs president was calculated to keep down this circulation' +iddle %ot around the restriction ,y de$isin% L,ranch drafts'L #n appearance these drafts looked so much like notes of the parent ,ank in Philadelphia that "r' +iddle said not one person in a thousand knew the difference' Actually they were checks on the parent ,ank drawn ,y the cashiers of ,ranches and endorsed Lto ,earer'L The =o$ernment recei$ed ,ranch drafts in payment for pu,lic o,li%ations and they circulated as money' #n theory the drafts were redeema,le in specie, thou%h in practice the ,ank made this difficult, thus stretchin% its charter a%ain' /edemption at par was possi,le only at the ,ranch of ori%in' The ,ank would place these drafts in circulation remote from their places of ori%in, western drafts ,ein% released in the 7ast and $ice $ersa, so that a holder wishin% coin was put to the e)pense of transportin% across the country ,oth the actual notes and the specie recei$ed in return' As a result he usually cashed them locally, at a discount' Thus the %reat ,ank was a,le to e)pand its paper issues ,eyond anythin% permitted to a state ,ank'0 1 The Life of Andrew Jackson ,y "ar(uis James, Part TwoE Portrait of a President, +ook 8i$eE The !/ei%n0, Chapter FFF# 2A =reek Temple in Chestnut 3treet5, p' :?

!#t was JacksonDs ,elief that only specie would protect the la,orin% masses from the %reed of the aristocracy ,y freein% them from the tyranny of a paper system that was manipulated ,y the rich' Thus, his economic policy had far?reachin% social implications' 8or a month the House de,ated the report' 8inally the 6emocrats decided to test their stren%th and attempt a knockout ,low that would end the +ank ;ar once and for all' After first checkin% with the administration and the other House leaders, Polk called for a $ote on a series of resolutions which had already ,een appro$ed ,y his committee and which were aimed at nullifyin% the action of the 3enate ,y re%isterin% the HouseDs total appro$al of the PresidentDs +ank policy' An April :, 183:, the (uestions were called' +y a $ote of 13: to 89, the House declared that the +ank of the 4nited 3tates Lou%ht not to ,e rechartered'L Then, ,y the count of 118 to 103, it a%reed that the deposits Lou%ht not to ,e restored'L .e)t, ,y a $ote of 11P to 10 , it recommended that the state ,anks 2the pets5 ,e continued as the places of deposit' And, lastly, ,y the o$erwhelmin% $ote of 1P to :9, the House authori>ed the selection of a committee to e)amine the +ankDs affairs and in$esti%ate whether it had deli,erately insti%ated the panic' That did it' That, in effect, ended all hope of the +ankDs sur$i$al' #t seemed only a matter of time ,efore the 6emocrats would assem,le enou%h e$idence from an in$esti%ation to pro$e that +iddle had wantonly and irresponsi,ly ,rou%ht economic ha$oc to the country in order to %et his charter' +iddleDs $ery ruthlessness killed the +ank, for he dro$e away prospecti$e supporters and forced the 6emocrats to !an infle)i,le anti?+ank position'0 He had con$inced the pu,lic that he was an irresponsi,le and un%o$erna,le force in American economic life' 7$en the ,usiness community e$entually admitted that he had ,eha$ed improperly and ,y the sprin% of 183: they forced him to ease the financial pressure' L# ha$e o,tained a %lorious triumph,L Jackson crowed' #f nothin% else the $otes in the House completely scuttled the efforts of the 3enate to dis%race him ,y forcin% a restoration of the deposits and a recharter of the +ank' ;ithout the appro$al of the House, neither action ,y the 3enate, with or without the intimidatin% tactic of a censure, could ,e enacted into law' LThe o$erthrow of the opposition in the House of /epresentati$es ,y the $ote on the resolutions,L wrote Jackson, L''' was a triumphant one, and put to death, that mamouth of corruption and power, the +ank of the 4nited 3tates'L The attorney %eneral concurred' LThe +ank is dead,L +utler informed the /e%ency' The %rowin% impotence of the 3enate on account of the determined stand taken ,y the House was clearly demonstrated se$eral weeks later' Two resolutions passed ,y the upper house in early June declarin% TaneyDs reasons for remo$al unsatisfactory and demandin% the restoration of the pu,lic money to the +43 went to the House for action' #n rapid?fire order the 6emocratic ma-ority ordered that they lie on the ta,le, which killed them as !dead0 as Jackson could ha$e wished' /till one more nail was hammered into the &ank,s !o**in. +nd the hammerer was &iddle himsel*. The in%estigating !ommittee authoriAed y the 'ouse resolution arri%ed in Philadel"hia armed with su "oena "owers and an)ious to e)amine all the &ankGs ooks. The in%estigators *ound &iddle as tru!ulent as e%er. 'e re*used "ermission to e)amine the ooks or the !orres"onden!e with !ongressmen relating to "ersonal loans *rom the &./. 2.ot much later 6aniel ;e,ster re(uested that his accounts ,e mo$ed Lout of the +ank, & all its ,ranchesL so that durin% the ne)t con%ressional session he could Lsay that # neither owe the +ank a dollar, nor am on any paper discounted at the +ank, for any ,ody, to the amt' of a dollar'L5 #n addition, &iddle stead*astly re*used to testi*y e*ore the !ommittee. 'e was !learly in !ontem"t o* Congress, to say nothing o* his o ligations under the terms o* the !harter. &ut, *rom the eginning o* its history, the &ank had regularly %iolated its !harter, and &iddle saw no reason to alter that tradition. +ack in ;ashin%ton, after the futile and frustratin% trip to Philadelphia, the committeemen demanded a citation for contempt' Taney supported the action, as did se$eral mem,ers of the Kitchen Ca,inet, most nota,ly +lair and Kendall' +ut many southern 6emocrats opposed this e)treme action and refused to cooperate' As +iddle ,emusedly o,ser$ed, it would ,e ironic if he went to prison L,y the $otes of mem,ers of Con%ress ,ecause # would not %i$e up to their enemies their confidential letters'L Althou%h +iddle escaped a contempt citation, his outra%eous defiance of the House only condemned him still further in the eyes of the American pu,lic' His latest action, commented ;illiam C' /i$es, pro$ed Lto the people ne$er a%ain to %i$e themsel$es such a master'L .ow that the +ank of the 4nited 3tates lay ,leedin% to death, with no hope of resuscitation, Jackson was an)ious to mo$e forward with his hard money and state deposit schemes in the e)pectation of pro$idin% a re%ulated, responsi,le ,ankin% system' He had in mind a complete economic reform pro%ram, somethin% first hinted at ,y Polk a few weeks earlier' The President acted swiftly' An April 91, 183:, he proposed a series of measure that would pro$ide a %eneral reform of currency and ,ankin%' The measures were contained in a report su,mitted to the House ;ays and "eans Committee ,y 3ecretary Taney' The proposals included the followin%E that the selection of pet ,anks ,e left to the secretary of the treasury< that he ,e permitted to remo$e the deposits from any ,ank after su,mittin% his reasons to Con%ress< that ,anks su,mit monthly reports of their condition< that the %o$ernment ha$e the ri%ht to e)amine the ,ooks and records of the pets< that %old ,e re$alued to ,rin% it to a parity with sil$er< and that the deposit ,anks ,e re(uired to cease issuin% notes under fi$e dollars' Cater, the prohi,ition a%ainst paper would ,e e)tended to all notes under twenty dollars' #n this way the country would ,e restored to coin for its re%ular transactions and ,ank notes would ser$e commercial purposes only' Accordin% to TaneyDs report, the currency reform would follow three sta%esE first, the total destruction of the +43< second, the re$aluation of %old< and third, the implementation of a full deposit system throu%hout the country' As a condition to recei$in% the %o$ernment deposits, the pets must cease issuin% or recei$in% notes under fi$e dollars' Taney did not %o so far as to re(uire %old or sil$er for the payment of %o$ernment de,ts, much as he mi%ht like to do so, ,ut he did oppose makin% the notes of deposit ,anks recei$a,le for all %o$ernment dues'0 1 Andrew Jackson and the Course of American Democracy, 1833-1845 , Bolume ### ,y /o,ert B' /emini, p' 1GG?1G8

!TH7 P/73#67.T 3AT #. H#3 3T46* starin% at the fire, smokin% his lon%?stemmed pipe and silently chucklin% to himself' He was e)ceedin%ly pleased with his messa%e' 7$erythin% a,out it tickled him' The sections on the 8rench pro,lem, the +ank issue, and the (uestion of internal impro$ements had con$eyed his thou%hts and wishes precisely, and he had a sense that the people stron%ly appro$ed them' +est of all the messa%e %ored the ;hi%s in all the places that %a$e them ma)imum pain' How they writhed o$er what he had said a,out the +ank' How they choked and sputtered o$er his internal impro$ements pronouncement' "any of them had already responded with cries of outra%e' Athers -ust hun% their heads and si%hed' L"y political enemies appear (uite chopfallen,L Jackson %leefully recounted to his son' L# ha$e had a triumph o$er them'L Apart from this triumph o$er his Lpolitical enemies,L a ma-or cause of JacksonDs ,uoyant spirit durin% the openin% weeks of 183 was the !%lorious0 accomplishment of e)tin%uishin% the national de,t' The last installment o* that de t was "aid in $anuary, 345=' #t was one of the LreformsL for which Jackson had stru%%led o$er the last four years' #t was an accomplishment for which he took -ustifia,le credit' JacksonDs $iew of the national de,t was terri,ly naQ$e 1 ,ut it was a nai$ete of the ordinary citi>en' /iddin% the nation of inde,tedness was $irtually synonymous with payin% off the mort%a%e on the old homestead' #t was a mark of indi$idual achie$ement, a ,ad%e of freedom, a sym,ol of success' 8or the nation as a whole, the o,literation of the national de,t proclaimed the triumph of American repu,licanism and the constitutional system' #t demonstrated the ,lessin%s of democracy to the entire world' This uni(ue and happy e$ent added to JacksonDs personal distinction and honor' Ardinary citi>ens credited him with ha$in% achie$ed the impossi,le, of ha$in% run the %o$ernment so efficiently and honestly that he had scored the spectacular feat of actually conductin% the nation out of de,t' FBut o* de tHF The words sent a !harge o* Fe)ultant 9oyF through the entire !ountry. FBut o* de tHF (%ery Fhonest !itiAenF *elt the Fmagi! o* the words.F &e!ause the *inal "ayment o* the de t nearly !oin!ided with the anni%ersary o* the &attle o* >ew Brleans, the Demo!rati! "arty *elt it aus"i!ious 0and "oliti!ally ad%antageous7 to !om ine the two e%ents into one great !ele ration. #t was twenty years since Jackson had annihilated a +ritish army and pro$ed the power and mi%ht of American arms< now, in 183 , he had pro$ed the $itality and stren%th of American political institutions' As the !o"e declaredE L.ew Arleans and the .ational 6e,t 1 the first of which paid off our scores to our enemies, whilst the latter paid off the last cent to our friends#0 An January 8, 183 , a ,an(uet of Le)traordinary ma%nificanceL was held at +rownDs Hotel in ;ashin%ton at G P'" ' A dinner was pro$ided Lin the $ery ,est taste,L and nearly 9 0 persons attended' The room was festooned with e$er%reens, a portrait of =eor%e ;ashin%ton hun% from one wall and a portrait of President Jackson from the opposite wall' LAn no occasion,L reported the !o"e, Ldid we e$er ,efore witness so much %randeur of scenery calculated to ele$ate the feelin%s of patriotic e)ultation'L A ,and struck up LHail to the ChiefD as the company marched into the hall' Thomas Hart +enton, LAld +ullion,L presided' .o one had a ,etter ri%ht, for no one had done more to aid Jackson in killin% the monster +ank and assertin% the supremacy of specie, or workin% toward payin% the de,t' Assistin% +enton on the occasion and ser$in% as $ice presidents were James K' Polk, 3ilas ;ri%ht, Jr', ;illiam /' Kin%, Henry A' "uhlen,er%, #saac Hill, John *' "ason, and 7' K' Kane' #t was a %litterin% affair, -ust as the !o"e reported, ,ut President Jackson declined to attend' The purpose of the occasion was to cele,rate a momentous e$ent and he did not wish to su,$ert it ,y his presence' He wanted no personal %lorification' #t was far more important that the nation remem,er its heroic past and cele,rate its deli$erance from economic ,onda%e' #n that, and that alone, Andrew Jackson would ha$e all the satisfaction and honor he needed' #n JacksonDs place, Bice President "artin Ban +uren attended as distin%uished %uest' "ore and more he was seen as the =eneralDs hand?picked successor and this cele,ration pointedly ser$ed to identify him with the triumphs of the Jackson administration' The entire ca,inet also attended, alon% with the 3peaker of the House, many mem,ers of Con%ress, and hi%h?rankin% officers of the army and na$y' The ceremonies ,e%an with a di$ine ,lessin% in$oked ,y the chaplain of the 3enate, the /e$erend "r' Hatch' Then 3enator +enton rose to address the %atherin% and at once the affair ,ecame more li$ely and spirited' The e$enin% was a rare opportunity for him to ,oast a,out the financial predictions he had sounded o$er the past four years, and he made the most of it' As he %ot to his feet his face %lowed with pride and enthusiasm' He (uickly warmed to his main point' $The nationa! de"t, he e)claimed, $is %aid&$ LHu>>aRL the crowd roared' LThis month of January, 183 ,L +enton continued, Lin the fifty?ei%hth year of the /epu,lic, A.6/7; JACK3A. ,ein% President, the .AT#A.AC 67+T #3 PA#6R and the apparition, so lon% unseen on earth, a %reat nation without a national de,tR stands re$ealed to the astonished $ision of a wonderin% worldRL A%ain the crowd interrupted with $ reat Cheerin'&$ L=entlemen,L +enton went on as he prepared to %i$e his toast, Lcomin% direct from my own ,osom, will find its response in yoursE LP/73#67.T JACK3A.E (ay the e)enin' of his days "e as tran*ui! and as ha%%y for himse!f as their meridian has "een res%!endent, '!orious, and "eneficent for his country# L 7$eryone in the room had risen as +enton ,e%an this salute to their %reat chief, and when he concluded they ,urst into a lon% round of applause' #t was this sort of thin% that Jackson feared the occasion mi%ht ,ecome and why he chose to stay away' +ut the 6emocrats could not help themsel$es and they heaped la$ish praise upon him as, one after another, they rose to offer a toast' After the Committee of Arran%ements offered their salute, the Bice President spoke' #t was not one of his ,etter efforts and, as usual, he went on too lon%' 3e$eral of the honored %uests could not (uell their lo(uaciousness and spoke in para%raphs' Then, Ce$i ;ood,ury rose' $The +resident of the ,nited -tates,$ he said simply' LBenera,le in years?illustrious in deeds'L 3ilas ;ri%ht offeredE $The Citi.en -o!dier# The stren%th and security of free %o$ernment' ;A3H#.=TA., CA8A*7TT7, and JACK3A. ha$e personified the character'L "ahlon 6ickerson, the new secretary of the na$y, toastedE $The /i'hth of January, 1815# An important era in the history of America? second only to the :th of July, 1PPG'L 8eli) =rundy salutedE LThe Constitution of the 4nited 3tates, administered upon the principles of Jefferson, "adison, and Jackson'L Jackson himself sent a toast to ,e read in his a,sence' #t said nothin% a,out himself or the 8th of January' #t simply focused on the important deed of e)tin%uishin% the de,t'0 1 Andrew Jackson and the Course of American Democracy, 1833-1845 , Bolume ### ,y /o,ert B' /emini, Chapter 1 , p' 999?99

!.o dou,t the forceful personality of Jackson did indeed attract lunatics e$erywhere' +ut as some suspected at the time, a deeper and more trou,lesome factor may ha$e ,een in$ol$ed' American society itself was undou,tedly at fault' 3ince the ,e%innin% of the nineteenth century the American way of life had chan%ed dramatically?sometimes for the ,etter and sometimes for the worse' The industrial re$olution, the transportation re$olution, the increased mi%ration westward, the steady rise of the standard of li$in%, the increased momentum in the democrati>ation of political institutions, and the social and economic mo,ility that $isitors instantly noticed?all these had produced mar$elous impro$ements in the (uality of life in America' +ut they also produced hideous side effects' Po$erty, ur,an crime and $iolence, ,latant and $ul%ar materialism, the disparity of wealth and pri$ile%e spawned ,y the industrial re$olution, racial and reli%ious ,i%otry 1 these, too, increased' 3ocial conditions fell to such a depth that reform mo$ements had already ,e%un' These were or%ani>ed attempts to chan%e and ,etter American society, to e)tirpate materialism, to raise the (uality of education, to ad$ance the ri%hts of women, to free the sla$es, to ameliorate workin% conditions, to impro$e penal and mental institutions, and to esta,lish temperance as a national $irtue' The assassination attempt, therefore, was only one more indication that somethin% was terri,ly amiss with American life and needed attention and healin%' #t was La si%n of the times,L editoriali>ed the .ew *ork /)enin' +ost on 8e,ruary :, 183 ' The incident occurred durin% the funeral of /epresentati$e ;arren /' 6a$is of 3outh Carolina' The ser$ices took place on 8riday, January 30, in the House cham,er' +oth houses, the President, and his ca,inet attended' The chaplain %a$e a lon% and witless eulo%y, somethin% a,out the uncertainties of life' Throu%hout the ser$ice, the President looked fee,le, althou%h he presented a fi%ure of commandin% presence' LThere sat the %ray?haired president,L recounted Harriet "artineau, Llookin% scarcely a,le to %o throu%h the ceremonial'L The rites concluded, the con%re%ation filed past the ,ier and then proceeded to the east porch of the Capitol, the House mem,ers first, then the 3enate, with the President followin% ,ehind' ;aitin% at the entrance of the rotunda of the east portico stood a thirty?year?old man, his face hidden ,y a thick ,lack ,eard' As the President with ;ood,ury and 6ickerson reached the rotunda, the young man ste""ed u" to him, drew a "o!ket "istol, and aimed it dire!tly at $a!ksonGs heart. 'e stood only two and hal* yards away. 'e s;ueeAed the trigger and an e)"losion rang out. 3ome said it sounded like a rifle shot' 3enator John Tyler, who had stepped out of the line of procession, said it reminded him of an Lordinary cracker'L Jackson instantly reacted' #nstead of duckin% away, as most rational men mi%ht do, he started for the assailant, his walkin% cane raised hi%h' The young man dro""ed the "istol and "rodu!ed a se!ond one whi!h he had held ready8!o!ked in his le*t hand. &y this time se%eral witnesses realiAed what was ha""ening and tried to seiAe the would8 e assassin. &ut e*ore they !ould wrestle him to the ground he took dead aim at the President and "ulled the trigger. + se!ond e)"losion thundered through the !ham er. $a!kson hesitated only a s"lit se!ond and then !ontinued his lunge at his assailant, ready to thrash him with his !ane. The youn% man ducked away' ;ood,ury Laimed a ,lowL at him and Cieutenant =edney of the na$y finally knocked him down' LThe President pressed after him until he saw he was secured'L #n ,oth instances the caps had dischar%ed ,ut failed to i%nite the powder in the ,arrel' The day was $ery damp, said 3enator Tyler, !a thick mist pre$ailin%0 and the pistols were loaded with the Lfinest powder' #t is almost a miracle that they did not %o off'L #mmediately after the attempted assassination, there was a %eneral rush to %et the President to safety' L+oilin% with ra%e,L the =eneral kept tryin% to clu, the youn% man ,ut was finally hustled to a carria%e and sped to the ;hite House' Ance away from the rotunda, Jackson (uickly re%ained his composure' He acted as thou%h nothin% had happened' #ndeed, his outward calm in moments of crisis always ama>ed his friends' "artin Ban +uren, who followed him to the ;hite House and e)pected to witness an outpourin% of Jacksonian wrath, was stupefied to find Ald Hickory Lsittin% with one of "a-or 6onelsonHs children on his lap and con$ersin% with =eneral 3cott, himself apparently the least distur,ed person in the room'L Autside the ;hite House a sudden thunderstorm ,roke, ,oomin% and ra%in% and threatenin%< inside the house an old man (uietly played with a child and shru%%ed off the seriousness of what had happened to him' The would?,e assassin turned out to ,e one /ichard Cawrence, an unemployed house painter' He was (uickly hurried off to Lci$il authoritiesL and incarcerated' ;hen the House ser%eant?at?arms asked him why he attempted to assassinate the President, Cawrence replied that Jackson had killed his father three years a%o' He also muttered somethin% to the effect that he was the le%itimate heir to the +ritish throne and that Ald Hickory had impeded his succession' #nasmuch as his father, an 7n%lishman, had died a do>en years ,efore it seemed clear to the authorities that Cawrence was deran%ed' LThere is nothin% ,ut madness in all this,L said John Tyler' +ut some 6emocrats, includin% Jackson, ,elie$ed that Cawrence was a political assassin, commanded ,y ;hi%s' And they had some -ustification 1 or so they thou%ht' 6urin% a medical e)amination, when asked whom he preferred as President, Cawrence answeredE L"r' Clay, "r' ;e,ster, "r' Calhoun'L L#t seems he has ,een a furious politician of the opposition party,L wrote 8rancis 3cott Key,L& is represented ,y some as a $ery weak man, easily duped or e)cited'L +lair suspected an assassination plot and openly insisted that La secret conspiracy had prompted the perpetration of the horri,le deed'L These fears intensified when Jud%e Cranch, the chief -ustice of the 6istrict, set ,ail at a paltry J1 00' LThere is much e)citement amon% our friends,L Taney was told, Lon account of the smallness of the sum re(uired'L +ut as soon as it ,ecame clear that Cawrence could not meet his ,ail the tension amon% 6emocrats (uickly dissipated' Cawrence was su,se(uently ,rou%ht to trial' An April 11, 183 , he was found not %uilty ,ecause Lhe was under the influence of insanityL when he attempted the assassination' He was immediately committed to an asylum' +ecause Jackson was a reli%ious fatalist he could not help ,ut see the hand of Lpro$idenceL in protectin% him from what seemed like certain death' ;hen the kin% of 7n%land e)pressed his concern, Jackson acknowled%ed that La kind pro$idenceL had ,een pleased Lto shield meL a%ainst Lthe recent attempt upon my life'L Athers a%reed' LThe circumstance made a deep impression upon the pu,lic feelin%,L wrote 3enator +enton, Land irresisti,ly carried many minds to the ,elief in a superintendin% Pro$idence, manifested in the e)traordinary case of two pistols in succession?so well loaded, so coolly handled, and which afterwards fired with such readiness, force, and precision?missin% fire, each in its turn, when le$elled ei%ht feet at the PresidentDs heart'L The attack did indeed ha$e a profound effect upon the pu,lic' And it produced political %ain as well' 6t Lwarmed up the lo$e of his friends,L "a-or 6onelson was told, !' ' ' and has %i$en him new friends and ad$ocates'0 #t %enerated %enuine concern and affection for the old man in e$ery section of the country' To many Americans, JacksonDs escape from near?certain death resulted from La special interposition of Pro$idence'L The President had ,een spared in order to continue ser$in% his country?especially durin% this time of mountin% crisis with 8rance o$er the indemnity claim' Jackson himself ,elie$ed that a special %race protected this country' +ut he did not rely on LPro$idenceL to pre$ent an international disaster' #n all crises, he trusted himself?now more than e$er'0 1 Andrew Jackson and the Course of American Democracy, 1833-1845, Bolume ### ,y /o,ert B' /emini, Chapter 1 , p' 99P?930

Article 1 of the Constitution for the 4nited 3tates of America 23ections 8?105
Article 1, 3ection 8' Powers of Con%ress The Con%ress shall ha$e Power To lay and collect Ta)es, 6uties, #mposts and 7)cises, to pay the 6e,ts and pro$ide for the common 6efence and %eneral ;elfare of the 4nited 3tates< ,ut all 6uties, #mposts and 7)cises shall ,e uniform throu%hout the 4nited 3tates< To orrow money on the !redit o* the .nited /tates: To re%ulate Commerce with forei%n .ations, and amon% the se$eral 3tates, and with the #ndian Tri,es< To esta,lish an uniform /ule of .aturali>ation, and uniform Caws on the su,-ect of +ankruptcies throu%hout the 4nited 3tates< To !oin 1oney, regulate the Ialue thereo*, and o* *oreign Coin, and *i) the /tandard o* Weights and 1easures: To "ro%ide *or the Punishment o* !ounter*eiting the /e!urities and !urrent Coin o* the .nited /tates: To esta,lish Post Affices and Post /oads< To promote the Pro%ress of 3cience and useful Arts, ,y securin% for limited Times to Authors and #n$entors the e)clusi$e /i%ht to their respecti$e ;ritin%s and 6isco$eries< To constitute Tri,unals inferior to the supreme Court< To define and punish Piracies and 8elonies committed on the hi%h 3eas, and Affenses a%ainst the Caw of .ations< To declare ;ar, %rant Cetters of "ar(ue and /eprisal, and make /ules concernin% Captures on Cand and ;ater< To raise and support Armies, ,ut no Appropriation of "oney to that 4se shall ,e for a lon%er Term than two *ears< To pro$ide and maintain a .a$y< To make /ules for the =o$ernment and /e%ulation of the land and na$al 8orces< To pro$ide for callin% forth the "ilitia to e)ecute the Caws of the 4nion, suppress #nsurrections and repel #n$asions< To pro$ide for or%ani>in%, armin%, and disciplinin% the "ilitia, and for %o$ernin% such Part of them as may ,e employed in the 3er$ice of the 4nited 3tates, reser$in% to the 3tates respecti$ely, the Appointment of the Afficers, and the Authority of trainin% the "ilitia accordin% to the discipline prescri,ed ,y Con%ress< To e)ercise e)clusi$e Ce%islation in all Cases whatsoe$er, o$er such 6istrict 2not e)ceedin% ten "iles s(uare5 as may, ,y Cession of particular 3tates, and the acceptance of Con%ress, ,ecome the 3eat of the =o$ernment of the 4nited 3tates, and to e)ercise like Authority o$er all Places purchased ,y the Consent of the Ce%islature of the 3tate in which the 3ame shall ,e, for the 7rection of 8orts, "a%a>ines, Arsenals, dock?*ards, and other needful +uildin%s< And To make all Caws which shall ,e necessary and proper for carryin% into 7)ecution the fore%oin% Powers, and all other Powers $ested ,y this Constitution in the =o$ernment of the 4nited 3tates, or in any 6epartment or Afficer thereof' Article 1, 3ection I' The "i%ration or #mportation of such Persons as any of the 3tates now e)istin% shall think proper to admit, shall not ,e prohi,ited ,y the Con%ress prior to the *ear one thousand ei%ht hundred and ei%ht, ,ut a ta) or duty may ,e imposed on such #mportation, not e)ceedin% ten dollars for each Person' The pri$ile%e of the ;rit of Ha,eas Corpus shall not ,e suspended, unless when in Cases of /e,ellion or #n$asion the pu,lic 3afety may re(uire it' .o +ill of Attainder or e) post facto Caw shall ,e passed' 2.o capitation, or other direct, Ta) shall ,e laid, unless in Proportion to the Census or 7numeration herein ,efore directed to ,e taken'5 23ection in parentheses modified ,y Amendment FB#'5 .o Ta) or 6uty shall ,e laid on Articles e)ported from any 3tate' .o Preference shall ,e %i$en ,y any /e%ulation of Commerce or /e$enue to the Ports of one 3tate o$er those of anotherE nor shall Bessels ,ound to, or from, one 3tate, ,e o,li%ed to enter, clear, or pay 6uties in another' >o 1oney shall e drawn *rom the Treasury, ut in Conse;uen!e o* +""ro"riations made y Law: and a regular /tatement and +!!ount o* the -e!ei"ts and ()"enditures o* all "u li! 1oney shall e "u lished *rom time to time. .o Title of .o,ility shall ,e %ranted ,y the 4nited 3tatesE And no Person holdin% any Affice of Profit or Trust under them, shall, without the Consent of the Con%ress, accept of any present, 7molument, Affice, or Title, of any kind whate$er, from any Kin%, Prince or forei%n 3tate' Article 1, 3ection 10' >o /tate shall enter into any Treaty, +llian!e, or Con*ederation: grant Letters o* 1ar;ue and -e"risal: !oin 1oney: emit &ills o* Credit: make any Thing ut gold and sil%er Coin a Tender in Payment o* De ts: "ass any &ill o* +ttainder, e) "ost *a!to Law, or Law im"airing the B ligation o* Contra!ts, or grant any Title o* >o ility. .o 3tate shall, without the Consent of the Con%ress, lay any #mposts or 6uties on #mports or 7)ports, e)cept what may ,e a,solutely necessary for e)ecutin% itDs inspection CawsE and the net Produce of all 6uties and #mposts, laid ,y any 3tate on #mports or 7)ports, shall ,e for the 4se of the Treasury of the 4nited 3tates< and all such Caws shall ,e su,-ect to the /e$ision and Controul of the Con%ress' .o 3tate shall, without the Consent of Con%ress, lay any duty of Tonna%e, keep Troops, or 3hips of ;ar in time of Peace, enter into any A%reement or Compact with another 3tate, or with a forei%n Power, or en%a%e in ;ar, unless actually in$aded, or in such imminent 6an%er as will not admit of delay'

.he 7ounding 7athers meet at 6ndependence 8all in Philadelphia on "eptem)er +/, +/*/ during the "igning of the %onstitution of the !nited "tates. Ben'amin 7ranklin is seated in the center. #le$ander %amilton was the author of many essays in the 7ederalist Papers that was instrumental in the ratification of the new %onstitution. 9Painting )y 8oward %handler %hristy:

;eorge Washington takes the inaugural oath of office at 7ederal 8all ad'acent from Wall "treet in <ew =ork %ity, <ew =ork on #pril ,1, +/*>. .he 7irst Bank of the !nited "tates, #merica3s first central )ank, was promoted )y #le4ander 8amilton, President ;eorge Washington3s "ecretary of the .reasury. .he 7irst Bank of the !nited "tates was chartered )y %ongress on 7e)ruary (?, +/>+. 9<ational #rchi2es:

.he Bank of <ew =ork was esta)lished in <ew =ork %ity on $une >, +/*-. #le$ander %amilton, !ho ser&ed as the "irst 'e(retary o" the Treasury under )resident *eor+e ,ashin+ton, ser&ed as a dire(tor o" the -an. o" /e! 0or. "rom 1182 to 11883 .he Bank of <ew =ork merged with 0ellon 7inancial %orporation on $uly (, (11/.

Presidents of the +ank of .ew *ork .ameE 7lectedE Ale)ander "c6ou%al June I, 1P8: Jeremiah ;adsworth "ay I, 1P8 #saac /oose$elt "ay 8, 1P8G, =ulian Berplanck "ay 11, 1PI1 .icholas =ou$erneur 6ecem,er P, 1PII Herman Ce /oy July 9I, 1809 "atthew Clarkson "ay 8, 180: Charles ;ilkes "ay 19, 189 Cornelius Heyer .o$em,er 1 , 1839 John Aothout January 10, 18:3 Anthony P' Halsey 8e,ruary 9, 18 8 Charles P' Ce$erich "ay 1:, 18G3 Charles "' 8ry January 18, 18PG

Term of Affice 7ndedE /esi%ned "ay I, 1P8 ' /esi%ned "ay 8, 1P8G' /esi%ned "ay 9, 1PI1' 6ied .o$' 90, 1PII' 6ied July 1:, 1809' /esi%ned "ay 8, 180:' /esi%ned April 13, 189 ' /esi%ned Act' 30, 1839' 6ied January , 18:3' 6ied January 9I, 18 8' /esi%ned "ay 11, 18G3' 6ied January 10, 18PG'

+ank of 7n%landE Central +ank for the +ritish 7mpire & #ts .orth American Colonies

.he Bank of England, officially known as “.he ;o2ernor and %ompany of the Bank of England , was esta)lished in +@>- when mem)ers of the English Parliament passed the .onnage #ct of +@>-. .he !nited Aingdom of ;reat Britain, also known as the union of England and "cotland, was esta)lished )y an act of Parliament in London on 0ay +, +/1/. 9PaintingB # Ciew of the Dld Bank of England, London, c.+*11 )y .homas 8osmer "hepherdEBank of England 0useum: 9"ourceB httpBEEwww.))*11-?1(/>:

.he "ealing of the Bank of England %harter in +@>-. 9"ourceB #lice #rcher 8ou)lon, .he 8ou)lon 7amily, 2ol. +, +>1/: 9PaintingB httpBEEcommons.wikimedia.orgEwikiE7ileBBankFofFEnglandF%harterFsealingF+@>-.'pg:

0ea!th of 1ations ,y Adam 3mith, +ook 9, Chapter 9 Af "oney considered as a particular +ranch of the %eneral 3tock of the 3ociety, or of the 7)pense of maintainin% the .ational Capital
#T has ,een shown in the first ,ook, that the price of the %reater part of commodities resol$es itself into three parts, of which one pays the wa%es of the la,our, another the profits of the stock, and a third the rent of the land which had ,een employed in producin% and ,rin%in% them to marketE that there are, indeed, some commodities of which the price is made up of two of those parts only, the wa%es of la,our, and the profits of stockE and a $ery few in which it consists alto%ether in one, the wa%es of la,ourE ,ut that the price of e$ery commodity necessarily resol$es itself into some one, or other, or all of these three parts< e$ery part of it which %oes neither to rent nor to wa%es, ,ein% necessarily profit to some,ody' 3ince this is the case, it has ,een o,ser$ed, with re%ard to e$ery particular commodity, taken separately, it must ,e so with re%ard to all the commodities which compose the whole annual produce of the land and la,our of e$ery country, taken comple)ly' The whole price or e)chan%ea,le $alue of that annual produce must resol$e itself into the same three parts, and ,e parcelled out amon% the different inha,itants of the country, either as the wa%es of their la,our, the profits of their stock, or the rent of their land' +ut thou%h the whole $alue of the annual produce of the land and la,our of e$ery country is thus di$ided amon% and constitutes a re$enue to its different inha,itants, yet as in the rent of a pri$ate estate we distin%uish ,etween the %ross rent and the net rent, so may we likewise in the re$enue of all the inha,itants of a %reat country' The %ross rent of a pri$ate estate comprehends whate$er is paid ,y the farmer< the net rent, what remains free to the landlord, after deductin% the e)pense of mana%ement, of repairs, and all other necessary char%es< or what, without hurtin% his estate, he can afford to place in his stock reser$ed for immediate consumption, or to spend upon his ta,le, e(uipa%e, the ornaments of his house and furniture, his pri$ate en-oyments and amusements' His real wealth is in proportion, not to his %ross, ,ut to his net rent' The %ross re$enue of all the inha,itants of a %reat country comprehends the whole annual produce of their land and la,our< the net re$enue, what remains free to them after deductin% the e)pense of maintainin%? first, their fi)ed, and, secondly, their circulatin% capital< or what, without encroachin% upon their capital, they can place in their stock reser$ed for immediate consumption, or spend upon their su,sistence, con$eniencies, and amusements' Their real wealth, too, is in proportion, not to their %ross, ,ut to their net re$enue' The whole e)pense of maintainin% the fi)ed capital must e$idently ,e e)cluded from the net re$enue of the society' .either the materials necessary for supportin% their useful machines and instruments of trade, their profita,le ,uildin%s, etc', nor the produce of the la,our necessary for fashionin% those materials into the proper form, can e$er make any part of it' The price of that la,our may indeed make a part of it< as the workmen so employed may place the whole $alue of their wa%es in their stock reser$ed for immediate consumption' +ut in other sorts of la,our, ,oth the price and the produce %o to this stock, the price to that of the workmen, the produce to that of other people, whose su,sistence, con$eniences, and amusements, are au%mented ,y the la,our of those workmen' The intention of the fi)ed capital is to increase the producti$e powers of la,our, or to ena,le the same num,er of la,ourers to perform a much %reater (uantity of work' #n a farm where all the necessary ,uildin%s, fences, drains, communications, etc', are in the most perfect %ood order, the same num,er of la,ourers and la,ourin% cattle will raise a much %reater produce than in one of e(ual e)tent and e(ually %ood %round, ,ut not furnished with e(ual con$eniencies' #n manufactures the same num,er of hands, assisted with the ,est machinery, will work up a much %reater (uantity of %oods than with more imperfect instruments of trade' The e)pense which is properly laid out upon a fi)ed capital of any kind, is always repaid with %reat profit, and increases the annual produce ,y a much %reater $alue than that of the support which such impro$ements re(uire' This support, howe$er, still re(uires a certain portion of that produce' A certain (uantity of materials, and the la,our of a certain num,er of workmen, ,oth of which mi%ht ha$e ,een immediately employed to au%ment the food, clothin% and lod%in%, the su,sistence and con$eniencies of the society, are thus di$erted to another employment, hi%hly ad$anta%eous indeed, ,ut still different from this one' #t is upon this account that all such impro$ements in mechanics, as ena,le the same num,er of workmen to perform an e(ual (uantity of work, with cheaper and simpler machinery than had ,een usual ,efore, are always re%arded as ad$anta%eous to e$ery society' A certain (uantity of materials, and the la,our of a certain num,er of workmen, which had ,efore ,een employed in supportin% a more comple) and e)pensi$e machinery, can afterwards ,e applied to au%ment the (uantity of work which that or any other machinery is useful only for performin%' The undertaker of some %reat manufactory who employs a thousand a year in the maintenance of his machinery, if he can reduce this e)pense to fi$e hundred will naturally employ the other fi$e hundred in purchasin% an additional (uantity of materials to ,e wrou%ht up ,y an additional num,er of workmen' The (uantity of that work, therefore, which his machinery was useful only for performin%, will naturally ,e au%mented, and with it all the ad$anta%e and con$eniency which the society can deri$e from that work' The e)pense of maintainin% the fi)ed capital in a %reat country may $ery properly ,e compared to that of repairs in a pri$ate estate' The e)pense of repairs may fre(uently ,e necessary for supportin% the produce of the estate, and conse(uently ,oth the %ross and the net rent of the landlord' ;hen ,y a more proper direction, howe$er, it can ,e diminished without occasionin% any diminution of produce, the %ross rent remains at least the same as ,efore, and the net rent is necessarily au%mented'

+ut thou%h the whole e)pense of maintainin% the fi)ed capital is thus necessarily e)cluded from the net re$enue of the society, it is not the same case with that of maintainin% the circulatin% capital' Af the four parts of which this latter capital is composed? money, pro$isions, materials, and finished work? the three last, it has already ,een o,ser$ed, are re%ularly withdrawn from it, and placed either in the fi)ed capital of the society, or in their stock reser$ed for immediate consumption' ;hate$er portion of those consuma,le %oods is employed in maintainin% the former, %oes all to the latter, and makes a part of the net re$enue of the society' The maintenance of those three parts of the circulatin% capital, therefore, withdraws no portion of the annual produce from the net re$enue of the society, ,esides what is necessary for maintainin% the fi)ed capital' The circulatin% capital of a society is in this respect different from that of an indi$idual' That of an indi$idual is totally e)cluded from makin% any part of his net re$enue, which must consist alto%ether in his profits' +ut thou%h the circulatin% capital of e$ery indi$idual makes a part of that of the society to which he ,elon%s, it is not upon that account totally e)cluded from makin% a part likewise of their net re$enue' Thou%h the whole %oods in a merchantDs shop must ,y no means ,e placed in his own stock reser$ed for immediate consumption, they may in that of other people, who, from a re$enue deri$ed from other funds, may re%ularly replace their $alue to him, to%ether with its profits, without occasionin% any diminution either of his capital or of theirs' "oney, therefore, is the only part of the circulatin% capital of a society, of which the maintenance can occasion any diminution in their net re$enue' The fi)ed capital, and that part of the circulatin% capital which consists in money, so far as they affect the re$enue of the society, ,ear a $ery %reat resem,lance to one another' 8irst, as those machines and instruments of trade, etc', re(uire a certain e)pense, first to erect them, and afterwards to support them, ,oth which e)penses, thou%h they make a part of the %ross, are deductions from the net re$enue of the society< so the stock of money which circulates in any country must re(uire a certain e)pense, first to collect it, and afterwards to support it, ,oth which e)penses, thou%h they make a part of the %ross, are, in the same manner, deductions from the net re$enue of the society' A certain (uantity of $ery $alua,le materials, %old and sil$er, and of $ery curious la,our, instead of au%mentin% the stock reser$ed for immediate consumption, the su,sistence, con$eniencies, and amusements of indi$iduals, is employed in supportin% that %reat ,ut e)pensi$e instrument of commerce, ,y means of which e$ery indi$idual in the society has his su,sistence, con$eniencies, and amusements re%ularly distri,uted to him in their proper proportions' 3econdly, as the machines and instruments of a trade, etc', which compose the fi)ed capital either of an indi$idual or of a society, make no part either of the %ross or of the net re$enue of either< so money, ,y means of which the whole re$enue of the society is re%ularly distri,uted amon% all its different mem,ers, makes itself no part of that re$enue' The %reat wheel of circulation is alto%ether different from the %oods which are circulated ,y means of it' The re$enue of the society consists alto%ether in those %oods, and not in the wheel which circulates them' #n computin% either the %ross or the net re$enue of any society, we must always, from their whole annual circulation of money and %oods, deduct the whole $alue of the money, of which not a sin%le farthin% can e$er make any part of either' #t is the am,i%uity of lan%ua%e only which can make this proposition appear either dou,tful or parado)ical' ;hen properly e)plained and understood, it is almost self?e$ident' ;hen we talk of any particular sum of money, we sometimes mean nothin% ,ut the metal pieces of which it is composed< and sometimes we include in our meanin% some o,scure reference to the %oods which can ,e had in e)chan%e for it, or to the power of purchasin% which the possession of it con$eys' Thus when we say that the circulatin% money of 7n%land has ,een computed at ei%hteen millions, we mean only to e)press the amount of the metal pieces, which some writers ha$e computed, or rather ha$e supposed to circulate in that country' +ut when we say that a man is worth fifty or a hundred pounds a year, we mean commonly to e)press not only the amount of the metal pieces which are annually paid to him, ,ut the $alue of the %oods which he can annually purchase or consume' ;e mean commonly to ascertain what is or ou%ht to ,e his way of li$in%, or the (uantity and (uality of the necessaries and con$eniencies of life in which he can with propriety indul%e himself' ;hen, ,y any particular sum of money, we mean not only to e)press the amount of the metal pieces of which it is composed, ,ut to include in its si%nification some o,scure reference to the %oods which can ,e had in e)chan%e for them, the wealth or re$enue which it in this case denotes, is e(ual only to one of the two $alues which are thus intimated somewhat am,i%uously ,y the same word, and to the latter more properly than to the former, to the moneyDs worth more properly than to the money' Thus if a %uinea ,e the weekly pension of a particular person, he can in the course of the week purchase with it a certain (uantity of su,sistence, con$eniencies, and amusements' #n proportion as this (uantity is %reat or small, so are his real riches, his real weekly re$enue' His weekly re$enue is certainly not e(ual ,oth to the %uinea, and to what can ,e purchased with it, ,ut only to one or other of those two e(ual $alues< and to the latter more properly than to the former, to the %uineaDs worth rather than to the %uinea'

#f the pension of such a person was paid to him, not in %old, ,ut in a weekly ,ill for a %uinea, his re$enue surely would not so properly consist in the piece of paper, as in what he could %et for it' A %uinea may ,e considered as a ,ill for a certain (uantity of necessaries and con$eniencies upon all the tradesmen in the nei%h,ourhood' The re$enue of the person to whom it is paid, does not so properly consist in the piece of %old, as in what he can %et for it, or in what he can e)chan%e it for' #f it could ,e e)chan%ed for nothin%, it would, like a ,ill upon a ,ankrupt, ,e of no more $alue than the most useless piece of paper' Thou%h the weekly or yearly re$enue of all the different inha,itants of any country, in the same manner, may ,e, and in reality fre(uently is paid to them in money, their real riches, howe$er, the real weekly or yearly re$enue of all of them taken to%ether, must always ,e %reat or small in proportion to the (uantity of consuma,le %oods which they can all of them purchase with this money' The whole re$enue of all of them taken to%ether is e$idently not e(ual to ,oth the money and the consuma,le %oods< ,ut only to one or other of those two $alues, and to the latter more properly than to the former' Thou%h we fre(uently, therefore, e)press a personDs re$enue ,y the metal pieces which are annually paid to him, it is ,ecause the amount of those pieces re%ulates the e)tent of his power of purchasin%, or the $alue of the %oods which he can annually afford to consume' ;e still consider his re$enue as consistin% in this power of purchasin% or consumin%, and not in the pieces which con$ey it' +ut if this is sufficiently e$ident e$en with re%ard to an indi$idual, it is still more so with re%ard to a society' The amount of the metal pieces which are annually paid to an indi$idual, is often precisely e(ual to his re$enue, and is upon that account the shortest and ,est e)pression of its $alue' +ut the amount of the metal pieces which circulate in a society can ne$er ,e e(ual to the re$enue of all its mem,ers' As the same %uinea which pays the weekly pension of one man to?day, may pay that of another to?morrow, and that of a third the day thereafter, the amount of the metal pieces which annually circulate in any country must always ,e of much less $alue than the whole money pensions annually paid with them' +ut the power of purchasin%, or the %oods which can successi$ely ,e ,ou%ht with the whole of those money pensions as they are successi$ely paid, must always ,e precisely of the same $alue with those pensions< as must likewise ,e the re$enue of the different persons to whom they are paid' That re$enue, therefore, cannot consist in those metal pieces, of which the amount is so much inferior to its $alue, ,ut in the power of purchasin%, in the %oods which can successi$ely ,e ,ou%ht with them as they circulate from hand to hand' "oney, therefore, the %reat wheel of circulation, the %reat instrument of commerce, like all other instruments of trade, thou%h it makes a part and a $ery $alua,le part of the capital, makes no part of the re$enue of the society to which it ,elon%s< and thou%h the metal pieces of which it is composed, in the course of their annual circulation, distri,ute to e$ery man the re$enue which properly ,elon%s to him, they make themsel$es no part of that re$enue' Thirdly, and lastly, the machines and instruments of trade, etc', which compose the fi)ed capital, ,ear this further resem,lance to that part of the circulatin% capital which consists in money< that as e$ery sa$in% in the e)pense of erectin% and supportin% those machines, which does not diminish the producti$e powers of la,our, is an impro$ement of the net re$enue of the society, so e$ery sa$in% in the e)pense of collectin% and supportin% that part of the circulatin% capital which consists in money, is an impro$ement of e)actly the same kind' #t is sufficiently o,$ious, and it has partly, too, ,een e)plained already, in what manner e$ery sa$in% in the e)pense of supportin% the fi)ed capital is an impro$ement of the net re$enue of the society' The whole capital of the undertaker of e$ery work is necessarily di$ided ,etween his fi)ed and his circulatin% capital' ;hile his whole capital remains the same, the smaller the one part, the %reater must necessarily ,e the other' #t is the circulatin% capital which furnishes the materials and wa%es of la,our, and puts industry into motion' 7$ery sa$in%, therefore, in the e)pense of maintainin% the fi)ed capital, which does not diminish the producti$e powers of la,our, must increase the fund which puts industry into motion, and conse(uently the annual produce of land and la,our, the real re$enue of e$ery society' The su stitution o* "a"er in the room o* gold and sil%er money, re"la!es a %ery e)"ensi%e instrument o* !ommer!e with one mu!h less !ostly, and sometimes e;ually !on%enient. Cir!ulation !omes to e !arried on y a new wheel, whi!h it !osts less oth to ere!t and to maintain than the old one. &ut in what manner this o"eration is "er*ormed, and in what manner it tends to in!rease either the gross or the net re%enue o* the so!iety, is not altogether so o %ious, and may there*ore re;uire some *urther e)"li!ation. There are se%eral di**erent sorts o* "a"er money: ut the !ir!ulating notes o* anks and ankers are the s"e!ies whi!h is est known, and whi!h seems est ada"ted *or this "ur"ose. When the "eo"le o* any "arti!ular !ountry ha%e su!h !on*iden!e in the *ortune, "ro ity, and "ruden!e o* a "arti!ular anker, as to elie%e that he is always ready to "ay u"on demand su!h o* his "romissory notes as are likely to e at any time "resented to him: those notes !ome to ha%e the same !urren!y as gold and sil%er money, *rom the !on*iden!e that su!h money !an at any time e had *or them.

A particular ,anker lends amon% his customers his own promissory notes, to the e)tent, we shall suppose, of a hundred thousand pounds' As those notes ser$e all the purposes of money, his de,tors pay him the same interest as if he had lent them so much money' This interest is the source of his %ain' Thou%h some of those notes are continually comin% ,ack upon him for payment, part of them continue to circulate for months and years to%ether' Thou%h he has %enerally in circulation, therefore, notes to the e)tent of a hundred thousand pounds, twenty thousand pounds in %old and sil$er may fre(uently ,e a sufficient pro$ision for answerin% occasional demands' +y this operation, therefore, twenty thousand pounds in %old and sil$er perform all the functions which a hundred thousand could otherwise ha$e performed' The same e)chan%es may ,e made, the same (uantity of consuma,le %oods may ,e circulated and distri,uted to their proper consumers, ,y means of his promissory notes, to the $alue of a hundred thousand pounds, as ,y an e(ual $alue of %old and sil$er money' 7i%hty thousand pounds of %old and sil$er, therefore, can, in this manner, ,e spared from the circulation of the country< and if different operations of the same kind should, at the same time, ,e carried on ,y many different ,anks and ,ankers, the whole circulation may thus ,e conducted with a fifth part only of the %old and sil$er which would otherwise ha$e ,een re(uisite' Cet us suppose, for e)ample, that the whole circulatin% money of some particular country amounted, at a particular time, to one million sterlin%, that sum ,ein% then sufficient forcirculatin% the whole annual produce of their land and la,our' Cet us suppose, too, that some time thereafter, different ,anks and ,ankers issued promissory notes, paya,le to the ,earer, to the e)tent of one million, reser$in% in their different coffers two hundred thousand pounds for answerin% occasional demands' There would remain, therefore, in circulation, ei%ht hundred thousand pounds in %old and sil$er, and a million of ,ank notes, or ei%hteen hundred thousand pounds of paper and money to%ether' +ut the annual produce of the land and la,our of the country had ,efore re(uired only one million to circulate and distri,ute it to its proper consumers, and that annual produce cannot ,e immediately au%mented ,y those operations of ,ankin%' Ane million, therefore, will ,e sufficient to circulate it after them' The %oods to ,e ,ou%ht and sold ,ein% precisely the same as ,efore, the same (uantity of money will ,e sufficient for ,uyin% and sellin% them' The channel of circulation, if # may ,e allowed such an e)pression, will remain precisely the same as ,efore' Ane million we ha$e supposed sufficient to fill that channel' ;hate$er, therefore, is poured into it ,eyond this sum cannot run in it, ,ut must o$erflow' Ane million ei%ht hundred thousand pounds are poured into it' 7i%ht hundred thousand pounds, therefore, must o$erflow, that sum ,ein% o$er and a,o$e what can ,e employed in the circulation of the country' +ut thou%h this sum cannot ,e employed at home, it is too $alua,le to ,e allowed to lie idle' #t will, therefore, ,e sent a,road, in order to seek that profita,le employment which it cannot find at home' +ut the paper cannot %o a,road< ,ecause at a distance from the ,anks which issue it, and from the country in which payment of it can ,e e)acted ,y law, it will not ,e recei$ed in common payments' =old and sil$er, therefore, to the amount of ei%ht hundred thousand pounds will ,e sent a,road, and the channel of home circulation will remain filled with a million of paper, instead of the million of those metals which filled it ,efore' +ut thou%h so %reat a (uantity of %old and sil$er is thus sent a,road, we must not ima%ine that it is sent a,road for nothin%, or that its proprietors make a present of it to forei%n nations' They will e)chan%e it for forei%n %oods of some kind or another, in order to supply the consumption either of some other forei%n country or of their own' #f they employ it in purchasin% %oods in one forei%n country in order to supply the consumption of another, or in what is called the carryin% trade, whate$er profit they make will ,e an addition to the net re$enue of their own country' #t is like a new fund, created for carryin% on a new trade< domestic ,usiness ,ein% now transacted ,y paper, and the %old and sil$er ,ein% con$erted into a fund for this new trade' #f they employ it in purchasin% forei%n %oods for home consumption, they may either, first, purchase such %oods as are likely to ,e consumed ,y idle people who produce nothin%, such as forei%n wines, forei%n silks, etc'< or, secondly, they may purchase an additional stock of materials, tools, and pro$isions, in order to maintain and employ an additional num,er of industrious people, who reproduce, with a profit, the $alue of their annual consumption' 3o far as it is employed in the first way, it promotes prodi%ality, increases e)pense and consumption without increasin% production, or esta,lishin% any permanent fund for supportin% that e)pense, and is in e$ery respect hurtful to the society' 3o far as it is employed in the second way, it promotes industry< and thou%h it increases the consumption of the society, it pro$ides a permanent fund for supportin% that consumption, the people who consume reproducin%, with a profit, the whole $alue of their annual consumption' The %ross re$enue of the society, the annual produce of their land and la,our, is increased ,y the whole $alue which the la,our of those workmen adds to the materials upon which they are employed< and their net re$enue ,y what remains of this $alue, after deductin% what is necessary for supportin% the tools and instruments of their trade' That the %reater part of the %old and sil$er which, ,ein% forced a,road ,y those operations of ,ankin%, is employed in purchasin% forei%n %oods for home consumption, is and must ,e employed in purchasin% those of this second kind, seems not only pro,a,le ,ut almost una$oida,le' Thou%h some particular men may sometimes increase their e)pense $ery considera,ly thou%h their re$enue does not increase at all, we may ,e assured that no class or order of men e$er does so< ,ecause, thou%h the principles of common prudence do not always %o$ern the conduct of e$ery indi$idual, they always influence that of the ma-ority of e$ery class or order' +ut the re$enue of idle people, considered as a class or order, cannot, in the smallest de%ree, ,e increased ,y those operations of ,ankin%' Their e)pense in %eneral, therefore, cannot ,e much increased ,y them, thou%h that of a few indi$iduals amon% them may, and in

reality sometimes is' The demand of idle people, therefore, for forei%n %oods ,ein% the same, or $ery nearly the same, as ,efore, a $ery small part of the money, which ,ein% forced a,road ,y those operations of ,ankin%, is employed in purchasin% forei%n %oods for home consumption, is likely to ,e employed in purchasin% those for their use' The %reater part of it will naturally ,e destined for the employment of industry, and not for the maintenance of idleness' ;hen we compute the (uantity of industry which the circulatin% capital of any society can employ, we must always ha$e re%ard to those parts of it only which consist in pro$isions, materials, and finished workE the other, which consists in money, and which ser$es only to circulate those three, must always ,e deducted' #n order to put industry into motion, three thin%s are re(uisite< materials to work upon, tools to work with, and the wa%es or recompense for the sake of which the work is done' "oney is neither a material to work upon, nor a tool to work with< and thou%h the wa%es of the workman are commonly paid to him in money, his real re$enue, like that of all other men, consists, not in money, ,ut in the moneyDs worth< not in the metal pieces, ,ut in what can ,e %ot for them' The (uantity of industry which any capital can employ must, e$idently, ,e e(ual to the num,er of workmen whom it can supply with materials, tools, and a maintenance suita,le to the nature of the work' "oney may ,e re(uisite for purchasin% the materials and tools of the work, as well as the maintenance of the workmen' +ut the (uantity of industry which the whole capital can employ is certainly not e(ual ,oth to the money which purchases, and to the materials, tools, and maintenance, which are purchased with it< ,ut only to one or other of those two $alues, and to the latter more properly than to the former' ;hen paper is su,stituted in the room of %old and sil$er money, the (uantity of the materials, tools, and maintenance, which the whole circulatin% capital can supply, may ,e increased ,y the whole $alue of %old and sil$er which used to ,e employed in purchasin% them' The whole $alue of the %reat wheel of circulation and distri,ution is added to the %oods which are circulated and distri,uted ,y means of it' The operation, in some measure, resem,les that of the undertaker of some %reat work, who, in conse(uence of some impro$ement in mechanics, takes down his old machinery, and adds the difference ,etween its price and that of the new to his circulatin% capital, to the fund from which he furnishes materials and wa%es to his workmen' ;hat is the proportion which the circulatin% money of any country ,ears to the whole $alue of the annual produce circulated ,y means of it, it is, perhaps, impossi,le to determine' #t has ,een computed ,y different authors at a fifth, at a tenth, at a twentieth, and at a thirtieth part of that $alue' +ut how small soe$er the proportion which the circulatin% money may ,ear to the whole $alue of the annual produce, as ,ut a part, and fre(uently ,ut a small part, of that produce, is e$er destined for the maintenance of industry, it must always ,ear a $ery considera,le proportion to that part' ;hen, therefore, ,y the su,stitution of paper, the %old and sil$er necessary for circulation is reduced to, perhaps, a fifth part of the former (uantity, if the $alue of only the %reater part of the other four?fifths ,e added to the funds which are destined for the maintenance of industry, it must make a $ery considera,le addition to the (uantity of that industry, and, conse(uently, to the $alue of the annual produce of land and la,our' An operation of this kind has, within these fi$e?and?twenty or thirty years, ,een performed in 3cotland, ,y the erection of new ,ankin% companies in almost e$ery considera,le town, and e$en in some country $illa%es' The effects of it ha$e ,een precisely those a,o$e descri,ed' The ,usiness of the country is almost entirely carried on ,y means of the paper of those different ,ankin% companies, with which purchases and payments of kinds are commonly made' 3il$er $ery seldom appears e)cept in the chan%e of a twenty shillin%s ,ank note, and %old still seldomer' +ut thou%h the conduct of all those different companies has not ,een une)ceptiona,le, and has accordin%ly re(uired an act of Parliament to re%ulate it, the country, notwithstandin%, has e$idently deri$ed %reat ,enefit from their trade' # ha$e heard it asserted, that the trade of the city of =las%ow dou,led in a,out fifteen years after the first erection of the ,anks there< and that the trade of 3cotland has more than (uadrupled since the first erection of the two pu,lic ,anks at 7din,ur%h, of which the one, called the +ank of 3cotland, was esta,lished ,y act of Parliament in 1GI < the other, called the /oyal +ank, ,y royal charter in 1P9P' ;hether the trade, either of 3cotland in %eneral, or the city of =las%ow in particular, has really increased in so %reat a proportion, durin% so short a period, # do not pretend to know' #f either of them has increased in this proportion, it seems to ,e an effect too %reat to ,e accounted for ,y the sole operation of this cause' That the trade and industry of 3cotland, howe$er, ha$e increased $ery considera,ly durin% this period, and that the ,anks ha$e contri,uted a %ood deal to this increase, cannot ,e dou,ted' The $alue of the sil$er money which circulated in 3cotland ,efore the union, in 1P0P, and which, immediately after it, was ,rou%ht into the +ank of 3cotland in order to ,e recoined, amounted to C:11,11P 10s' Id' sterlin%' .o account has ,een %ot of the %old coin< ,ut it appears from the ancient accounts of the mint of 3cotland, that the $alue of the %old annually coined somewhat e)ceeded that of the sil$er' There were a %ood many people, too, upon this occasion, who, from a diffidence of repayment, did not ,rin% their sil$er into the +ank of 3cotlandE and there was, ,esides, some 7n%lish coin which was not called in' The whole $alue of the %old and sil$er, therefore, which circulated in 3cotland ,efore the union, cannot ,e estimated at less than a million sterlin%' #t seems to ha$e constituted almost the whole circulation of that country< for thou%h the circulation of the +ank of 3cotland, which had then no ri$al, was considera,le, it seems to ha$e made ,ut a $ery small part of the whole' #n the present times the whole circulation of 3cotland cannot ,e estimated at less than two millions, of which that part which consists in %old and sil$er most pro,a,ly does not amount to half a million' +ut thou%h the circulatin% %old and sil$er of 3cotland ha$e suffered so %reat a diminution durin% this period, its real riches and prosperity do not appear to ha$e suffered any' #ts a%riculture, manufactures, and trade, on the contrary, the annual produce of its land and la,our, ha$e e$idently ,een au%mented'

#t is chiefly ,y discountin% ,ills of e)chan%e, that is, ,y ad$ancin% money upon them ,efore they are due, that the %reater part of ,anks and ,ankers issue their promissory notes' They deduct always, upon whate$er sum they ad$ance, the le%al interest till the ,ill shall ,ecome due' The payment of the ,ill, when it ,ecomes due, replaces to the ,ank the $alue of what had ,een ad$anced, to%ether with a clear profit of the interest' The ,anker who ad$ances to the merchant whose ,ill he discounts, not %old and sil$er, ,ut his own promissory notes, has the ad$anta%e of ,ein% a,le to discount to a %reater amount, ,y the whole $alue of his promissory notes, which he finds ,y e)perience are commonly in circulation' He is there,y ena,led to make his clear %ain of interest on so much a lar%er sum' The commerce of 3cotland, which at present is not $ery %reat, was still more inconsidera,le when the two first ,ankin% companies were esta,lished, and those companies would ha$e had ,ut little trade had they confined their ,usiness to the discountin% of ,ills of e)chan%e' They in$ented, therefore, another method of issuin% their promissory notes< ,y %rantin% what they called cash accounts, that is ,y %i$in% credit to the e)tent of a certain sum 2two or three thousand pounds, for e)ample5 to any indi$idual who could procure two persons of undou,ted credit and %ood landed estate to ,ecome surety for him, that whate$er money should ,e ad$anced to him, within the sum for which the credit had ,een %i$en, should ,e repaid upon demand, to%ether with the le%al interest' Credits of this kind are, # ,elie$e, commonly %ranted ,y ,anks and ,ankers in all different parts of the world' +ut the easy terms upon which the 3cotch ,ankin% companies accept of repayment are, so far as # know, peculiar to them, and ha$e, perhaps, ,een the principal cause, ,oth of the %reat trade of those companies and of the ,enefit which the country has recei$ed from it' ;hoe$er has a credit of this kind with one of those companies, and ,orrows a thousand pounds upon it, for e)ample, may repay this sum piecemeal, ,y twenty and thirty pounds at a time, the company discountin% a proportiona,le part of the interest of the %reat sum from the day on which each of those small sums is paid in till the whole ,e in this manner repaid' All merchants, therefore, and almost all men of ,usiness, find it con$enient to keep such cash accounts with them, and are there,y interested to promote the trade of those companies, ,y readily recei$in% their notes in all payments, and ,y encoura%in% all those with whom they ha$e any influence to do the same' The ,anks, when their customers apply to them for money, %enerally ad$ance it to them in their own promissory notes' These the merchants pay away to the manufacturers for %oods, the manufacturers to the farmers for materials and pro$isions, the farmers to their landlords for rent, the landlords repay them to the merchants for the con$eniencies and lu)uries with which they supply them, and the merchants a%ain return them to the ,anks in order to ,alance their cash accounts, or to replace what they may ha$e ,orrowed of them< and thus almost the whole money ,usiness of the country is transacted ,y means of them' Hence the %reat trade of those companies' +y means of those cash accounts e$ery merchant can, without imprudence, carry on a %reater trade than he otherwise could do' #f there are two merchants, one in Condon and the other in 7din,ur%h, who employ e(ual stocks in the same ,ranch of trade, the 7din,ur%h merchant can, without imprudence, carry on a %reater trade and %i$e employment to a %reater num,er of people than the Condon merchant' The Condon merchant must always keep ,y him a considera,le sum of money, either in his own coffers, or in those of his ,anker, who %i$es him no interest for it, in order to answer the demands continually comin% upon him for payment of the %oods which he purchases upon credit' Cet the ordinary amount of this sum ,e supposed fi$e hundred pounds' The $alue of the %oods in his warehouse must always ,e less ,y fi$e hundred pounds than it would ha$e ,een had he not ,een o,li%ed to keep such a sum unemployed' Cet us suppose that he %enerally disposes of his whole stock upon hand, or of %oods to the $alue of his whole stock upon hand, once in the year' +y ,ein% o,li%ed to keep so %reat a sum unemployed, he must sell in a year fi$e hundred poundsD worth less %oods than he mi%ht otherwise ha$e done' His annual profits must ,e less ,y all that he could ha$e made ,y the sale of fi$e hundred pounds worth more %oods< and the num,er of people employed in preparin% his %oods for the market must ,e less ,y all those that fi$e hundred pounds more stock could ha$e employed' The merchant in 7din,ur%h, on the other hand, keeps no money unemployed for answerin% such occasional demands' ;hen they actually come upon him, he satisfies them from his cash account with the ,ank, and %radually replaces the sum ,orrowed with the money or paper which comes in from the occasional sales of his %oods' ;ith the same stock, therefore, he can, without imprudence, ha$e at all times in his warehouse a lar%er (uantity of %oods than the Condon merchant< and can there,y ,oth make a %reater profit himself, and %i$e constant employment to a %reater num,er of industrious people who prepare those %oods for the market' Hence the %reat ,enefit which the country has deri$ed from this trade' The facility of discountin% ,ills of e)chan%e it may ,e thou%ht indeed, %i$es the 7n%lish merchants a con$eniency e(ui$alent to the cash accounts of the 3cotch merchants' +ut the 3cotch merchants, it must ,e remem,ered, can discount their ,ills of e)chan%e as easily as the 7n%lish merchants< and ha$e, ,esides, the additional con$eniency of their cash accounts' The whole paper money of e$ery kind which can easily circulate in any country ne$er can e)ceed the $alue of the %old and sil$er, of which it supplies the place, or which 2the commerce ,ein% supposed the same5 would circulate there, if there was no paper money' #f twenty shillin% notes, for e)ample, are the lowest paper money current in 3cotland, the whole of that currency which can easily circulate there cannot e)ceed the sum of %old and sil$er which would ,e necessary for transactin% the annual e)chan%es of twenty shillin%s $alue and upwards usually transacted within that country' 3hould the circulatin% paper at any time e)ceed that sum, as the e)cess could neither ,e sent a,road nor ,e employed in the circulation of the country, it must immediately return upon the ,anks to ,e e)chan%ed for %old and sil$er' "any people would immediately percei$e that they had more of this paper than was necessary for transactin% their ,usiness at home, and as they could not send it a,road, they would immediately demand payment of it from the ,anks' ;hen this superfluous paper was con$erted into %old and sil$er, they could easily find a use for it ,y sendin% it a,road< ,ut they could find none while it remained in the shape of paper' There would immediately, therefore, ,e a run upon the ,anks to the whole e)tent of

this superfluous paper, and, if they showed any difficulty or ,ackwardness in payment, to a much %reater e)tent< the alarm which this would occasion necessarily increasin% the run' A$er and a,o$e the e)penses which are common to e$ery ,ranch of trade< such as the e)pense of house?rent, the wa%es of ser$ants, clerks, accountants, etc'< the e)penses peculiar to a ,ank consist chiefly in two articlesE first, in the e)pense of keepin% at all times in its coffers, for answerin% the occasional demands of the holders of its notes, a lar%e sum of money, of which it loses the interest< and, secondly, in the e)pense of replenishin% those coffers as fast as they are emptied ,y answerin% such occasional demands' A ,ankin% company, which issues more paper than can ,e employed in the circulation of the country, and of which the e)cess is continually returnin% upon them for payment, ou%ht to increase the (uantity of %old and sil$er, which they keep at all times in their coffers, not only in proportion to this e)cessi$e increase of their circulation, ,ut in a much %reater proportion< their notes returnin% upon them much faster than in proportion to the e)cess of their (uantity' 3uch a company, therefore, ou%ht to increase the first article of their e)pense, not only in proportion to this forced increase of their ,usiness, ,ut in a much %reater proportion' The coffers of such a company too, thou%h they ou%ht to ,e filled much fuller, yet must empty themsel$es much faster than if their ,usiness was confined within more reasona,le ,ounds, and must re(uire, not only a more $iolent, ,ut a more constant and uninterrupted e)ertion of e)pense in order to replenish them' The coin too, which is thus continually drawn in such lar%e (uantities from their coffers, cannot ,e employed in the circulation of the country' #t comes in place of a paper which is o$er and a,o$e what can ,e employed in that circulation, and is therefore o$er and a,o$e what can ,e employed in it too' +ut as that coin will not ,e allowed to lie idle, it must, in one shape or another, ,e sent a,road, in order to find that profita,le employment which it cannot find at home< and this continual e)portation of %old and sil$er, ,y enhancin% the difficulty, must necessarily enhance still further the e)pense of the ,ank, in findin% new %old and sil$er in order to replenish those coffers, which empty themsel$es so $ery rapidly' 3uch a company, therefore, must, in proportion to this forced increase of their ,usiness, increase the second article of their e)pense still more than the first' Cet us suppose that all the paper of a particular ,ank, which the circulation of the country can easily a,sor, and employ, amounts e)actly to forty thousand pounds< and that for answerin% occasional demands, this ,ank is o,li%ed to keep at all times in its coffers ten thousand pounds in %old and sil$er' 3hould this ,ank attempt to circulate forty?four thousand pounds, the four thousand pounds which are o$er and a,o$e what the circulation can easily a,sor, and employ, will return upon it almost as fast as they are issued' 8or answerin% occasional demands, therefore, this ,ank ou%ht to keep at all times in its coffers, not ele$en thousand pounds only, ,ut fourteen thousand pounds' #t will thus %ain nothin% ,y the interest of the four thousand poundsD e)cessi$e circulation< and it will lose the whole e)pense of continually collectin% four thousand pounds in %old and sil$er, which will ,e continually %oin% out of its coffers as fast as they are ,rou%ht into them' Had e$ery particular ,ankin% company always understood and attended to its own particular interest, the circulation ne$er could ha$e ,een o$erstocked with paper money' +ut e$ery particular ,ankin% company has not always understood or attended to its own particular interest, and the circulation has fre(uently ,een o$erstocked with paper money' +y issuin% too %reat a (uantity of paper, of which the e)cess was continually returnin%, in order to ,e e)chan%ed for %old and sil$er, the +ank of 7n%land was for many years to%ether o,li%ed to coin %old to the e)tent of ,etween ei%ht hundred thousand pounds and a million a year< or at an a$era%e, a,out ei%ht hundred and fifty thousand pounds' 8or this %reat coina%e the ,ank 2in conse(uence of the worn and de%raded state into which the %old coin had fallen a few years a%o5 was fre(uently o,li%ed to purchase %old ,ullion at the hi%h price of four pounds an ounce, which it soon after issued in coin at 3 1Ps' 10 1S9d' an ounce, losin% in this manner ,etween two and a half and three per cent upon the coina%e of so $ery lar%e a sum' Thou%h the ,ank therefore paid no sei%nora%e, thou%h the %o$ernment was properly at the e)pense of the coina%e, this li,erality of %o$ernment did not pre$ent alto%ether the e)pense of the ,ank' The 3cotch ,anks, in conse(uence of an e)cess of the same kind, were all o,li%ed to employ constantly a%ents at Condon to collect money for them, at an e)pense which was seldom ,elow one and a half or two per cent' This money was sent down ,y the wa%%on, and insured ,y the carriers at an additional e)pense of three (uarters per cent or fifteen shillin%s on the hundred pounds' Those a%ents were not always a,le to replenish the coffers of their employers so fast as they were emptied' #n this case the resource of the ,anks was to draw upon their correspondents in Condon ,ills of e)chan%e to the e)tent of the sum which they wanted' ;hen those correspondents afterwards drew upon them for the payment of this sum, to%ether with the interest and a commission, sonic of those ,anks, from the distress into which their e)cessi$e circulation had thrown them, had sometimes no other means of satisfyin% this drau%ht ,ut ,y drawin% a second set of ,ills either upon the same, or upon some other correspondents in Condon< and the same sum, or rather ,ills for the same sum, would in this manner make sometimes more than two or three -ourneys, the de,tor, ,ank, payin% always the interest and commission upon the whole accumulated sum' 7$en those 3cotch ,anks which ne$er distin%uished themsel$es ,y their e)treme imprudence, were sometimes o,li%ed to employ this ruinous resource' The %old coin which was paid out either ,y the +ank of 7n%land, or ,y the 3cotch ,anks, in e)chan%e for that part of their paper which was o$er and a,o$e what could ,e employed in the circulation of the country, ,ein% likewise o$er and a,o$e what could ,e employed in that circulation, was sometimes sent a,road in the shape of coin, sometimes melted down and sent a,road in the shape of ,ullion,

and sometimes melted down and sold to the +ank of 7n%land at the hi%h price of four pounds an ounce' #t was the newest, the hea$iest, and the ,est pieces only which were carefully picked out of the whole coin, and either sent a,road or melted down' At home, and while they remained in the shape of coin, those hea$y pieces were of no more $alue than the li%ht' +ut they were of more $alue a,road, or when melted down into ,ullion, at home' The +ank of 7n%land, notwithstandin% their %reat annual coina%e, found to their astonishment that there was e$ery year the same scarcity of coin as there had ,een the year ,efore< and that notwithstandin% the %reat (uantity of %ood and new coin which was e$ery year issued from the ,ank, the state of the coin, instead of %rowin% ,etter and ,etter, ,ecame e$ery year worse and worse' 7$ery year they found themsel$es under the necessity of coinin% nearly the same (uantity of %old as they had coined the year ,efore, and from the continual rise in the price of %old ,ullion, in conse(uence of the continual wearin% and clippin% of the coin, the e)pense of this %reat annual coina%e ,ecame e$ery year %reater and %reater' The +ank of 7n%land, it is to ,e o,ser$ed, ,y supplyin% its own coffers with coin, is indirectly o,li%ed to supply the whole kin%dom, into which coin is continually flowin% from those coffers in a %reat $ariety of ways' ;hate$er coin therefore was wanted to support this e)cessi$e circulation ,oth of 3cotch and 7n%lish paper money, whate$er $acuities this e)cessi$e circulation occasioned in the necessary coin of the kin%dom, the +ank of 7n%land was o,li%ed to supply them' The 3cotch ,anks, no dou,t, paid all of them $ery dearly for their own imprudence and inattention' +ut the +ank of 7n%land paid $ery dearly, not only for its own imprudence, ,ut for the much %reater imprudence of almost all the 3cotch ,anks' The o%ertrading o* some old "ro9e!tors in oth "arts o* the .nited Kingdom was the original !ause o* this e)!essi%e !ir!ulation o* "a"er money. ;hat a ,ank can with propriety ad$ance to a merchant or undertaker of any kind, is not either the whole capital with which he trades, or e$en any considera,le part of that capital< ,ut that part of it only which he would otherwise ,e o,li%ed to keep ,y him unemployed, and in ready money for answerin% occasional demands' #f the paper money which the ,ank ad$ances ne$er e)ceeds this $alue, it can ne$er e)ceed the $alue of the %old and sil$er which would necessarily circulate in the country if there was no paper money< it can ne$er e)ceed the (uantity which the circulation of the country can easily a,sor, and employ' ;hen a ,ank discounts to a merchant a real ,ill of e)chan%e drawn ,y a real creditor upon a real de,tor, and which, as soon as it ,ecomes due, is really paid ,y that de,tor, it only ad$ances to him a part of the $alue which he would otherwise ,e o,li%ed to keep ,y him unemployed and in ready money for answerin% occasional demands' The payment of the ,ill, when it ,ecomes due, replaces to the ,ank the $alue of what it had ad$anced, to%ether with the interest' The coffers of the ,ank, so far as its dealin%s are confined to such customers, resem,le a water pond, from which, thou%h a stream is continually runnin% out, yet another is continually runnin% in, fully e(ual to that which runs out< so that, without any further care or attention, the pond keeps always e(ually, or $ery near e(ually full' Cittle or no e)pense can e$er ,e necessary for replenishin% the coffers of such a ,ank' A merchant, without o$ertradin%, may fre(uently ha$e occasion for a sum of ready money, e$en when he has no ,ills to discount' ;hen a ,ank, ,esides discountin% his ,ills, ad$ances him likewise upon such occasions such sums upon his cash account, and accepts of a piecemeal repayment as the money comes in from the occasional sale of his %oods, upon the easy terms of the ,ankin% companies of 3cotland< it dispenses him entirely from the necessity of keepin% any part of his stock ,y him unemployed and in ready money for answerin% occasional demands' ;hen such demands actually come upon him, he can answer them sufficiently from his cash account' The ,ank, howe$er, in dealin% with such customers, ou%ht to o,ser$e with %reat attention, whether in the course of some short period 2of four, fi$e, si), or ei%ht months for e)ample5 the sum of the repayments which it commonly recei$es from them is, or is not, fully e(ual to that of the ad$ances which it commonly makes to them' #f, within the course of such short periods, the sum of the repayments from certain customers is, upon most occasions, fully e(ual to that of the ad$ances, it may safely continue to deal with such customers' Thou%h the stream which is in this case continually runnin% out from its coffers may ,e $ery lar%e, that which is continually runnin% into them must ,e at least e(ually lar%e< so that without any further care or attention those coffers are likely to ,e always e(ually or $ery near e(ually full< and scarce e$er to re(uire any e)traordinary e)pense to replenish them' #f, on the contrary, the sum of the repayments from certain other customers falls commonly $ery much short of the ad$ances which it makes to them, it cannot with any safety continue to deal with such customers, at least if they continue to deal with it in this manner' The stream which is in this case continually runnin% out from its coffers is necessarily much lar%er than that which is continually runnin% in< so that, unless they are replenished ,y some %reat and continual effort of e)pense, those coffers must soon ,e e)hausted alto%ether' The ,ankin% companies of 3cotland, accordin%ly, were for a lon% time $ery careful to re(uire fre(uent and re%ular repayments from all their customers, and did not care to deal with any person, whate$er mi%ht ,e his fortune or credit, who did not make, what they called, fre(uent and re%ular operations with them' +y this attention, ,esides sa$in% almost entirely the e)traordinary e)pense of replenishin% their coffers, they %ained two other $ery considera,le ad$anta%es' 8irst, ,y this attention they were ena,led to make some tolera,le -ud%ment concernin% the thri$in% or declinin% circumstances of their de,tors, without ,ein% o,li%ed to look out for any other e$idence ,esides what their own ,ooks afforded them< men ,ein% for the most part either re%ular or irre%ular in their repayments, accordin% as their circumstances are either thri$in% or declinin%' A pri$ate man who lends out his money to perhaps half a do>en or a do>en of de,tors, may, either ,y himself or his a%ents, o,ser$e and in(uire ,oth constantly and carefully into the conduct and situation of each of them' +ut a ,ankin% company, which lends money to perhaps fi$e hundred different people, and of which the attention is continually occupied ,y o,-ects of a $ery different kind, can ha$e no re%ular

information concernin% the conduct and circumstances of the %reater part of its de,tors ,eyond what its own ,ooks afford it' #n re(uirin% fre(uent and re%ular repayments from all their customers, the ,ankin% companies of 3cotland had pro,a,ly this ad$anta%e in $iew' 3econdly, ,y this attention they secured themsel$es from the possi,ility of issuin% more paper money than what the circulation of the country could easily a,sor, and employ' ;hen they o,ser$ed that within moderate periods of time the repayments of a particular customer were upon most occasions fully e(ual to the ad$ances which they had made to him, they mi%ht ,e assured that the paper money which they had ad$anced to him had not at any time e)ceeded the (uantity of %old and sil$er which he would otherwise ha$e ,een o,li%ed to keep ,y him for answerin% occasional demands< and that, conse(uently, the paper money, which they had circulated ,y his means, had not at any time e)ceeded the (uantity of %old and sil$er which would ha$e circulated in the country had there ,een no paper money' The fre(uency, re%ularity, and amount of his repayments would sufficiently demonstrate that the amount of their ad$ances had at no time e)ceeded that part of his capital which he would otherwise ha$e ,een o,li%ed to keep ,y him unemployed and in ready money for answerin% occasional demands< that is, for the purpose of keepin% the rest of his capital in constant employment' #t is this part of his capital only which, within moderate periods of time, is continually returnin% to e$ery dealer in the shape of money, whether paper or coin, and continually %oin% from him in the same shape' #f the ad$ances of the ,ank had commonly e)ceeded this part of his capital, the ordinary amount of his repayments could not, within moderate periods of time, ha$e e(ualled the ordinary amount of its ad$ances' The stream which, ,y means of his dealin%s, was continually runnin% into the coffers of the ,ank, could not ha$e ,een e(ual to the stream which, ,y means of the same dealin%s, was continually runnin% out' The ad$ances of the ,ank paper, ,y e)ceedin% the (uantity of %old and sil$er which, had there ,een no such ad$ances, he would ha$e ,een o,li%ed to keep ,y him for answerin% occasional demands, mi%ht soon come to e)ceed the whole (uantity of %old and sil$er which 2the commerce ,ein% supposed the same5 would ha$e circulated in the country had there ,een no paper money< and conse(uently to e)ceed the (uantity which the circulation of the country could easily a,sor, and employ< and the e)cess of this paper money would immediately ha$e returned upon the ,ank in order to ,e e)chan%ed for %old and sil$er' This second ad$anta%e, thou%h e(ually real, was not perhaps so well understood ,y all the different ,ankin% companies of 3cotland as the first' ;hen, partly ,y the con$eniency of discountin% ,ills, and partly ,y that of cash accounts, the credita,le traders of any country can ,e dispensed from the necessity of keepin% any part of their stock ,y them unemployed and in ready money for answerin% occasional demands, they can reasona,ly e)pect no farther assistance from ,anks and ,ankers, who, when they ha$e %one thus far, cannot, consistently with their own interest and safety, %o farther' A ,ank cannot, consistently with its own interest, ad$ance to a trader the whole or e$en the %reater part of the circulatin% capital with which he trades< ,ecause, thou%h that capital is continually returnin% to him in the shape of money, and %oin% from him in the same shape, yet the whole of the returns is too distant from the whole of the out%oin%s, and the sum of his repayments could not e(ual the sum of its ad$ances within such moderate periods of time as suit the con$eniency of a ,ank' 3till less, could a ,ank afford to ad$ance him any considera,le part of his fi)ed capital< of the capital which the undertaker of an iron for%e, for e)ample, employs in erectin% his for%e and smeltin%?house, his workhouses and warehouses, the dwellin%?houses of his workmen, etc'< of the capital which the undertaker of a mine employs in sinkin% his shafts, in erectin% en%ines for drawin% out the water, in makin% roads and wa%%on?ways, etc'< of the capital which the person who undertakes to impro$e land employs in clearin%, drainin%, enclosin%, manurin%, and plou%hin% waste and unculti$ated fields, in ,uildin% farm?houses, with all their necessary appenda%es of sta,les, %ranaries, etc' The returns of the fi)ed capital are in almost all cases much slower than those of the circulatin% capital< and such e)penses, e$en when laid out with the %reatest prudence and -ud%ment, $ery seldom return to the undertaker till after a period of many years, a period ,y far too distant to suit the con$eniency of a ,ank' Traders and other undertakers may, no dou,t, with %reat propriety, carry on a $ery considera,le part of their pro-ects with ,orrowed money' #n -ustice to their creditors, howe$er, their own capital ou%ht, in this case, to ,e sufficient to ensure, if # may say so, the capital of those creditors< or to render it e)tremely impro,a,le that those creditors should incur any loss, e$en thou%h the success of the pro-ect should fall $ery much short of the e)pectation of the pro-ectors' 7$en with this precaution too, the money which is ,orrowed, and which it is meant should not ,e repaid till after a period of se$eral years, ou%ht not to ,e ,orrowed of a ,ank, ,ut ou%ht to ,e ,orrowed upon ,ond or mort%a%e of such pri$ate people as propose to li$e upon the interest of their money without takin% the trou,le themsel$es to employ the capital, and who are upon that account willin% to lend that capital to such people of %ood credit as are likely to keep it for se$eral years' A ,ank, indeed, which lends its money without the e)pense of stamped paper, or of attorneysD fees for drawin% ,onds and mort%a%es, and which accepts of repayment upon the easy terms of the ,ankin% companies of 3cotland, would, no dou,t, ,e a $ery con$enient creditor to such traders and undertakers' +ut such traders and undertakers would, surely, ,e most incon$enient de,tors to such a ,ank' #t is now more than fi$e?and?twenty years since the paper money issued ,y the different ,ankin% companies of 3cotland was fully e(ual, or rather was somewhat more than fully e(ual, to what the circulation of the country could easily a,sor, and employ' Those companies, therefore, had so lon% a%o %i$en all the assistance to the traders and other undertakers of 3cotland which it is possi,le for ,anks and ,ankers, consistently with their own interest, to %i$e' They had e$en done somewhat more' They had o$ertraded a little, and had ,rou%ht upon themsel$es that loss, or at least that diminution of profit, which in this particular ,usiness ne$er fails to attend the smallest de%ree of o$ertradin%' Those traders and other undertakers, ha$in% %ot so much assistance from ,anks and ,ankers, wished to %et still more' The ,anks, they seem to ha$e thou%ht, could e)tend their credits to whate$er sum mi%ht ,e wanted, without incurrin% any other e)pense ,esides that of a few reams of paper' They complained of the contracted $iews and dastardly spirit of the directors of those ,anks, which did not, they said, e)tend their credits in proportion to the e)tension of the trade of the country< meanin%, no dou,t, ,y the e)tension of that trade the e)tension of their own pro-ects ,eyond what they could carry on, either with their own capital,

or with what they had credit to ,orrow of pri$ate people in the usual way of ,ond or mort%a%e' The ,anks, they seem to ha$e thou%ht, were in honour ,ound to supply the deficiency, and to pro$ide them with all the capital which they wanted to trade with' The ,anks, howe$er, were of a different opinion, and upon their refusin% to e)tend their credits, some of those traders had recourse to an e)pedient which, for a time, ser$ed their purpose, thou%h at a much %reater e)pense, yet as effectually as the utmost e)tension of ,ank credits could ha$e done' This e)pedient was no other than the well?known shift of drawin% and redrawin%< the shift to which unfortunate traders ha$e sometimes recourse when they are upon the ,rink of ,ankruptcy' The practice of raisin% money in this manner had ,een lon% known in 7n%land, and durin% the course of the late war, when the hi%h profits of trade afforded a %reat temptation to o$ertradin%, is said to ha$e carried on to a $ery %reat e)tent' 8rom 7n%land it was ,rou%ht into 3cotland, where, in proportion to the $ery limited commerce, and to the $ery moderate capital of the country, it was soon carried on to a much %reater e)tent than it e$er had ,een in 7n%land' The practice of drawin% and redrawin% is so well known to all men of ,usiness that it may perhaps ,e thou%ht unnecessary to %i$e an account of it' +ut as this ,ook may come into the hands of many people who are not men of ,usiness, and as the effects of this practice upon the ,ankin% trade are not perhaps %enerally understood e$en ,y men of ,usiness themsel$es, # shall endea$our to e)plain it as distinctly as # can' The customs of merchants, which were esta,lished when the ,ar,arous laws of 7urope did not enforce the performance of their contracts, and which durin% the course of the two last centuries ha$e ,een adopted into the laws of all 7uropean nations, ha$e %i$en such e)traordinary pri$ile%es to ,ills of e)chan%e that money is more readily ad$anced upon them than upon any other species of o,li%ation, especially when they are made paya,le within so short a period as two or three months after their date' #f, when the ,ill ,ecomes due, the acceptor does not pay it as soon as it is presented, he ,ecomes from that moment a ,ankrupt' The ,ill is protested, and returns upon the drawer, who, if he does not immediately pay it, ,ecomes likewise a ,ankrupt' #f, ,efore it came to the person who presents it to the acceptor for payment, it had passed throu%h the hands of se$eral other persons, who had successi$ely ad$anced to one another the contents of it either in money or %oods, and who to e)press that each of them had in his turn recei$ed those contents, had all of them in their order endorsed, that is, written their names upon the ,ack of the ,ill< each endorser ,ecomes in his turn lia,le to the owner of the ,ill for those contents, and, if he fails to pay, he ,ecomes too from that moment a ,ankrupt' Thou%h the drawer, acceptor, and endorsers of the ,ill should, all of them, ,e persons of dou,tful credit< yet still the shortness of the date %i$es some security to the owner of the ,ill' Thou%h all of them may ,e $ery likely to ,ecome ,ankrupts, it is a chance if they all ,ecome so in so short a time' The house is cra>y, says a weary tra$eller to himself, and will not stand $ery lon%< ,ut it is a chance if it falls to?ni%ht, and # will $enture, therefore, to sleep in it to?ni%ht' The trader A in 7din,ur%h, we shall suppose, draws a ,ill upon + in Condon, paya,le two months after date' #n reality + in Condon owes nothin% to A in 7din,ur%h< ,ut he a%rees to accept of ADs ,ill, upon condition that ,efore the term of payment he shall redraw upon A in 7din,ur%h for the same sum, to%ether with the interest and a commission, another ,ill, paya,le likewise two months after date' + accordin%ly, ,efore the e)piration of the first two months, redraws this ,ill upon A in 7din,ur%h< who a%ain, ,efore the e)piration of the second two months, draws a second ,ill upon + in Condon, paya,le likewise two months after date< and ,efore the e)piration of the third two months, + in Condon redraws upon A in 7din,ur%h another ,ill, paya,le also two months after date' This practice has sometimes %one on, not only for se$eral months, ,ut for se$eral years to%ether, the ,ill always returnin% upon A in 7din,ur%h, with the accumulated interest and commission of all the former ,ills' The interest was fi$e per cent in the year, and the commission was ne$er less than one half per cent on each draft' This commission ,ein% repeated more than si) times in the year, whate$er money A mi%ht raise ,y this e)pedient must necessarily ha$e, cost him somethin% more than ei%ht per cent in the year, and sometimes a %reat deal more< when either the price of the commission happened to rise, or when he was o,li%ed to pay compound interest upon the interest and commission of former ,ills' This practice was called raisin% money ,y circulation' #n a country where the ordinary profits of stock in the %reater part of mercantile pro-ects are supposed to run ,etween si) and ten per cent, it must ha$e ,een a $ery fortunate speculation of which the returns could not only repay the enormous e)pense at which the money was thus ,orrowed for carryin% it on< ,ut afford, ,esides, a %ood surplus profit to the pro-ector' "any $ast and e)tensi$e pro-ects, howe$er, were undertaken, and for se$eral years carried on without any other fund to support them ,esides what was raised at this enormous e)pense' The pro-ectors, no dou,t, had in their %olden dreams the most distinct $ision of this %reat profit' 4pon their awakin%, howe$er, either at the end of their pro-ects, or when they were no lon%er a,le to carry them on, they $ery seldom, # ,elie$e, had the %ood fortune to find it' The ,ills A in 7din,ur%h drew upon + in Condon, he re%ularly discounted two months ,efore they were due with some ,ank or ,anker in 7din,ur%h< and the ,ills which + in Condon redrew upon A in 7din,ur%h, he as re%ularly discounted either with the +ank of 7n%land, or with some other ,ankers in Condon' ;hate$er was ad$anced upon such circulatin% ,ills, was, in 7din,ur%h, ad$anced in the paper of the 3cotch ,anks, and in Condon, when they were discounted at the +ank of 7n%land, in the paper of that ,ank' Thou%h the ,ills upon which this paper had ,een ad$anced were all of them repaid in their turn as soon as they ,ecame due< yet the $alue which had ,een really ad$anced upon the first ,ill, was ne$er really returned to the ,anks which ad$anced it< ,ecause, ,efore each ,ill ,ecame due, another ,ill was always drawn to somewhat a %reater amount than the ,ill which was soon to ,e paid< and the discountin% of this other ,ill was essentially necessary towards the payment of that which was soon to ,e due' This payment, therefore, was

alto%ether fictitious' The stream, which, ,y means of those circulatin% ,ills of e)chan%e, had once ,een made to run out from the coffers of the ,anks, was ne$er replaced ,y any stream which really run into them' The paper which was issued upon those circulatin% ,ills of e)chan%e, amounted, upon many occasions, to the whole fund destined for carryin% on some $ast and e)tensi$e pro-ect of a%riculture, commerce, or manufactures< and not merely to that part of it which, had there ,een no paper money, the pro-ector would ha$e ,een o,li%ed to keep ,y him, unemployed and in ready money for answerin% occasional demands' The %reater part of this paper was, conse(uently, o$er and a,o$e the $alue of the %old and sil$er which would ha$e circulated in the country, had there ,een no paper money' #t was o$er and a,o$e, therefore, what the circulation of the country could easily a,sor, and employ, and upon that account, immediately returned upon the ,anks in order to ,e e)chan%ed for %old and sil$er, which they were to find as they could' #t was a capital which those pro-ectors had $ery artfully contri$ed to draw from those ,anks, not only without their knowled%e or deli,erate consent, ,ut for some time, perhaps, without their ha$in% the most distant suspicion that they had really ad$anced it' ;hen two people, who are continually drawin% and redrawin% upon one another, discount their ,ills always with the same ,anker, he must immediately disco$er what they are a,out, and see clearly that they are tradin%, not with any capital of their own, ,ut with the capital which he ad$ances to them' +ut this disco$ery is not alto%ether so easy when they discount their ,ills sometimes with one ,anker, and sometimes with another, and when the same two persons do not constantly draw and redraw upon one another, ,ut occasionally run the round of a %reat circle of pro-ectors, who find it for their interest to assist one another in this method of raisin% money, and to render it, upon that account, as difficult as possi,le to distin%uish ,etween a real and fictitious ,ill of e)chan%e< ,etween a ,ill drawn ,y a real creditor upon a real de,tor, and a ,ill for which there was properly no real creditor ,ut the ,ank which discounted it, nor any real de,tor ,ut the pro-ector who made use of the money' ;hen a ,anker had e$en made this disco$ery, he mi%ht sometimes make it too late, and mi%ht find that he had already discounted the ,ills of those pro-ectors to so %reat an e)tent that, ,y refusin% to discount any more, he would necessarily make them all ,ankrupts, and thus, ,y ruinin% them, mi%ht perhaps ruin himself' 8or his own interest and safety, therefore, he mi%ht find it necessary, in this $ery perilous situation, to %o on for some time, endea$ourin%, howe$er, to withdraw %radually, and upon that account makin% e$ery day %reater and %reater difficulties a,out discountin%, in order to force those pro-ectors ,y de%rees to ha$e recourse, either to other ,ankers, or to other methods of raisin% money< so that he himself mi%ht, as soon as possi,le, %et out of the circle' The difficulties, accordin%ly, which the +ank of 7n%land, which the principal ,ankers in Condon, and which e$en the more prudent 3cotch ,anks ,e%an, after a certain time, and when all of them had already %one too far, to make a,out discountin%, not only alarmed, ,ut enra%ed in the hi%hest de%ree those pro-ectors' Their own distress, of which this prudent and necessary reser$e of the ,anks was, no dou,t, the immediate occasion, they called the distress of the country< and this distress of the country, they said, was alto%ether owin% to the i%norance, pusillanimity, and ,ad conduct of the ,anks, which did not %i$e a sufficiently li,eral aid to the spirited undertakin%s of those who e)erted themsel$es in order to ,eautify, impro$e, and enrich the country' #t was the duty of the ,anks, they seemed to think, to lend for as lon% a time, and to as %reat an e)tent as they mi%ht wish to ,orrow' The ,anks, howe$er, ,y refusin% in this manner to %i$e more credit to those to whom they had already %i$en a %reat deal too much, took the only method ,y which it was now possi,le to sa$e either their own credit or the pu,lic credit of the country' #n the midst of this clamour and distress, a new ,ank was esta,lished in 3cotland for the e)press purpose of relie$in% the distress of the country' The desi%n was %enerous< ,ut the e)ecution was imprudent, and the nature and causes of the distress which it meant to relie$e were not, perhaps, well understood' This ,ank was more li,eral than any other had e$er ,een, ,oth in %rantin% cash accounts, and in discountin% ,ills of e)chan%e' ;ith re%ard to the latter, it seems to ha$e made scarce any distinction ,etween real and circulatin% ,ills, ,ut to ha$e discounted all e(ually' #t was the a$owed principle of this ,ank to ad$ance, upon any reasona,le security, the whole capital which was to ,e employed in those impro$ements of which the returns are the most slow and distant, such as the impro$ements of land' To promote such impro$ements was e$en said to ,e the chief of the pu,lic?spirited purposes for which it was instituted' +y its li,erality in %rantin% cash accounts, and in discountin% ,ills of e)chan%e, it, no dou,t, issued %reat (uantities of its ,ank notes' +ut those ,ank notes ,ein%, the %reater part of them, o$er and a,o$e what the circulation of the country could easily a,sor, and employ, returned upon it, in order to ,e e)chan%ed for %old and sil$er as fast as they were issued' #ts coffers were ne$er well filled' The capital which had ,een su,scri,ed to this ,ank at two different su,scriptions, amounted to one hundred and si)ty thousand pounds, of which ei%hty per cent only was paid up' This sum ou%ht to ha$e ,een paid in at se$eral different instalments' A %reat part of the proprietors, when they paid in their first instalment, opened a cash account with the ,ank< and the directors, thinkin% themsel$es o,li%ed to treat their own proprietors with the same li,erality with which they treated all other men, allowed many of them to ,orrow upon this cash account what they paid in upon all their su,se(uent instalments' 3uch payments, therefore, only put into one coffer what had the moment ,efore ,een taken out of another' +ut had the coffers of this ,ank ,een filled e$er so well, its e)cessi$e circulation must ha$e emptied them faster than they could ha$e ,een replenished ,y any other e)pedient ,ut the ruinous one of drawin% upon Condon, and when the ,ill ,ecame due, payin% it, to%ether with interest and commission, ,y another draft upon the same place' #ts coffers ha$in% ,een filled so $ery ill, it is said to ha$e ,een dri$en to this resource within a $ery few months after it ,e%an to do ,usiness' The estates of the proprietors of this ,ank were worth se$eral millions, and ,y their su,scription to the ori%inal ,ond or contract of the ,ank, were really pled%ed for answerin% all its en%a%ements' +y means of the %reat credit which so %reat a pled%e necessarily %a$e it, it was, notwithstandin% its too li,eral conduct, ena,led to carry on ,usiness for more than two years' ;hen it was o,li%ed to stop, it had in the circulation a,out two hundred thousand pounds in ,ank notes' #n order to support the circulation of those notes which were continually returnin% upon it as fast they were issued, it had ,een constantly in the practice of drawin% ,ills of e)chan%e upon Condon, of which

the num,er and $alue were continually increasin%, and, when it stopped, amounted to upwards of si) hundred thousand pounds' This ,ank, therefore, had, in little more than the course of two years, ad$anced to different people upwards of ei%ht hundred thousand pounds at fi$e per cent' 4pon the two hundred thousand pounds which it circulated in ,ank notes, this fi$e per cent mi%ht, perhaps, ,e considered as clear %ain, without any other deduction ,esides the e)pense of mana%ement' +ut upon upwards of si) hundred thousand pounds, for which it was continually drawin% ,ills of e)chan%e upon Condon, it was payin%, in the way of interest and commission, upwards of ei%ht per cent, and was conse(uently losin% more than three per cent upon more than three?fourths of all its dealin%s' The operations of this ,ank seem to ha$e produced effects (uite opposite to those which were intended ,y the particular persons who planned and directed it' They seem to ha$e intended to support the spirited undertakin%s, for as such they considered them, which were at that time carryin% on in different parts of the country< and at the same time, ,y drawin% the whole ,ankin% ,usiness to themsel$es, to supplant all the other 3cotch ,anks, particularly those esta,lished in 7din,ur%h, whose ,ackwardness in discountin% ,ills of e)chan%e had %i$en some offence' This ,ank, no dou,t, %a$e some temporary relief to those pro-ectors, and ena,led them to carry on their pro-ects for a,out two years lon%er than they could otherwise ha$e done' +ut it there,y only ena,led them to %et so much deeper into de,t, so that, when ruin came, it fell so much the hea$ier ,oth upon them and upon their creditors' The operations of this ,ank, therefore, instead of relie$in%, in reality a%%ra$ated in the lon%?run the distress which those pro-ectors had ,rou%ht ,oth upon themsel$es and upon their country' #t would ha$e ,een much ,etter for themsel$es, their creditors, and their country, had the %reater part of them ,een o,li%ed to stop two years sooner than they actually did' The temporary relief, howe$er, which this ,ank afforded to those pro-ectors, pro$ed a real and permanent relief to the other 3cotch ,anks' All the dealers in circulatin% ,ills of e)chan%e, which those other ,anks had ,ecome so ,ackward in discountin%, had recourse to this new ,ank, where they were recei$ed with open arms' Those other ,anks, therefore, were ena,led to %et $ery easily out of that fatal circle, from which they could not otherwise ha$e disen%a%ed themsel$es without incurrin% a considera,le loss, and perhaps too e$en some de%ree of discredit' #n the lon%?run, therefore, the operations of this ,ank increased the real distress of the country which it meant to relie$e< and effectually relie$ed from a $ery %reat distress those ri$als whom it meant to supplant' At the first settin% out of this ,ank, it was the opinion of some people that how fast soe$er its coffers mi%ht ,e emptied, it mi%ht easily replenish them ,y raisin% money upon the securities of those to whom it had ad$anced its paper' 7)perience, # ,elie$e, soon con$inced them that this method of raisin% money was ,y much too slow to answer their purpose< and that coffers which ori%inally were so ill filled, and which emptied themsel$es so $ery fast, could ,e replenished ,y no other e)pedient ,ut the ruinous one of drawin% ,ills upon Condon, and when they ,ecame due, payin% them ,y other drafts upon the same place with accumulated interest and commission' +ut thou%h they had ,een a,le ,y this method to raise money as fast as they wanted it, yet, instead of makin% a profit, they must ha$e suffered a loss ,y e$ery such operation< so that in the lon%?run they must ha$e ruined themsel$es as a mercantile company, thou%h, perhaps, not so soon as ,y the more e)pensi$e practice of drawin% and redrawin%' They could still ha$e made nothin% ,y the interest of the paper, which, ,ein% o$er and a,o$e what the circulation of the country could a,sor, and employ, returned upon them, in order to ,e e)chan%ed for %old and sil$er, as fast as they issued it< and for the payment of which they were themsel$es continually o,li%ed to ,orrow money' An the contrary, the whole e)pense of this ,orrowin%, of employin% a%ents to look out for people who had money to lend, of ne%otiatin% with those people, and of drawin% the proper ,ond or assi%nment, must ha$e fallen upon them, and ha$e ,een so much clear loss upon the ,alance of their accounts' The pro-ect of replenishin% their coffers in this manner may ,e compared to that of a man who had a water?pond from which a stream was continually runnin% out, and into which no stream was continually runnin%, ,ut who proposed to keep it always e(ually full ,y employin% a num,er of people to %o continually with ,uckets to a well at some miles distance in order to ,rin% water to replenish it' +ut thou%h this operation had pro$ed not only practica,le ,ut profita,le to the ,ank as a mercantile company, yet the country could ha$e deri$ed no ,enefit from it< ,ut, on the contrary, must ha$e suffered a $ery considera,le loss ,y it' This operation could not au%ment in the smallest de%ree the (uantity of money to ,e lent' #t could only ha$e erected this ,ank into a sort of %eneral loan office for the whole country' Those who wanted to ,orrow must ha$e applied to this ,ank instead of applyin% to the pri$ate persons who had lent it their money' +ut a ,ank which lends money perhaps to fi$e hundred different people, the %reater part of whom its directors can know $ery little a,out, is not likely to ,e more -udicious in the choice of its de,tors than a pri$ate person who lends out his money amon% a few people whom he knows, and in whose so,er and fru%al conduct he thinks he has %ood reason to confide' The de,tors of such a ,ank as that whose conduct # ha$e ,een %i$in% some account of were likely, the %reater part of them, to ,e chimerical pro-ectors, the drawers and re?drawers of circulatin% ,ills of e)chan%e, who would employ the money in e)tra$a%ant undertakin%s, which, with all the assistance that could ,e %i$en them, they would pro,a,ly ne$er ,e a,le to complete, and which, if they should ,e completed, would ne$er repay the e)pense which they had really cost, would ne$er afford a fund capa,le of maintainin% a (uantity of la,our e(ual to that which had ,een employed a,out them' The so,er and fru%al de,tors of pri$ate persons, on the contrary, would ,e more likely to employ the money ,orrowed in so,er undertakin%s which were proportioned to their capitals, and which, thou%h they mi%ht ha$e less of the %rand and the mar$ellous, would ha$e more of the solid and the profita,le, which would repay with a lar%e profit whate$er had ,een laid out upon them, and which would thus afford a fund capa,le of maintainin% a much %reater (uantity of la,our than that which had ,een employed a,out them' The success of this operation, therefore, without increasin% in the smallest de%ree the capital of the country, would only ha$e transferred a %reat part of it from prudent and profita,le to imprudent and unprofita,le undertakin%s'

That the industry of 3cotland lan%uished for want of money to employ it was the opinion of the famous "r' Caw' +y esta,lishin% a ,ank of a particular kind, which he seems to ha$e ima%ined mi%ht issue paper to the amount of the whole $alue of all the lands in the country, he proposed to remedy this want of money' The Parliament of 3cotland, when he first proposed his pro-ect, did not think proper to adopt it' #t was afterwards adopted, with some $ariations, ,y the 6uke of Arleans, at that time /e%ent of 8rance' The idea of the possi,ility of multiplyin% paper to almost any e)tent was the real foundation of what is called the "ississippi scheme, the most e)tra$a%ant pro-ect ,oth of ,ankin% and stock?-o,,in% that, perhaps, the world e$er saw' The different operations of this scheme are e)plained so fully, so clearly, and with so much order and distinctness, ,y "r' du Berney, in his 7)amination of the Political /eflections upon Commerce and 8inances of "r' du Tot, that # shall not %i$e any account of them' The principles upon which it was founded are e)plained ,y "r' Caw himself, in a discourse concernin% money and trade, which he pu,lished in 3cotland when he first proposed his pro-ect' The splendid ,ut $isionary ideas which are set forth in that and some other works upon the same principles still continue to make an impression upon many people, and ha$e, perhaps, in part, contri,uted to that e)cess of ,ankin% which has of late ,een complained of ,oth in 3cotland and in other places' The &ank o* (ngland is the greatest ank o* !ir!ulation in (uro"e. #t was in!or"orated, in "ursuan!e o* an a!t o* Parliament, y a !harter under the Great /eal, dated the J6th o* $uly, 3KL2. #t at that time ad%an!ed to go%ernment the sum o* one million two hundred thousand "ounds, *or an annuity o* one hundred thousand "ounds: or *or LLK,<<< a year interest, at the rate o* eight "er !ent, and L2<<< a year *or the e)"ense o* management. The !redit o* the new go%ernment, esta lished y the -e%olution, we may elie%e, must ha%e een %ery low, when it was o liged to orrow at so high an interest. #n 1GIP the ,ank was allowed to enlar%e its capital stock ,y an en%raftment of C1,001,1P1 10s' #ts whole capital stock therefore, amounted at this time to C9,901,1P1 10s' This en%raftment is said to ha$e ,een for the support of pu,lic credit' #n 1GIG, tallies had ,een at forty, and fifty, and si)ty per cent discount, and ,ank notes at twenty per cent' 6urin% the %reat recoina%e of the sil$er, which was %oin% on at this time, the ,ank had thou%ht proper to discontinue the payment of its notes, which necessarily occasioned their discredit' #n pursuance of the Pth Anne, c' P, the ,ank ad$anced and paid into the e)che(uer the sum of C:00,000< makin% in all the sum of C1,G00,000 which it had ad$anced upon its ori%inal annuity of CIG,000 interest and C:000 for e)pense of mana%ement' #n 1P08, therefore, the credit of %o$ernment was as %ood as that of pri$ate persons, since it could ,orrow at si) per cent interest the common le%al and market rate of those times' #n pursuance of the same act, the ,ank cancelled e)che(uer ,ills to the amount of C1,PP ,09P 1Ps' 10 1S9d' at si) per cent interest, and was at the same time allowed to take in su,scriptions for dou,lin% its capital' #n 1P08, therefore, the capital of the ,ank amounted to C:,:09,3:3< and it had ad$anced to %o$ernment the sum of C3,3P ,09P 1Ps' 10 1S9d' +y a call of fifteen per cent in 1P0I, there was paid in and made stock CG G,90: #s' Id'< and ,y another of ten per cent in 1P10, C 01,::8 19s' 11d' #n conse(uence of those two calls, therefore, the ,ank capital amounted to C , I,II 1:s' 8d' #n pursuance of the 3rd =eor%e #, c' 8, the ,ank deli$ered up two millions of e)che(uer ,ills to ,e cancelled' #t had at this time, therefore, ad$anced to %o$ernment 1Ps' 10d' #n pursuance of the 8th =eor%e 1, c' 91, the ,ank purchased of the 3outh 3ea Company stock to the amount of 1:,000,000< and in 1P99, in conse(uence of the su,scriptions which it had taken in for ena,lin% it to make this purchase, its capital stock was increased ,y C3,:00,000' At this time, therefore, the ,ank had ad$anced to the pu,lic CI,3P ,09P 1Ps' 10 1S9d'< and its capital stock amounted only to C8,I I,II 1:s' 8d' #t was upon this occasion that the sum which the ,ank had ad$anced to the pu,lic, and for which it recei$ed interest, ,e%an first to e)ceed its capital stock, or the sum for which it paid a di$idend to the proprietors of ,ank stock< or, in other words, that the ,ank ,e%an to ha$e an undi$ided capital, o$er and a,o$e its di$ided one' #t has continued to ha$e an undi$ided capital of the same kind e$er since' #n 1P:G, the ,ank had, upon different occasions, ad$anced to the pu,lic C11,G8G,800 and its di$ided capital had ,een raised ,y different calls and su,scriptions to C10,P80,000' The state of those two sums has continued to ,e the same e$er since' #n pursuance of the :th of =eor%e ###, c' 9 , the ,ank a%reed to pay to %o$ernment for the renewal of its charter C110,000 without interest or repayment' This sum, therefore, did not increase either of those two other sums' The di$idend of the ,ank has $aried accordin% to the $ariations in the rate of the interest which it has, at different times, recei$ed for the money it had ad$anced to the pu,lic, as well as accordin% to other circumstances' This rate of interest has %radually ,een reduced from ei%ht to three per cent' 8or some years past the ,ank di$idend has ,een at fi$e and a half per cent' The sta ility o* the &ank o* (ngland is e;ual to that o* the &ritish go%ernment. +ll that it has ad%an!ed to the "u li! must e lost e*ore its !reditors !an sustain any loss. >o other anking !om"any in (ngland !an e esta lished y a!t o* Parliament, or !an !onsist o* more than si) mem ers. #t a!ts, not only as an ordinary ank, ut as a great engine o* state. #t re!ei%es and "ays the greater "art o* the annuities whi!h are due to the !reditors o* the "u li!, it !ir!ulates e)!he;uer ills, and it ad%an!es to go%ernment the annual amount o* the land and malt ta)es, whi!h are *re;uently not "aid u" till some years therea*ter. #n those di**erent o"erations, its duty to the "u li! may sometimes ha%e o liged it, without any *ault o* its dire!tors, to o%ersto!k the !ir!ulation with "a"er money. #t likewise dis!ounts mer!hantsG ills, and has, u"on se%eral di**erent o!!asions, su""orted the !redit o* the "rin!i"al houses, not only o* (ngland, ut o* 'am urg and 'olland. 4pon one occasion, in 1PG3, it is said to ha$e ad$anced for this purpose, in one week, a,out C1,G00,000, a %reat part of it in ,ullion' # do not, howe$er, pretend to warrant either the

%reatness of the sum, or the shortness of the time' 4pon other occasions, this %reat company has ,een reduced to the necessity of payin% in si)pences' #t is not ,y au%mentin% the capital of the country, ,ut ,y renderin% a %reater part of that capital acti$e and producti$e than would otherwise ,e so, that the most -udicious operations of ,ankin% can increase the industry of the country' That part of his capital which a dealer is o,li%ed to keep ,y him unemployed, and in ready money, for answerin% occasional demands, is so much dead stock, which, so lon% as it remains in this situation, produces nothin% either to him or to his country' The -udicious operations of ,ankin% ena,le him to con$ert this dead stock into acti$e and producti$e stock< into materials to work upon, into tools to work with, and into pro$isions and su,sistence to work for< into stock which produces somethin% ,oth to himself and to his country' The %old and sil$er money which circulates in any country, and ,y means of which the produce of its land and la,our is annually circulated and distri,uted to the proper consumers, is, in the same manner as the ready money of the dealer, all dead stock' #t is a $ery $alua,le part of the capital of the country, which produces nothin% to the country' The -udicious operations of ,ankin%, ,y su,stitutin% paper in the room of a %reat part of this %old and sil$er, ena,les the country to con$ert a %reat part of this dead stock into acti$e and producti$e stock< into stock which produces somethin% to the country' The %old and sil$er money which circulates in any country may $ery properly ,e compared to a hi%hway, which, while it circulates and carries to market all the %rass and corn of the country, produces itself not a sin%le pile of either' The -udicious operations of ,ankin%, ,y pro$idin%, if # may ,e allowed so $iolent a metaphor, a sort of wa%%on?way throu%h the air, ena,le the country to con$ert, as it were, a %reat part of its hi%hways into %ood pastures and corn?fields, and there,y to increase $ery considera,ly the annual produce of its land and la,our' The commerce and industry of the country, howe$er, it must ,e acknowled%ed, thou%h they may ,e somewhat au%mented, cannot ,e alto%ether so secure when they are thus, as it were, suspended upon the 6aedalian win%s of paper money as when they tra$el a,out upon the solid %round of %old and sil$er' A$er and a,o$e the accidents to which they are e)posed from the unskillfulness of the conductors of this paper money, they are lia,le to se$eral others, from which no prudence or skill of those conductors can %uard them' +n unsu!!ess*ul war, *or e)am"le, in whi!h the enemy got "ossession o* the !a"ital, and !onse;uently o* that treasure whi!h su""orted the !redit o* the "a"er money, would o!!asion a mu!h greater !on*usion in a !ountry where the whole !ir!ulation was !arried on y "a"er, than in one where the greater "art o* it was !arried on y gold and sil%er. The usual instrument o* !ommer!e ha%ing lost its %alue, no e)!hanges !ould e made ut either y arter or u"on !redit. +ll ta)es ha%ing een usually "aid in "a"er money, the "rin!e would not ha%e wherewithal either to "ay his troo"s, or to *urnish his magaAines: and the state o* the !ountry would e mu!h more irretrie%a le than i* the greater "art o* its !ir!ulation had !onsisted in gold and sil%er. + "rin!e, an)ious to maintain his dominions at all times in the state in whi!h he !an most easily de*end them, ought, u"on this a!!ount, to guard, not only against that e)!essi%e multi"li!ation o* "a"er money whi!h ruins the %ery anks whi!h issue it: ut e%en against that multi"li!ation o* it whi!h ena les them to *ill the greater "art o* the !ir!ulation o* the !ountry with it. The circulation of e$ery country may ,e considered as di$ided into two different ,ranchesE the circulation of the dealers with one another, and the circulation ,etween the dealers and the consumers' Thou%h the same pieces of money, whether paper or metal, may ,e employed sometimes in the one circulation and sometimes in the other, yet as ,oth are constantly %oin% on at the same time, each re(uires a certain stock of money of one kind or another to carry it on' The $alue of the %oods circulated ,etween the different dealers, ne$er can e)ceed the $alue of those circulated ,etween the dealers and the consumers< whate$er is ,ou%ht ,y the dealers, ,ein% ultimately destined to ,e sold to the consumers' The circulation ,etween the dealers, as it is carried on ,y wholesale, re(uires %enerally a pretty lar%e sum for e$ery particular transaction' That ,etween the dealers and the consumers, on the contrary, as it is %enerally carried on ,y retail, fre(uently re(uires ,ut $ery small ones, a shillin%, or e$en a halfpenny, ,ein% often sufficient' +ut small sums circulate much faster than lar%e ones' A shillin% chan%es masters more fre(uently than a %uinea, and a halfpenny more fre(uently than a shillin%' Thou%h the annual purchases of all the consumers, therefore, are at least e(ual in $alue to those of all the dealers, they can %enerally ,e transacted with a much smaller (uantity of money< the same pieces, ,y a more rapid circulation, ser$in% as the instrument of many more purchases of the one kind than of the other' Pa"er money may e so regulated as either to !on*ine itsel* %ery mu!h to the !ir!ulation etween the di**erent dealers, or to e)tend itsel* likewise to a great "art o* that etween the dealers and the !onsumers. Where no ank notes are !ir!ulated under ten "ounds %alue, as in London, "a"er money !on*ines itsel* %ery mu!h to the !ir!ulation etween the dealers. ;hen a ten pound ,ank note comes into the hands of a consumer, he is %enerally o,li%ed to chan%e it at the first shop where he has occasion to purchase fi$e shillin%sD worth of %oods, so that it often returns into the hands of a dealer ,efore the consumer has spent the fortieth part of the money' ;here ,ank notes are issued for so small sums as twenty shillin%s, as in 3cotland, paper money e)tends itself to a considera,le part of the circulation ,etween dealers and consumers' +efore the Act of Parliament, which put a stop to the circulation of ten and fi$e shillin% notes, it filled a still %reater part of that circulation' #n the currencies of .orth America, paper was commonly issued for so small a sum as a shillin%, and filled almost the whole of that circulation' #n some paper currencies of *orkshire, it was issued e$en for so small a sum as a si)pence' ;here the issuin% of ,ank notes for such $ery small sums is allowed and commonly practised, many mean people are ,oth ena,led and encoura%ed to ,ecome ,ankers' A person whose promissory note for fi$e pounds, or e$en for twenty shillin%s, would ,e re-ected ,y e$ery,ody, will %et it to ,e recei$ed without scruple when it is issued for so small a sum as a si)pence' +ut the fre(uent ,ankruptcies

to which such ,e%%arly ,ankers must ,e lia,le may occasion a $ery considera,le incon$eniency, and sometimes e$en a $ery %reat calamity to many poor people who had recei$ed their notes in payment' #t were ,etter, perhaps, that no ,ank notes were issued in any part of the kin%dom for a smaller sum than fi$e pounds' Paper money would then, pro,a,ly, confine itself, in e$ery part of the kin%dom, to the circulation ,etween the different dealers, as much as it does at present in Condon, where no ,ank notes are issued under ten poundsD $alue< fi$e pounds ,ein%, in most parts of the kin%dom, a sum which, thou%h it will purchase, little more than half the (uantity of %oods, is as much considered, and is as seldom spent all at once, as ten pounds are amidst the profuse e)pense of Condon' ;here paper money, it is to ,e o,ser$ed, is pretty much confined to the circulation ,etween dealers and dealers, as at Condon, there is always plenty of %old and sil$er' ;here it e)tends itself to a considera,le part of the circulation ,etween dealers and consumers, as in 3cotland, and still more in .orth America, it ,anishes %old and sil$er almost entirely from the country< almost all the ordinary transactions of its interior commerce ,ein% thus carried on ,y paper' The suppression of ten and fi$e shillin% ,ank notes somewhat relie$ed the scarcity of %old and sil$er in 3cotland< and the suppression of twenty shillin% notes would pro,a,ly relie$e it still more' Those metals are said to ha$e ,ecome more a,undant in America since the suppression of some of their paper currencies' They are said, likewise, to ha$e ,een more a,undant ,efore the institution of those currencies' Thou%h paper money should ,e pretty much confined to the circulation ,etween dealers and dealers, yet ,anks and ,ankers mi%ht still ,e a,le to %i$e nearly the same assistance to the industry and commerce of the country as they had done when paper money filled almost the whole circulation' The ready money which a dealer is o,li%ed to keep ,y him, for answerin% occasional demands, is destined alto%ether for the circulation ,etween himself and other dealers of whom he ,uys %oods' He has no occasion to keep any ,y him for the circulation ,etween himself and the consumers, who are his customers, and who ,rin% ready money to him, instead of takin% any from him' Thou%h no paper money, therefore, was allowed to ,e issued ,ut for such sums as would confine it pretty much to the circulation ,etween dealers and dealers, yet, partly ,y discountin% real ,ills of e)chan%e, and partly ,y lendin% upon cash accounts, ,anks and ,ankers mi%ht still ,e a,le to relie$e the %reater part of those dealers from the necessity of keepin% any considera,le part of their stock ,y them, unemployed and in ready money, for answerin% occasional demands' They mi%ht still ,e a,le to %i$e the utmost assistance which ,anks and ,ankers can, with propriety, %i$e to traders of e$ery kind' To restrain pri$ate people, it may ,e said, from recei$in% in payment the promissory notes of a ,anker, for any sum whether %reat or small, when they themsel$es are willin% to recei$e them, or to restrain a ,anker from issuin% such notes, when all his nei%h,ours are willin% to accept of them, is a manifest $iolation of that natural li,erty which it is the proper ,usiness of law not to infrin%e, ,ut to support' 3uch re%ulations may, no dou,t, ,e considered as in some respects a $iolation of natural li,erty' +ut those e)ertions of the natural li,erty of a few indi$iduals, which mi%ht endan%er the security of the whole society, are, and ou%ht to ,e, restrained ,y the laws of all %o$ernments, of the most free as well as of the most despotical' The o,li%ation of ,uildin% party walls, in order to pre$ent the communication of fire, is a $iolation of natural li,erty e)actly of the same kind with the re%ulations of the ,ankin% trade which are here proposed' A paper money consistin% in ,ank notes, issued ,y people of undou,ted credit, paya,le upon demand without any condition, and in fact always readily paid as soon as presented, is, in e$ery respect, e(ual in $alue to %old and sil$er money< since %old and sil$er money can at any time ,e had for it' ;hate$er is either ,ou%ht or sold for such paper must necessarily ,e ,ou%ht or sold as cheap as it could ha$e ,een for %old and sil$er' The increase of paper money, it has ,een said, ,y au%mentin% the (uantity, and conse(uently diminishin% the $alue of the whole currency, necessarily au%ments the money price of commodities' +ut as the (uantity of %old and sil$er, which is taken from the currency, is always e(ual to the (uantity of paper which is added to it, paper money does not necessarily increase the (uantity of the whole currency' 8rom the ,e%innin% of the last century to the present time, pro$isions ne$er were cheaper in 3cotland than in 1P I, thou%h, from the circulation of ten and fi$e shillin% ,ank notes, there was then more paper money in the country than at present' The proportion ,etween the price of pro$isions in 3cotland and that in 7n%land is the same now as ,efore the %reat multiplication of ,ankin% companies in 3cotland' Corn is, upon most occasions, fully as cheap in 7n%land as in 8rance< thou%h there is a %reat deal of paper money in 7n%land, and scarce any in 8rance' #n 1P 1 and in 1P 9, when "r' Hume pu,lished his Political 6iscourses, and soon after the %reat multiplication of paper money in 3cotland, there was a $ery sensi,le rise in the price of pro$isions, owin%, pro,a,ly, to the ,adness of the seasons, and not to the multiplication of paper money' #t would ,e otherwise, indeed, with a paper money consistin% in promissory notes, of which the immediate payment depended, in any respect, either upon the %ood will of those who issued them, or upon a condition which the holder of the notes mi%ht not always ha$e it in his power to fulfil< or of which the payment was not e)i%i,le till after a certain num,er of years, and which in the meantime ,ore no interest' 3uch a paper money would, no dou,t, fall more or less ,elow the $alue of %old and sil$er, accordin% as the difficulty or uncertainty of o,tainin% immediate payment was supposed to ,e %reater or less< or accordin% to the %reater or less distance of time at which payment was e)i%i,le'

3ome years a%o the different ,ankin% companies of 3cotland were in the practice of insertin% into their ,ank notes, what they called an Aptional Clause, ,y which they promised payment to the ,earer, either as soon as the note should ,e presented, or, in the option of the directors, si) months after such presentment, to%ether with the le%al interest for the said si) months' The directors of some of those ,anks sometimes took ad$anta%e of this optional clause, and sometimes threatened those who demanded %old and sil$er in e)chan%e for a considera,le num,er of their notes that they ;ould take ad$anta%e of it, unless such demanders would content themsel$es with a part of what they demanded' The promissory notes of those ,ankin% companies constituted at that time the far %reater part of the currency of 3cotland, which this uncertainty of payment necessarily de%raded ,elow the $alue of %old and sil$er money' 6urin% the continuance of this a,use 2which pre$ailed chiefly in 1PG9, 1PG3, and 1PG:5, while the e)chan%e ,etween Condon and Carlisle was at par, that ,etween Condon and 6umfries would sometimes ,e four per cent a%ainst 6umfries, thou%h this town is not thirty miles distant from Carlisle' +ut at Carlisle, ,ills were paid in %old and sil$er< whereas at 6umfries they were paid in 3cotch ,ank notes, and the uncertainty of %ettin% those ,ank notes e)chan%ed for %old and sil$er coin had thus de%raded them four per cent ,elow the $alue of that coin' The same Act of Parliament which suppressed ten and fi$e shillin% ,ank notes suppressed likewise this optional clause, and there,y restored the e)chan%e ,etween 7n%land and 3cotland to its natural rate, or to what the course of trade and remittances mi%ht happen to make it' #n the paper currencies of *orkshire, the payment of so small a sum as a si)pence sometimes depended upon the condition that the holder of the note should ,rin% the chan%e of a %uinea to the person who issued it< a condition which the holders of such notes mi%ht fre(uently find it $ery difficult to fulfil, and which must ha$e de%raded this currency ,elow the $alue of %old and sil$er money' An Act of Parliament accordin%ly declared all such clauses unlawful, and suppressed, in the same manner as in 3cotland, all promissory notes, paya,le to the ,earer, under twenty shillin%s $alue' The paper currencies of .orth America consisted, not in ,ank notes paya,le to the ,earer on demand, ,ut in %o$ernment paper, of which the payment was not e)i%i,le till se$eral years after it was issued< and thou%h the colony %o$ernments paid no interest to the holders of this paper, they declared it to ,e, and in fact rendered it, a le%al tender of payment for the full $alue for which it was issued' +ut allowin% the colony security to ,e perfectly %ood, a hundred pounds paya,le fifteen years hence, for e)ample, in a country where interest at si) per cent, is worth little more than forty pounds ready money' To o,li%e a creditor, therefore, to accept of this as full payment for a de,t of a hundred pounds actually paid down in ready money was an act of such $iolent in-ustice as has scarce, perhaps, ,een attempted ,y the %o$ernment of any other country which pretended to ,e free' #t ,ears the e$ident marks of ha$in% ori%inally ,een, what the honest and downri%ht 6octor 6ou%las assures us it was, a scheme of fraudulent de,tors to cheat their creditors' The %o$ernment of Pennsyl$ania, indeed, pretended, upon their first emission of paper money, in 1P99, to render their paper of e(ual $alue with %old and sil$er ,y enactin% penalties a%ainst all those who made any difference in the price of their %oods when they sold them for a colony paper, and when they sold them for %old and sil$er< a re%ulation e(ually tyrannical, ,ut much less effectual than that which it was meant to support' A positi$e law may render a shillin% a le%al tender for %uinea, ,ecause it may direct the courts of -ustice to dischar%e the de,tor who has made that tender' +ut no positi$e law can o,li%e a person who sells %oods, and who is at li,erty to sell or not to sell as he pleases, to accept of a shillin% as e(ui$alent to a %uinea in the price of them' .otwithstandin% any re%ulation of this kind, it appeared ,y the course of e)chan%e with =reat +ritain, that a hundred pounds sterlin% was occasionally considered as e(ui$alent, in some of the colonies, to a hundred and thirty pounds, and in others to so %reat a sum as ele$en hundred pounds currency< this difference in the $alue arisin% from the difference in the (uantity of paper emitted in the different colonies, and in the distance and pro,a,ility of the term of its final dischar%e and redemption' .o law, therefore, could ,e more e(uita,le than the Act of Parliament, so un-ustly complained of in the colonies, which declared that no paper currency to ,e emitted there in time comin% should ,e a le%al tender of payment' Pennsyl$ania was always more moderate in its emissions of paper money than any other of our colonies' #ts paper currency, accordin%ly, is said ne$er to ha$e sunk ,elow the $alue of the %old and sil$er which was current in the colony ,efore the first emission of its paper money' +efore that emission, the colony had raised the denomination of its coin, and had, ,y act of assem,ly, ordered fi$e shillin%s sterlin% to pass in the colony for si) and threepence, and afterwards for si) and ei%htpence' A pound colony currency, therefore, e$en when that currency was %old and sil$er, was more than thirty per cent ,elow the $alue of a pound sterlin%, and when that currency was turned into paper it was seldom much more than thirty per cent ,elow that $alue' The pretence for raisin% the denomination of the coin, was to pre$ent the e)portation of %old and sil$er, ,y makin% e(ual (uantities of those metals pass for %reater sums in the colony than they did in the mother country' #t was found, howe$er, that the price of all %oods from the mother country rose e)actly in proportion as they raised the denomination of their coin, so that their %old and sil$er were e)ported as fast as e$er' The paper of each colony ,ein% recei$ed in the payment of the pro$incial ta)es, for the full $alue for which it had ,een issued, it necessarily deri$ed from this use some additional $alue o$er and a,o$e what it would ha$e had from the real or supposed distance of the term of its final dischar%e and redemption' This additional $alue was %reater or less, accordin% as the (uantity of paper issued was more or less a,o$e what could ,e employed in the payment of the ta)es of the particular colony which issued it' #t was in all the colonies $ery much a,o$e what could ,e employed in this manner' A prince who should enact that a certain proportion of his ta)es should ,e paid in a paper money of a certain kind mi%ht there,y %i$e a certain $alue to this paper money, e$en thou%h the term of its final dischar%e and redemption should depend alto%ether upon the will of

the prince' #f the ,ank which issued this paper was careful to keep the (uantity of it always somewhat ,elow what could easily ,e employed in this manner, the demand for it mi%ht ,e such as to make it e$en ,ear a premium, or sell for somewhat more in the market than the (uantity of %old or sil$er currency for which it was issued' 3ome people account in this manner for what is called the A%io of the ,ank of Amsterdam, or for the superiority of ,ank money o$er current money< thou%h this ,ank money, as they pretend, cannot ,e taken out of the ,ank at the will of the owner' The %reater part of forei%n ,ills of e)chan%e must ,e paid in ,ank money, that is, ,y a transfer in the ,ooks of the ,ank< and the directors of the ,ank, they alle%e, are careful to keep the whole (uantity of ,ank money always ,elow what this use occasions a demand for' #t is upon this account, they say, that ,ank money sells for a premium, or ,ears an a%io of four or fi$e per cent a,o$e the same nominal sum of the %old and sil$er currency of the country' This account of the ,ank of Amsterdam, howe$er, it will appear hereafter, is in a %reat measure chimerical' A paper currency which falls ,elow the $alue of %old and sil$er coin does not there,y sink the $alue of those metals, or occasion e(ual (uantities of them to e)chan%e for a smaller (uantity of %oods of any other kind' The proportion ,etween the $alue of %old and sil$er and that of %oods of any other kind depends in all cases not upon the nature or (uantity of any particular paper money, which may ,e current in any particular country, ,ut upon the richness or po$erty of the mines, which happen at any particular time to supply the %reat market of the commercial world with those metals' #t depends upon the proportion ,etween the (uantity of la,our which is necessary in order to ,rin% a certain (uantity of %old and sil$er to market, and that which is necessary in order to ,rin% thither a certain (uantity of any other sort of %oods' #f ,ankers are restrained from issuin% any circulatin% ,ank notes, or notes paya,le to the ,earer, for less than a certain sum, and if they are su,-ected to the o,li%ation of an immediate and unconditional payment of such ,ank notes as soon as presented, their trade may, with safety to the pu,lic, ,e rendered in all other respects perfectly free' The late multiplication of ,ankin% companies in ,oth parts of the 4nited Kin%dom, an e$ent ,y which many people ha$e ,een much alarmed, instead of diminishin%, increases the security of the pu,lic' #t o,li%es all of them to ,e more circumspect in their conduct, and, ,y not e)tendin% their currency ,eyond its due proportion to their cash, to %uard themsel$es a%ainst those malicious runs which the ri$alship of so many competitors is always ready to ,rin% upon them' #t restrains the circulation of each particular company within a narrower circle, and reduces their circulatin% notes to a smaller num,er' +y di$idin% the whole circulation into a %reater num,er of parts, the failure of any one company, an accident which, in the course of thin%s, must sometimes happen, ,ecomes of less conse(uence to the pu,lic' This free competition, too, o,li%es all ,ankers to ,e more li,eral in their dealin%s with their customers, lest their ri$als should carry them away' #n %eneral, if any ,ranch of trade, or any di$ision of la,our, ,e ad$anta%eous to the pu,lic, the freer and more %eneral the competition, it will always ,e the more so'

“.he #ct of Parliament )y which the Bank was esta)lished is called “#n #ct for granting to their 0a'esties se2eral Rates and &uties upon .unnages of "hips and Cessels, and upon Beer, #le, and other LiGuorsH for securing certain Recompenses and #d2antages, in the said #ct mentioned, to such persons as shall 2oluntarily ad2ance the "um of 7ifteen hundred thousand Pounds towards carrying on the war against 7rance. #fter 2arious articles referring to the imposition of ta4es, the #ct authorised the raising of I+,(11,111 )y su)scription, the su)scri)ers forming a corporation to )e called, “.he ;o2ernor and %ompany of the Bank of England. <o person might su)scri)e more than I+1,111 )efore the +st of $uly following, and e2en after this date no indi2idual su)scription might e4ceed I(1,111. .he corporation was to lend the whole of its capital to the ;o2ernment, and in return it was to )e paid interest at the rate of * per cent., and I-,111 for e4penses of management, in all I+11,111 per annum. .he corporation was to ha2e the pri2ileges of a )ank for twel2e years, then the ;o2ernment reser2ed the right of annulling the charter after gi2ing one yearJs notice to the company. .he corporation were not authorised to )orrow or owe more than their capitalH if they did so, the mem)ers )ecame personally lia)le in proportion to the amount of their stock. .he corporation were for)idden to trade in any merchandise whate2er, )ut “they were allowed to deal in )ills of e4change, gold or sil2er )ullion, and to sell any wares or merchandise upon which they had ad2anced money, and which had not )een redeemed within three months after the time agreed upon. .he su)scription list was opened at the 0ercers3 %hapel, then the headGuarters of the corporation, on .hursday, $une (+, +@>-K#fter this great success the %harter of 6ncorporation was granted on $uly (/, +@>-. L History of the Bank of England: 1640 to 1903 )y &r. #. #ndreades, p. /(-/-

7)cerpts from Ta2ation in Co!onia! America ,y Al$in /a,ushka, Chapter 10 2p' 9IP?9II5
!The mechanism of credit esta,lished throu%h the +ank of 7n%land merits e)planation' #n "ay 1GI:, the ;ays and "eans Act %ranted a charter to the +ank of 7n%land' The ,ank was to lend the %o$ernment T1,900,000 at 8 percent interest, a moderate rate %i$en the %o$ernmentHs dire financial straits' #n return, the ,ank was to ,e %i$en the pri$ile%e of re%isterin% as a -oint?stock company' This was an enormous concession ,ecause all other ,anks were re(uired to operate as indi$iduals or partnerships on the ,asis of unlimited lia,ility to their indi$idual proprietors' The proprietors of the +ank of 7n%land, in contrast, did not face personal lia,ility on their pri$ate funds' Their risk was limited to the capital in$ested in the ,ank ' The ,ank en-oyed this ad$anta%e for more than a century' The newly chartered ,ank was empowered to do ordinary ,ankin% ,usiness of recei$in% deposits and creatin% a credit currency' The ,ank was ,oth a ,ank of issue and a ,ank of deposit' The ori%inal plan put ,efore a parliamentary committee in 1GI3 contained an e)plicit reference to the ri%ht of note issue, ,ut this was a point of contention' As a result, the act of 1GI: contains no reference to ,ank notes and only one to ,ank ,ills' #t en$isa%ed that the ,ank would accept deposits and ,orrow on ,ills, ,ut that ,orrowin% should ne$er e)ceed the sum of T1,900,000 at any one time, the amount the ,ank would raise and lend to the %o$ernment, unless it ,e ,y an act of Parliament upon funds a%reed in Parliament' #n this restriction, the act appears to limit the ,ill lia,ilities of the ,ank to T1,900,000' #t was not clear if the ,ank could le%ally owe more than T1,900,000 upon its notes' Ather pro$isions for,ade the purchase of crown lands or lendin% to the Crown without parliamentary consent' A perpetual fund of interest, 8 percent on the T1,900,000, paya,le to the su,scri,ers from the shipsH tonna%e and li(uor duties le$ied under the act, was set at T100,000, ta) free' .o indi$idual was permitted to su,scri,e more than T90,000, and a (uarter of all su,scriptions was to ,e paid in prompt cash' #ndi$iduals were to ,e personally lia,le for any de,ts of the ,ank e)ceedin% its capital of T1,900,000' The ,ankHs capital of T1,900,000 was su,scri,ed within twel$e days' The su,scri,ers ,ecame a corporation called the =o$ernor and Company of the +ank of 7n%land' Anly G0 percent of the scu,scription, TP90,000, was called up immeiately ,y the %o$ernors of the ,ank' The ,ank made its loan to the %o$ernment in installments' An Au%ust 1, 1GI:, it %a$e the %o$ernment TP90,000 in cash, in a com,ination of drafts on other ,anks and T:80,000 in notes under the seal of the ,ank, which ,ecame known as !sealed ,ank ,ills'0 #n return, the ,ank took the %o$ernmentHs promise to repay in the form of interest?,earin% tallies 2,onds, or %o$ernment stock5' 8rom Au%ust 99, treasury orders for the spendin% of the money ,e%an' +y yearHs end, the full sum had ,een ad$anced to the %o$ernment' Howe$er, as of January 1, 1GI , the remainin% T:80,000 of shareholdersH su,scriptions had not ,eeen called in and remained a$aila,le for future ,ankin% acti$ities' "oreo$er, e$en some of the TP90,000 e)isted in the form of su,scri,ers ,onds that the ,ank reckoned, optimistically, as cash' An receipt of the loan, the %o$ernment used the ,ankHs notes to purchase supplies for the armyU+ank of 7n%land sealed ,ank ,ills assured the kin% of purchasin% power' The ,ank, in turn, was %uaranteed interest ,y a specific act of Parliament' 8or T100,000 in earmarked ta) re$enue, the %o$ernment of 7n%land could spend T1,900,000' 8or their part, the ,ankHs shareholders recei$ed a di$idend of G percent in the first half year, a dou,le?di%it return on an annuali>ed ,asis' The ,ank raised additional capital from its acceptance of deposits and the circulation of sealed ,ills in addition to those it %a$e the %o$ernment as part of the ori%inal T1,900,000' "ore important to the profita,ilty of the ,ank and its a,ility to create additional credit for the %o$ernment and pri$ate commerce was if its total ,orrowin% was limited to T1,900,000 as stated in the act of 1GI:' The %o$ernor of the ,ank tried ,ut failed in 1GI to ne%otiate a clause in the act that would permit an issue of sealed ,ills in e)cess of T1,900,000' A court rulin% declared that new ,ills could ,e issued only as old ,ills were retired' Howe$$er, the court ruled that the limit applied only to sealed ,ills, not to the less formal !runnin% cash notes0 of the ,ank, which lacked the corporate seal and were merely si%ned ,y the cashier' 7)cludin% runnin% cash notes from the limit amounted to a license to print money, literally cash, su,-ect to the prudential -ud%ement of the ,ankHs mana%ers' 8orms were printed with ,lanks for names, amounts, and the cashierHs si%nature' These cash notes, nicknamed !3peedHs notes0 from the name of the cashier, were issued, circulated freely, and were accepted at full face $alue' They were deemed as secure as the sealed ,ills ,acked ,y the ,ankHs share cpatial and %o$ernment tallies or loans' The com,ined issue of sealed ,ills and cash notes (uickly e)ceeded the authori>ed su,scri,ed capital and ,orrowin% on ,ills' Credit could ,e created to the e)tent that the pu,lic accepted ,ank paper as %ood currency'0

7)cerpts from Ta2ation in Co!onia! America ,y Al$in /a,ushka, Chapter 10 2p' 98G?98P5E
#n January 1GP9 the Crown faced ,ankruptcy, which prompted a stop of the 7)che(uer, the free>in% of all repayment for a year from January 1, 1GP9, on Arders issued ,efore 6ecem,er 18, 1GP1' Arders amountin% to I1,100,000 rested on the ordinary re$enue' /epayment of Arders would ha$e reduced the CrownHs disposa,le income in 1GP9 to I:00,000, an intolera,ly low le$el' The stop temporarily relie$ed repayment of I1,900,000' The memory of the stop, which ruined se$eral %oldsmiths and other small lenders, was not (uickly for%otten' #ts dama%e constrained %o$ernment credit operations durin% the remainder of CharlesHs rei%n and the ,rief rule of his ,rother, James' ;illiamHs e)penditures in #reland and far %reater military outlays in 7urope as he in$ol$ed 7n%land in what ,ecame more than a century?lon% stru%%le a%ainst 8rance on the continent and in America re(uired funds a,o$e and ,eyond %rants of Parliament' This circumstance pro$ided an opportunity for a %roup of men who proposed the creation of a pri$ate, -oint?stock ,ank that would ha$e some of the powers of a national ,ank, especially the issue of ,ank notes' After discussions ,etween the founders of the proposed ,ank, the Pri$y Council in the presence of Oueen "ary, and a committee of Parliament, an a%reement was e$entually reached in the ;ays and "eans Act of 1GI: that authori>ed the creation of the +ank of 7n%land' The pre$ious system of %rantin% credit directly to the monarch was replaced with loans made to the state, with de,t ser$ice %uaranteed ,y specific ta)es on acts of Parliament' Parliament, not the kin%Hs ta) collectors, %uaranteed pu,lic de,t' #t passed the Tonna%e Act of 1GI: to %uarantee annual interest of I100,000 on a loan of I1,900,000 to the %o$ernment made ,y the new +ank of 7n%land' ParliamentHs appro$al of earmarked ta)es to %uarantee payment of interest on loans to the state created a ,ond market in which indi$iduals could securely in$est in %o$ernment stock, the 7n%lish term for lon%?term %o$ernment ,onds' The +ank of 7n%land in con-unction with the Tonna%e Act marked the ,e%innin% of an official national de,t, which would %row ,y leaps and ,ounds in the ei%hteenth century' Crown ac(uiescence in the supremacy of Parliament with ParliamentHs statutory %uarantee of interest and capital redemption transformed the pre$ious insecurity of lendin% to the %o$ernment throu%h personal loans, tallies, and Arders with the %enerally safe in$estment of purchasin% %o$ernment ,onds' The credit re$olution of 1GI: allowed the %o$ernment of 7n%land to li$e ,eyond its means 1 to spend more than it collected in ta)es each year' The creation of credit at low rates of interest ena,led the %o$ernment to en%a%e in len%thy wars costin% millions of pounds without ha$in% to su,-ect 7n%lish ta)payers at once to their full cost' As de,t and de,t ser$ice piled up, the conse(uences of steadily risin% ta)es would lead 7n%land into war with its American colonies later in the ei%hteenth century'

7)cerpts from 3istory of the 4ank of /n'!and ,y 6r' A' Andreades 2p' G ?GP5
.he plan now was to raise I+,(11,111 to )e lent to the ;o2ernment in return for a yearly interest of I+11,111. .he su)scri)ers to the loan were to form a corporation with the right to issue notes up to the 2alue of its total capital. .he corporation was to )e called, “.he ;o2ernor and %ompany of the Bank of England. Paterson wrote a pamphlet demonstrating the economic principles on which the future Bank of England was to rest. 8e notes the old mistake “that the stamp or denomination gi2es or adds to the 2alue of money. .he fallacy contained in this was pointed out )y those who had suggested the foundation of the Bank some years earlier. 6ts promoters had seen that the institution ought to )e )ased on the following principlesB “+. .hat all money or credit not ha2ing an intrinsic 2alue, to answer the contents or denomination thereof, is false and counterfeit, and the loss must fall one where or other. “(. .hat the species of gold and sil2er )eing accepted, and chosen )y the commercial world for the standard, or measure, of other effects, e2erything else is only accounted 2alua)le as compared with these. “,. Wherefore all credit not founded on the uni2ersal species of gold and sil2er is impractica)le, and can ne2er su)sist neither safely nor long, at least till some other species of credit be found out and chosen by the trading part of mankind o er and abo e or in lieu thereof! #fter descri)ing the strong position of the Bank and its prospects of success, and stating that no di2idend would )e paid without se2eral monthsJ notice, in order to gi2e the shareholders the choice of selling or retaining their shares, Paterson remarks that “.he politicians Kdistinguish )etween the interest of land and trade, as they ha2e lately done )etween that of a king and his people, )ut “if the proprietors of the Bank can circulate their own fundation MsicN of twel2e hundred thousand pounds without ha2ing more than two or three hundred thousand pounds lying dead at one time with another, this Bank will )e in effect as nine hundred thousand pounds or a million of fresh money )rought into the nation.

7)cerpts from 3istory of the 4ank of /n'!and ,y 6r' A' Andreades 2p' 98?395
There had ,een an inter$al of se$en years ,etween the two pu,lications, and durin% this time an e$ent had occurred which, to -ud%e ,y other countries, must ha$e e)ercised considera,le influence on the de$elopment of ,anks in 7n%land' # refer to the return of the Jews' The return o* the $ews to (ngland. #ts in*luen!e on anking. 1 The effect of the influ) of 3panish Jews on the de$elopment of 6utch commerce is well known' The influence of the Jews at Benice was no less marked' #t was two Jews who first 2in 1:005 o,tained the authority of the 3enate to found a ,ank in the strict sense of the word' Their success was so %reat that many Benetian no,les esta,lished ri$al institutions' A,uses followed which, com,ined with monetary difficulties, determined the =o$ernment to esta,lish the +ank of Benice' The same influence must ha$e made itself felt in 7n%land' +ut at what date@ #n other words, when and for what reason were the Jews authorised to return to 7n%land@ ;e will proceed to consider this (uestion< it is not alto%ether easy to answer it' #t is certain that as soon as Charles #' was dead, the Jews attempted to return to 7n%land' Pu,lic opinion was not unfa$oura,le to them, partly on account of the ,i,lical spirit which then pre$ailed, and partly ,ecause of the ser$ices rendered ,y them in Holland, a country which the 7n%lish of this period constantly set ,efore them as a model' Thus =ardiner mentions the pu,lication of a pamphlet a,out this time, in which in order to pro$e the importance of 6unkirk, it is stated that the Jews were prepared to %i$e TG0,000 to T80,000 in return for the toleration of a syna%o%ue there, and that such permission would attract all the Portu%uese merchants from Amsterdam, from which a still %reater ,enefit would result' The Amsterdam merchants had not e)pected such demonstrations of sympathy' They took the initiati$e, and two of them presented a petition in 1G:I to 8airfa) and the Council, for the re$ocation of the ,anishment of the Jews' Another petition is referred to ,y some historians' Certain Jews had asked for the repeal of the laws passed a%ainst them, and on condition that the +odleian Ci,rary was made o$er to them, to%ether with permission to con$ert 3t' PaulHs Cathedral into a syna%o%ue, they undertook to pay Lsi) millions of li$resL accordin% to some, T 00,000 accordin% to others' #t is stated that ne%otiations were ,roken off ,ecause the parties could not a%ree as to the price, the 7n%lish =o$ernment askin% ei%ht millions or T800,000' #t is unfortunate as far as concerns the authenticity of this tale, that the references %i$en ,y the historiansH are inade(uate or erroneous, hence we only refer to it as a curiosity' These ne%otiations came to nothin%' "r' ;olf pro$es howe$er, that notwithstandin% this re,uff a num,er of Jews esta,lished themsel$es secretly in Condon in the time of the Commonwealth' The situation impro$ed still more durin% the Protectorate' CromwellHs ideas were in ad$ance of his times, and as "r' 8' Harrison remarks, !.o,le were the efforts of the Protector to impress his own spirit of toleration on the intolerance of his a%e< U He effecti$ely protected the Ouakers< he admitted the Jews, after an e)pulsion of three centuries< and he satisfied "a>arin that he had %i$en to Catholics all the protection that he dared'0 Cromwell was particularly well?disposed towards the Jews, with whom he had, accordin% to "' =ui>ot, fairly fre(uent dealin%s' They seem to ha$e done him numerous ser$ices' The Jews for their part were not unaware of the ProtectorDs feelin% towards them, and did their ,est to profit ,y it' /a,,i "anasseh +en #srael took the initiati$e in the matter' This /a,,i was a remarka,le character' He was ,orn in Portu%al a,out 1G0:, ,ut while still a child he emi%rated with his family to Holland' There he ,ecame a ,rilliant student, wrote ,ooks, and e$en esta,lished the first Jewish printin% press at Amsterdam' +ut his chief efforts were de$oted to impro$in% the lot of his co?reli%ionists, and to securin% their admission into the different 7uropean countries' #n particular he tried ,y $arious means, such as petitions to the Protector, and e$en the dedication of his ,ook, -%es 5srae!is, to the +ritish Parliament, to o,tain permission for the Jews to return to 7n%land' A commission, presided o$er ,y Cromwell, was appointed to consider the (uestion' #t was composed of lawyers, priests and merchants' The de,ates were lon%?winded and threatened to ,e intermina,le' Cromwell conse(uently dissol$ed the assem,ly, remarkin% that the matter, complicated enou%h to start with, now appeared more intricate than e$er, and that, !althou%h he wished no more reasonin%, he yet ,e%%ed an interest in their prayers'0 The conference was thus without result and "anassehDs hopes were apparently $ain' As a matter of fact howe$er, the Jews were tacitly allowed to li$e in 7n%land' "anasseh recei$ed a pension of T100 to console him for his disappointment' And three years later, on 8e,ruary 1 th 1G 8, at a reception at ;hitehall, Cromwell seems to ha$e %i$en an assurance of his protection to Car$a-al and his coreli%ionists' ;hate$er may ,e the truth a,out this fatter point, it is pro,a,le that Cromwell took no le%islati$e action with re%ard to the Jews, ,ut it is certain that he tolerated their return, and that at the end of the Protectorate a num,er of them were li$in% in 7n%land' They must ha$e taken an acti$e part in trade, for shortly afterwards a petition was si%ned ,y numerous merchants complainin% that the Jews were not su,-ect to the alien law, and that in conse(uence the Treasury suffered a yearly loss of T10,000'

-an. o" the 4nited 'tates 5 )ani( o" 1831: 6r+ani7ed 8rime9

.he 7irst Bank of the !nited "tates in Philadelphia. .homas $efferson opposed the esta)lishment of the 7irst Bank of the !nited "tates while #le4ander 8amilton was in fa2or of the new central )ank. Philadelphia was the capital of the !nited "tates of #merica from +/>1 to +*11H <ew =ork %ity was the capital of the !nited "tates of #merica in +/*>.

#meri(an /ational :e t "rom 11;1 to 18<<
January 1, 1PI1 ? JP ,:G3,:PG' 9 January 1, 1818 ? J103,:GG,G33'83 July 1, 18:3 ? J 39,P:9,I99'00 January 1, 1PI9 ? JPP,99P,I9:'GG January 1, 181I ? JI , 9I,G:8'98 July 1, 18:: ? J 93,:G1,G 9' 0 January 1, 1PI3 ? J80,3 8,G3:'0: January 1, 1890 ? JI1,01 , GG'1 July 1, 18: ? J 1 ,I9 ,303'01 January 1, 1PI: ? JP8,:9P,:0:'PP January 1, 1891 ? J8I,I8P,:9P'GG $uly 3, 342K 8 M 3=,==<,J<J.L6 January 1, 1PI ? J80,P:P, 8P'3I January 1, 1899 ? JI3, :G,GPG'I8 $uly 3, 3426 8 M 54,4JK,=52.66 January 1, 1PIG ? J83,PG9,1P9'0P January 1, 1893 ? JI0,8P ,8PP'98 $uly 3, 3424 8 M 26,<22,4KJ.J5 January 1, 1PIP ? J89,0G:,:PI'33 January 1, 189: ? JI0,9GI,PPP'PP $uly 3, 342L 8 M K5,<K3,4=4.KL January 1, 1PI8 ? JPI,998, 9I'19 January 1, 189 ? J83,P88,:39'P1 July 1, 18 0 ? J G3,: 9,PP3' January 1, 1PII ? JP8,:08,GGI'PP January 1, 189G ? J81,0 :,0 I'II July 1, 18 1 ? J G8,30:,PIG'09 January 1, 1800 ? J89,IPG,9I:'3 January 1, 189P ? JP3,I8P,3 P'90 July 1, 18 9 ? J GG,1II,3:1'P1 January 1, 1801 ? J83,038,0 0'80 January 1, 1898 ? JGP,:P ,0:3'8P July 1, 18 3 ? J I,803,11P'P0 January 1, 1809 ? J80,P19,G39'9 January 1, 189I ? J 8,:91,:13'GP July 1, 18 : ? J :9,9:9,999':9 January 1, 1803 ? JPP,0 :,G8G':0 January 1, 1830 ? J:8, G ,:0G' 0 July 1, 18 ? J 3 , 8G,I G' G January 1, 180: ? J8G,:9P,190'88 January 1, 1831 ? J3I,193,1I1'G8 July 1, 18 G ? J 31,IP9, 3P'I0 January 1, 180 ? J89,319,1 0' 0 January 1, 1839 ? J9:,399,93 '18 July 1, 18 P ? J 98,GII,831'8 January 1, 180G ? JP ,P93,9P0'GG January 1, 1833 ? J P,001,GI8'83 July 1, 18 8 ? J ::,I11,881'03 January 1, 180P ? JGI,918,3I8'G: January 1, 183: ? J :,PG0,089'08 July 1, 18 I ? J 8,:IG,83P'88 January 1, 1808 ? JG ,1IG,31P'IP January 1, 183 ? J 33,P33'0 July 1, 18G0 ? J G:,8:9,98P'88 January 1, 180I ? J P,093,1I9'0I $anuary 3, 345K 8 M 56,=35.<= $uly 3, 34K3 8 M L<,=4<,465.6J January 1, 1810 ? J 3,1P3,91P' 9 $anuary 3, 3456 8 M 55K,L=6.45 $uly 3, 34KJ 8 M =J2,36K,23J.35 January 1, 1811 ? J:8,00 , 8P'PG $anuary 3, 3454 8 M 5,5<4,3J2.<6 $uly 3, 34K5 8 M3,33L,66J,354.K5 January 1, 1819 ? J: ,90I,P3P'I0 $anuary 3, 345L 8 M3<,252,JJ3.32 $uly 3, 34K2 8 M3,43=,642,56<.=6 $anuary 3, 3435 8 M==,LKJ,4J6.=6 $anuary 3, 342< 8 M 5,=65,525.4J $uly 3, 34K= 8 MJ,K4<,K26,4KL.62 $anuary 3, 3432 8 M43,246,42K.J2 $anuary 3, 3423 8 M =,J=<,46=.=2 July 1, 18GG ? J9,PP3,93G,1P3'GI $anuary 3, 343= 8 MLL,455,KK<.3= $anuary 3, 342J 8 M35,=L2,24<.65 $anuary 3, 343K 8 M3J6,552,L55.62 $anuary 3, 3425 8 MJ<,J<3,JJK.J6 January 1, 181P ? J193,:I1,IG '1G .oteE ;ar of 1819 21819?181:5, 3eminole ;ar 2183 ?18:95, "e)ican ;ar 218:G?18:85, American Ci$il ;ar 218G1?18G 5 3ourceE httpESSwww'treasurydirect'%o$S%o$tSreportsSpdShistde,tShistde,tVhisto3'htm

=irst -an. o" the 4nited 'tates

4'3' 3ecretary of 3tate Thomas Jefferson 2left5 and Treasury 3ecretary Ale)ander Hamilton 2center5 confer with President =eor%e ;ashin%ton in Philadelphia circa 1PI0?1PI3' 2Ail mural, 18P0?P3, ,y Constantino +rumidi, in the 3enate /eception /oom 4'3' Capitol, Architect of the Capitol5 The 4'3' 3enate $oted in fa$or of esta,lishin% the 8irst +ank of the 4nited 3tates on January 90, 1PI1' The 4'3' House of /epresentati$es $oted to esta,lish the 8irst +ank of the 4nited 3tates ,y a $ote of 3I to 90 2with G politicians a,sent5 on 8e,ruary 8, 1PI1' =eor%e ;ashin%ton re(uested that Thomas Jefferson and Ale)ander Hamilton su,mit their opinions on the +ank of the 4nited 3tates in 8e,ruary 1PI1< after re$iewin% their opinions, President ;ashin%ton a%reed with HamiltonHs opinion on the +ank of the 4nited 3tates and si%ned the +ank ,ill into law on 8e,ruary 9 , 1PI1'

0eas and /ays in the 43'3 %ouse o" >epresentati&es on =e ruary 8, 11;1

El)ridge .. ;erry B.#. 8ar2ard +/@( !.". %ongressman 9#nti-#dministration0ass., +/*>-+/>,: 0ea

Roger "herman !.". %ongressman 9Pro-#dministration%onnecticut, +/*>-+/>+: 0ea

$onathan .rum)ull $r. B.#. 8ar2ard +/?> !.". %ongressman 97ederalist-%onnecticut, +/*>-+/>?: 0ea

#)raham Baldwin B.#. =ale +//( !.". %ongressman 9&emocratic Repu)lican;eorgia, +/*>-+/>>: /ay

$ames 0adison #.B. Princeton +//+ !.". %ongressman 9Repu)lican-Cirginia, +/*>-+/>/: /ay

Roll %all in the !.". 8ouse of Representati2es on the Bank of the !nited "tates )ill 97e)ruary *, +/>+: =eaB 7isher #mes 9B.#. 8ar2ard +//-: L !.". %ongressman 97ederalist-0assachusetts, +/*>-+/>/: Eg)ert Benson 9B.#. %olum)ia +/@?: L !.". %ongressman 97ederalist-<ew =ork, +/*>-+/>,, +*+,: Elias Boudinot L !.". %ongressman 9Pro-#dministration-<ew $ersey, +/*>-+/>?:H &irector of the 0int 9+/>?-+*1?: Ben'amin Bourne 9B.#. 8ar2ard +//?: L !.". %ongressman 97ederalist-Rhode 6sland, +/>1-+/>@: Lam)ert %adwalader L !.". %ongressman 9Pro-#dministration-<ew $ersey, +/*>-+/>+, +/>,-+/>?: ;eorge %lymer L !.". %ongressman 9Pro-#dm.-Pennsyl2ania, +/*>-+/>+:H signed the &eclaration of 6ndependence and %onstitution .homas 7itOsimons L !.". %ongressman 9Pro-#dm.-Pennsyl2ania, +/*>-+/>?:H director of Bank of <orth #mericaH signed the %onstitution William 7loyd L !.". %ongressman 9#nti-#dministration-<ew =ork, +/*>-+/>+:H signed the &eclaration of 6ndependence #)iel 7oster 9B.#. 8ar2ard +/?@: L !.". %ongressman 97ederalist-<ew 8ampshire, +/*>-+/>+, +/>?-+*1,: El)ridge ;erry 9B.#. 8ar2ard +/@(: L !.". %ongressman 9#nti-#dm.-0assachusetts, +/*>-+/>,:H signed the &eclaration of 6ndependence <icholas ;ilman L !.". %ongressman 9<ew 8ampshire, +/*>-+/>/:H signed the %onstitution Ben'amin ;oodhue 9B.#. 8ar2ard +/@@: L !.". %ongressman 97ederalist-0assachusetts, +/*>-+/>@: .homas 8artley L !.". %ongressman 9Pro-#dministration-Pennsyl2ania, +/*>-+*11: $ohn 8athorn L !.". %ongressman 9#nti-#dministration-<ew =ork, +/*>-+/>+, +/>?-+/>/: &aniel 8iester L !.". %ongressman 9#nti-#dministration, Pennsyl2ania, +/*>-+/>@:H !.". %ongressman 9Repu)lican-0aryland, +*1+-+*1-: Ben'amin 8untington 9B.#. =ale +/@+: L !.". %ongressman 9Pro-#dministration-%onnecticut, +/*>-+/>+: $ohn Laurence L !.". %ongressman 97ederalist-<ew =ork, +/*>-+/>,: ;eorge Leonard 9B.#. 8ar2ard +/-*: L !.". %ongressman 97ederalist-0assachusetts, +/*>-+/>,, +/>?-+/>/: "amuel Li2ermore 9#.B. Princeton +/?(: L !.". %ongressman 9Pro-#dministration, <ew 8ampshire, +/*>-+/>,: $ohn Peter ;a)riel 0uhlen)erg L !.". %ongressman 9Pennsyl2ania, +/*>-+/>+, +/>,-+/>?, +/>>-+*1+:H !.". "enator 9Pennsyl2ania, +*1+: *eor+e )artrid+e ?-3#3 %ar&ard 11<@A B 43'3 8on+ressman ?)roC#dministrationCDassa(husetts, Dar(h 2, 118;C#u+ust 12, 11;0A $eremiah Can Rensselaer 9#.B. Princeton +/?*: L !.". %ongressman 9<ew =ork, +/*>-+/>+: $ames "chureman 9B.#. Rutgers %ollege +//?: L !.". %ongressman 97ederalist-<ew $ersey, +/*>-+/>+, +/>/-+/>>, +*+,-+*+?: .homas "cott L !.". %ongressman 9Pro-#dministration-Pennsyl2ania, +/*>-+/>+, +/>,-+/>?: .heodore "edgwick 9B.#. =ale +/@?: L !.". %ongressman 97ederalist-0assachusetts, +/*>-+/>@, +/>>-+*1+: $oshua "eney 9B.#. !ni2ersity of Pennsyl2ania +//,: L !.". %ongressman 9#nti-#dministration-0aryland, 0arch -, +/*>-&ecem)er @, +/>(: $ohn "e2ier L !.". %ongressman 9Pro-#dm.-<orth %arolina, $une +@, +/>1-0arch ,, +/>+:H ;o2ernor of .ennessee 9+/>@-+*1+, +*1,-+*1>: Roger "herman L !.". %ongressman 9Pro-#dministration-%onnecticut, +/*>-+/>+:H signed the &eclaration of 6ndependence and %onstitution Peter "il2ester L !.". %ongressman 9Pro-#dministration-<ew =ork, +/*>-+/>,: .homas "innickson L !.". %ongressman 9Pro-#dministration-<ew $ersey, +/*>-+/>+, +/>/-+/>>: William "mith L !.". %ongressman 9#nti-#dm.-0aryland, +/*>-+/>+:H 7irst #uditor of !nited "tates .reasury 9$uly +@, +/>+-<o2. (/, +/>+: William Loughton "mith L !.". %ongressman 9Pro-#dm., "outh %arolina, +/*>-+/>/:H !.". 0inister to Portugal and "pain 9+/>/-+*1+: $ohn "teele L !.". %ongressman 9Pro-#dministration-<orth %arolina, #pril +>, +/>1-0arch ,, +/>,:H %omptroller of the .reasury 9+/>@-+*1(: $onathan "turges 9B.#. =ale +/?>: L !.". %ongressman 9Pro-#dministration-%onnecticut, +/*>-+/>,: ;eorge .hatcher 9B.#. 8ar2ard +//@: L !.". %ongressman 97ederalist-0assachusetts, +/*>-+*1+: $onathan .rum)ull $r. 9B.#. 8ar2ard +/?>: L !.". %ongressman 97ederalist-%onnecticut, +/*>-+/>?: $ohn Cining L !.". %ongressman 9Pro-#dministration-&elaware, +/*>-+/>,:H !.". "enator 9&elaware, +/>,-+/>*: $eremiah Wadsworth L !.". %ongressman 9%onnecticut, 0arch -, +/*>-0arch ,, +/>?: 8enry Wynkoop L !.". %ongressman 9Pennsyl2ania, 0arch -, +/*>-0arch ,, +/>+: <ayB $ohn Baptista #she L !.". %ongressman 9#nti-#dministration-<orth %arolina, 0arch (-, +/>1-0arch ,, +/>,: #)raham Baldwin 9B.#. =ale +//(: L !.". %ongressman 9&emocratic Repu)lican-;eorgia, +/*>-+/>>:H signed the %onstitution .imothy Bloodworth L !.". %ongressman 9<orth %arolina, #pril @, +/>1-0arch ,, +/>+H !.". "enator 9<orth %arolina, +/>?-+*1+: $ohn Brown L !.". %ongressman 9Cirginia, 0arch -, +/*>-$une +, +/>(: #edanus Burke L !.". %ongressman 9#nti-#dministration-"outh %arolina, 0arch -, +/*>-0arch ,, +/>+: &aniel %arroll L !.". %ongressman 9Pro-#dministration-0aryland, 0arch -, +/*>-0arch ,, +/>+:H signed the %onstitution Ben'amin %ontee L !.". %ongressman 9#nti-#dministration-0aryland, 0arch -, +/*>-0arch ,, +/>+: ;eorge ;ale L !.". %ongressman 9Pro-#dministration-0aryland, 0arch -, +/*>-0arch ,, +/>+: $onathan ;rout L !.". %ongressman 9#nti-#dministration-0assachusetts, 0arch -, +/*>-0arch ,, +/>+: William Branch ;iles 9#.B. Princeton +/*+: L !.". %ongressman 9&emocratic Repu)lican-Cirginia, +/>1-+/>*, +*1+-+*1,: $ames $ackson L !.". %ongressman 9#nti-#dm.-;eorgia, +/*>-+/>+:H !.". "enator 9+/>,-+/>?, +*1+-1@:H ;o2ernor of ;eorgia 9+/>*-+*1+: Richard Bland Lee L !.". %ongressman 9Pro-#dministration-Cirginia, +/*>-+/>?: $ames 0adison 9#.B. Princeton +//+: L !.". %ongressman 9Repu)lican-Cirginia, +/*>-+/>/:H signed the %onstitution ;eorge 0athews L !.". %ongressman 9#nti-#dministration-;eorgia, +/*>-+/>+:H ;o2ernor of ;eorgia 9+/*/, +/>,-+/>@: #ndrew 0oore L !.". %ongressman 9Cirginia, +/*>-+/>/, +*1-:H !.". "enator 9Cirginia, +*1--+*1>: $osiah Parker L !.". %ongressman 9#nti-#dministration-Cirginia, +/*>-+*1+: 0ichael $enifer "tone L !.". %ongressman 9#nti-#dministration-0aryland, 0arch -, +/*>-0arch ,, +/>+: .homas .udor .ucker L !.". %ongressman 9"outh %arolina, +/*>-+/>,:H .reasurer of the !nited "tates 9+*1+-+*(*: #le4ander White L !.". %ongressman 9Cirginia, +/*>-+/>,: 8ugh Williamson 9B.#. !ni2ersity of Pennsyl2ania +/?/: L !.". %ongressman 97ederalist-<orth %arolina, 0arch +>, +/>1-0arch ,, +/>,: #)sentB 6saac %oles L !.". %ongressman 9#nti-#dministration-Cirginia, +/*>-+/>+, +/>,-+/>/: "amuel ;riffin L !.". %ongressman 9Pro-#dministration-Cirginia, +/*>-+/>?: $ohn Page 9B.#. William and 0ary +/@,: L !.". %ongressman 9#nti-#dministration-Cirginia, +/*>-+/>/:H ;o2ernor of Cirginia 9+*1(-+*1?: &aniel 8uger L !.". %ongressman 9Pro-#dministration-"outh %arolina, +/*>-+/>,: .homas "umter L !.". %ongressman 9&em. Repu)lican-"outh %arolina, +/*>-+/>,, +/>/-+*1+:H !.". "enator 9"outh %arolina, +*1+-+*+1: 7rederick #ugustus %onrad 0uhlen)erg L !.". %ongressman 9Pro-#dministration-Pennsyl2ania, +/*>-+/>/:H "peaker of the 8ouse of Representati2es 9+/*>-+/>+, +/>,-+/>?:H )rother of $ohn Peter ;a)riel 0uhlen)erg

0eas and /ays in the 43'3 'enate on January @0, 11;1

.ristram &alton B.#. 8ar2ard +/?? !.". "enator 9Pro-#dministration0assachusetts, +/*>+/>+: 0ea

%ale) "trong B.#. 8ar2ard +/@!.". "enator 9Pro-#dministration0assachusetts, +/*>+/>@: 0ea

Paine Wingate B.#. 8ar2ard +/?> !.". "enator 9#nti-#dministration, <ew 8ampshire, +/*>-+/>,: 0ea

Rufus Aing B.#. 8ar2ard +/// !.". "enator 97ederalist<ew =ork, +/*>-+/>@H +*+,-+*(?:H !.". 0inister to ;reat Britain 9+/>@+*1,, +*(?-+*(@: 0ea

William "amuel $ohnson B.#. =ale +/-!.". "enator 97ederalist-%onnecticut, +/*>-+/>+:H President of %olum)ia !ni2ersity 9+/*/-+*11: 0ea

Dli2er Ellsworth #.B. Princeton +/@@ !.". "enator 97ederalist%onnecticut, +/*>-+/>@: 0ea

.heodore 7oster #.B. Brown +//1 !.". "enator 97ederalist-Rhode 6sland, +/>1-+*1,: 0ea

Ro)ert 0orris !.". "enator 9Pro-#dministrationPennsyl2ania, +/*>-+/>?: 0ea

$ames 0onroe !.". "enator 9#nti-#dministrationCirginia, +/>1-+/>-: /ay

William 7ew !.". "enator 9#nti-#dministration ;eorgia, +/*>-+/>,: /ay

.oteE /o,ert "orris was the national superintendent of finance 21P81?1P8:5 and was in$ol$ed in the esta,lishment of the +ank of .orth America, a pri$ate ,ank in Philadelphia' /o,ert "orris, informally known as the !financier of the American /e$olution0, was one of the richest men in America' /o,ert "orris was imprisoned for de,t from 1PI8 to 1801 due to his in$ol$ement in unsuccessful land speculations' .oteE ;illiam 8ew mo$ed to .ew *ork City in 1PII and ser$ed as a "em,er of the .ew *ork 3tate Assem,ly 21809?180 5, .ew *ork 3tate prison inspector 21809?18105, 4nited 3tates Commissioner of Coans 2180:5, director of the "anhattan +ank 2180:?181:5, President of the "anhattan +ank 2181:5, and Alderman of .ew *ork City 21813?181:5' ;illiam 8ew ser$ed as a "em,er of the Continental Con%ress 21P80?1P89, 1P8G?1P885'

James "adison, The +ank +ill, House of /epresentati$es
2 Feb. 1791 Papers 13:376--78

The third clause is that which %i$es the power to pass all laws necessary and proper to e)ecute the specified powers' ;hate$er meanin% this clause may ha$e, none can ,e admitted, that would %i$e an unlimited discretion to Con%ress' #ts meanin% must, accordin% to the natural and o,$ious force of the terms and the conte)t, ,e limited to means necessary to the end, and incident to the nature of the specified powers' The clause is in fact merely declaratory of what would ha$e resulted ,y una$oida,le implication, as the appropriate, and as it were, technical means of e)ecutin% those powers' #n this sense it had ,een e)plained ,y the friends of the constitution, and ratified ,y the state con$entions' The essential characteristic of the %o$ernment, as composed of limited and enumerated powers, would ,e destroyedE #f instead of direct and incidental means, any means could ,e used, which in the lan%ua%e of the pream,le to the ,ill, Lmi%ht ,e concei$ed to ,e conduci$e to the successful conductin% of the finances< or mi%ht ,e concei)ed to tend to %i$e faci!ity to the o,tainin% of loans'L He ur%ed an attention to the diffuse and ductile terms which had ,een found re(uisite to co$er the stretch of power contained in the ,ill' He compared them with the terms necessary and %ro%er, used in the Constitution, and asked whether it was possi,le to $iew the two descriptions as synonimous, or the one as a fair and safe commentary on the other' #f, proceeded he, Con%ress, ,y $irtue of the power to ,orrow, can create the means of lendin%, and in pursuance of these means, can incorporate a +ank, they may do any thin% whate$er creati$e of like means' The 7ast?#ndia company has ,een a lender to the +ritish %o$ernment, as well as the +ank, and the 3outh?3ea company is a %reater creditor than either' Con%ress then may incorporate similar companies in the 4nited 3tates, and that too not under the idea of re%ulatin% trade, ,ut under that of ,orrowin% money' Pri$ate capitals are the chief resources for loans to the +ritish %o$ernment' ;hate$er then may ,e concei$ed to fa$or the accumulation of capitals may ,e done ,y Con%ress' They may incorporate manufacturers' They may %i$e monopolies in e$ery ,ranch of domestic industry' #f, a%ain, Con%ress ,y $irtue of the power to ,orrow money, can create the a,ility to lend, they may ,y $irtue of the power to le$y money, create the a,ility to pay it' The a,ility to pay ta)es depends on the %eneral wealth of the society, and this, on the %eneral prosperity of a%riculture, manufactures and commerce' Con%ress then may %i$e ,ounties and make re%ulations on all of these o,-ects' The 3tates ha$e, it is allowed on all hands, a concurrent ri%ht to lay and collect ta)es' This power is secured to them not ,y its ,ein% e)pressly reser$ed, ,ut ,y its not ,ein% ceded ,y the constitution' The reasons for the ,ill cannot ,e admitted, ,ecause they would in$alidate that ri%ht< why may it not ,e concei)ed ,y Con%ress, that an uniform and e)clusi$e imposition of ta)es, would not less than the proposed +anks L,e conduci)e to the successful conductin% of the national finances, and tend to 'i)e faci!ity to the o,tainin% of re$enue, for the use of the %o$ernment@L The doctrine of implication is always a tender one' The dan%er of it has ,een felt in other %o$ernments' The delicacy was felt in the adoption of our own< the dan%er may also ,e felt, if we do not keep close to our chartered authorities' "ark the reasonin% on which the $alidity of the ,ill depends' To ,orrow money is made the end and the accumulation of capitals, im%!ied as the means' The accumulation of capitals is then the end, and a ,ank im%!ied as the means' The ,ank is then the end, and a charter of incorporation, a monopoly, capital punishments, &c' im%!ied as the means' #f implications, thus remote and thus multiplied, can ,e linked to%ether, a chain may ,e formed that will reach e$ery o,-ect of le%islation, e$ery o,-ect within the whole compass of political economy' The latitude of interpretation re(uired ,y the ,ill is condemned ,y the rule furnished ,y the constitution itself' Con%ress ha$e power Lto re%ulate the $alue of moneyL< yet it is e)pressly added not left to ,e implied, that counterfeitors may ,e punished'

They ha$e the power Lto declare war,L to which armies are more incident, than incorporated +anks, to ,orrowin%< yet is e)pressly added, the power Lto raise and support armiesL< and to this a%ain, the e)press power Lto make rules and re%ulations for the %o$ernment of armiesL< a like remark is applica,le to the powers as to a na$y' The re%ulation and callin% out of the militia are more appurtenant to war, than the proposed ,ank, to ,orrowin%< yet the former is not left to construction' The $ery power to ,orrow money is a less remote implication from the power of war, than an incorporated monopoly ,ank, from the power of ,orrowin%??yet the power to ,orrow is not left to implication' #t is not pretended that e$ery insertion or omission in the constitution is the effect of systematic attention' This is not the character of any human work, particularly the work of a ,ody of men' The e)amples cited, with others that mi%ht ,e added, sufficiently inculcate ne$ertheless a rule of interpretation, $ery different from that on which the ,ill rests' They condemn the e)ercise of any power, particularly a %reat and important power, which is not e$idently and necessarily in$ol$ed in an e)press power' #t cannot ,e denied that the power proposed to ,e e)ercised is an important power' As a charter of incorporation the ,ill creates an artificial person pre$iously not e)istin% in law' #t confers important ci$il ri%hts and attri,utes, which could not otherwise ,e claimed' #t is, thou%h not precisely similar, at least e(ui$alent, to the naturali>ation of an alien, ,y which certain new ci$il characters are ac(uired ,y him' ;ould Con%ress ha$e had the power to naturali>e, if it had not ,een e)pressly %i$en@ #n the power to make ,ye laws, the ,ill dele%ated a sort of le%islati$e power, which is un(uestiona,ly an act of a hi%h and important nature' He took notice of the only restraint on the ,ye laws, that they were not to ,e contrary to the law and the constitution of the ,ank< and asked what law was intended< if the law of the 4nited 3tates, the scantiness of their code would %i$e a power, ne$er ,efore %i$en to a corporation??and o,no)ious to the 3tates, whose laws would then ,e superceded not only ,y the laws of Con%ress, ,ut ,y the ,ye laws of a corporation within their own -urisdiction' #f the law intended, was the law of the 3tate, then the 3tate mi%ht make laws that would destroy an institution of the 4nited 3tates' The ,ill %i$es a power to purchase and hold lands< Con%ress themsel$es could not purchase lands within a 3tate Lwithout the consent of its le%islature'L How could they dele%ate a power to others which they did not possess themsel$es@ #t takes from our successors, who ha$e e(ual ri%hts with oursel$es, and with the aid of e)perience will ,e more capa,le of decidin% on the su,-ect, an opportunity of e)ercisin% that ri%ht, for an immoderate term' #t takes from our constituents the opportunity of deli,eratin% on the untried measure, althou%h their hands are also to ,e tied ,y it for the same term' #t in$ol$es a monopoly, which affects the e(ual ri%hts of e$ery citi>en' #t leads to a penal re%ulation, perhaps capital punishments, one of the most solemn acts of so$erei%n authority' 8rom this $iew of the power of incorporation e)ercised in the ,ill, it could ne$er ,e deemed an accessary or su,altern power, to ,e deduced ,y implication, as a means of e)ecutin% another power< it was in its nature a distinct, an independent and su,stanti$e prero%ati$e, which not ,ein% enumerated in the constitution could ne$er ha$e ,een meant to ,e included in it, and not ,ein% included could ne$er ,e ri%htfully e)ercised' He here ad$erted to a distinction, which he said had not ,een sufficiently kept in $iew, ,etween a power necessary and proper for the %o$ernment or union, and a power necessary and proper for e)ecutin% the enumerated powers' #n the latter case, the powers included in each of the enumerated powers were not e)pressed, ,ut to ,e drawn from the nature of each' #n the former, the powers composin% the %o$ernment were e)pressly enumerated' This constituted the peculiar nature of the %o$ernment, no power therefore not enumerated, could ,e inferred from the %eneral nature of %o$ernment' Had the power of makin% treaties, for e)ample, ,een omitted, howe$er necessary it mi%ht ha$e ,een, the defect could only ha$e ,een lamented, or supplied ,y an amendment of the constitution'

+ut the proposed ,ank could not e$en ,e called necessary to the %o$ernment< at most it could ,e ,ut con$enient' #ts uses to the %o$ernment could ,e supplied ,y keepin% the ta)es a little in ad$ance??,y loans from indi$iduals??,y the other ,anks, o$er which the %o$ernment would ha$e e(ual command< nay %reater, as it may %rant or refuse to these the pri$ile%e, made a free and irre$oca,le %ift to the proposed ,ank, of usin% their notes in the federal re$enue' The Founders' Constitution Bolume 3, Article 1, 3ection 8, Clause 18, 6ocument I httpESSpress?pu,s'uchica%o'eduSfoundersSdocumentsSa1V8V18sI'html The 4ni$ersity of Chica%o Press The +a%ers of James (adison' 7dited ,y ;illiam T' Hutchinson et al' Chica%o and CondonE 4ni$ersity of Chica%o Press, 1IG9??PP 2$ols' 1??105< Charlottes$illeE 4ni$ersity Press of Bir%inia, 1IPP??2$ols' 11??5' 3ourceE httpESSpress?pu,s'uchica%o'eduSfoundersSdocumentsSa1V8V18sI'html

Thomas $e**erson, B"inion on the Constitutionality o* the &ill *or (sta lishing a >ational &ank
15 Feb. 1791 Papers 19:275--80 The ,ill for esta,lishin% a .ational +ank undertakes, amon% other thin%s 1' to form the su,scri,ers into a Corporation' 9' to ena,le them, in their corporate capacities to recei$e %rants of land< and so far is a%ainst the laws of (ortmain'1 3' to make a!ien su,scri,ers capa,le of holdin% lands, and so far is a%ainst the laws of A!iena'e' :' to transmit these lands, on the death of a proprietor, to a certain line of successorsE and so far chan%es the course of Descents' ' to put the lands out of the reach of forfeiture or escheat and so far is a%ainst the laws of 6orfeiture and /scheat' G' to transmit personal chattels to successors in a certain lineE and so far is a%ainst the laws of Distri"ution' P' to %i$e them the sole and e)clusi$e ri%ht of ,ankin% under the national authorityE and so far is a%ainst the laws of (ono%o!y' 8' to communicate to them a power to make laws paramount to the laws of the statesE for so they must ,e construed, to protect the institution from the controul of the state le%islatures< and so, pro,a,ly they will ,e construed' # consider the foundation of the Constitution as laid on this %round that Lall powers not dele%ated to the 4'3' ,y the Constitution, not prohi,ited ,y it to the states, are reser$ed to the states or to the peopleL MF##th' Amendmt'N' To take a sin%le step ,eyond the ,oundaries thus specially drawn around the powers of Con%ress, is to take possession of a ,oundless feild of power, no lon%er suscepti,le of any definition' The incorporation of a ,ank, and other powers assumed ,y this ,ill ha$e not, in my opinion, ,een dele%ated to the 4'3' ,y the Constitution' #' They are not amon% the powers specially enumerated, for these are 1' A power to !ay ta2es for the purpose of payin% the de,ts of the 4'3' +ut no de,t is paid ,y this ,ill, nor any ta) laid' ;ere it a ,ill to raise money, itDs ori%ination in the 3enate would condemn it ,y the constitution' 9' Lto ,orrow money'L +ut this ,ill neither ,orrows money, nor ensures the ,orrowin% it' The proprietors of the ,ank will ,e -ust as free as any other money holders, to lend or not to lend their money to the pu,lic' The operation proposed in the ,ill, first to lend them two millions, and then ,orrow them ,ack a%ain, cannot chan%e the nature of the latter act, which will still ,e a payment, and not a loan, call it ,y what name you please' 3' Lto re%ulate commerce with forei%n nations, and amon% the states, and with the #ndian tri,es'L To erect a ,ank, and to re%ulate commerce, are $ery different acts' He who erects a ,ank creates a su,-ect of commerce in itDs ,illsE so does he who makes a ,ushel of wheat, or di%s a dollar out of the mines' *et neither of these persons re%ulates commerce there,y' To erect a thin% which may ,e ,ou%ht and sold, is not to prescri,e re%ulations for ,uyin% and sellin%' +esides< if this was an e)ercise of the power of re%ulatin% commerce, it would ,e $oid, as e)tendin% as much to the internal commerce of e$ery state, as to itDs e)ternal' 8or the power %i$en to Con%ress ,y the Constitution, does not e)tend to the internal re%ulation of the commerce of a state 2that is to say of the commerce ,etween citi>en and citi>en5 which remains e)clusi$ely with itDs own le%islature< ,ut to itDs e)ternal commerce only, that is to say, itDs commerce with another state, or with forei%n nations or with the #ndian tri,es' Accordin%ly the ,ill does not propose the measure as a Lre%ulation of trade,L ,ut as Lproducti$e of considera,le ad$anta%e to trade'L 3till less are these powers co$ered ,y any other of the special enumerations' ##' .or are they within either of the %eneral phrases, which are the two followin%' 1' LTo lay ta)es to pro$ide for the %eneral welfare of the 4'3'L that is to say Lto lay ta)es for the %ur%ose of pro$idin% for the %eneral welfare'L 8or the layin% of ta)es is the %ower and the %eneral welfare the %ur%ose for which the power is to ,e e)ercised'

They are not to lay ta)es ad li,itum for any %ur%ose they %!ease7 ,ut only to %ay the de"ts or %ro)ide for the we!fare of the ,nion' #n like manner they are not to do anythin' they %!ease to pro$ide for the %eneral welfare, ,ut only to !ay ta2es for that purpose' To consider the latter phrase, not as descri,in% the purpose of the first, ,ut as %i$in% a distinct and independent power to do any act they please, which mi%ht ,e for the %ood of the 4nion, would render all the precedin% and su,se(uent enumerations of power completely useless' #t would reduce the whole instrument to a sin%le phrase, that of institutin% a Con%ress with power to do whate$er would ,e for the %ood of the 4'3' and as they would ,e the sole -ud%es of the %ood or e$il, it would ,e also a power to do whate$er e$il they pleased' #t is an esta,lished rule of construction, where a phrase will ,ear either of two meanin%s, to %i$e it that which will allow some meanin% to the other parts of the instrument, and not that which would render all the others useless' Certainly no such uni$ersal power was meant to ,e %i$en them' #t was intended to lace them up straitly within the enumerated powers, and those without which, as means, these powers could not ,e ,e carried into effect' #t is known that the $ery power now proposed as a means, was re-ected as an end, ,y the Con$ention which formed the constitution' A proposition was made to them to authori>e Con%ress to open canals, and an amendatory one to empower them to incorporate' +ut the whole was re-ected, and one of the reasons of re-ection ur%ed in de,ate was that then they would ha$e a power to erect a ,ank, which would render the %reat cities, where there were pre-udices and -ealousies on that su,-ect ad$erse to the reception of the constitution' 9' The second %eneral phrase is Lto make all laws necessary and proper for carryin% into e)ecution the enumerated powers'L +ut they can all ,e carried into e)ecution without a ,ank' A ,ank therefore is not necessary, and conse(uently not authorised ,y this phrase' #t has ,een much ur%ed that a ,ank will %i$e %reat facility, or con$enience in the collection of ta)es' 3uppose this were trueE yet the constitution allows only the means which are LnecessaryL not those which are merely Lcon$enientL for effectin% the enumerated powers' #f such a latitude of construction ,e allowed to this phrase as to %i$e any non?enumerated power, it will %o to e$ery one, for MthereN is no one which in%enuity may not torture into a con)enience, in some way or other, to some one of so lon% a list of enumerated powers' #t would swallow up all the dele%ated powers, and reduce the whole to one phrase as ,efore o,ser$ed' Therefore it was that the constitution restrained them to the necessary means, that is to say, to those means without which the %rant of the power would ,e nu%atory' +ut let us e)amine this con)enience, and see what it is' The report on this su,-ect, pa%e 3' states the only 'enera! con$enience to ,e the pre$entin% the transportation and re?transportation of money ,etween the states and the treasury' 28or # pass o$er the increase of circulatin% medium ascri,ed to it as a merit, and which, accordin% to my ideas of paper money is clearly a demerit'5 7$ery state will ha$e to pay a sum of ta)?money into the treasuryE and the treasury will ha$e to pay, in e$ery state, a part of the interest on the pu,lic de,t, and salaries to the officers of %o$ernment resident in that state' #n most of the states there will still ,e a surplus of ta)?money to come up to the seat of %o$ernment for the officers residin% there' The payments of interest and salary in each state may ,e made ,y treasury?orders on the state collector' This will take up the %reater part of the money he has collected in his state, and conse(uently pre$ent the %reat mass of it from ,ein% drawn out of the state' #f there ,e a ,alance of commerce in fa$our of that state a%ainst the one in which the %o$ernment resides, the surplus of ta)es will ,e remitted ,y the ,ills of e)chan%e drawn for that commercial ,alance' And so it must ,e if there was a ,ank' +ut if there ,e no ,alance of commerce, either direct or circuitous, all the ,anks in the world could not ,rin% up the surplus of ta)es ,ut in the form of money' Treasury orders then and ,ills of e)chan%e may pre$ent the displacement of the main mass of the money collected, without the aid of any ,ankE and where these fail, it cannot ,e pre$ented e$en with that aid' Perhaps indeed ,ank ,ills may ,e a more con)enient $ehicle than treasury orders' +ut a little difference in the de%ree of con)enience, cannot constitute the necessity which the constitution makes the %round for assumin% any non?enumerated power' +esides< the e)istin% ,anks will without a dou,t, enter into arran%ements for lendin% their a%encyE and the more fa$oura,le, as there will ,e a competition amon% them for itE whereas the ,ill deli$ers us up ,ound to the national ,ank, who are free to refuse all arran%ement, ,ut on their own terms, and the pu,lic not free, on such refusal, to employ any other ,ank' That of Philadelphia, # ,elie$e, now does this ,usiness, ,y their post?notes, which ,y an arran%ement with the treasury, are paid ,y any state collector to whom they are presented' This e)pedient alone suffices to pre$ent the e)istence of that necessity which may -ustify the assumption of a non?enumerated power as a means for carryin% into effect an enumerated one' The thin% may ,e done, and has ,een done, and well done without this assumption< therefore it does not stand on that de%ree of necessity which can honestly -ustify it' #t may ,e said that a ,ank, whose ,ills would ha$e a currency all o$er the states, would ,e more con$enient than one whose currency is limited to a sin%le state' 3o it would ,e still more con$enient that there should ,e a ,ank whose ,ills should ha$e a currency all o$er the world' +ut it does not follow from this superior con$eniency that there e)ists anywhere a power to esta,lish such a ,ank< or that the world may not %o on $ery well without it'

Can it ,e thou%ht that the Constitution intended that for a shade or two of con)enience, more or less, Con%ress should ,e authorised to ,reak down the most antient and fundamental laws of the se$eral states, such as those a%ainst "ortmain, the laws of aliena%e, the rules of descent, the acts of distri,ution, the laws of escheat and forfeiture, the laws of monopoly@ .othin% ,ut a necessity in$inci,le ,y any other means, can -ustify such a prostration of laws which constitute the pillars of our whole system of -urisprudence' ;ill Con%ress ,e too strait?laced to carry the constitution into honest effect, unless they may pass o$er the foundation?laws of the state?%o$ernments for the sli%htest con$enience to theirs@ The .e%ati$e of the President is the shield pro$ided ,y the constitution to protect a%ainst the in$asions of the le%islature 1' the ri%hts of the 7)ecuti$e 9' of the Judiciary 3' of the states and state le%islatures' The present is the case of a ri%ht remainin% e)clusi$ely with the states and is conse(uently one of those intended ,y the constitution to ,e placed under his protection' #t must ,e added howe$er, that unless the PresidentDs mind on a $iew of e$ery thin% which is ur%ed for and a%ainst this ,ill, is tolera,ly clear that it is unauthorised ,y the constitution, if the pro and the con han% so e$en as to ,alance his -ud%ment, a -ust respect for the wisdom of the le%islature would naturally decide the ,alance in fa$our of their opinion' #t is chiefly for cases where they are clearly misled ,y error, am,ition, or interest, that the constitution has placed a check in the ne%ati$e of the President' 1' Thou%h the constitution controuls the laws of "ortmain so far as to permit Con%ress itself to hold lands for certain purposes, yet not so far as to permit them to communicate a similar ri%ht to other corporate ,odies' The Founders' Constitution Bolume 3, Article 1, 3ection 8, Clause 18, 6ocument 10 httpESSpress?pu,s'uchica%o'eduSfoundersSdocumentsSa1V8V18s10'html The 4ni$ersity of Chica%o Press The +a%ers of Thomas Jefferson' 7dited ,y Julian P' +oyd et al' PrincetonE Princeton 4ni$ersity Press, 1I 0??' 3ourceE httpESSpress?pu,s'uchica%o'eduSfoundersSdocumentsSa1V8V18s10'html

$effersonJs opinion on the )ank of the !nited "tates 9<ational #rchi2es and Records #dministration: "ourceB httpBEEwww.loc.go2Ee4hi)itsE'effersonEimagesE2c+(>.'pg

+le)ander 'amilton, B"inion on the Constitutionality o* the &ank
23 Feb. 1791 Papers 8:97--106 The 3ecretary of the Treasury ha$in% perused with attention the papers containin% the opinions of the 3ecretary of 3tate and Attorney =eneral concernin% the constitutionality of the ,ill for esta,lishin% a .ational +ank proceeds accordin% to the order of the President to su,mit the reasons which ha$e induced him to entertain a different opinion' #t will naturally ha$e ,een anticipated that, in performin% this task he would feel uncommon solicitude' Personal considerations alone arisin% from the reflection that the measure ori%inated with him would ,e sufficient to produce it' The sense which he has manifested of the %reat importance of such an institution to the successful administration of the department under his particular care, and an e)pectation of serious ill conse(uences to result from a failure of the measure, do not permit him to ,e without an)iety on pu,lic accounts' +ut the chief solicitude arises from a firm persuasion, that principles of construction like those espoused ,y the 3ecretary of 3tate and the Attorney =eneral would ,e fatal to the -ust and indispensa,le authority of the 4nited 3tates' #n enterin% upon the ar%ument it ou%ht to ,e premised, that the o,-ections of the 3ecretary of 3tate and Attorney =eneral are founded on a %eneral denial of the authority of the 4nited 3tates to erect corporations' The latter indeed e)pressly admits, that if there ,e anythin% in the ,ill which is not warranted ,y the constitution, it is the clause of incorporation' .ow it appears to the 3ecretary of the Treasury, that this 'enera! %rinci%!e is inherent in the $ery definition of o)ernment and essentia! to e$ery step of the pro%ress to ,e made ,y that of the 4nited 3tates, namely??that e$ery power $ested in a =o$ernment is in its nature so)erei'n, and includes ,y force of the term, a ri%ht to employ all the means re(uisite, and fairly a%%!ica"!e to the attainment of the ends of such power< and which are not precluded ,y restrictions and e)ceptions specified in the constitution, or not immoral, or not contrary to the essential ends of political society' This principle in its application to =o$ernment in %eneral would ,e admitted as an a)iom' And it will ,e incum,ent upon those, who may incline to deny it, to %ro)e a distinction and to shew that a rule which in the %eneral system of thin%s is essential to the preser$ation of the social order, is inapplica,le to the 4nited 3tates' The circumstances that the powers of so$erei%nty are in this country di$ided ,etween the .ational and 3tate =o$ernments, does not afford the distinction re(uired' #t does not follow from this, that each of the %ortions of powers dele%ated to the one or to the other is not so$erei%n with re'ard to its %ro%er o"8ects' #t will only fo!!ow from it, that each has so$erei%n power as to certain thin's, and not as to other thin's' To deny that the =o$ernment of the 4nited 3tates has so$erei%n power as to its declared purposes and trusts, ,ecause its power does not e)tend to all cases, would ,e e(ually to deny, that the 3tate =o$ernments ha$e so$erei%n power in any case< ,ecause their power does not e)tend to e$ery case' The tenth section of the first article of the constitution e)hi,its a lon% list of $ery important thin%s which they may not do' And thus the 4nited 3tates would furnish the sin%ular spectacle of a %o!itica! society without so)erei'nty, or of a people 'o)erned without 'o)ernment' #f it would ,e necessary to ,rin% proof to a proposition so clear as that which affirms that the powers of the federal =o$ernment, as to its o"8ects, are so$erei%n, there is a clause of its constitution which would ,e decisi$e' #t is that which declares, that the constitution and the laws of the 4nited 3tates made in pursuance of it, and all treaties made or which shall ,e made under their authority shall ,e the supreme law of the land' The power which can create the -u%reme !aw of the land, in any case, is dou,tless so$erei%n as to such case' This %eneral and indisputa,le principle puts at once an end to the a"stract (uestion' ;hether the 4nited 3tates ha$e power to erect a cor%oration9 that is to say, to %i$e a !e'a! or artificia! ca%acity to one or more persons, distinct from the natural' 8or it is un(uestiona,ly incident to so)erei'n %ower to erect corporations, and conse(uently to that of the 4nited 3tates, in re!ation to the o"8ects intrusted to the mana%ement of the %o$ernment' The difference is this??where the authority of the %o$ernment is %eneral, it can create corporations in a!! cases7 where it is confined to certain ,ranches of le%islation, it can create corporations only in those cases' Here then as far as concerns the reasonin%s of the 3ecretary of 3tate and the Attorney =eneral, the affirmati$e of the constitutionality of the ,ill mi%ht ,e permitted to rest' #t will occur to the President that the principle here ad$anced has ,een untouched ,y either of them' 8or a more complete elucidation of the point ne$ertheless, the ar%uments which they had used a%ainst the power of the %o$ernment to erect corporations, howe$er forei%n they are to the %reat and fundamental rule which has ,een stated, shall ,e

particularly e)amined' And after shewin% that they do not tend to impair its force, it shall also ,e shewn that the power of incorporation incident to the %o$ernment in certain cases, does fairly e)tend to the particular case which is the o,-ect of the ,ill' The first of these ar%uments is, that the foundation of the constitution is laid on this %round Lthat all powers not dele%ated to the 4nited 3tates ,y the Constitution, nor prohi,ited ,y it to the 3tates are reser$ed to the 3tates or to the people,L whence it is meant to ,e inferred, that con%ress can in no case e)ercise any power not included in those enumerated in the constitution' And it is affirmed that the power of erectin% a corporation is not included in any of the enumerated powers' The main proposition here laid down, in its true si%nification is not to ,e (uestioned' #t is nothin% more than a conse(uence of this repu,lican ma)im, that all %o$ernment is a dele%ation of power' +ut how much is dele%ated in each case, is a (uestion of fact to ,e made out ,y fair reasonin% and construction, upon the particular pro$isions of the constitution??takin% as %uides the %eneral principles and %eneral ends of %o$ernment' #t is not denied, that there are im%!ied, as well as e2%ress %owers, and that the former are as effectually dele%ated as the latter' And for the sake of accuracy it shall ,e mentioned, that there is another class of powers, which may ,e properly denominated resu!tin' powers' #t will not ,e dou,ted that if the 4nited 3tates should make a con(uest of any of the territories of its nei%h,ours, they would possess so$erei%n -urisdiction o$er the con(uered territory' This would rather ,e a result from the whole mass of the powers of the %o$ernment and from the nature of political society, than a conse(uence of either of the powers specially enumerated' +ut ,e this as it may, it furnishes a strikin% illustration of the %eneral doctrine contended for' #t shows an e)tensi$e case, in which a power of erectin% corporations is either implied in, or would result from some or all of the powers, $ested in the .ational =o$ernment' The -urisdiction ac(uired o$er such con(uered territory would certainly ,e competent to e$ery species of le%islation' To return??#t is conceded, that implied powers are to ,e considered as dele%ated e(ually with e)press ones' Then it follows, that as a power of erectin% a corporation may as well ,e im%!ied as any other thin%< it may as well ,e employed as an instrument or means of carryin% into e)ecution any of the specified powers, as any other instrument or mean whate$er' The only (uestion must ,e, in this as in e$ery other case, whether the mean to ,e employed, or in this instance the corporation to ,e erected, has a natural relation to any of the acknowled%ed o,-ects or lawful ends of the %o$ernment' Thus a corporation may not ,e erected ,y con%ress, for superintendin% the police of the city of Philadelphia ,ecause they are not authori>ed to re'u!ate the %o!ice of that city< ,ut one may ,e erected in relation to the collection of ta)es, or to the trade with forei%n countries, or to the trade ,etween the 3tates, or with the #ndian Tri,es, ,ecause it is the pro$ince of the federal %o$ernment to re'u!ate those o"8ects and ,ecause it is incident to a %eneral so)erei'n or !e'is!ati)e %ower to re'u!ate a thin%, to employ all the means which relate to its re%ulation to the "est and 'reatest ad)anta'e' A stran%e fallacy seems to ha$e crept into the manner of thinkin% and reasonin% upon this su,-ect' #ma%ination appears to ha$e ,een unusually ,usy concernin% it' An incorporation seems to ha$e ,een re%arded as some %reat, independent, su,stanti$e thin%??as a political end of peculiar ma%nitude and moment< whereas it is truly to ,e considered as a *ua!ity, ca%acity, or means to an end' Thus a mercantile company is formed with a certain capital for the purpose of carryin% on a particular ,ranch of ,usiness' Here the ,usiness to ,e prosecuted is the end7 the association in order to form the re(uisite capital is the primary mean' 3uppose than an incorporation were added to this< it would only ,e to add a new *ua!ity to that association< to %i$e it an artificial capacity ,y which it would ,e ena,led to prosecute the ,usiness with more safety and con$enience' That the importance of the power of incorporation has ,een e)a%%erated, leadin% to erroneous conclusions, will further appear from tracin% it to its ori%in' The roman law is the source of it, accordin% to which a )o!untary association of indi$iduals at any time or for any %ur%ose was capa,le of producin% it' #n 7n%land, whence our notions of it are immediately ,orrowed, it forms a part of the e)ecuti$e authority, and the e)ercise of it has ,een often de!e'ated ,y that authority' ;hence therefore the %round of the supposition, that it lies ,eyond the reach of all those $ery important portions of so$erei%n power, le%islati$e as well as e)ecuti$e, which ,elon% to the %o$ernment of the 4nited 3tates@ To this mode of reasonin% respectin% the ri%ht of employin% all the means re(uisite to the e)ecution of the specified powers of the =o$ernment, it is o,-ected that none ,ut necessary and proper means are to ,e employed, and the 3ecretary of 3tate maintains, that no means are to ,e considered as necessary, ,ut those without which the %rant of the power would ,e nu'atory' .ay so far does he %o in his restricti$e interpretation of the word, as e$en to make the case of necessity which shall warrant the constitutional e)ercise of the power to depend on casua! and tem%orary circumstances< an idea which alone refutes the

construction' The e2%ediency of e)ercisin% a particular power, at a particular time, must indeed depend on circumstances7 ,ut the constitutional ri%ht of e)ercisin% it must ,e uniform and in$aria,le??the same to day as to morrow' All the ar%uments therefore a%ainst the constitutionality of the ,ill deri$ed from the accidental e)istence of certain 3tate ,anks?? institutions which ha%%en to e)ist today, and, for ou%ht that concerns the %o$ernment of the 4nited 3tates, may disappear tomorrow, must not only ,e re-ected as falacious, ,ut must ,e $iewed as demonstrati$e, that there is a radica! source of error in the reasonin%' #t is essential to the ,ein% of the .ational %o$ernment, that so erroneous a conception of the meanin% of the word necessary, should ,e e)ploded' #t is certain, that neither the %rammatical nor popular sense of the term re(uires that construction' Accordin% to ,oth, necessary often means no more than needfu!, re*uisite, incidenta!, usefu!, or conducti)e to' #t is a common mode of e)pression to say, that it is necessary for a %o$ernment or a person to do this or that thin%, when nothin% more is intended or understood, than that the interests of the %o$ernment or person re(uire, or will ,e promoted, ,y the doin% of this or that thin%' The ima%ination can ,e at no loss for e)emplifications of the use of the word in this sense' And it is the true one in which it is to ,e understood as used in the constitution' The whole turn of the clause containin% it indicates, that it was the intent of the con$ention, ,y that clause to %i$e a li,eral latitude to the e)ercise of the specified powers' The e)pressions ha$e peculiar comprehensi$eness' They are, Lto make a!! !aws, necessary and proper for carryin' into e2ecution the fore%oin% powers and a!! other %owers $ested ,y the constitution in the 'o)ernment of the 4nited 3tates, or in any de%artment or officer thereof'L To understand the word as the 3ecretary of 3tate does, would ,e to depart from its o,$ious and popular sense, and to %i$e it a restricti)e operation< an idea ne$er ,efore entertained' #t would ,e to %i$e it the same force as if the word a"so!ute!y or indis%ensa"!y had ,een prefi)ed to it' 3uch a construction would ,e%et endless uncertainty and em,arrassment' The cases must ,e palpa,le and e)treme in which it could ,e pronounced with certainty that a measure was a,solutely necessary, or one without which the e)ercise of a %i$en power would ,e nu%atory' There are few measures of any %o$ernment, which would stand so se$ere a test' To insist upon it, would ,e to make the criterion of the e)ercise of any implied power a case of e2treme necessity7 which is rather a rule to -ustify the o$erleapin% of the ,ounds of constitutional authority, than to %o$ern the ordinary e)ercise of it' #t may ,e truly said of e$ery %o$ernment, as well as of that of the 4nited 3tates, that it has only a ri%ht, to pass such laws as are necessary and proper to accomplish the o,-ects intrusted to it' 8or no %o$ernment has a ri%ht to do mere!y what it %!eases' Hence ,y a process of reasonin% similar to that of the 3ecretary of 3tate, it mi%ht ,e pro$ed, that neither of the 3tate %o$ernments has the ri%ht to incorporate a ,ank' #t mi%ht ,e shown, that all the pu,lic ,usiness of the 3tate, could ,e performed without a ,ank, and inferrin% thence that it was unnecessary it mi%ht ,e ar%ued that it could not ,e done, ,ecause it is a%ainst the rule which has ,een -ust mentioned' A like mode of reasonin% would pro$e, that there was no power to incorporate the #nha,itants of a town, with a $iew to a more perfect police' 8or it is certain, that an incorporation may ,e dispensed with, thou%h it is ,etter to ha$e one' #t is to ,e remem,ered that there is no e2%ress power in any 3tate constitution to erect corporations' The de'ree in which a measure is necessary, can ne$er ,e a test of the !e'a! ri%ht to adopt it' That must ,e a matter of opinion< and can only ,e a test of e)pediency' The re!ation ,etween the measure and the end, ,etween the nature of the mean employed towards the e)ecution of a power and the o,-ect of that power, must ,e the criterion of constitutionality not the more or less of necessity or uti!ity' The practice of the %o$ernment is a%ainst the rule of construction ad$ocated ,y the 3ecretary of 3tate' Af this the act concernin% li%ht houses, ,eacons, ,uoys and pu,lic piers, is a decisi$e e)ample' This dou,tless must ,e referred to the power of re%ulatin% trade, and is fairly relati$e to it' +ut it cannot ,e affirmed, that the e)ercise of that power, in this instance, was strictly necessary, or that the power itself would ,e nu'atory without that of re%ulatin% esta,lishments of this nature' This restricti$e interpretation of the word necessary is also contrary to this sound ma)im of construction< namely, that the powers contained in a constitution of %o$ernment, especially those which concern the %eneral administration of the affairs of a country, its finances, trade, defence etc' ou%ht to ,e construed li,erally, in ad$ancement of the pu,lic %ood' This rule does not depend on the particular form of a %o$ernment or on the particular demarkation of the ,oundaries of its powers, ,ut on the nature and o,-ects of %o$ernment itself' The means ,y which national e)i%encies are to ,e pro$ided for, national incon$eniences o,$iated, national prosperity promoted, are of such infinite $ariety, e)tent and comple)ity that there must, of necessity ,e %reat latitude of discretion in the selection and application of those means' Hence conse(uently, the necessity and propriety of e)ercisin% the authorities intrusted to a %o$ernment on principles of li,eral construction'

The Attorney =eneral admits the ru!e, ,ut takes a distinction ,etween a 3tate, and the federal constitution' The latter, he thinks, ou%ht to ,e construed with %reat strictness, ,ecause there is more dan%er of error in definin% partial than %eneral powers' +ut the reason of the ru!e for,ids such a distinction' This reason is??the $ariety and e)tent of pu,lic e)i%encies, a far %reater proportion of which and of a far more critical kind are o,-ects of national than of 3tate administration' The %reater dan%er of error, as far as it is supposa,le, may ,e a prudential reason for caution in practice, ,ut it cannot ,e a rule of restricti$e interpretation' #n re%ard to the clause of the constitution immediately under consideration, it is admitted ,y the Attorney =eneral, that no restricti)e effect can ,e ascri,ed to it' He defines the word necessary thusE LTo ,e necessary is to ,e incidenta!, and may ,e denominated the natural means of e)ecutin% a power'L +ut while on the one hand, the construction of the 3ecretary of 3tate is deemed inadmissa,le, it will not ,e contended on the other, that the clause in (uestion %i$es any new or inde%endent power' +ut it %i$es an e)plicit sanction to the doctrine of im%!ied powers, and is e(ui$alent to an admission of the proposition, that the %o$ernment, as to its s%ecified %owers and o"8ects, has plenary and so$erei%n authority, in some cases paramount to that of the 3tates in others co?ordinate with it' 8or such is the plain import of the declaration, that it may pass all !aws necessary and proper to carry into e)ecution those powers' #t is no $alid o,-ection to the doctrine to say, that it is calculated to e)tend the powers of the %eneral %o$ernment throu%hout the entire sphere of 3tate le%islation' The same thin% has ,een said, and may ,e said with re%ard to e$ery e)ercise of power ,y im%!ication or construction' The moment the literal meanin% is departed from there is a chance of error and a,use' And yet an adherence to the letter of its powers would at once arrest the motions of the %o$ernment' #t is not only a%reed, on all hands, that the e)ercise of constructi$e powers is indispensa,le, ,ut e$ery act which has ,een passed is more or less an e)emplification of it' Ane has ,een already mentioned, that relatin% to li%ht houses etc' That which declares the power of the President to remo$e officers at pleasure, acknowled%es the same truth in another, and a si%nal instance' The truth is, that difficulties on this point are inherent in the nature of the federal constitution' They result ine$ita,ly from a di$ision of the le%islati$e power' The conse(uence of this di$ision is, that there will ,e cases clearly within the power of the .ational =o$ernment< others clearly without its powers< and a third class, which will lea$e room for contro$ersy and difference of opinion, and concernin% which a reasona,le latitude of -ud%ment must ,e allowed' +ut the doctrine which is contended for is not char%ea,le with the conse(uence imputed to it' #t does not affirm that the .ational %o$ernment is so$erei%n in all respects, ,ut that it is so$erei%n to a certain e)tentE that is, to the e2tent of the o,-ects of its specified powers' #t lea$es therefore a criterion of what is constitutional, and of what is not so' This criterion is the end, to which the measure relates as a mean' #f the end ,e clearly comprehended within any of the specified powers, and if the measure ha$e an o,$ious relation to that end, and is not for,idden ,y any particular pro$ision of the constitution??it may safely ,e deemed to come within the compass of the national authority' There is also this further criterion which may materially assist the decisionE 6oes the proposed measure a,rid%e a pre?e)istin% ri%ht of any 3tate, or of any indi$idual@ #f it does not, there is a stron% presumption in fa$our of its constitutionality< and sli%hter relations to any declared o,-ect of the constitution may ,e permitted to turn the scale' The Founders' Constitution Bolume 3, Article 1, 3ection 8, Clause 18, 6ocument 11 httpESSpress?pu,s'uchica%o'eduSfoundersSdocumentsSa1V8V18s11'html The 4ni$ersity of Chica%o Press The +a%ers of A!e2ander 3ami!ton' 7dited ,y Harold C' 3yrett et al' 9G $ols' .ew *ork and CondonE Colum,ia 4ni$ersity Press, 1IG1??PI' -ee a!so: 8ederalist 3ourceE httpESSpress?pu,s'uchica%o'eduSfoundersSdocumentsSa1V8V18s11'html

The First &ank o* the .nited /tates
By &a2id %owen -irth o" the -an. 6n 7e)ruary +/>+, the 7irst Bank of the !nited "tates 9+/>+-+*++: recei2ed a uniGue national charter for twenty years. #le4ander 8amiltonJs )rainchild, a semi-pu)lic national )ank, was a crucial component in the )uilding of the early !.". economy. .he Bank prospered for twenty years and performed traditional )anking functions in e4emplary fashion. With a main office in Philadelphia and eight )ranches nationwide to ser2e its customers, the BankJs influence stretched along the entire #tlantic sea)oard from Boston to %harleston and "a2annah and westward along the ;ulf %oast to <ew Drleans. %amiltonEs -road F(onomi( )lan When the .reasury &epartment was created )y an #ct of %ongress in "eptem)er +/*>, President ;eorge Washington rewarded 8amilton with the post of "ecretary. 8amilton Guickly )ecame the nationJs leading economic figure. When %ongress asked 8amilton to su)mit an economic plan for the country, he was well prepared. .he "ecretary deli2ered se2eral monumental state papers that forged the financial system for the nationB .he "eport on #ublic $redit 9$anuary >, +/>1:, %he "eport on the Bank 9&ecem)er +,, +/>1:, %he Establishment of a &int 9$anuary, +/>+:, and %he "eport on &anufactures 9&ecem)er ?, +/>+:. 8amiltonJs reports outlined the strategies that were part of a comprehensi2e 7ederalist economic and financial program. .hey included a sinking fund to e4tinguish the national de)t and an e4cise ta4 to )e collected on all distilled liGuors. # key component of 8amiltonJs economic plan for the country was the national Bank, an institution that would safeguard all pecuniary transactions. .he Bank would not only stimulate the economy )ut also enhance the shaky credit of the go2ernment. .he English financial system, particularly the Bank of England, pro2ided an important model for 8amilton. The -an.Es =undin+ and )ri&ile+es %he "eport on the Bank e4plained that the national Bank would )e chartered for twenty years, during which time the %ongress would agree not to esta)lish another national )ank. .he seed capital would )e 5+1 millionB 5* million from pri2ate sources, and 5( million from the go2ernment. .he Bank would ha2e the right to issue notes or currency up to 5+1 million. .he go2ernment would also pledge that the notes of the Bank would )e uniGue in that they were 2alid for payments to the !nited "tates. 6n short, the notes would )e suita)le for payment of ta4es, a feature that would pro2ide the Bank with a strong ad2antage o2er its competitors. .he national Bank would confer many )enefits on the go2ernment including a ready source of loans, a principal depository for federal monies that were transfera)le from city to city without charge, and a clearing agent for payments on the national de)t. .he go2ernment, as the largest stockholder, would share in the profits, )ut ha2e no direct participation in the management. :e ate o&er Fsta lishment o" the -an. .he Bank )ill was introduced into %ongress on &ecem)er +,, +/>1, passed the "enate on $anuary (1, +/>+, the 8ouse on 7e)ruary *, +/>+, and therefore was forwarded to President Washington for his signature. 6t was unclear whether Washington would sign the )ill into law. Powerful forces led )y $ames 0adison, .homas $efferson and the #ttorney ;eneral, Edmund Randolph, argued to Washington that the %onstitution had not granted the go2ernment the power to incorporate a Bank and therefore he should not sign the )ill. ,ashin+ton #((epts %amiltonEs Gie! on Implied )o!ers Washington showed 8amilton the oppositionJs argument and asked him to prepare a document e4plaining why he should sign the )ill. .he pressure was therefore on 8amilton to produce a flawless retort. 8is reply to Washington has )een christened as the )enchmark of a )road interpretation of the %onstitution. 8amilton turned the ta)les on his opposition. 6f .homas $efferson, $ames 0adison and Edmund Randolph argued that the power to incorporate was not a2aila)le unless e4plicitly prescri)ed )y the %onstitution, then #le4ander 8amilton retorted that a power was not una2aila)le unless so stated in the %onstitution. Washington accepted 8amiltonJs logic and signed the )ill on 7e)ruary (?, +/>+ to create the national Bank. 0ost important, howe2er, was not the political infighting, )ut rather that 8amiltonJs 2iew holding that implied go2ernmental powers were a 2ia)le part of the %onstitution had carried the day. 8amilton had accomplished his aimB his detractors defeatedH his economic approach adopted. 6n the ensuing years the Bank of the !nited "tates occupied center stage of the #merican financial system. Life of the Bank Initial 'to(. 6""erin+ Dn $uly -, +/>+, in the largest initial stock offering the country had e2er witnessed, in2estors displayed confidence in the new funding system )y scooping up 5* million in Bank of !nited "tates stock with unprecedented alacrity. 0any nota)le mem)ers of the %ongress were purchasers. Prices of receipts for the right to )uy stock 9i.e. not the stock itself:, know as scripts, were dri2en from an initial offering price of 5(? to the unsustaina)le height of o2er 5,11, and then tum)led to 5+?1 within days, causing alarm in the markets. "ecretary 8amilton calmed the storm much as a modern central )anker would ha2e )y using pu)lic money to directly purchase go2ernment securities. 8owe2er, the script )u))le led many to )lame the Bank for such ra)id speculations.

-an. -ran(hes 6n the fall of +/>+ the new stockholders met in Philadelphia to choose )oard mem)ers and decide on rules and regulations. While the Bank would )e headGuartered in Philadelphia, the stockholders clamored for and recei2ed )ranches, with four opening in Baltimore, Boston, %harleston, and <ew =ork in +/>(, and e2entually four more in <orfolk 9+*11:, Washington 9+*1(:, "a2annah 9+*1(: and <ew Drleans 9+*1?:. .he )ranches were of great concern to the e4isting state )anks, which 2iewed the national Bank as a competiti2e threat. The -an.Es =irst )resident and 8ashiers .homas Willing accepted the title of president of the Bank and remained in that position until +*1/. Willing possessed strong credentials as he had )een president of the Bank of <orth #merica, 0ayor of Philadelphia, the "ecretary to the %ongress of delegates at #l)any, and a $udge of the "upreme court of Pennsyl2ania. #s the day-to- day manager, the role of )ank cashier was also important. #t the head office in Philadelphia, $ohn Aean was appointed the cashierH howe2er, the most noteworthy was ;eorge "impson, who held the post from +/>?-+*++. The -an.Es >oles in the F(onomy Dn &ecem)er +(, +/>+, the Bank opened for )usiness in Philadelphia. .he customers were merchants, politicians, manufacturers, landowners, and most importantly, the go2ernment of the !nited "tates. .he Banks notes circulated countrywide and therefore infused a safe medium of paper money into the economy for )usiness transactions. .he sheer 2olume of deposits, loans, transfers and payments conducted )y the Bank throughout the country made it far and away the single largest enterprise in the fledgling nation. Profits, howe2er, were moderate during the operation of the Bank )ecause its directors opted for sta)ility o2er risk taking. The -an. and the H)ani( o" 11;@H .he Bank had an enormous impact on the economy within two months of opening its doors for )usiness )y flooding the market with its discounts 9loans: and )anknotes and then sharply re2ersing course and calling in many of the loans. #lthough the added liGuidity initially helped push a rising securities market higher, the su)seGuent drain caused the 2ery first !.". securities market crash )y forcing speculators to sell their stocks. .he largest speculator caught in the financial crisis was William &uer. When he went insol2ent in 0arch +/>(, the markets were temporarily paralyOed. .his so-called PPanic of +/>(P was short li2ed as again "ecretary 8amilton 9as in the pre2ious year during the script )u))le: in'ected funds )y )uying securities directly and on )ehalf of the sinking fund. =et incidents like the Panic of +/>( and the script )u))le would )e remem)ered for many years )y opponents of the Bank who were still in steadfast opposition to the 8amilton inspired institution. The -an.Es -usiness !ith the /ational *o&ernment .he rest of Bank years were ne2er as tumultuous as the e2ents surrounding the Panic of +/>(. Rather during its twenty-year lifespan the Bank performed many mundane pecuniary functions for its customers. .he largest customer, the go2ernment, had many nota)le interactions with the Bank. Dne of the highlights of the relationship was the BankJs efficient managing of the go2ernmentJs fiscal affairs with respect to the Louisiana Purchase in +*1,. 6n its earlier days, the Bank had lent hea2ily to its largest customer. By the end of +/>? the Bank had lent the go2ernment o2er 5@ million, or @1Q of its capital. #t this point Willing and the other directors )ecame alarmed and demanded the ;o2ernment repay part of its loan. "ince ;o2ernment credit was still weak, the .reasury resorted to selling shares of its Bank stock. .he sales )egan in +/>@ and ended in +*1(. With the proceeds from the sales of stock, the go2ernment repaid the Bank. 8entral =un(tions o" the -an. .he Bank performed certain functions that today are associated with central )anking. 7irst, the Bank attempted to regulate state )anks )y curtailing those that had o2erissued their )ank notes. "econd, the Bank, in coordination with the .reasury department, discussed economic conditions and attempted to promote the safety of the entire credit system. .hird, while the Philadelphia )oard ga2e each )ranch autonomy respecting lending to indi2iduals, the Bank tried to coordinate aggregate policy changes, whether a loosening or tightening of lending credit, across the entire network of )ranches. :eath o" the -an. .he anti-Bank forces had remained steadfast in their opposition to the Bank since its inception in +/>+. By the time of the renewal de)ate in %ongress, the 7ederalists were no longer in control. .he &emocrats now held the ma'ority and were ready to act against the 7ederalist concei2ed institution. .he opponents of the Bank included 8enry %lay, William Branch ;iles and CicePresident ;eorge %linton. .he 7ederalists supported renewal and were 'oined )y two nota)le &emocrats who crossed party lines, .reasury "ecretary #l)ert ;allatin, who )elie2ed in the usefulness of the institution, and then President 0adison, who had switched camps with respect to the Bank issue )ecause he )elie2ed the matter had )een settled )y precedent. 8omplaints a out the -an. .he opponents charged that )ecause three-fourths of the ownership of the stock was held )y foreigners, that the Bank was under their direct influence. .he charge was false, as foreigners were prohi)ited from electing directors. .he opposition also charged that the Bank was concealing profits, operating in a mysterious fashion, unconstitutional, and simply a tool for loaning money to the ;o2ernment. >e(harterin+ 'u""ers a /arro! :e"eat in 8on+ress

#lthough the charter did not e4pire until 0arch -, +*++, the renewal process commenced in the 8ouse on 0arch (*, +*1* and in the "enate on #pril (1, +*1*. .he matter de2eloped slowly and was referred to "ecretary ;allatin for an opinion. Dn 0arch ,, +*1> ;allatin communicated his )eliefs to the 8ouse that the Bank charter should )e renewed. .he matter returned to the 8ouse on $anuary (>, +*+1 for %ommittee de)ate. Dn 7e)ruary +>th, the committee recommended in fa2or of renewing the charter and sent the )ill to the floor of the 8ouse. 7loor de)ate opened on #pril +,th, and the )ill was stopped dead in its tracks. "tockholders resu)mitted the )ill on &ecem)er +1th, and despite an intense three-month de)ate, the )ill was killed. .he 2ote in each section of the %ongress was incredi)ly close. .he )ill was defeated in the 8ouse )y a @? to @- margin on $anuary (-, +*++, and in the "enate was deadlocked at +/ on 7e)ruary (1th )efore Cice-President %linton, an enemy of )oth 0adison and ;allatin, )roke the tie with a negati2e 2ote. .he Bank of the !nited "tates closed its doors on 0arch ,, +*++. The -an. and the :e ate o&er 8entral *o&ernment )o!er .he reason the Bank lost its charter had precious little to do with )anking. When charter renewal de)ate transpired in +*++ )anking on the whole was flourishing. .he Bank was )orn, li2ed, and e2entually died a 2ictim of politics. .he Bank has )een remem)ered not for what occurred during its operation -- stimulating )usiness, infusing safe paper money into the economy, supporting the credit of the country and national go2ernment, and with the .reasury department regulating the financial arena -)ut rather for what occurred during the stormy de)ates at its )irth and death. .he death of the Bank was another chapter in an ongoing de)ate )etween the early leaders of the country who were split )etween those who preferred a weak central go2ernment on the one hand and those who desired a strong central go2ernment on the other. .he chartering of a national economic institution, a Bank of the !nited "tates, marks the take-off of the 7ederalist financial re2olution that )egan se2eral years earlier with the signing of the %onstitution. .he political die of the !nited "tates was cast with that document, and )y +/>( the economic )ase of 7ederalism was in place, first with the 7ederal funding of national and state war de)ts, and second, with a sound national Bank in place to gi2e coherence to the de2eloping !.". financial system. 7urther ReadingB Bowling, Aenneth R. P.he Bank Bill, the %apital %ity and President Washington.P $apital 'tudies +, no. + 9+>/(:. %owen, &a2id $. P.he 7irst Bank of the !nited "tates and the "ecurities 0arket %rash of +/>(.P (ournal of Economic History @1, no. - 9(111:. %owen, &a2id $. F.he Drigins and Economic 6mpact of the 7irst Bank of the !nited "tates, +/>+-+/>/F. <ew =orkB ;arland Pu)lishing, (111. &ewey, &a2is Rich and $ohn .hom 8oldsworth. %he )irst and 'econd Banks of the *nited 'tates. Washington, &.%.B ;o2ernment Printing Dffice, +>+1. 8ammond, Bray. Banks and #olitics in +merica: )rom the "e olution to the $i il ,ar! PrincetonB Princeton !ni2ersity Press, +>?/. Alu)es, Ben'amin. P.he 7irst 7ederal %ongress and the 7irst <ational BankB # %ase "tudy in %onstitutional 8istory.P (ournal of the Early +merican "epublic+1 9+>>1:. 0c&onald, 7orrest. P.he %onstitution and 8amiltonian %apitalism.P 6n Ho- $apitalistic is the $onstitutionR Edited )y Ro)ert #. ;oldwin and William #. "cham)ra. <ew =orkB #merican Enterprise 6nstitute for Pu)lic Policy Research, +>*(. Perkins, Edwin. +merican #ublic )inance and )inancial 'er ices 1.00/1011 %olum)usB Dhio "tate !ni2ersity Press, +>>-. Redlich, 7ritO. %he &olding of +merican Banking. <ew =orkB $ohnson Reprint %orporation, +>@*. "t. %lair %larke, 0. and &. #. 8all. 2egislati e and 3ocumentary History of the Bank of *nited 'tates . Washington, &.%.B ;ales and "eaton, +*,(. Reprint. <ew =orkB #ugustus 0. Aelley Pu)lishers, +>@/. "ylla, Richard. P!.". "ecurities 0arkets and the Banking "ystem, +/>1-+*-1.P )ederal "eser e Bank of 't! 2ouis "e ie- *1, no. , 9+>>*:. "yrett, 8arold, editor. %he #apers of +le4ander Hamilton. <ew =orkB %olum)ia !ni2ersity Press, +>@+-*/. Wettereau, $ames D. PBranches of the 7irst Bank of the !nited "tates.P (ournal of Economic History ( 9+>-(:. Wettereau, $ames D. P<ew Light on the 7irst Bank of the !nited "tates.P #ennsyl ania &aga5ine of History and Biography @+ 9+>,/:. Wettereau, $ames D. 'tatistical "ecords of the )irst Bank of the *nited 'tates . <ew =orkB ;arland Pu)lishing, +>*?.

Wettereau, $ames D. P.he Dldest Bank Building in the !nited "tates.P %ransactions of the +merican #hilosophical 'ociety -,, part +, +>?,. Wright, Ro)ert. 6rigins of $ommercial Banking in +merica7 1.10/1000. Lanham, 0&B Rowman S Littlefield, (11+. Wright, Ro)ert. %he ,ealth of 8ations "edisco ered: 9ntegration and E4pansion of the *!'! )inancial 'ector7 1.00/1010 . <ew =orkB %am)ridge !ni2ersity Press, (11(. Wright, Ro)ert. P.homas Willing 9+/,+-+*(+:B Philadelphia 7inancier and 7orgotten 7ounding 7ather.P #ennsyl ania History, 7all, +>>@. Citation: $o-en7 3a id! :)irst Bank of the *nited 'tates:! EH!8et Encyclopedia7 edited by "obert ,haples! &arch 167 ;000! *"2 http:<<eh!net<encyclopedia<article<co-en!banking!first=bank!us

3ourceE httpESSeh'netSencyclopediaSarticleScowen',ankin%'firstV,ank'us

A promissory note issued ,y the 3econd +ank of the 4nited 3tates, 6ecem,er 1 , 18:0, for the amount of J1,000'
Timeline of the +ank of the 4nited 3tatesE January 90, 1PI1E The 4'3' 3enate $otes in fa$or of esta,lishin% the 8irst +ank of the 4nited 3tates' 8e,ruary 8, 1PI1E The 4'3' House of /epresentati$es passes the 8irst +ank of the 4nited 3tates ,ill 23I *eas, 90 .ays, G A,sent5' 8e,ruary 1 , 1PI1E Thomas Jefferson issues his ;%inion on the Constitutiona!ity of the 4i!! for /sta"!ishin' a 1ationa! 4ank 8e,ruary 93, 1PI1E Ale)ander Hamilton issues his ;%inion on the Constitutiona!ity of the 4ank 8e,ruary 9 , 1PI1E President =eor%e ;ashin%ton si%ns the +ank ,ill into law in Philadelphia' 1801?180 E 8irst +ar,ary ;ar January 9:, 1811E The 4'3' House of /epresentati$es postpones e)tension of the +ank of the 4nited 3tates 2G *eas, G: .ays5' 8e,ruary 90, 1811E The 4'3' 3enate is split on the proposed e)tension of the +ank of the 4nited 3tates 21P *eas, 1P .ays5' Bice President =eor%e Clinton casts the decidin% $ote and $otes a%ainst the e)tension 2a !*ea0 $ote5' "arch 3, 1811E 28irst5 +ank of the 4nited 3tates ,ecomes a pri$ate ,ank and the charter for the +ank of the 4nited 3tates e)pires 1819?181 E ;ar of 1819 "arch 1:, 181GE The 4'3' House of /epresentati$es passes the 3econd +ank of the 4nited 3tates ,ill 280 *eas, P1 .ays, 13 A,sent5' April 3, 181GE The 4'3' 3enate passes the 3econd +ank of the 4nited 3tates ,ill 299 *eas, 19 .ays, 1 A,sent5' April 10, 181GE President James "adison si%ns the 3econd +ank of the 4nited 3tates into law 181IE Panic of 181I June 11, 1839E The 4'3' 3enate passes the ,ill e)tendin% the 3econd +ank of the 4nited 3tates 298 *eas, 90 .ays5' July 3, 1839E The 4'3' House of /epresentati$es passes a ,ill e)tendin% the 3econd +ank of the 4'3' 210G *eas, 8: .ays, 1 A,sent5' July 10, 1839E President Andrew Jackson $etoes the 3econd +ank of the 4nited 3tates ,ill 6ecem,er 31, 183GE 23econd5 +ank of the 4nited 3tates ,ecomes a pri$ate ,ank 24nited 3tates +ank of Pennsyl$ania5 183 ?18:3E Panic of 183P 2183P?18:35< 3econd 3eminole ;ar 2183 ?18:95< Apium ;ar 2183I?18:95

/oll Call on the +ank of the 4nited 3tates in the 4'3' House of /epresentati$es 2January 9:, 18115

/oll Call on the +ank of the 4nited 3tates in the 4'3' House of /epresentati$es 2January 9:, 18115
0ea Gotes ?<5 0eas: <5 >epu li(ans, 0 =ederalistsA: Lemuel $. #lston L !.". %ongressman 9Repu)lican-"outh %arolina, +*1/-+*++: William #nderson L !.". %ongressman 9Repu)lican-Pennsyl2ania, +*1>-+*+?, +*+/-+*+>: EOekiel Bacon 9B.#. =ale +/>-: L !.". %ongressman 9Repu)lican-0assachusetts, +*1/-+*+,: &a2id Bard 9#.B. Princeton +//,: L !.". %ongressman 9Repu)lican-Pennsyl2ania, +/>?-+/>>, +*1,-+*+?: William .. Barry 9B.#. William and 0ary +*1,: L !.". %ongressman 9&emocratic Repu)lican-AentuckyH #ugust *, +*+1-0arch ,, +*++: Burwell Bassett L !.". %ongressman 9Repu)lican-Cirginia, +*1?-+*+,, +*+?-+*+>, +*(+-+*(>: William W. Bi)) L !.". %ongressman 9&emocratic Repu)lican-;eorgia, +*1/-+*+,:H !.". "enator 9;eorgia, +*+,-+*+@: #dam Boyd L !.". %ongressman 9Repu)lican-<ew $ersey, +*1,-+*1?, +*1*-+*+,: Ro)ert Brown L !.". %ongressman 9Repu)lican-Pennsyl2ania, +/>*-+*+?: William Butler L !.". %ongressman 9Repu)lican-"outh %arolina, 0arch -, +*1+-0arch ,, +*+,: $oseph %alhoun L !.". %ongressman 9Repu)lican-"outh %arolina, +*1/-+*++: Langdon %he2es L !.". %ongressman 9Repu)lican-"outh %arolina, &ecem)er ,+, +*+1-0arch ,, +*+?: 0atthew %lay L !.". %ongressman 9Repu)lican-Cirginia, +/>/-+*+,, 0arch -, +*+?-0ay (/, +*+?: $ames %ochran L !.". %ongressman 9Repu)lican-<orth %arolina, +*1>-+*+,: William %rawford 9#.B. Princeton +/*+R: L !.". %ongressman 9Repu)lican-Pennsyl2ania, +*1>-+*+/: Richard %utts 9B.#. 8ar2ard +/>1: L !.". %ongressman 9Repu)lican-0assachusetts, +*1+-+*+,: $ohn &awson 9B.#. 8ar2ard +/*(: L !.". %ongressman 9Repu)lican-Cirginia, +/>/-+*+-: $oseph &esha L !.". %ongressman 9Repu)lican-Aentucky, +*1/-+*+>:H ;o2ernor of Aentucky 9+*(--+*(*: $ohn W. Eppes 9B.#. 8ampden-"ydney %ollege +/*@: L !.". %ongressman 9&emocratic Repu)lican-Cirginia, +*1,-+*++, +*+,-+*+?: 0eshack 7ranklin L !.". %ongressman 9Repu)lican-<orth %arolina, +*1/-+*+?: BarOillai ;annett 9B.#. 8ar2ard +/*?: L !.". %ongressman 9Repu)lican-0assachusetts, +*1>-+*+(: ;ideon ;ardner L !.". %ongressman 9Repu)lican-0assachusetts, +*1>-+*++: .homas ;holson $r. L !.". %ongressman 9Repu)lican-Cirginia, <o2em)er /, +*1*-$uly -, +*+@: Peterson ;oodwyn L !.". %ongressman 9Repu)lican-Cirginia, +*1,-+*+*: Edwin ;ray L !.". %ongressman 9Repu)lican-Cirginia, +/>>-+*+,: $ames 8olland L !.". %ongressman 9Repu)lican-<orth %arolina, +/>?-+/>/, +*1+-+*++: Richard 0. $ohnson L !.". %ongressman 9&emocratic Repu)lican-Aentucky, +*1/-+*+>, +*(>-+*,/:H Cice President of the !.". 9+*,/-+*-+: Walter $ones 9B.#. William and 0ary +/@1: L !.". %ongressman 9Repu)lican-Cirginia, +/>/-+/>>, +*1,-+*++: .homas Aenan L !.". %ongressman 9Repu)lican-<orth %arolina, +*1?-+*++: William Aennedy 9B.#. !ni2. of Pennsyl2ania +/*(: L !.". %ongressman 9Repu)lican-<orth %arolina, +*1,-+*1?, +*1>-+*++, +*+,-+*+?: $ohn Lo2e L !.". %ongressman 9Repu)lican-Cirginia, +*1/-+*++: #aron Lyle L !.". %ongressman 9Repu)lican-Pennsyl2ania, +*1>-+*+/: <athaniel 0acon L !.". %ongressman 9Repu)lican-<orth %arolina, +/>+-+*+?:H !.". "enator 9<orth %arolina, +*+?-+*(*: #le4ander 0cAim L !.". %ongressman 9Repu)lican-0aryland, +*1>-+*+?: William 0cAinley L !.". %ongressman 9Repu)lican-Cirginia, &ecem)er (+, +*+1-0arch ,, +*++: "amuel L. 0itchill L !.". %ongressman 9&emocratic Repu)lican-<ew =ork, +*1+-+*1-, +*+1-+*+,: $ohn 0ontgomery L !.". %ongressman 9Repu)lican-0arylandH 0arch -, +*1/-#pril (>, +*++:H #ttorney ;eneral of 0aryland 9+*++-+*+*: <icholas R. 0oore L !.". %ongressman 9Repu)lican-0aryland, +*1,-+*++, +*+,-+*+?: .homas 0oore L !.". %ongressman 9Repu)lican-"outh %arolina, +*1+-+*+,, +*+?-+*+/: $eremiah 0orrow L !.". %ongressman 9&emocratic Repu)lican-Dhio, +*1,-+*+,, +*-1-+*-,:H !.". "enator 9Dhio, +*+,-+*+>: ;urdon "altonstall 0umford L !.". %ongressman 9Repu)lican-<ew =ork, +*1?-+*++:H director of the Bank of <ew =ork .homas <ewton $r. L !.". %ongressman 9Repu)lican-Cirginia, +*1+-+*(>, +*(>-+*,1, +*,+-+*,,: $ohn Porter L !.". %ongressman 9Repu)lican-Pennsyl2ania, &ecem)er *, +*1@-0arch -, +*++: Peter B. Porter 9B.#. =ale +/>+: L !.". %ongressman 9Repu)lican-<ew =ork, +*1>-+*+,, +*+?-+*+@: $ohn Rea L !.". %ongressman 9Repu)lican-Pennsyl2ania, +*1,-+*++, +*+,-+*+?: $ohn Rhea 9#.B. Princeton +/*1: L !.". %ongressman 9Repu)lican-.ennessee, +*1,-+*+?, +*+/-+*(,: 0atthias Richards L !.". %ongressman 9Repu)lican-Pennsyl2ania, +*1/-+*++: "amuel Ringgold L !.". %ongressman 9Repu)lican-0aryland, +*+1-+*+?, +*+/-+*(+: $ohn Roane L !.". %ongressman 9Repu)lican-Cirginia, +*1>-+*+?, +*(/-+*,+, +*,?-+*,/: E)eneOer "age 9B.#. =ale +//*: L !.". %ongressman 9Repu)lican-<ew =ork, +*1>-+*+?: Lemuel "awyer 9B.#. !ni2. of <orth %arolina +/>>: L !.". %ongressman 9Repu)lican-<orth %arolina, +*1/-+*+,, +*+/-+*(,, +*(?-+*(>: E)eneOer "ea2er 9B.#. 8ar2ard +/*-: L !.". %ongressman 9Repu)lican-0assachusetts, +*1,-+*+,: #dam "ey)ert L !.". %ongressman 9Repu)lican-Pennsyl2ania, +*1>-+*+?, +*+/-+*+>: $ohn "milie L !.". %ongressman 9Repu)lican-Pennsyl2ania, +/>,-+/>?, 0arch -, +/>>-&ecem)er ,1, +*+(: ;eorge "mith L !.". %ongressman 9Repu)lican-Pennsyl2ania, +*1>-+*+,: "amuel "mith L !.". %ongressman 9Repu)lican-Pennsyl2ania, <o2em)er /, +*1?-0arch ,, +*++: 8enry "outhard L !.". %ongressman 9Repu)lican-<ew $ersey, +*1+-+*++, +*+?-+*(+: ;eorge 0. .roup 9#.B. Princeton +/>/: L !.". %ongressman 9&emocratic Repu)lican-;eorgia, +*1/-+*+?: %harles .urner $r. L !.". %ongressman 9Repu)lican-0assachusetts, +*1>-+*+,: #rchi)ald Can 8orne L !.". %ongressman 9Repu)lican-0aryland, +*1/-+*++: Ro)ert Weakley L !.". %ongressman 9Repu)lican-.ennessee, +*1>-+*++: Ro)ert Whitehill L !.". %ongressman 9Repu)lican-Pennsyl2ania, +*1?-+*+,: Richard Winn L !.". %ongressman 9Repu)lican-"outh %arolina, +/>,-+/>/, +*1,-+*+,: Ro)ert Witherspoon L !.". %ongressman 9Repu)lican-"outh %arolina, +*1>-+*++: Ro)ert Wright L !.". %ongressman 9&emocratic Repu)lican-0aryland, +*+1-+*+/, +*(+-+*(,:H ;o2ernor of 0aryland 9+*1@-+*1>:

/ay Gotes ?<2 /ays: 25 =ederalists, 1; >epu li(ansA: $oseph #llen 9B.#. 8ar2ard +//-: L !.". %ongressman 97ederalist-0assachusetts, Dcto)er *, +*+1-0arch ,, +*++: Willis #lston $r. L !.". %ongressman 9Repu)lican-<orth %arolina, +/>>-+*+?, +*(?-+*,+: #)i'ah Bigelow 9#.B. &artmouth +/>?: L !.". %ongressman 97ederalist-0assachusetts, +*+1-+*+?: &aniel Blaisdell L !.". %ongressman 97ederalist-<ew 8ampshire, +*1>-+*++: $ames Breckenridge 9#.B. William and 0ary +/*?: L !.". %ongressman 97ederalist-Cirginia, +*1>-+*+/: $ohn %amp)ell L !.". %ongressman 97ederalist-0aryland, +*1+-+*++: $ohn %urtis %ham)erlain 9B.#. 8ar2ard +/>,: L !.". %ongressman 97ederalist-<ew 8ampshire, +*1>-+*++: William %ham)erlain L !.". %ongressman 97ederalist-Cermont, +*1,-+*1?, +*1>-+*++:H Lieutenant ;o2ernor of Cermont 9+*+,-+*+?: Epaphroditus %hampion L !.". %ongressman 97ederalist-%onnecticut, +*1/-+*+/: 0artin %hittenden 9#.B. &artmouth +/*>: L !.". %ongressman 97ederalist-Cermont, +*1,-+*+,: $ohn &a2enport 9B.#. =ale +//1: L !.". %ongressman 97ederalist-%onnecticut, +/>>-+*+/: William Ely 9B.#. =ale +/*/: L !.". %ongressman 97ederalist-0assachusetts, +*1?-+*+?: $ames Emott L !.". %ongressman 97ederalist-<ew =ork, +*1>-+*+,: William 7indley L !.". %ongressman 9Repu)lican-Pennsyl2ania, +/>+-+/>>, +*1,-+*+/: $onathan 7isk L !.". %ongressman 9Repu)lican-<ew =ork, +*1>-+*++, +*+,-+*+?:H !.". #ttorney, "outhern &istrict of <ew =ork 9+*+?-+*+>: Barent ;ardenier L !.". %ongressman 97ederalist-<ew =ork, +*1/-+*++: &a2id ". ;arland L !.". %ongressman 9Repu)lican-Cirginia, $anuary +/, +*+1-0arch ,, +*++: .homas R. ;old 9B.#. =ale +/*@: L !.". %ongressman 97ederalist-<ew =ork, +*1>-+*+,, +*+?-+*+/: %harles ;olds)orough L !.". %ongressman 97ederalist-0aryland, +*1?-+*+/:H ;o2ernor of 0aryland 9+*+>: William 8ale L !.". %ongressman 97ederalist-<ew 8ampshire, +*1>-+*++, +*+,-+*+/: <athaniel #ppleton 8a2en 9B.#. 8ar2ard +//>: L !.". %ongressman 97ederalist-<ew 8ampshire, +*1>-+*++: William 8elms L !.". %ongressman 9Repu)lican-<ew $ersey, +*1+-+*++: &aniel 8iester L !.". %ongressman 9Repu)lican-Pennsyl2ania, +*1>-+*++: $onathan 8. 8u))ard L !.". %ongressman 97ederalist-Cermont, +*1>-+*++: E)eneOer 8untington 9B.#. =ale +//?: L !.". %ongressman 97ederalist-%onnecticut, +*+1-+*++, +*+/-+*+>: $aco) 8ufty L !.". %ongressman 9Repu)lican-<ew $ersey, +*1>-+*+,, 7ederalist-<ew $ersey, +*+,-+*+-: Richard $ackson $r. L !.". %ongressman 97ederalist-Rhode 6sland, +*1*-+*+?:H .rustee of Brown !ni2ersity 9+*1>-+*,*: Ro)ert $enkins L !.". %ongressman 97ederalist-Pennsyl2ania, +*1/-+*++: Philip B. Aey L !.". %ongressman 97ederalist-0aryland, +*1/-+*+,:H national anthem writer 7rancis "cott Aey3s uncle 8erman Anicker)ocker L !.". %ongressman 97ederalist-<ew =ork, +*1>-+*++: $oseph Lewis $r. L !.". %ongressman 97ederalist-Cirginia, +*1,-+*+/: Ro)ert Le Roy Li2ingston L !.". %ongressman 97ederalist-<ew =ork, 0arch -, +*1>-0ay @, +*+(: Cincent 0atthews L !.". %ongressman 97ederalist-<ew =ork, +*1>-+*++: #rchi)ald 0cBryde L !.". %ongressman 97ederalist-<orth %arolina, +*1>-+*+,: "amuel 0cAee L !.". %ongressman 9Repu)lican-Aentucky, +*1>-+*+/: Pleasant 0. 0iller L !.". %ongressman 9Repu)lican-.ennessee, +*1>-+*++: William 0ilnor L !.". %ongressman 97ederalist-Pennsyl2ania, +*1/-+*++, +*+?-+*+/, +*(+-+*((:H 0ayor of Philadelphia 9+*(>-+*,1: $onathan Dgden 0oseley 9B.#. =ale +/*1: L !.". %ongressman 97ederalist-%onnecticut, +*1?-+*(+: .homas <ew)old L !.". %ongressman 9Repu)lican-<ew $ersey, +*1/-+*+,: $ohn <icholson L !.". %ongressman 9Repu)lican-<ew =ork, +*1>-+*++: $oseph Pearson L !.". %ongressman 97ederalist-<orth %arolina, +*1>-+*+?: Ben'amin Pickman $r. 9B.#. 8ar2ard +/*-: L !.". %ongressman 97ederalist-0assachusetts, +*1>-+*++: .imothy Pitkin 9B.#. =ale +/*?: L !.". %ongressman 97ederalist-%onnecticut, +*1?-+*+>: Elisha R. Potter L !.". %ongressman 97ederalist-Rhode 6sland, +/>@-+/>/, +*1>-+*+?: $osiah Tuincy 9B.#. 8ar2ard +/>1: L !.". %ongressman 97ederalist-0assachusetts, +*1?-+*+,: $ohn Randolph L !.". %ongressman 9Repu)lican-Cirginia, +/>>-+*+,, +*+?-+*+/, +*+>-+*(?, +*(/-+*(>, +*,,: .homas "ammons L !.". %ongressman 9Repu)lican-<ew =ork, +*1,-+*1/, +*1>-+*+,: $ohn #. "cudder 9#.B. Princeton +//?: L !.". %ongressman 9Repu)lican-<ew $ersey, +*+1-+*++: "amuel "haw L !.". %ongressman 9Repu)lican-Cermont, +*1*-+*+,: &aniel "heffey L !.". %ongressman 97ederalist-Cirginia, +*1>-+*+/: &ennis "melt L !.". %ongressman 9Repu)lican-;eorgia, +*1@-+*++: $ohn "mith L !.". %ongressman 9Repu)lican-Cirginia, +*1+-+*+?: Richard "tanford L !.". %ongressman 9Repu)lican-<orth %arolina, +/>/-+*+@: $ohn "tanly L !.". %ongressman 97ederalist-<orth %arolina, +*1+-+*1,, +*1>-+*++: $ames "tephenson L !.". %ongressman 97ederalist-Cirginia, +*1,-+*1?, +*1>-+*++, +*((-+*(?: Lewis Burr "turges 9B.#. =ale +/*(: L !.". %ongressman 97ederalist-%onnecticut, +*1?-+*+/: $aco) "woope L !.". %ongressman 97ederalist-Cirginia, +*1>-+*++: "amuel .aggart 9#.B. &artmouth +//-: L !.". %ongressman 97ederalist-0assachusetts, +*1,-+*+/: Ben'amin .allmadge 9B.#. =ale +//,: L !.". %ongressman 97ederalist-%onnecticut, +*1+-+*+/: $ohn .hompson L !.". %ongressman 9Repu)lican-<ew =ork, +/>>-+*1+, +*1/-+*++: <icholas Can &yke $r. 9#.B. Princeton +/**: L !.". %ongressman 97ederalist-&elaware, +*1/-+*++: Aillian A. Can Rensselaer L !.". %ongressman 97ederalist-<ew =ork, +*1+-+*++: La)an Wheaton 9B.#. 8ar2ard +//-: L !.". %ongressman 97ederalist-0assachusetts, +*1>-+*+/: $ames Wilson 9B.#. 8ar2ard +/*>: L !.". %ongressman 97ederalist-<ew 8ampshire, +*1>-+*++: #)sentB William #. Burwell 9#.B. William and 0ary: L !.". %ongressman 9Repu)lican-Cirginia, +*1@-+*(+: $ohn %lopton 9#.B. !ni2. of Pennsyl2ania +//@: L !.". %ongressman 9Repu)lican-Cirginia, +/>?-+/>>, 0arch -, +*1+-"ept. ++, +*+@: !ri .racy 9B.#. =ale +/*>: L !.". %ongressman 9Repu)lican-<ew =ork, +*1?-+*1/, +*1>-+*+,: $oseph Bradley Carnum L !.". %ongressman 9&emocratic Repu)lican-0assachusetts, 0arch -, +/>?-$une (>, +*++:H "peaker of the 8ouse 9Dct. (@, +*1/-0arch -, +*++:

/oll Call in the 4'3' 3enate on the +ank of the 4nited 3tates 28e,ruary 90, 18115

3enators and Con%ressmen who $oted !.ay0 2Apposin% the Postponement5 on the +ank of the 4'3' ,ill in 1811

"tephen R. Bradley B.#. =ale +//? !.". "enator 9&em. Rep.-Cermont, +/>+-+/>?H +*1+-+*+,:

"amuel W. &ana B.#. =ale +//? !.". "enator 97ederalist-%onn., +*+1-+*(+:

%hauncey ;oodrich B.#. =ale +//@ !.". "enator 97ederalist%onnecticut, +*1/-+*+,:

.imothy Pickering B.#. 8ar2ard +/@, !.". "enator 97-0ass., +*1,-+*++:

%hristopher ;. %hamplin B.#. 8ar2ard +/*@ !.". "enator 97ederalistRhode 6sland, +*1>-+*++:

$ames #. Bayard "r. #.B. Princeton +/*!.". "enator 97ederalist&elaware, +*1--+*+,:

$ohn .aylor #.B. Princeton +/>1 !.". "enator 9&emocratic Repu)lican-"outh %arolina, +*+1-+*+@:

Ben'amin .allmadge B.#. =ale +//, !.". %ongressman 97-%onn., +*1+-+*+/:

$osiah Tuincy B.#. 8ar2ard +/>1 !.". %ongressman 97-0ass., +*1?-+*+,:

La)an Wheaton B.#. 8ar2ard +//!.". %ongressman 97-0ass., +*1>-+*+/:

=ea 9"upporting the Postponement: 9+/ &emocratic Repu)licans:B $oseph 6nslee #nderson L !.". "enator 9&emocratic Repu)lican-.ennessee, +/>/-+*+?: #le4ander %amp)ell L !.". "enator 9&emocratic Repu)lican-Dhio, +*1>-+*+,: 8enry %lay L !.". "enator 9&emocratic Repu)lican-Aentucky, +*1@-+*1/H $anuary -, +*+1-0arch ,, +*++H +*,+-+*-(H +*->-+*?(: %harles %utts 9B.#. 8ar2ard +/*>: L !.". "enator 9&emocratic Repu)lican-<ew 8ampshire, +*+1-+*+,: $esse 7ranklin L !.". "enator 9&emocratic Repu)lican-<orth %arolina, +/>>-+*1?, +*1/-+*+,: $ohn ;aillard L !.". "enator 9&emocratic Repu)lican-"outh %arolina, +*1--+*(@: D)adiah ;erman L !.". "enator 9&emocratic Repu)lican-<ew =ork, +*1>-+*+?: William Branch ;iles 9#.B. Princeton +/*+: L !.". "enator 9&emocratic Repu)lican-Cirginia, +*1--+*+?: #ndrew ;regg L !.". "enator 9&emocratic Repu)lican-Pennsyl2ania, +*1/-+*+,: $ohn Lam)ert L !.". "enator 9&emocratic Repu)lican-<ew $ersey, +*1>-+*+?: 0ichael Lei) L !.". "enator 9&emocratic Repu)lican-Pennsyl2ania, +*1>-+*+-: Elisha 0athewson L !.". "enator 9&emocratic Repu)lican-Rhode 6sland, +*1/-+*++: Philip Reed L !.". "enator 9&emocratic Repu)lican-0aryland, +*1@-+*+,: $onathan Ro)inson L !.". "enator 9&emocratic Repu)lican-Cermont, +*1/-+*+?: "amuel "mith L !.". "enator 9&emocratic Repu)lican-0aryland, +*1,-+*+?, +*((-+*,,: $enkin Whiteside L !.". "enator 9&emocratic Repu)lican-.ennessee, +*1>-+*++: .homas Worthington L !.". "enator 9&emocratic Repu)lican-Dhio, +*1,-+*1/H +*+1-+*+-: <ay 9Dpposing the Postponement: 9+1 &emocratic Repu)licans, / 7ederalists:B $ames #. Bayard "r. 9#.B. Princeton +/*-: L !.". "enator 97ederalist-&elaware, +*1--+*+,: "tephen R. Bradley 9B.#. =ale +//?: L !.". "enator 9&emocratic Repu)lican-Cermont, +/>+-+/>?H +*1+-+*+,: Richard Brent L !.". "enator 9&emocratic Repu)lican-Cirginia, +*1>-+*+-: %hristopher ;. %hamplin 9B.#. 8ar2ard +/*@: L !.". "enator 97ederalist-Rhode 6sland, +*1>-+*++: $ohn %ondit L !.". "enator 9&emocratic Repu)lican-<ew $ersey, +*1,-+*1>, +*1>-+*+/: William 8arris %rawford L !.". "enator 9&emocratic Repu)lican-;eorgia, +*1/-+*+,: "amuel W. &ana 9B.#. =ale +//?: L !.". "enator 97ederalist-%onnecticut, +*+1-+*(+: <icholas ;ilman L !.". "enator 9&emocratic Repu)lican-<ew 8ampshire, +*1?-+*+-: %hauncey ;oodrich 9B.#. =ale +//@: L !.". "enator 97ederalist-%onnecticut, +*1/-+*+,: Duter)ridge 8orsey L !.". "enator 97ederalist-&elaware, +*+1-+*(+: $ames Lloyd 9B.#. 8ar2ard +/*/: L !.". "enator 97ederalist-0assachusetts, +*1*-+*+,, +*((-+*(@: .imothy Pickering 9B.#. 8ar2ard +/@,: L !.". "enator 97ederalist-0assachusetts, +*1,-+*++: $ohn Pope L !.". "enator 9&emocratic Repu)lican-Aentucky, +*1/-+*+,: $ohn "mith L !.". "enator 9&emocratic Repu)lican-<ew =ork, +*1--+*+,: %harles .ait L !.". "enator 9&emocratic Repu)lican-;eorgia, +*1>-+*+>: $ohn .aylor 9#.B. Princeton +/>1: L !.". "enator 9&emocratic Repu)lican-"outh %arolina, +*+1-+*+@: $ames .urner L !.". "enator 9&emocratic Repu)lican-<orth %arolina, +*1?-+*+@:

Ale)ander Hamilton 2left5, Ali$er ;olcott Jr' 2center5, and =eor%e Clinton 2ri%ht5
Ale)ander Hamilton 2+'A' Colum,ia 1PP:5, the inau%ural 3ecretary of the Treasury 23eptem,er 11, 1P8I?January 31, 1PI 5 and co? author of the 8ederalist Papers, supported the esta,lishment of the 28irst5 +ank of the 4nited 3tates, a pri$ately owned central ,ank, in 1PI1' Ale)ander Hamilton was a director of the +ank of .ew *ork 2located in .ew *ork City5 from 1P8: to 1P88' Ali$er ;olcott Jr', who ser$ed as 3ecretary of the Treasury 28e,ruary 3, 1PI 1 6ecem,er 31, 18005 and Comptroller of the Treasury 21PI1?1PI 5 under President =eor%e ;ashin%ton, was a director of the +ank of the 4nited 3tates from 1810 to 1811' Ali$er ;olcott Jr' %raduated from *ale 4ni$ersity and was in$ol$ed in the lucrati$e China trade in the early 1800s' =eor%e Clinton, the Bice President of the 4nited 3tates from "arch :, 180 to April 90, 1819, cast the tie?,reakin% $ote on the +ank ,ill in the 4'3' 3enate on 8e,ruary 90, 1811' ClintonHs decidin% $ote in the 4'3' 3enate would terminate the e)tension of the charter of the 8irst +ank of the 4nited 3tates and forced the directors of the 28irst5 +ank of the 4nited 3tates to end the ,ankHs operation as a central ,ank on "arch 3, 1811'

+ank of the 4nited 3tates in Philadelphia in the early 1800s +oth houses of Con%ress failed to renew the charter of the +ank of the 4nited 3tates ,y one $ote durin% a session in early 1811' "em,ers of the 4'3' House of /epresentati$es $oted G ?G: for postponin% indefinitely on renewin% the charter of the +ank of the 4nited 3tates on January 9:, 1811' "em,ers of the 4'3' 3enate $oted 1P?1P for postponin% indefinitely on renewin% the charter of the +ank of the 4nited 3tates on 8e,ruary 90, 1811< Bice President =eor%e Clinton ,roke the deadlock in the 4'3' 3enate ,y $otin% a%ainst the renewal of the ,ankDs charter' The 28irst5 +ank of the 4nited 3tates in Philadelphia was closed on "arch 3, 1811' American and +ritish merchants owned stocks in the pri$ately?owned +ank of the 4nited 3tates'

'e(ond -an. o" the 4nited 'tates

.he "econd Bank of the !nited "tates in Philadelphia operated from +*+@ until +*,@. .he "econd Bank of the !nited "tates, which was renamed !nited "tates Bank of Pennsyl2ania in +*,/, )ecame a pri2ate )ank until the )ank failed in +*-+. President #ndrew $ackson 2etoed the renewal of the Bank on $uly +1, +*,(. /i(holas -iddle !as arrested "or "raud in )hiladelphia in 1821H howe2er, Biddle was ne2er tried in court and was e2entually released from prison.

)residents o" the -an. o" the 4nited 'tates ?11;1C1811, 181<C183<A

.homas Willing President of the Bank of the !nited "tates 9+/>+-+*1/:H 0ayor of Philadelphia 9+/@,-+/@-:

William $ones President of the Bank of the !nited "tates 9+*+@-+*+>:H "ecretary of the <a2y 9+*+,-+*+-:

Langdon %he2es President of the Bank of the !nited "tates 9+*+>-+*((:H "peaker of the !.". 8ouse of Representati2es 9+*+--+*+?:

<icholas Biddle President of the Bank of the !nited "tates 9+*(,-+*,@:H President of the !nited "tates Bank of Pennsyl2ania 9+*,/-+*,>:

/+> $B/N /T+T( .>#I(-/#TO (CB>B1#C/ D(P+-T1(>T Thayer Watkins

The &ank o* the .nited /tates
The =irst -an. o" the 4nited 'tates ?11;1C1811A .he #merican Repu)lic had considera)le financial pro)lems in its early days. .he first #merican )ank was organiOed )y Ro)ert 0orris in +/*+. .his was a pri2ate )ank )ut it helped in financing the Re2olutionary War, which did not end until +/*,. #le4ander 8amilton, a ma'or organiOational inno2ator in the Repu)lic, argued for the creation of a central )ank, a )ankersJ )ank which would )e the lender of last resort. "uch a central )ank would sta)iliOe the financial system and issue )anknotes to supplement the gold and sil2er in circulation. 8amilton saw lending funds to the 7ederal ;o2ernment as a ma'or function of such a central )ank. "hortly after 8amilton proposed the creation of a <ational Bank for the !.". a )ill was introduced into %ongress to accomplish 8amiltonJs proposal. .here was ma'or opposition to the )ill on the grounds that creation of such a )ank with a monopoly on issuing money was unconstitutional. .he )ill passed and was signed into law in +/>+ )ut it pro2ided only a twenty charter for a Bank of the !nited "tates. .he charter would need to )e renewed in +*++. .he Bank of the !nited "tates sol2ed many of the monetary pro)lems that trou)led the country )efore +/>+. But the Bank of the !nited "tates was a pri2ate institution and foreign )uyers purchased ownership shares of the )ank until the /1 percent of the )ank was owned )y foreigners. .he was worrisome to #merican politicians )ut this high share of foreign ownership was not unusual in the #merican financial system. Britain had )een supplying capital to the !.". economy for some time. But these concerns and politics resulted in a 2ery close 2ote on the )ill for renewing the charter. 6n the 8ouse of Representati2e the 2ote was @? to @- for postponing indefinitely the rechartering. 6n the "enate the 2ote was a +/-+/ tie which allowed the Cice President to cast the deciding 2ote. .he Cice President, ;eorge %linton, 2oted against the renewal of the )ankJs charter. .he War of +*+( re2ealed the weakness of the #merican financial system so in +*+@ the charter of the Bank of the !nited "tates was rechartered. "upport for the second Bank of the !nited "tates came from political figures such as President $ames 0onroe and "enator $ohn %. %alhoun who were concerned with the low credit and financial sol2ency of the 7ederal go2ernment, as re2ealed )y the difficulties financing the costs of the War of +*+(. "upport also came from )usiness leaders such as $ohn $aco) #stor who were concerned with the financial chaos of the time. The 'e(ond -an. o" the 4nited 'tates ?181<C183<A .he charter called for capital of 5,? million, of which 5/ million was to supplied )y the !.". go2ernment. .he Bank was controlled )y a )oard of twenty directors, +? elected )y the pri2ate stockholders and ? appointed )y the President of the !nited "tates. .he Bank was to pay the !.". go2ernment 5+.? million per year for its franchise. "ome political figures, e.g. &aniel We)ster and $ohn Randolph, opposed this mi4ing of pri2ate and pu)lic power )ut the #ct of %ongress was passed and President &onroe IerrorJ DadisonK signed it into law on #pril +1, +*+@. But the charter was again limited to twenty years. .he first president of the "econd Bank was William $ones. $ones had )een "ecretary of the <a2y and later #cting "ecretary of the .reasury during the War of +*+(. 8is tenure as "ecretary of the .reasury was marked )y mismanagement of finances and there was no reason to )elie2e that he would )e any more competent in managing the Bank of the !nited "tates. !nder $ones the Bank opened )ranches in many other cities and e4panded operations. 6t is important to note that while the Bank of the !nited "tates functioned as a central )ank for the !nited "tates it was also a commercial )ank in2ol2ed in making loans. Dther )anks resented the competition from this 7ederally supported institution. 6t was taking )usiness away from them. .wo state go2ernments tried to prohi)it the esta)lishment of )ranches of the Bank of the !nited "tates in their states and si4 others tried to le2y prohi)iti2e ta4es on these )ranches to discourage their operation. 6t took a ruling )y the !.". "upreme %ourt to pre2ent these restriction on the Bank of the !nited "tates. %hief $ustice $ohn 0arshall in +*+> ruled that the Bank of the !nited "tates was a proper and necessary instrument of the !nited "tates ;o2ernment for carrying out its fiscal operations. Dne can clearly see the perple4ity of mi4ing pu)lic and pri2ate institutions. .he Bank of the !nited "tates may ha2e )een a necessary instrument for fiscal operations of the !.". go2ernment )ut it was also a pri2ate commercial )ank. .he )ranches of the "econd Bank were not closely controlled )y the main Philadelphia institution and the Baltimore )ranch came under the control of indi2iduals who looted it of a million dollars )efore they were caught. .he Baltimore )ranch went into recei2ership and the whole Bank was close to )ankruptcy. William $ones resigned in $anuary of +*+>. .he presidency of the "econd Bank of the !nited "tates went to Langdon %he2es of "outh %arolina. %he2es cut )ack operation, reducing the )ank loans from 5-+ million to 5,+ million and cut the amount of )ank notes in circulation from 5* million to 5,.? million. %he2esJ policies )rought sta)ility to the "econd Bank )ut he was not without critics for these policies. .he pri2ate stockholders resented the reduction in di2idends. .he pri2ate )anks which criticiOed the e4pansion of the "econd Bank also criticiOed its contraction )ecause the reduction in credit 'eopardiOed the sol2encies of some )usinesses which were also de)tors of those same pri2ate )anks. 6n +>(, %he2es resigned and <icholas Biddle of Philadelphia )ecame president. W#.A6<" 8D0E P#;E

"ourceB httpBEEwww.s'su.eduEfacultyEwatkinsEBof!".htm

War of +*+(B # Bankers3 WarR

British soldiers )urn 2arious )uildings, including the White 8ouse, in Washington, &.%. on #ugust (-, +*+- during War of +*+(. %ongress declared war on the British Empire on $une +*, +*+(. &isgruntled #merican political power)rokers met pri2ately at 8artford, %onnecticut in &ecem)er +*+- to discuss secession and armistice. .he meeting was later known as the 8artford %on2ention.

+ritish Ca,inet "em,ers durin% the ;ar of 1819

-o ert &anks $enkinson, Jnd (arl o* Li%er"ool Prime "inister of the 4nited Kin%dom 2June 8, 18191April I, 189P5< Ceader of the House of Cords 21803?180G, 180P?189P5

>i!holas Iansittart, 3st &aron &e)ley Chancellor of the 7)che(uer 2"ay 19, 18191January 31, 18935

-o ert /tewart, Jnd 1ar;uess o* Londonderry 0Lord Castlereagh7 8orei%n 3ecretary M3ecretary of 3tate for 8orei%n AffairsN 21819?18995< Ceader of the House of Commons 21819?18995

William 1anning 036K58345=7, =o$ernor of the +ank of 7n%land 21819?181:5, 6eputy =o$ernor of the +ank of 7n%land 21810?18195, 6irector of the +ank of 7n%land 21PI9?1810, 181:?18315< President of Condon Cife Assurance 2181P5< "em,er of Parliament 21PI:?1890, 1891?18305 2Paintin%E ++C5 23ourceE httpESSwww'historyofparliamentonline'or%S$olumeS1PI0?1890Smem,erSmannin%?william?1PG3?183 5

American diplomats, led ,y John Ouincy Adams, and +ritish diplomats si%n the Treaty of =hent in =hent, +el%ium 2formerly .etherlands5 on 6ecem,er 9:, 181:, endin% the ;ar of 1819'

Left photoB President $ames 0adison signed the "econd Bank of the !nited "tates )ill into law in #pril +*+@ after the !.". "enate passed the )ill on #pril ,, +*+@. $ames 0adison, during his ser2ice as a %ongressman from Cirginia, 2oted against a )ill esta)lishing the 7irst Bank of the !nited "tates in +/>+. Right photoB $ohn 0arshall, %hief $ustice of the !.". "upreme %ourt 9+*1+-+*,?:, presided o2er &c$ulloch ! &aryland in +*+>, declaring that “%ongress has power to incorporate a )ank .

/e%enth +nnual 1essage 6ecem,er , 181 Fellow8CitiAens o* the /enate and 'ouse o* -e"resentati%es: # ha$e the satisfaction on our present meetin% of ,ein% a,le to communicate the successful termination of the war which had ,een commenced a%ainst the 4nited 3tates ,y the /e%ency of Al%iers' The s(uadron in ad$ance on that ser$ice, under Commodore 6ecatur, lost not a moment after its arri$al in the "editerranean in seekin% the na$al force of the enemy then cruisin% in that sea, and succeeded in capturin% two of his ships, one of them the principal ship, commanded ,y the Al%erine admiral' The hi%h character of the American commander was ,rilliantly sustained on the occasion which ,rou%ht his own ship into close action with that of his ad$ersary, as was the accustomed %allantry of all the officers and men actually en%a%ed' Ha$in% prepared the way ,y this demonstration of American skill and prowess, he hastened to the port of Al%iers, where peace was promptly yielded to his $ictorious force' #n the terms stipulated the ri%hts and honor of the 4nited 3tates were particularly consulted ,y a perpetual relin(uishment on the part of the 6ey of all pretensions to tri,ute from them' The impressions which ha$e thus ,een made, stren%thened as they will ha$e ,een ,y su,se(uent transactions with the /e%encies of Tunis and of Tripoli ,y the appearance of the lar%er force which followed under Commodore +ain,rid%e, the chief in command of the e)pedition, and ,y the -udicious precautionary arran%ements left ,y him in that (uarter, afford a reasona,le prospect of future security for the $alua,le portion of our commerce which passes within reach of the +ar,ary cruisers' #t is another source of satisfaction that the treaty of peace with =reat +ritain has ,een succeeded ,y a con$ention on the su,-ect of commerce concluded ,y the plenipotentiaries of the two countries' #n this result a disposition is manifested on the part of that nation correspondin% with the disposition of the 4nited 3tates, which it may ,e hoped will ,e impro$ed into li,eral arran%ements on other su,-ects on which the parties ha$e mutual interests, or which mi%ht endan%er their future harmony' Con%ress will decide on the e)pediency of promotin% such a se(uel ,y %i$in% effect to the measure of confinin% the American na$i%ation to American sea men ? a measure which, at the same time that it mi%ht ha$e that conciliatory tendency, would ha$e the further ad$anta%e of increasin% the independence of our na$i%ation and the resources for our maritime defense' #n conformity with the articles in the treaty of =hent relatin% to the #ndians, as well as with a $iew to the tran(uillity of our western and northwestern frontiers, measures were taken to esta,lish an immediate peace with the se$eral tri,es who had ,een en%a%ed in hostilities a%ainst the 4nited 3tates' 3uch of them as were in$ited to 6etroit acceded readily to a renewal of the former treaties of friendship' Af the other tri,es who were in$ited to a station on the "ississippi the %reater num,er ha$e also accepted the peace offered to them' The residue, consistin% of the more distant tri,es or parts of tri,es, remain to ,e ,rou%ht o$er ,y further e)planations, or ,y such other means as may ,e adapted to the dispositions they may finally disclose' The #ndian tri,es within and ,orderin% on the southern frontier, whom a cruel war on their part had compelled us to chastise into peace, ha$e latterly shown a restlessness which has called for preparatory measures for repressin% it, and for protectin% the commissioners en%a%ed in carryin% the terms of the peace into e)ecution' The e)ecution of the act for fi)in% the military peace esta,lishment has ,een attended with difficulties which e$en now can only ,e o$ercome ,y le%islati$e aid' The selection of officers, the payment and dischar%e of the troops enlisted for the war, the payment of the retained troops and their reunion from detached and distant stations, the collection and security of the pu,lic property in the Ouartermaster, Commissary, and Ardnance departments, and the constant medical assistance re(uired in hospitals and %arrisons rendered a complete e)ecution of the act impractica,le on the 1st of "ay, the period more immediately contemplated' As soon, howe$er, as circumstances would permit, and as far as it has ,een practica,le consistently with the pu,lic interests, the reduction of the Army has ,een accomplished< ,ut the appropriations for its pay and for other ,ranches of the military ser$ice ha$in% pro$ed inade(uate, the earliest attention to that su,-ect will ,e necessary< and the e)pediency of continuin% upon the peace esta,lishment the staff officers who ha$e hitherto ,een pro$isionally retained is also recommended to the consideration of Con%ress' #n the performance of the 7)ecuti$e duty upon this occasion there has not ,een wantin% a -ust sensi,ility to the merits of the American Army durin% the late war< ,ut the o,$ious policy and desi%n in fi)in% an efficient military peace esta,lishment did not afford an opportunity to distin%uish the a%ed and infirm on account of their past ser$ices nor the wounded and disa,led on account of their present sufferin%s' The e)tent of the reduction, indeed, una$oida,ly in$ol$ed the e)clusion of many meritorious officers of e$ery rank from the ser$ice of their country< and so e(ual as well as so numerous were the claims to attention that a decision ,y the standard of comparati$e merit could seldom ,e attained' Jud%ed, howe$er, in candor ,y a %eneral standard of positi$e merit, the Army /e%ister will, it is ,elie$ed, do honor to the esta,lishment, while the case of those officers whose names are not included in it de$ol$es with the stron%est interest upon the le%islati$e authority for such pro$isions as shall ,e deemed the ,est calculated to %i$e support and solace to the $eteran and

the in$alid, to display the ,eneficence as well as the -ustice of the =o$ernment, and to inspire a martial >eal for the pu,lic ser$ice upon e$ery future emer%ency' Althou%h the em,arrassments arisin% from the want of an uniform national currency ha$e not ,een diminished since the ad-ournment of Con%ress, %reat satisfaction has ,een deri$ed in contemplatin% the re$i$al of the pu,lic credit and the efficiency of the pu,lic resources' The receipts into the Treasury from the $arious ,ranches of re$enue durin% the nine months endin% on the 30th of 3eptem,er last ha$e ,een estimated at J19' "< the issues of Treasury notes of e$ery denomination durin% the same period amounted to the sum of J1:", and there was also o,tained upon loan durin% the same period a sum of JI", of which the sum of JG" was su,scri,ed in cash and the sum of J3" in Treasury notes' ;ith these means, added to the sum of J1' ", ,ein% the ,alance of money in the Treasury on the 1st day of January, there has ,een paid ,etween the 1st of January and the 1st of Acto,er on account of the appropriations of the precedin% and of the present year 2e)clusi$ely of the amount of the Treasury notes su,scri,ed to the loan and of the amount redeemed in the payment of duties and ta)es5 the a%%re%ate sum of J33' ", lea$in% a ,alance then in the Treasury estimated at the sum of J3"' #ndependent, howe$er of the arreara%es due for military ser$ices and supplies, it is presumed that a further sum of J ", includin% the interest on the pu,lic de,t paya,le on the 1st of January ne)t, will ,e demanded at the Treasury to complete the e)penditures of the present year, and for which the e)istin% ways and means will sufficiently pro$ide' The national de,t, as it was ascertained on the 1st of Acto,er last, amounted in the whole to the sum of J190", consistin% of the unredeemed ,alance of the de,t contracted ,efore the late war 2J3I"5, the amount of the funded de,t contracted in conse(uence of the war 2JG:"5, and the amount of the unfunded and floatin% de,t, includin% the $arious issues of Treasury notes, J1P", which is in %radual course of payment' There will pro,a,ly ,e some addition to the pu,lic de,t upon the li(uidation of $arious claims which are dependin%, and a conciliatory disposition on the part of Con%ress may lead honora,ly and ad$anta%eously to an e(uita,le arran%ement of the militia e)penses incurred ,y the se$eral 3tates without the pre$ious sanction or authority of the =o$ernment of the 4nited 3tates< ,ut when it is considered that the new as well as the old portion of the de,t has ,een contracted in the assertion of the national ri%hts and independence, and when it is recollected that the pu,lic e)penditures, not ,ein% e)clusi$ely ,estowed upon su,-ects of a transient nature, will lon% ,e $isi,le in the num,er and e(uipments of the American .a$y, in the military works for the defense of our har,ors and our frontiers, and in the supplies of our arsenals and ma%a>ines the amount will ,ear a %ratifyin% comparison with the o,-ects which ha$e ,een attained, as well as with the resources of the country' The arran%ements of the finances with a $iew to the receipts and e)penditures of a permanent peace esta,lishment will necessarily enter into the deli,erations of Con%ress durin% the present session' #t is true that the impro$ed condition of the pu,lic re$enue will not only afford the means of maintainin% the faith of the =o$ernment with its creditors in$iolate, and of prosecutin% successfully the measures of the most li,eral policy, ,ut will also -ustify an immediate alle$iation of the ,urdens imposed ,y the necessities of the war' #t is, howe%er, essential to e%ery modi*i!ation o* the *inan!es that the ene*its o* an uni*orm national !urren!y should e restored to the !ommunity. The a sen!e o* the "re!ious metals will, it is elie%ed, e a tem"orary e%il, ut until they !an again e rendered the general medium o* e)!hange it de%ol%es on the wisdom o* Congress to "ro%ide a su stitute whi!h shall e;ually engage the !on*iden!e and a!!ommodate the wants o* the !itiAens throughout the .nion. #* the o"eration o* the /tate anks !an not "rodu!e this result, the "ro a le o"eration o* a national ank will merit !onsideration: and i* neither o* these e)"edients e deemed e**e!tual it may e!ome ne!essary to as!ertain the terms u"on whi!h the notes o* the Go%ernment 0no longer re;uired as an instrument o* !redit7 shall e issued u"on moti%es o* general "oli!y as a !ommon medium o* !ir!ulation. .otwithstandin% the security for future repose which the 4nited 3tates ou%ht to find in their lo$e of peace and their constant respect for the ri%hts of other nations, the character of the times particularly inculcates the lesson that, whether to pre$ent or repel dan%er, we ou%ht not to ,e unprepared for it' This consideration will sufficiently recommend to Con%ress a li,eral pro$ision for the immediate e)tension and %radual completion of the works of defense, ,oth fi)ed and floatin%, on our maritime frontier, and an ade(uate pro$ision for %uardin% our inland frontier a%ainst dan%ers to which certain portions of it may continue to ,e e)posed' As an impro$ement in our military esta,lishment, it will deser$e the consideration of Con%ress whether a corps of in$alids mi%ht not ,e so or%ani>ed and employed as at once to aid in the support of meritorious indi$iduals e)cluded ,y a%e or infirmities from the e)istin% esta,lishment, and to procure to the pu,lic the ,enefit of their stationary ser$ices and of their e)emplary discipline' # recommend also an enlar%ement of the "ilitary Academy already esta,lished, and the esta,lishment of others in other sections of the 4nion< and # can not press too much on the attention of Con%ress such a classification and or%ani>ation of the militia as will most effectually render it the safe%uard of a free state' #f e)perience has shewn in the recent splendid achie$ements of militia the $alue of this resource for the pu,lic defense, it has shewn also the importance of that skill in the use of arms and that familiarity with the essential rules of discipline which can not ,e e)pected from the re%ulations now in force'

;ith this su,-ect is intimately connected the necessity of accommodatin% the laws in e$ery respect to the %reat o,-ect of ena,lin% the political authority of the 4nion to employ promptly and effectually the physical power of the 4nion in the cases desi%nated ,y the Constitution' The si%nal ser$ices which ha$e ,een rendered ,y our .a$y and the capacities it has de$eloped for successful cooperation in the national defense will %i$e to that portion of the pu,lic force its full $alue in the eyes of Con%ress, at an epoch which calls for the constant $i%ilance of all %o$ernments' To preser$e the ships now in a sound state, to complete those already contemplated, to pro$ide amply the imperisha,le materials for prompt au%mentations, and to impro$e the e)istin% arran%ements into more ad$anta%eous esta,lishments for the construction, the repairs, and the security of $essels of war is dictated ,y the soundest policy' #n ad-ustin% the duties on imports to the o,-ect of re$enue the influence of the tariff on manufactures will necessarily present itself for consideration' Howe$er wise the theory may ,e which lea$es to the sa%acity and interest of indi$iduals the application of their industry and resources, there are in this as in other cases e)ceptions to the %eneral rule' +esides the condition which the theory itself implies of reciprocal adoption ,y other nations, e)perience teaches that so many circumstances must concur in introducin% and maturin% manufacturin% esta,lishments, especially of the more complicated kinds, that a country may remain lon% without them, althou%h sufficiently ad$anced and in some respects e$en peculiarly fitted for carryin% them on with success' 4nder circumstances %i$in% a powerful impulse to manufacturin% industry it has made amon% us a pro%ress and e)hi,ited an efficiency which -ustify the ,elief that with a protection not more than is due to the enterprisin% citi>ens whose interests are now at stake it will ,ecome at an early day not only safe a%ainst occasional competitions from a,road, ,ut a source of domestic wealth and e$en of e)ternal commerce' #n selectin% the ,ranches more especially entitled to the pu,lic patrona%e a preference is o,$iously claimed ,y such as will relie$e the 4nited 3tates from a dependence on forei%n supplies, e$er su,-ect to casual failures, for articles necessary for the pu,lic defense or connected with the primary wants of indi$iduals' #t will ,e an additional recommendation of particular manufactures where the materials for them are e)tensi$ely drawn from our a%riculture, and conse(uently impart and insure to that %reat fund of national prosperity and independence an encoura%ement which can not fail to ,e rewarded' Amon% the means of ad$ancin% the pu,lic interest the occasion is a proper one for recallin% the attention of Con%ress to the %reat importance of esta,lishin% throu%hout our country the roads and canals which can ,est ,e e)ecuted under the national authority' .o o,-ects within the circle of political economy so richly repay the e)pense ,estowed on them< there are none the utility of which is more uni$ersally ascertained and acknowled%ed< none that do more honor to the %o$ernments whose wise and enlar%ed patriotism duly appreciates them' .or is there any country which presents a field where nature in$ites more the art of man to complete her own work for his accommodation and ,enefit' These considerations are stren%thened, moreo$er, ,y the political effect of these facilities for intercommunication in ,rin%in% and ,indin% more closely to%ether the $arious parts of our e)tended confederacy' ;hilst the 3tates indi$idually, with a lauda,le enterprise and emulation, a$ail themsel$es of their local ad$anta%es ,y new roads, ,y na$i%a,le canals, and ,y impro$in% the streams suscepti,le of na$i%ation, the =eneral =o$ernment is the more ur%ed to similar undertakin%s, re(uirin% a national -urisdiction and national means, ,y the prospect of thus systematically completin% so inestima,le a work< and it is a happy reflection that any defect of constitutional authority which may ,e encountered can ,e supplied in a mode which the Constitution itself has pro$idently pointed out' The present is a fa$ora,le season also for ,rin%in% a%ain into $iew the esta,lishment of a national seminary of learnin% within the 6istrict of Colum,ia, and with means drawn from the property therein, su,-ect to the authority of the =eneral =o$ernment' 3uch an institution claims the patrona%e of Con%ress as a monument of their solicitude for the ad$ancement of knowled%e, without which the ,lessin%s of li,erty can not ,e fully en-oyed or lon% preser$ed< as a model instructi$e in the formation of other seminaries< as a nursery of enli%htened preceptors, and as a central resort of youth and %enius from e$ery part of their country, diffusin% on their return e)amples of those national feelin%s, those li,eral sentiments, and those con%enial manners which contri,ute cement to our 4nion and stren%th to the %reat political fa,ric of which that is the foundation' #n closin% this communication # ou%ht not to repress a sensi,ility, in which you will unite, to the happy lot of our country and to the %oodness of a superintendin% Pro$idence, to which we are inde,ted for it' ;hilst other portions of mankind are la,orin% under the distresses of war or stru%%lin% with ad$ersity in other forms, the 4nited 3tates are in the tran(uil en-oyment of prosperous and honora,le peace' #n re$iewin% the scenes throu%h which it has ,een attained we can re-oice in the proofs %i$en that our political institutions, founded in human ri%hts and framed for their preser$ation, are e(ual to the se$erest trials of war, as well adapted to the ordinary periods of repose' As fruits of this e)perience and of the reputation ac(uired ,y the American arms on the land and on the water, the nation finds itself possessed of a %rowin% respect a,road and of a -ust confidence in itself, which are amon% the ,est pled%es for its peaceful career' 4nder other aspects of our country the stron%est features of its flourishin% condition are seen in a population rapidly increasin% on a territory as producti$e as it is e)tensi$e< in a %eneral industry and fertile in%enuity which find their ample rewards, and in an affluent re$enue which admits a reduction of the pu,lic ,urdens without withdrawin% the means of sustainin% the pu,lic credit, of %radually

dischar%in% the pu,lic de,t, of pro$idin% for the necessary defensi$e and precautionary esta,lishments, and of patroni>in% in e$ery authori>ed mode undertakin%s conduci$e to the a%%re%ate wealth and indi$idual comfort of our citi>ens' #t remains for the %uardians of the pu,lic welfare to perse$ere in that -ustice and %ood will toward other nations which in$ite a return of these sentiments toward the 4nited 3tates< to cherish institutions which %uarantee their safety and their li,erties, ci$il and reli%ious< and to com,ine with a li,eral system of forei%n commerce an impro$ement of the national ad$anta%es and a protection and e)tension of the independent resources of our hi%hly fa$ored and happy country' #n all measures ha$in% such o,-ects my faithful cooperation will ,e afforded' JA"73 "A6#3A.
Citation: John T. Woolley and Gerhard Peters, The American Presidency Project [online]. Santa htt'&(())).'residen*y.+*sb.ed+()s(,'id-29.57. arbara, !". "#ailable $ro% World Wide Web&

(ighth +nnual 1essage 6ecem,er 3, 181G Fellow8CitiAens o* the /enate and 'ouse o* -e"resentati%es: #n re$iewin% the present state of our country, our attention cannot ,e withheld from the effect produced ,y peculiar seasons which ha$e $ery %enerally impaired the annual %ifts of the earth and threatened scarcity in particular districts' 3uch, howe$er, is the $ariety of soils, of climates, and of products within our e)tensi$e limits that the a%%re%ate resources for su,sistence are more than sufficient for the a%%re%ate wants' And as far as an economy of consumption, more than usual, may ,e necessary, our thankfulness is due to Pro$idence for what is far more than a compensation, in the remarka,le health which has distin%uished the present year' Amidst the ad$anta%es which ha$e succeeded the peace of 7urope, and that of the 4nited 3tates with =reat +ritain, in a %eneral in$i%oration of industry amon% us and in the e)tension of our commerce, the $alue of which is more and more disclosin% itself to commercial nations, it is to ,e re%retted that a depression is e)perienced ,y particular ,ranches of our manufactures and ,y a portion of our na$i%ation' As the first proceeds in an essential de%ree from an e)cess of imported merchandise, which carries a check in its own tendency, the cause in its present e)tent can not ,e $ery lon% in duration' The e$il will not, howe$er, ,e $iewed ,y Con%ress without a recollection that manufacturin% esta,lishments, if suffered to sink too low or lan%uish too lon%, may not re$i$e after the causes shall ha$e ceased, and that in the $icissitudes of human affairs situations may recur in which a dependence on forei%n sources for indispensa,le supplies may ,e amon% the most serious em,arrassments' The depressed state of our na$i%ation is to ,e ascri,ed in a material de%ree to its e)clusion from the colonial ports of the nation most e)tensi$ely connected with us in commerce, and from the indirect operation of that e)clusion' Pre$ious to the late con$ention at Condon ,etween the 4nited 3tates and =reat +ritain the relati$e state of the na$i%ation laws of the two countries, %rowin% out of the treaty of 1PI:, had %i$en to the +ritish na$i%ation a material ad$anta%e o$er the American in the intercourse ,etween the American ports and +ritish ports in 7urope' The con$ention of Condon e(uali>ed the laws of the two countries relatin% to those ports, lea$in% the intercourse ,etween our ports and the ports of the +ritish colonies su,-ect, as ,efore, to the respecti$e re%ulations of the parties' The +ritish =o$ernment enforcin% now re%ulations which prohi,it a trade ,etween its colonies and the 4nited 3tates in American $essels, whilst they permit a trade in +ritish $essels, the American na$i%ation loses accordin%ly, and the loss is au%mented ,y the ad$anta%e which is %i$en to the +ritish competition o$er the American in the na$i%ation ,etween our ports and +ritish ports in 7urope ,y the circuitous $oya%es en-oyed ,y the one and not en-oyed ,y the other' The reasona,leness of the rule of reciprocity applied to one ,ranch of the commercial intercourse has ,een pressed on our part as e(ually applica,le to ,oth ,ranches< ,ut it is ascertained that the +ritish ca,inet declines all ne%otiation on the su,-ect, with a disa$owal, howe$er, of any disposition to $iew in an unfriendly li%ht whate$er counter$ailin% re%ulations the 4nited 3tates may oppose to the re%ulations of which they complain' The wisdom of the Ce%islature will decide on the course which, under these circumstances, is prescri,ed ,y a -oint re%ard to the amica,le relations ,etween the two nations and to the -ust interests of the 4nited 3tates' # ha$e the satisfaction to state, %enerally, that we remain in amity with forei%n powers' An occurrence has indeed taken place in the =ulf of "e)ico which, if sanctioned ,y the 3panish =o$ernment, may make an e)ception as to that power' Accordin% to the report of our na$al commander on that station, one of our pu,lic armed $essels was attacked ,y an o$er?powerin% force under a 3panish commander, and the American fla%, with the officers and crew, insulted in a manner callin% for

prompt reparation' This has ,een demanded' #n the mean time a fri%ate and a smaller $essel of war ha$e ,een ordered into that =ulf for the protection of our commerce' #t would ,e improper to omit that the representati$e of His Catholic "a-esty in the 4nited 3tates lost no time in %i$in% the stron%est assurances that no hostile order could ha$e emanated from his =o$ernment, and that it will ,e as ready to do as to e)pect whate$er the nature of the case and the friendly relations of the two countries shall ,e found to re(uire' The posture of our affairs with Al%iers at the present moment is not known' The 6ay, drawin% prete)ts from circumstances for which the 4nited 3tates were not answera,le, addressed a letter to this =o$ernment declarin% the treaty last concluded with him to ha$e ,een annulled ,y our $iolation of it, and presentin% as the alternati$e war or a renewal of the former treaty, which stipulated, amon% other thin%s, an annual tri,ute' The answer, with an e)plicit declaration that the 4nited 3tates preferred war to tri,ute, re(uired his reco%nition and o,ser$ance of the treaty last made, which a,olishes tri,ute and the sla$ery of our captured citi>ens' The result of the answer has not ,een recei$ed' 3hould he renew his warfare on our commerce, we rely on the protection it will find in our na$al force actually in the "editerranean' ;ith the other +ar,ary 3tates our affairs ha$e under%one no chan%e' The #ndian tri,es within our limits appear also disposed to remain at peace' 8rom se$eral of them purchases of lands ha$e ,een made particularly fa$ora,le to the wishes and security of our frontier settlements, as well as to the %eneral interests of the nation' #n some instances the titles, thou%h not supported ,y due proof, and clashin% those of one tri,e with the claims of another, ha$e ,een e)tin%uished ,y dou,le purchases, the ,ene$olent policy of the 4nited 3tates preferrin% the au%mented e)pense to the ha>ard of doin% in-ustice or to the enforcement of -ustice a%ainst a fee,le and untutored people ,y means in$ol$in% or threatenin% an effusion of ,lood' # am happy to ad that the tran(uillity which has ,een restored amon% the tri,es themsel$es, as well as ,etween them and our own population, will fa$or the resumption of the work of ci$ili>ation which had made an encoura%in% pro%ress amon% some tri,es, and that the facility is increasin% for e)tendin% that di$ided and indi$idual ownership, which e)ists now in mo$a,le property only, to the soil itself, and of thus esta,lishin% in the culture and impro$ement of it the true foundation for a transit from the ha,its of the sa$a%e to the arts and comforts of social life' As a su,-ect of the hi%hest importance to the national welfare, # must a%ain earnestly recommend to the consideration of Con%ress a reor%ani>ation of the militia on a plan which will form it into classes accordin% to the periods of life more or less adapted to military ser$ices' An efficient militia is authori>ed and contemplated ,y the Constitution and re(uired ,y the spirit and safety of free %o$ernment' The present or%ani>ation of our militia is uni$ersally re%arded as less efficient than it ou%ht to ,e made, and no or%ani>ation can ,e ,etter calculated to %i$e to it its due force than a classification which will assi%n the foremost place in the defense of the country to that portion of its citi>ens whose acti$ity and animation ,est ena,le them to rally to its standard' +esides the consideration that a time of peace is the time when the chan%e can ,e made with most con$enience and e(uity, it will now ,e aided ,y the e)perience of a recent war in which the militia ,ore so interestin% a part' Con%ress will call to mind that no ade(uate pro$ision has yet ,een made for the uniformity of wei%hts and measures also contemplated ,y the Constitution' The %reat utility of a standard fi)ed in its nature and founded on the easy rule of decimal proportions is sufficiently o,$ious' #t led the =o$ernment at an early sta%e to preparatory steps for introducin% it, and a completion of the work will ,e a -ust title to the pu,lic %ratitude' The importance which # ha$e attached to the esta,lishment of a uni$ersity within this 6istrict on a scale and for o,-ects worthy of the American nation induces me to renew my recommendation of it to the fa$ora,le consideration of Con%ress' And # particularly in$ite a%ain their attention to the e)pediency of e)ercisin% their e)istin% powers, and, where necessary, of resortin% to the prescri,ed mode of enlar%in% them, in order to effectuate a comprehensi$e system of roads and canals, such as will ha$e the effect of drawin% more closely to%ether e$ery part of our country ,y promotin% intercourse and impro$ements and ,y increasin% the share of e$ery part in the common stock of national prosperity' Accurrences ha$in% taken place which shew that the statutory pro$isions for the dispensation of criminal -ustice are deficient in relation ,oth to places and to persons under the e)clusi$e co%ni>ance of the national authority, an amendment of the law em,racin% such cases will merit the earliest attention of the Ce%islature' #t will ,e a seasona,le occasion also for in(uirin% how far le%islati$e interposition may ,e further re(uisite in pro$idin% penalties for offenses desi%nated in the Constitution or in the statutes, and to which either no penalties are anne)ed or none with sufficient certainty' And # su,mit to the wisdom of Con%ress whether a more enlar%ed re$isal of the criminal code ,e not e)pedient for the purpose of miti%atin% in certain cases penalties which were adopted into it antecedent to e)periment and e)amples which -ustify and recommend a more lenient policy' The 4nited 3tates, ha$in% ,een the first to a,olish within the e)tent of their authority the transportation of the nati$es of Africa into sla$ery, ,y prohi,itin% the introduction of sla$es and ,y punishin% their citi>ens participatin% in the traffic, can not ,ut ,e %ratified at the pro%ress made ,y concurrent efforts of other nations toward a %eneral suppression of so %reat an e$il' They must feel at the same time the %reater solicitude to %i$e the fullest efficacy to their own re%ulations' ;ith that $iew, the interposition of Con%ress appears to

,e re(uired ,y the $iolations and e$asions which it is su%%ested are char%ea,le on unworthy citi>ens who min%le in the sla$e trade under forei%n fla%s and with forei%n ports, and ,y collusi$e importations of sla$es into the 4nited 3tates throu%h ad-oinin% ports and territories' # present the su,-ect to Con%ress with a full assurance of their disposition to apply all the remedy which can ,e afforded ,y an amendment of the law' The re%ulations which were intended to %uard a%ainst a,uses of a kindred character in the trade ,etween the se$eral 3tates ou%ht also to ,e rendered more effectual for their humane o,-ect' To these recommendations # add, for the consideration of Con%ress, the e)pediency of a remodification of the -udiciary esta,lishment, and of an additional department in the e)ecuti$e ,ranch of the =o$ernment' The first is called for ,y the accruin% ,usiness which necessarily swells the duties of the 8ederal courts, and ,y the %reat and widenin% space within which -ustice is to ,e dispensed ,y them' The time seems to ha$e arri$ed which claims for mem,ers of the 3upreme Court a relief from itinerary fati%ues, incompati,le as well with the a%e which a portion of them will always ha$e attained as with the researches and preparations which are due to their stations and to the -uridical reputation of their country' And considerations e(ually co%ent re(uire a more con$enient or%ani>ation of the su,ordinate tri,unals, which may ,e accomplished without an o,-ectiona,le increase of the num,er or e)pense of the -ud%es' The e)tent and $ariety of e)ecuti$e ,usiness also accumulatin% with the pro%ress of our country and its %rowin% population call for an additional department, to ,e char%ed with duties now o$er? ,urdenin% other departments and with such as ha$e not ,een anne)ed to any department' The course of e)perience recommends, as another impro$ement in the e)ecuti$e esta,lishment, that the pro$ision for the station of Attorney?=eneral, whose residence at the seat of =o$ernment, official connections with it, and the mana%ement of the pu,lic ,usiness ,efore the -udiciary preclude an e)tensi$e participation in professional emoluments, ,e made more ade(uate to his ser$ices and his relin(uishments, and that, with a $iew to his reasona,le accommodation and to a proper depository of his official opinions and proceedin%s, there ,e included in the pro$ision the usual appurtenances to a pu,lic office' #n directin% the le%islati$e attention to the state of the finances it is a su,-ect of %reat %ratification to find that e$en within the short period which has elapsed since the return of peace the re$enue has far e)ceeded all the current demands upon the Treasury, and that under any pro,a,le diminution of its future annual products which the $icissitudes of commerce may occasion it will afford an ample fund for the effectual and early e)tin%uishment of the pu,lic de,t' #t has ,een estimated that durin% the year 181G the actual receipts of re$enue at the Treasury, includin% the ,alance at the commencement of the year, and e)cludin% the proceeds of loans and Treasury notes, will amount to a,out the sum of J:P,000,000< that durin% the same year the actual payments at the Treasury, includin% the payment of the arreara%es of the ;ar 6epartment as well as the payment of a considera,le e)cess ,eyond the annual appropriations, will amount to a,out the sum of J38", and that conse(uently at the close of the year there will ,e a surplus in the Treasury of a,out the sum of JI"' The operations of the Treasury continued to ,e o,structed ,y difficulties arisin% from the condition of the national currency, ,ut they ha$e ne$ertheless ,een effectual to a ,eneficial e)tent in the reduction of the pu,lic de,t and the esta,lishment of the pu,lic credit' The floatin% de,t of Treasury notes and temporary loans will soon ,e entirely dischar%ed' The a%%re%ate of the funded de,t, composed of de,ts incurred durin% the wars of 1PPG and 1819, has ,een estimated with reference to the first of January ne)t at a sum not e)ceedin% J110"' The ordinary annual e)penses of the =o$ernment for the maintenance of all its institutions, ci$il, military, and na$al, ha$e ,een estimated at a sum WJ90", and the permanent re$enue to ,e deri$ed from all the e)istin% sources has ,een estimated at a sum of J9 "' ."on this general %iew o* the su 9e!t it is o %ious that there is only wanting to the *is!al "ros"erity o* the Go%ernment the restoration o* an uni*orm medium o* e)!hange. The resour!es and the *aith o* the nation, dis"layed in the system whi!h Congress has esta lished, insure res"e!t and !on*iden!e oth at home and a road. The lo!al a!!umulations o* the re%enue ha%e already ena led the Treasury to meet the "u li! engagements in the lo!al !urren!y o* most o* the /tates, and it is e)"e!ted that the same !ause will "rodu!e the same e**e!t throughout the .nion: ut *or the interests o* the !ommunity at large, as well as *or the "ur"oses o* the Treasury, it is essential that the nation should "ossess a !urren!y o* e;ual %alue, !redit, and use where%er it may !ir!ulate. The Constitution has intrusted Congress e)!lusi%ely with the "ower o* !reating and regulating a !urren!y o* that des!ri"tion, and the measures whi!h were taken during the last session in e)e!ution o* the "ower gi%e e%ery "romise o* su!!ess. The &ank o* the .nited /tates has een organiAed under aus"i!es the most *a%ora le, and !an not *ail to e an im"ortant au)iliary to those measures. 8or a more enlar%ed $iew of the pu,lic finances, with a $iew of the measures pursued ,y the Treasury 6epartment pre$ious to the resi%nation of the late 3ecretary, # transmit an e)tract from the last report of that officer' Con%ress will percei$e in it ample proofs of the solid foundation on which the financial prosperity of the nation rests, and will do -ustice to the distin%uished a,ility and successful e)ertions with which the duties of the 6epartment were e)ecuted durin% a period remarka,le for its difficulties and its peculiar perple)ities'

The period of my retirin% from the pu,lic ser$ice ,ein% at little distance, # shall find no occasion more proper than the present for e)pressin% to my fellow citi>ens my deep sense of the continued confidence and kind support which # ha$e recei$ed from them' "y %rateful recollection of these distin%uished marks of their fa$ora,le re%ard can ne$er cease, and with the consciousness that, if # ha$e not ser$ed my country with %reater a,ility, # ha$e ser$ed it with a sincere de$otion will accompany me as a source of unfailin% %ratification' Happily, # shall carry with me from the pu,lic theater other sources, which those who lo$e their country most will ,est appreciate' # shall ,ehold it ,lessed with tran(uillity and prosperity at home and with peace and respect a,road' # can indul%e the proud reflection that the American people ha$e reached in safety and success their :0th year as an independent nation< that for nearly an entire %eneration they ha$e had e)perience of their present Constitution, the off?sprin% of their undistur,ed deli,erations and of their free choice< that they ha$e found it to ,ear the trials of ad$erse as well as prosperous circumstances< to contain in its com,ination of the federate and electi$e principles a reconcilement of pu,lic stren%th with indi$idual li,erty, of national power for the defense of national ri%hts with a security a%ainst wars of in-ustice, of am,ition, and $ain?%lory in the fundamental pro$ision which su,-ects all (uestions of war to the will of the nation itself, which is to pay its costs and feel its calamities' .or is it less a peculiar felicity of this Constitution, so dear to us all, that it is found to ,e capa,le, without losin% its $ital ener%ies, of e)pandin% itself o$er a spacious territory with the increase and e)pansion of the community for whose ,enefit it was esta,lished' And may # not ,e allowed to add to this %ratifyin% spectacle that # shall read in the character of the American people, in their de$otion to true li,erty and to the Constitution which is its palladium, sure presa%es that the destined career of my country will e)hi,it a =o$ernment pursuin% the pu,lic %ood as its sole o,-ect, and re%ulatin% its means ,y the %reat principles consecrated in its char%er and ,y those moral principles to which they are so well allied< a =o$ernment which watches o$er the purity of elections, the freedom of speech and of the press, the trial ,y -ury, and the e(ual interdict a%ainst encroachments and compacts ,etween reli%ion and the state< which maintains in$iola,ly the ma)ims of pu,lic faith, the security of persons and property, and encoura%es in e$ery authori>ed mode the %eneral diffusion of knowled%e which %uarantees to pu,lic li,erty its permanency and to those who possess the ,lessin% the true en-oyment of it< a =o$ernment which a$oids intrusions on the internal repose of other nations, and repels them from its own< which does -ustice to all nations with a readiness e(ual to the firmness with which it re(uires -ustice from them< and which, whilst it refines its domestic code from e$ery in%redient not con%enial with the precepts of an enli%htened a%e and the sentiments of a $irtuous people, seeks ,y appeals to reason and ,y its li,eral e)amples to infuse into the law which %o$erns the ci$ili>ed world a spirit which may diminish the fre(uency or circumscri,e the calamities of war, and meliorate the social and ,eneficent relations of peace< a =o$ernment, in a word, whose conduct within and without may ,espeak the most no,le of am,itions ? that of promotin% peace on earth and %ood will to man' These contemplations, sweetenin% the remnant of my days, will animate my prayers for the happiness of my ,elo$ed country, and a perpetuity of the institutions under which it is en-oyed' JA"73 "A6#3A.
Citation: John T. Woolley and Gerhard Peters, The American Presidency Project [online]. Santa htt'&(())).'residen*y.+*sb.ed+()s(,'id-29.5/. arbara, !". "#ailable $ro% World Wide Web&

%orporate sponsors of the "econd Bank of the !nited "tates in +*+@B $ohn $aco) #stor 9left, )orn in ;ermany, +/@,-+*-*: and "tephen ;irard 9right, )orn in 7rance, +/?1-+*,+: $ohn $aco) #stor was reportedly the wealthiest man in #merica at the time of his death in +*-*.

-oll Call on the /e!ond &ank o* the .nited /tates in 343K
!.". "enate 9#pril ,, +*+@:B =ea Cotes 9(( "enatorsB +/ &emocratic Repu)lican, - 7ederalists, + Whig 9#nti-&emocrat::B $ames Bar)our L !.". "enator 9Whig-Cirginia, +*+?-+*(?:H ;o2ernor of Cirginia 9+*+(-+*+-:H "ecretary of War 9+*(?-+*(*: William .aylor Barry 9#.B. William and 0ary +*1,: L !.". "enator 9&R-Aentucky, +*+--+*+@:H !.". Postmaster ;eneral 9+*(>-+*,?: $ames Brown L !.". "enator 9&emocratic Repu)lican-Louisiana, +*+,-+*+/H +*+>-+*(,:H !.". 0inister to 7rance 9+*(,-+*(>: ;eorge W. %amp)ell 9#.B. Princeton +/>-: L !.". "enator 9&emocratic Repu)lican-.ennessee, +*++-+*+-, +*+?-+*+*: &udley %hase 9#.B. &artmouth +/>+: L !.". "enator 9&emocratic Repu)lican-Cermont, +*+,-+*+/, +*(?-+*,+: $ohn %ondit L !.". "enator 9&emocratic Repu)lican-<ew $ersey, +*1,-+*1>, +*1>-+*+/: &a2id &aggett 9B.#. =ale +/*,: L !.". "enator 97ederalist-%onnecticut, +*+,-+*+>:H 0ayor of <ew 8a2en, %onnecticut 9+*(*-+*,1: Eligius 7romentin L !.". "enator 9&emocratic Repu)lican, Louisiana, +*+,-+*+>: Ro)ert ;. 8arper 9#.B. Princeton +/*?: L !.". "enator 97ederalist-0aryland, $anuary +*+@-&ecem)er +*+@: Duter)ridge 8orsey L !.". "enator 97ederalist-&elaware, +*+1-+*(+: $eremiah Brown 8owell 9#.B. Brown +/*>: L !.". "enator 9&emocratic Repu)lican-Rhode 6sland, +*++-+*+/: William 8unter 9#.B. Brown +/>+: L !.". "enator 97ederalist-Rhode 6sland, +*++-+*(+:H .rustee of Brown !ni2ersity 9+*11-+*,*: #)ner Lacock L !.". "enator 9&emocratic Repu)lican, Pennsyl2ania, +*+,-+*+>: #rmistead .homson 0ason 9#.B. William and 0ary +*1/: L !.". "enator 9&emocratic Repu)lican-Cirginia, $anuary ,, +*+@-0arch ,, +*+/: $eremiah 0orrow L !.". "enator 9&emocratic Repu)lican-Dhio, +*+,-+*+>:H ;o2ernor of Dhio 9+*((-+*(@: $onathan Ro)erts L !.". "enator 9&emocratic Repu)lican, Pennsyl2ania, +*+--+*(+: 6sham .al)ot L !.". "enator 9&emocratic Repu)lican-Aentucky, +*+?-+*+>, +*(1-+*(?: %harles .ait L !.". "enator 9&emocratic Repu)lican-;eorgia, +*1>-+*+>: $ohn .aylor 9#.B. Princeton +/>1: L !.". "enator 9&emocratic Repu)lican-"outh %arolina, +*+1-+*+@: $ames .urner L !.". "enator 9&emocratic Repu)lican-<orth %arolina, +*1?-+*+@: $oseph Bradley Carnum L !.". "enator 9&emocratic Repu)lican-0assachusetts, +*++-+*+/: $ohn Williams L !.". "enator 9&emocratic Repu)lican-.ennessee, +*+?-+*(,: <ay Cotes 9+( "enatorsB ? &emocratic Repu)licans, / 7ederalists:B "amuel W. &ana 9B.#. =ale +//?: L !.". "enator 97ederalist-%onnecticut, +*+1-+*(+: $ohn ;aillard L !.". "enator 9&emocratic Repu)lican-"outh %arolina, +*1--+*(@: Ro)ert 8enry ;olds)orough L !.". "enator 97ederalist-0aryland, +*+,-+*+>, +*,?-+*,@: %hristopher ;ore 9B.#. 8ar2ard +//@: L !.". "enator 97ederalist-0assachusetts, +*+,-+*+@: Rufus Aing 9B.#. 8ar2ard +///: L !.". "enator 97ederalist-<ew =ork, +/*>-+/>@H +*+,-+*(?: <athaniel 0acon L !.". "enator 9Repu)lican-<orth %arolina, +*+?-+*(*: $eremiah 0ason 9B.#. =ale +/**: L !.". "enator 97ederalist-<ew 8ampshire, +*+,-+*+/: Ben'amin Ruggles L !.". "enator 9&emocratic Repu)lican-Dhio, +*+?-+*,,: <athan "anford L !.". "enator 9&emocratic Repu)lican-<ew =ork, +*+?-+*(+, +*(@-+*,+: 6saac .ichenor 9#.B. Princeton +//?: L !.". "enator 97ederalist-Cermont, +/>@-+/>/, +*+?-+*(+: William 8ill Wells L !.". "enator 97ederalist-&elaware, +/>>-+*1-H +*+,-+*+/: $ames $efferson Wilson L !.". "enator 9&emocratic Repu)lican-<ew $ersey, +*+?-+*(+: #)sentB .homas W. .hompson 9B.#. 8ar2ard +/*@: L !.". "enator 97ederalist-<ew 8ampshire, +*+--+*+/: <oteB .he !.". "enate passed a )ill incorporating the "econd Bank of the !nited "tates on #pril ,, +*+@, with (( in fa2or to +( against. .he !.". 8ouse of Representati2es passed a )ill incorporating the "econd Bank of the !nited "tates on 0arch +-, +*+@, with *1 in fa2or and /+ against. "peaker of the 8ouse 8enry %lay was a)sent and did not 2ote on the )ill.

!4pon this %eneral $iew of the su,-ect it is o,$ious that there is only wantin% to the fiscal prosperity of the =o$ernment the restoration of an uniform medium of e)chan%e' The resources and the faith of the nation, displayed in the system which Con%ress has esta,lished, insure respect and confidence ,oth at home and a,road' The local accumulations of the re$enue ha$e already ena,led the Treasury to meet the pu,lic en%a%ements in the local currency of most of the 3tates, and it is e)pected that the same cause will produce the same effect throu%hout the 4nion< ,ut for the interests of the community at lar%e, as well as for the purposes of the Treasury, it is essential that the nation should "ossess a !urren!y o* e;ual %alue, !redit, and use where%er it may !ir!ulate. The Constitution has intrusted Congress e)!lusi%ely with the "ower o* !reating and regulating a !urren!y o* that des!ri"tion, and the measures whi!h were taken during the last session in e)e!ution o* the "ower gi%e e%ery "romise o* su!!ess. The &ank o* the .nited /tates has een organiAed under aus"i!es the most *a%ora le, and !an not *ail to e an im"ortant au)iliary to those measures. 0 1 4'3' President James "adison, 7i%hth Annual "essa%e to Con%ress 23tate of the 4nion Address5, 6ecem,er 3, 181G

!.". 8ouse of Representati2es 90arch +-, +*+@:B =easB 9*1 %ongressmenB @? Repu)licans, +- 7ederalists, + independent: #sa #dgate L !.". %ongressman 9Repu)lican-<ew =ork, $une /, +*+?-0arch ,, +*+/: $ohn #le4ander L !.". %ongressman 9Repu)lican-Dhio, +*+,-+*+/: %harles 8umphrey #therton 9B.#. 8ar2ard +/>-: L !.". %ongressman 97ederalist-<ew 8ampshire, +*+?-+*+/: ;eorge Baer $r. L !.". %ongressman 97ederalist-0aryland, +/>/-+*1+, +*+?-+*+/: "amuel R. Betts 9B.#. Williams %ollege +*1@: L !.". %ongressman 9Repu)lican-<ew =ork, +*+?-+*+/: $ohn Linscom Boss $r. L !.". %ongressman 97ederalist-Rhode 6sland, +*+?-+*+>: ;eorge Brad)ury 9B.#. 8ar2ard +/*>: L!.". %ongressman 97ederalist-0assachusetts, +*+,-+*+/: Ben'amin Brown L !.". %ongressman 97ederalist-0assachusetts, +*+?-+*+/: $ohn %. %alhoun 9B.#. =ale +*1-: L !.". %ongressman 9&emocratic Repu)lican-"outh %arolina, +*++-+*+/: <ewton %annon L !.". %ongressman 9Repu)lican-.ennessee, +*+--+*+/, +*+>-+*(,:H ;o2ernor of .ennessee 9+*,?-+*,>: Epaphroditus %hampion L !.". %ongressman 97ederalist-%onnecticut, +*1/-+*+/: $ohn $oel %happell L !.". %ongressman 9Repu)lican-"outh %arolina, +*+,-+*+/: $ames West %lark L !.". %ongressman 9Repu)lican-<orth %arolina, +*+?-+*+/: $ames %lark L !.". %ongressman 9Repu)lican-Aentucky, 0arch -, +*+,-#pril *, +*+@, +*(?-+*,+:H ;o2ernor of Aentucky 9+*,@-+*,>: &a2id %lendennin L !.". %ongressman 9Repu)lican-Dhio, Dcto)er ++, +*+--0arch ,, +*+/: Dli2er %romwell %omstock L !.". %ongressman 9Repu)lican-<ew =ork, 0arch -, +*+,-0arch ,, +*+>: Lewis %ondict 9!ni2ersity of Pennsyl2ania +/>-: L !.". %ongressman 9Repu)lican-<ew $ersey, +*++-+*+/, +*(+-+*,,: "amuel "hepard %onner 9B.#. =ale +*1@: L !.". %ongressman 9Repu)lican-0assachusetts, +*+?-+*+/: William %reighton $r. L !.". %ongressman 9Repu)lican-Dhio, 0ay -, +*+,-0arch ,, +*+/, +*(/-+*(*, +*(>-+*,,: 8enry %rocheron L !.". %ongressman 9Repu)lican-<ew =ork, +*+?-+*+/: #lfred %uth)ert 9#.B. Princeton +*1,: L !.". %ongressman 9Repu)lican-;eorgia, +*+,-+*+@, +*(+-+*(/: Weldon <athaniel Edwards L !.". %ongressman 9Repu)lican-<orth %arolina, 7e)ruary /, +*+@-0arch ,, +*(/: &aniel 0unroe 7orney L !.". %ongressman 9Repu)lican-<orth %arolina, +*+?-+*+*: $ohn 7orsyth 9#.B. Princeton +/>>: L !.". %ongressman 9&emocratic Repu)lican-;eorgia, +*+,-+*+*, +*(,-+*(/: .homas ;holson $r. L !.". %ongressman 9Repu)lican-Cirginia, <o2em)er /, +*1*-$uly -, +*+@: 6saac ;riffin L !.". %ongressman 9Repu)lican-Pennsyl2ania, 0ay (-, +*+,, to 0arch ,, +*+/: .homas P. ;ros2enor 9B.#. =ale +*11: L !.". %ongressman 97ederalist-<ew =ork, +*+,-+*+/: #ylett 8awes L !.". %ongressman 9Repu)lican-Cirginia, +*++-+*+/: Bennett 8. 8enderson L !.". %ongressman 9Repu)lican-.ennessee, +*+?-+*+/: Ben'amin 8uger L !.". %ongressman 97ederalist-"outh %arolina, +/>>-+*1?, +*+?-+*+/: $ohn Whitefield 8ul)ert 9B.#. 8ar2ard +/>?: L !.". %ongressman 97ederalist-0assachusetts, +*+--+*+/: $ohn Pratt 8ungerford L !.". %ongressman 9Repu)lican-Cirginia, +*++, +*+,-+*+/: "amuel &. 6ngham L !.". %ongressman 9Repu)lican-Pennsyl2ania, +*+,-+*+*, +*((-+*(>:H "ecretary of the .reasury 9+*(>-+*,+: William 6r2ing L !.". %ongressman 9Repu)lican-<ew =ork, $anuary ((, +*+--0arch ,, +*+>: $ohn ;eorge $ackson L !.". %ongressman 9Repu)lican-Cirginia, +*1,-+*+1, +*+,-+*+/: Luther $ewett 9#.B. &artmouth +/>?: L !.". %ongressman 97ederalist-Cermont, +*+?-+*+/: $ohn Aerr L !.". %ongressman 9Repu)lican-Cirginia, 0arch -, +*+,-0arch ,, +*+?, Dcto)er ,1, +*+?-0arch ,, +*+/: William Rufus de Cane Aing L !.". %ongressman 9&R-<orth %arolina, +*++-+*+@:H !.". "enator 9#la)ama, +*+>-+*--H +*-*-+*?(: William %arter Lo2e L !.". %ongressman 9Repu)lican-<orth %arolina, +*+?-+*+/: William Lowndes L !.". %ongressman 9Repu)lican-"outh %arolina, 0arch -, +*++-0ay *, +*((: Wilson Lumpkin L !.". %ongressman 9;eorgia, +*+?-+*+/, +*(/-+*,+:H ;o2ernor of ;eorgia 9+*,+-+*,?:H !.". "enator 9+*,/-+*-+: William 0aclay L !.". %ongressman 9Repu)lican-Pennsyl2ania, +*+?-+*+>: $ames Brown 0ason 9#.B. Brown +/>+: L !.". %ongressman 97ederalist-Rhode 6sland, +*+?-+*+>: William 0c%oy L !.". %ongressman 9Repu)lican-Cirginia, +*++-+*,,: "amuel 0cAee L !.". %ongressman 9Repu)lican-Aentucky, +*1>-+*+/: 8enry 0iddleton L !.". %ongressman 9Repu)lican-"outh %arolina, +*+?-+*+>:H !.". 0inister to Russia 9+*(1-+*,1: .homas 0oore L !.". %ongressman 9Repu)lican-"outh %arolina, +*1+-+*+,, +*+?-+*+/: $onathan Dgden 0oseley 9B.#. =ale +/*1: L !.". %ongressman 97ederalist-%onnecticut, +*1?-+*(+: William 8ardy 0urfree 9B.#. !ni2. of <orth %arolina +*1+: L !.". %ongressman 9Repu)lican-<orth %arolina, +*+,-+*+/: $eremiah <elson 9#.B. &artmouth +/>1: L !.". %ongressman 97ederalist-0assachusetts, +*1?-+*1/, +*+?-+*(?, +*,+-+*,,: #l)ion A. Parris 9#.B. &artmouth +*1@: L !.". %ongressman 9Repu)lican-0assachusetts, +*+?-+*+*: 6srael Pickens L !.". %ongressman 9Repu)lican-<orth %arolina, +*++-+*+/:H ;o2ernor of #la)ama 9+*(+-+*(?: William Pinkney L !.". %ongressman 9&emocratic Repu)lican-0aryland, 0arch -, +*+?-#pril +*, +*+@:H !.". "enator 9+*+>-+*((: William Piper L !.". %ongressman 9Repu)lican-Pennsyl2ania, +*++-+*+/: .homas Bolling Ro)ertson L !.". %ongressman 9Repu)lican-Louisiana, #pril ,1, +*+(-#pril (1, +*+*:H ;o2ernor of Louisiana 9+*(1-+*((: "olomon P. "harp L !.". %ongressman 9Repu)lican-Aentucky, +*+,-+*+/:H #ttorney ;eneral of Aentucky 9+*(1-+*(-: "amuel "mith L !.". %ongressman 9&R-0aryland, +/>,-+*1,, $an. ,+, +*+@-&ec. +/, +*((:H !.". "enator 90aryland, +*1,-+*+?, +*((-+*,,: Ballard "mith L !.". %ongressman 9Repu)lican-Cirginia, +*+?-+*(+: 8enry "outhard L !.". %ongressman 9Repu)lican-<ew $ersey, +*1+-+*++, +*+?-+*(+: 0icah .aul L !.". %ongressman 9Repu)lican-Aentucky, +*+?-+*+/: $ohn W. .aylor 9#.B. !nion %ollege +*1,: L !.". %ongressman 9Repu)lican-<ew =ork, +*+,-+*,,: $ohn .aylorL !.". %ongressman 9Repu)lican-"outh %arolina, +*+?-+*+/: .homas .elfair 9#.B. Princeton +*1?: L !.". %ongressman 9Repu)lican-;eorgia, +*+,-+*+/: 6saac .homas L !.". %ongressman 9Repu)lican-.ennessee, +*+?-+*+/: Enos .hompson .hroop L !.". %ongressman 9Repu)lican-<ew =ork, 0arch -, +*+?-$une -, +*+@:H ;o2ernor of <ew =ork 9+*(>-+*,,: ;eorge .ownsend L !.". %ongressman 9Repu)lican-<ew =ork, +*+?-+*+>: 8enry "t. ;eorge .ucker 9#.B. William and 0ary +/>*: L !.". %ongressman 9Repu)lican-Cirginia, +*+?-+*+>: .homas Ward 9#.B. Princeton +*1,R: L !.". %ongressman 9Repu)lican-<ew $ersey, +*+,-+*+/: Peter 8ercules Wendo2er L !.". %ongressman 9Repu)lican-<ew =ork, +*+?-+*(+:H "heriff of <ew =ork %ounty 9+*((-+*(?:

La)an Wheaton 9B.#. 8ar2ard +//-: L !.". %ongressman 97ederalist-0assachusetts, +*1>-+*+/: Richard 8enry Wilde L !.". %ongressman 9Repu)lican-;eorgia, +*+?-+*+/, +*(?, +*(/-+*,?: $ames W. Wilkin 9#.B. Princeton +/*?: L !.". %ongressman 9Repu)lican-<ew =ork, +*+?-+*+>: Lewis Williams 9B.#. !ni2. of <orth %arolina +*1*: L !.". %ongressman 9Repu)lican-<orth %arolina, +*+?-+*-(: Westel Willough)y $r. L !.". %ongressman 9Repu)lican-<ew =ork, &ecem)er +,, +*+?-0arch ,, +*+/: .homas Wilson L !.". %ongressman 9Repu)lican-Pennsyl2ania, 0ay -, +*+,-0arch ,, +*+/: William WilsonL !.". %ongressman 9Repu)lican-Pennsyl2ania, +*+?-+*+>: William Woodward L !.". %ongressman 9Repu)lican-"outh %arolina, +*+?-+*+/: Ro)ert Wright L !.". %ongressman 9&emocratic Repu)lican-0aryland, +*+1-+*+/, +*(+-+*(,:H ;o2ernor of 0aryland 9+*1@-+*1>: Bartlett =ancey L !.". %ongressman 9Repu)lican-<orth %arolina, +*+,-+*+/: $ohn B. =ates L !.". %ongressman 9Repu)lican-<ew =ork, +*+?-+*+/: <aysB 9/+ %ongressmenB ,> 7ederalists, ,( Repu)licans: EOra Baker L !.". %ongressman 9Repu)lican-<ew $ersey, +*+?-+*+/: Philip Pendleton Bar)our 9#.B. William and 0ary +/>>: L !.". %ongressman 9Repu)lican-Cirginia, +*+--+*(?, +*(/-+*,1: Burwell Bassett L !.". %ongressman 9Repu)lican-Cirginia, +*1?-+*+,, +*+?-+*+>, +*(+-+*(>: Ben'amin Bennet L !.". %ongressman 9Repu)lican-<ew $ersey, 0arch -, +*+?-0arch ,, +*+>: $ames Birdsall L !.". %ongressman 9Repu)lican-<ew =ork, 0arch -, +*+?-0arch ,, +*+/: William ;. Blount L !.". %ongressman 9Repu)lican-.ennessee, &ec. *, +*+?-0arch ,, +*+>:H "ecretary of "tate of .ennessee 9+*++-+*+?: $ames Breckenridge 9#.B. William and 0ary +/*?: L !.". %ongressman 97ederalist-Cirginia, +*1>-+*+/: .homas Burnside L !.". %ongressman 9Repu)lican-Pennsyl2ania, Dcto)er +1, +*+?-#pril +*+@: William #. Burwell 9#.B. William and 0ary: L !.". %ongressman 9Repu)lican-Cirginia, +*1@-+*(+: &aniel %ady L !.". %ongressman 97ederalist-<ew =ork, +*+?-+*+/: $ames %aldwell L !.". %ongressman 9Repu)lican-Dhio, +*+,-+*+/: Brad)ury %illey L !.". %ongressman 97ederalist-<ew 8ampshire, +*+,-+*+/: .homas %layton L !.". %ongressman 97ederalist-&elaware, +*+?-+*+/:H !.". "enator 9&elaware, +*(--+*(/, +*,/-+*-/: $ohn %lopton 9#.B. !ni2ersity of Pennsyl2ania +//@: L !.". %ongressman 9Repu)lican-Cirginia, +/>?-+/>>, 0arch -, +*1+-"ept. ++, +*+@: .homas %ooper L !.". %ongressman 97ederalist-&elaware, +*+,-+*+/: William %rawford 9#.B. Princeton +/*+R: L !.". %ongressman 9Repu)lican-Pennsyl2ania, +*1>-+*+/: $ohn %ulpeper L !.". %ongressman 97ederalist-<orth %arolina, +*1/-+*1*, +*1*-+*1>, +*+,-+*+/, +*+>-+*(+, +*(,-+*(?, +*(/-+*(>: William &arlington L !.". %ongressman 9Repu)lican-Pennsyl2ania, +*+?-+*+/, +*+>-+*(,: $ohn &a2enport 9B.#. =ale +//1: L !.". %ongressman 97ederalist-%onnecticut, +/>>-+*+/: $oseph &esha L !.". %ongressman 9Repu)lican-Aentucky, +*1/-+*+>:H ;o2ernor of Aentucky 9+*(--+*(*: William ;aston 9#.B. Princeton +/>@: L !.". %ongressman 97ederalist-<orth %arolina, +*+,-+*+/: .homas R. ;old 9B.#. =ale +/*@: L !.". %ongressman 97ederalist-<ew =ork, +*1>-+*+,, +*+?-+*+/: %harles ;olds)orough L !.". %ongressman 97ederalist-0aryland, +*1?-+*+/:H ;o2ernor of 0aryland 9+*+>: Peterson ;oodwyn L !.". %ongressman 9Repu)lican-Cirginia, +*1,-+*+*: $ohn 8ahn L !.". %ongressman 9Repu)lican-Pennsyl2ania, +*+?-+*+/: William 8ale L !.". %ongressman 97ederalist-<ew 8ampshire, +*1>-+*++, +*+,-+*+/: Bolling 8all L !.". %ongressman 9Repu)lican-;eorgia, +*++-+*+/: #le4ander %. 8anson L !.". %ongressman 97ederalist-0aryland, +*+,-+*+@:H !.". "enator 90aryland, +*+@-+*+>: Ben'amin 8ardin L !.". %ongressman 9Repu)lican-Aentucky, +*+?-+*+/, +*+>-+*(,, +*,,-+*,/: $ohn %arlyle 8er)ert L !.". %ongressman 97ederalist-0aryland, +*+?-+*+>: $oseph 8opkinson 9#.B. !ni2ersity of Pennsyl2ania +/*@: L !.". %ongressman 97ederalist-Pennsyl2ania, +*+?-+*+>: $ames $ohnson 9#.B. William and 0ary +/>?: L !.". %ongressman 9Repu)lican-Cirginia, +*+,-+*(1: 0oss Aent L !.". %ongressman 97ederalist-<ew =ork, 0arch -, +*+,-0arch ,, +*+/: %hauncey Langdon 9B.#. =ale +/*/: L !.". %ongressman 97ederalist-Cermont, +*+?-+*+/: Lyman Law 9B.#. =ale +/>+: L !.". %ongressman 97ederalist-%onnecticut, +*++-+*+/: $oseph Lewis $r. L !.". %ongressman 97ederalist-Cirginia, +*1,-+*+/: $ohn Lo2ett 9B.#. =ale +/*(: L !.". %ongressman 97ederalist-<ew =ork, +*+,-+*+/: #aron Lyle L !.". %ongressman 9Repu)lican-Pennsyl2ania, +*1>-+*+/: #sa Lyon 9#.B. &artmouth +/>1: L !.". %ongressman 97ederalist-Cermont, +*+?-+*+/: %harles 0arsh 9#.B. &artmouth +/*@: L !.". %ongressman 97ederalist-Cermont, +*+?-+*+/:H 7ounder of the #merican %oloniOation "ociety William 0ayrant L !.". %ongressman 9Repu)lican-"outh %arolina, 0arch -, +*+?-Dcto)er (+, +*+@: #lney 0cLean L !.". %ongressman 9Repu)lican-Aentucky, +*+?-+*+/, +*+>-+*(+: $ohn 0cLean L !.". %ongressman 9Repu)lican-Dhio, +*+,-+*+@:H !.". Postmaster ;en. 9+*(,-(>:H $ustice, !.". "upreme %ourt 9+*(>-+*@+: William 0ilnor L !.". %ongressman 97ederalist-Pennsyl2ania, +*1/-+*++, +*+?-+*+/, +*(+-+*((:H 0ayor of Philadelphia 9+*(>-+*,1: .homas <ewton $r. L !.". %ongressman 9Repu)lican-Cirginia, +*1+-+*(>, +*(>-+*,1, +*,+-+*,,: $ohn <oyes 9#.B. &artmouth +/>?: L !.". %ongressman 97ederalist-Cermont, +*+?-+*+/: "tephen Drms)y L !.". %ongressman 9Repu)lican-Ay., +*++-+*+,, +*+,-+*+/:H President of Louis2ille, Ay. )ranch of Bank of the !.". 9+*+/: .imothy Pickering 9B.#. 8ar2ard +/@,: L !.". %ongressman 97ederalist-0assachusetts, +*+,-+*+/: .imothy Pitkin 9B.#. =ale +/*?: L !.". %ongressman 97ederalist-%onnecticut, +*1?-+*+>: $ohn Randolph L !.". %ongressman 9Repu)lican-Cirginia, +/>>-+*+,, +*+?-+*+/, +*+>-+*(?, +*(/-+*(>, +*,,: $ohn Reed 9#.B. Brown +*1,: L !.". %ongressman 97ederalist-0assachusetts, +*+,-+*+/, +*(+-+*-+: Erastus Root 9#.B. &artmouth +/>,: L !.". %ongressman 9Repu)lican-<ew =ork, +*1,-+*1?, +*1>-+*++, +*+?-+*+/, +*,+-+*,,: $ohn Ross L !.". %ongressman 9Repu)lican-Pennsyl2ania, +*1>-+*++, 0arch -, +*+?-7e)ruary (-, +*+*: <athaniel Ruggles 9B.#. 8ar2ard +/*+: L !.". %ongressman 97ederalist-0assachusetts, +*+,-+*+>: $ohn "ergeant 9#.B. Princeton +/>?: L !.". %ongressman 97ederalist-Pennsyl2ania, +*+?-+*(,, +*(/-+*(>, +*,/-+*-+: $ohn "a2age L !.". %ongressman 9Repu)lican-<ew =ork, +*+?-+*+>:H %hief $ustice of <ew =ork "tate "upreme %ourt 9+*(,-+*,@: &aniel "heffey L !.". %ongressman 97ederalist-Cirginia, +*1>-+*+/: .homas "mith L !.". %ongressman 97ederalist-Pennsyl2ania, +*+?-+*+/: Richard "tanford L !.". %ongressman 9Repu)lican-<orth %arolina, +/>/-+*+@:

#sahel "tearns 9B.#. 8ar2ard +/>/: L !.". %ongressman 97ederalist-0assachusetts, +*+?-+*+/: "olomon "trong 9B.#. Williams %ollege +/>*: L !.". %ongressman 97ederalist-0assachusetts, +*+?-+*+>: Lewis Burr "turges 9B.#. =ale +/*(: L !.". %ongressman 97ederalist-%onnecticut, +*1?-+*+/: "amuel .aggart 9#.B. &artmouth +//-: L !.". %ongressman 97ederalist-0assachusetts, +*1,-+*+/: Ben'amin .allmadge 9B.#. =ale +//,: L !.". %ongressman 97ederalist-%onnecticut, +*1+-+*+/: Roger Cose 9B.#. 8ar2ard +/>1: L !.". %ongressman 97ederalist-<ew 8ampshire, +*+,-+*+/: $ames 0. Wallace L !.". %ongressman 9Repu)lican-Pennsyl2ania, Dcto)er +1, +*+?-0arch ,, +*(+: #rtemas Ward $r. 9B.#. 8ar2ard +/*,: L !.". %ongressman 97ederalist-0assachusetts, +*+,-+*+/:H D2erseer of 8ar2ard !ni2. 9+*+1-+*--: $onathan Ward L !.". %ongressman 9Repu)lican-<ew =ork, +*+?-+*+/: &aniel We)ster 9#.B. &artmouth +*1+: L !.". %ongressman 97ederalist-<ew 8ampshire, +*+,-+*+/: $ohn Whiteside L !.". %ongressman 9Repu)lican-Pennsyl2ania, +*+?-+*+>: $eduthun Wilco4 L !.". %ongressman 97ederalist-<ew 8ampshire, +*+,-+*+/: #)sentB 9/ 7ederalists, @ Repu)licans: "te2enson #rcher 9#.B. Princeton +*1?: L !.". %ongressman 9Repu)lican-0aryland, +*++-+*+/, +*+>-+*(+: William Baylies 9#.B. Brown +/>?: L !.". %ongressman 97ederalist-0assachusetts, +*+,-+*+/, +*,,-+*,?: &aniel %hipman 9#.B. &artmouth +/**: L !.". %ongressman 97ederalist-Cermont, +*+?-+*+@: $ames W. %lark 9#.B. Princeton +/>/: L !.". %ongressman 9Repu)lican-<orth %arolina, +*+?-+*+/: %yrus Aing 9B.#. %olum)ia +/>-: L !.". %ongressman 97ederalist-0assachusetts, +*+,-+*+/: $ohn <oyes 9#.B. &artmouth +/>?: L !.". %ongressman 97ederalist-Cermont, +*+?-+*+/: .homas Rice 9B.#. 8ar2ard +/>+: L !.". %ongressman 97ederalist-0assachusetts, +*+?-+*+>: William "tephens "mith 9#.B. Princeton +//-: L !.". %ongressman 97ederalist-<ew =ork, +*+,-+*+?, +*+?-+*+@: 8enry %lay L !.". %ongressman 9&emocratic Repu)lican-Aentucky, +*++-+*+-, +*+?-+*(+, +*(,-+*(?:H "peaker of the 8ouse 9+*++-+*+-, +*+?-+*(1, +*(,-+*(?: William 7indley L !.". %ongressman 9Repu)lican-Pennsyl2ania, +/>+-+/>>, +*1,-+*+/: Richard 0. $ohnson L !.". %ongressman 9&emocratic Repu)lican-Aentucky, +*1/-+*+>, +*(>-+*,/:H Cice President of the !.". 9+*,/-+*-+: 8ugh <elson 9#.B. William and 0ary +/*1: L !.". %ongressman 9Repu)lican-Cirginia, +*++-+*(,:H !.". 0inister to "pain 9+*(,-+*(-: $ames Pleasants $r. 9#.B. William and 0ary: L !.". %ongressman 9Repu)lican-Cirginia, +*++-+*+>:H ;o2ernor of Cirginia 9+*((-+*(?: Philip "tuart L !.". %ongressman 97ederalist-0aryland, +*++-+*+>: <oteB %ongressman $oseph 8opkinson was the $udge of the !nited "tates &istrict %ourt for the Eastern &istrict of Pennsyl2ania 9+*(*-+*-(:.

Dem ers o" 8on+ress !ho &oted “0ea” on ill esta lishin+ the 'e(ond -an. o" the 4nited 'tates in 181<

$ohn .aylor #.B. Princeton +/>1 !.". "enator 9&emocratic Repu)lican-"outh %arolina, +*+1-+*+@:

&a2id &aggett B.#. =ale +/*, !.". "enator 97ederalist%onnecticut, +*+,-+*+>:

$ohn %. %alhoun B.#. =ale +*1!.". %ongressman 9&emocratic Repu)lican"outh %arolina, +*++-+*+/:

$eremiah Brown 8owell #.B. Brown +/*> !.". "enator 9&emocratic Repu)lican-Rhode 6sland, +*++-+*+/:

William 8unter #.B. Brown +/>+ !.". "enator 97ederalistRhode 6sland, +*++-+*(+:

Dem ers o" 8on+ress !ho &oted “/ay” on ill esta lishin+ the 'e(ond -an. o" the 4nited 'tates in 181<

Ben'amin .allmadge B.#. =ale +//, !.". %ongressman 97-%onn., +*1+-+*+/:

"amuel W. &ana B.#. =ale +//? !.". "enator 97-%onn., +*+1-+*(+:

.imothy Pickering B.#. 8ar2ard +/@, !.". %ongressman 97-0ass., +*+,-+*+/:

Rufus Aing B.#. 8ar2ard +/// !.". "enator 97ederalist-<ew =ork, +/*>-+/>@H +*+,-+*(?:

&aniel We)ster #.B. &artmouth +*1+ !.". %ongressman 97ederalist-<ew 8ampshire, +*+,-+*+/:

4'3' 3enate Botin% /ecord on the +ank of the 4nited 3tates 2June 11, 18395

4'3' House of /epresentati$es Botin% /ecord on the +ank of the 4nited 3tates 2July 3, 18395

../. /enate -oll Call on the /e!ond &ank o* the .nited /tates on $une 33, 345J
=ea 9(* "enators:B "amuel Bell 9#.B. &artmouth +/>,: L !.". "enator 9#nti-$acksonian-<ew 8ampshire, +*(,-+*,?: #le4ander Buckner L !.". "enator 9$acksonian-0issouri, +*,+-+*,,: EOekiel 7orman %ham)ers L !.". "enator 9#nti-$ackson-0aryland, +*(@-+*,-: 8enry %lay L !.". "enator 9Whig-Aentucky, +*1@-+*1/H +*+1-+*++H +*,+-+*-(H +*->-+*?(:H !.". "ecretary of "tate 9+*(?-+*(>: $ohn 0. %layton 9B.#. =ale +*+?: L !.". "enator 9#nti-$acksonian-&elaware, +*(>-+*,@H +*-?-+*->H +*?,-+*?@: ;eorge 0. &allas 9#.B. Princeton +*+1: L !.". "enator 9$acksonian-Pennsyl2ania, +*,+-+*,,:H Cice President of the !.". 9+*-?-+*->: .homas Ewing L !.". "enator 9#nti-$acksonian-Dhio, +*,+-+*,/H +*?1-+*?+:H "ec. of the .reasury 9+*-+:H "ec. of the 6nterior 9+*->-+*?1: "amuel #ugustus 7oot 9B.#. =ale +/>/: L !.". "enator 9#nti-$acksonian-%onnecticut, +*(/-+*,,: .heodore 7relinghuysen 9#.B. Princeton +*1-: L !.". "enator 9#nti-$acksonian-<ew $ersey, +*(>-+*,?: William 8endricks L !.". "enator 9#nti-$acksonian-6ndiana, +*(?-+*,/:H ;o2ernor of 6ndiana 9+*((-+*(?: $ohn 8olmes 9#.B. Brown +/>@: L !.". "enator 9#dams Repu)lican-0aine, +*(1-+*(/, +*(>-+*,,: $osiah "toddard $ohnston L !.". "enator 9#nti-$acksonian-Louisiana, +*(--+*,,: <ehemiah Rice Anight L !.". "enator 9#nti-$acksonian-Rhode 6sland, +*(+-+*-+:H ;o2ernor of Rhode 6sland 9+*+/-+*(+: #rnold <audain 9#.B. Princeton +*1@: L !.". "enator 9#nti-$acksonian-&elaware, +*,1-+*,@: ;eorge Poinde4ter L !.". "enator 9#nti-$acksonian-0ississippi, +*,1-+*,?:H ;o2ernor of 0ississippi 9+*+>-+*((: "amuel Prentiss L !.". "enator 9#nti-$acksonian-Cermont, +*,+-+*-(:H $udge of the !.". &istrict %ourt of Cermont 9+*-(-+*?/: #sher Ro))ins 9B.#. =ale +/*(: L !.". "enator 9Whig-Rhode 6sland, +*(?-+*,>: $ohn 0c%racken Ro)inson L !.". "enator 9$acksonian-6llinois, +*,1-+*-+: Ben'amin Ruggles L !.". "enator 9&emocratic Repu)lican-Dhio, +*+?-+*,,:H Coted “<ay on the "econd Bank of the !.". )ill in +*+@ 8oratio "eymour 9B.#. =ale +/>/: L !.". "enator 9#nti-$acksonian-Cermont, +*(+-+*,,: <athaniel "ils)ee L !.". "enator 9#nti-$acksonian-0assachusetts, +*(@-+*(>H +*(>-+*,?: "amuel "mith L !.". "enator 9$acksonian-0aryland, +*1,-+*+?H +*((-+*,,:H 0ayor of Baltimore, 0aryland 9+*,?-+*,*: Peleg "prague 9B.#. 8ar2ard +*+(: L !.". "enator 9#nti-$acksonian-0aine, +*(>-+*,?: $ohn .ipton L !.". "enator 9$acksonian-6ndiana, +*,(-+*,>: ;ideon .omlinson 9B.#. =ale +*1(: L !.". "enator 9#nti-$acksonian-%onnecticut, +*,+-+*,/: ;eorge #ugustus Waggaman L !.". "enator 9#nti-$acksonian-Louisiana, +*,+-+*,?: &aniel We)ster 9#.B. &artmouth +*1+: L !.". "enator 9Whig-0assachusetts, +*(/-+*-+, +*-?-+*?1: William Wilkins L !.". "enator 9$acksonian-Pennsyl2ania, +*,+-+*,-: <ay 9(1 "enators:B .homas 8art Benton L !.". "enator 9$acksonian-0issouri, +*(+-+*?+: ;eorge 0. Bi)) 9#.B. Princeton +/>(: L !.". "enator 9$acksonian-Aentucky, +*++-+*+-, +*(>-+*,?: Bedford Brown L !.". "enator 9$acksonian-<orth %arolina, +*(>-+*-1: 0ahlon &ickerson 9#.B. Princeton +/*>: L !.". "enator 9$acksonian-<ew $ersey, +*+/-+*,,: %harles Edward &udley L !.". "enator 9$acksonian-<ew =ork, +*(>-+*,,:H 0ayor of #l)any, <ew =ork 9+*(+-+*(-, +*(*-+*(>: Powhatan Ellis L !.". "enator 9$acksonian-0ississippi +*(?-+*(@H +*(/-+*,(:H !.". 0inister to 0e4ico 9+*,>-+*-(: $ohn 7orsyth 9#.B. Princeton +/>>: L !.". "enator 9$acksonian-;eorgia, +*+*-+*+>, +*(>-+*,-: 7eli4 ;rundy L !.". "enator 9$acksonian-.ennessee, +*(>-+*,*H +*,>-+*-1:H !.". #ttorney ;eneral 9+*,*-+*,>: Ro)ert =oung 8ayne L !.". "enator 9<ullifer-"outh %arolina, 0arch -, +*(,-&ecem)er +,, +*,(:H ;o2ernor of "outh %arolina 9+*,(-+*,-: 6saac 8ill L !.". "enator 9$acksonian-<ew 8ampshire, +*,+-+*,@:H ;o2ernor of <ew 8ampshire 9+*,@-+*,>: Elias Aent Aane 9B.#. =ale +*+,: L !.". "enator 9$acksonian-6llinois, +*(?-+*,?: William Rufus de Cane Aing L !.". "enator 9$acksonian-#la)ama, +*+>-+*--H +*-*-+*?(:H !.". 0inister to 7rance 9+*---+*-@: Willie Person 0angum L !.". "enator 9$acksonian-<orth %arolina, +*,+-+*,@H +*-1-+*?,: William Learned 0arcy 9#.B. Brown +*1*: L !.". "enator 9$acksonian-<ew =ork, +*,+-+*,,:H ;o2ernor of <ew =ork 9+*,,-+*,*: "tephen &ecatur 0iller L !.". "enator 9<ullifer-"outh %arolina, +*,+-+*,,:H ;o2ernor of "outh %arolina 9+*(*-+*,1: ;a)riel 0oore L !.". "enator 9$acksonian-#la)ama, +*,+-+*,/:H ;o2ernor of #la)ama 9+*(>-+*,+: Littleton Waller .aOewell L !.". "enator 9$acksonian-Cirginia, &ecem)er /, +*(--$uly +@, +*,(:H ;o2ernor of Cirginia 9+*,--+*,@: ;eorge 0. .roup 9#.B. Princeton +/>/: L !.". "enator 9$acksonian-;eorgia, +*+@-+*+*, +*(>-+*,,: $ohn .yler 9#.B. William and 0ary +*1/: L !.". "enator 9$acksonian-Cirginia, +*(/-+*,@:H President of the !.". 9+*-+-+*-?: 8ugh Lawson White L !.". "enator 9$acksonian-.ennessee, +*(?-+*-1: <oteB William Learned 0arcy 9#.B. Brown +*1*: ser2ed as !.". "ecretary of War 9+*-?-+*->: and !.". "ecretary of "tate 9+*?,-+*?/:. <oteB <ehemiah Rice Anight ser2ed as President of the Roger Williams Bank in Pro2idence, Rhode 6sland 9+*+/-+*?-:.

../. 'ouse o* -e"resentati%es -oll Call on the /e!ond &ank o* the .nited /tates on $uly 5, 345J
0ea Gotes ?10< 0easA: $ohn Tuincy #dams 9B.#. 8ar2ard +/*/: L !.". %ongressman 9Whig-0assachusetts, +*,+-+*-*:H President of the !.". 9+*(?-+*(>: %hilton #llan L !.". %ongressman 9#nti-$acksonian-Aentucky, +*,+-+*,/: 8eman #llen L !.". %ongressman 9#nti-$acksonian-Cermont, +*,+-+*,>: Ro)ert #llison L !.". %ongressman 9#nti-0asonic-Pennsyl2ania, +*,+- +*,,: <athan #ppleton L !.". %ongressman 9#nti-$acksonian-0assachusetts, +*,+-+*,,, +*-(: William #rmstrong L !.". %ongressman 9#nti-$acksonian-Cirginia, +*(?-+*,,: .homas &. #rnold L !.". %ongressman 9#nti-$acksonian-.ennessee, +*,+-+*,,, +*-+-+*-,: William 8enry #shley L !.". %ongressman 9$acksonian-0issouri, Dcto)er ,+, +*,+-0arch ,, +*,/: William Ba)cock L !.". %ongressman 9#nti-0asonic-<ew =ork, +*,+-+*,,: $ohn Banks L !.". %ongressman 9#nti-0asonic-Pennsyl2ania, +*,+-+*,@: <oyes Bar)er L !.". %ongressman 9#nti-$acksonian-%onnecticut, +*(+-+*,?: $ohn ". Bar)our 9B.#. William and 0ary +*1*: L !.". %ongressman 9$acksonian-Cirginia, +*(,-+*,,: &aniel L. Barringer L !.". %ongressman 9$acksonian-<orth %arolina, +*(@-+*,?: ;amaliel 8enry Barstow L !.". %ongressman 9#nti-0asonic-<ew =ork, +*,+-+*,,: 6saac %hapman Bates 9B.#. =ale +*1(: L !.". %ongressman 9Whig-0assachusetts, +*(/-+*,?: ;eorge <i4on Briggs L !.". %ongressman 9#nti-$acksonian-0assachusetts, +*,+-+*-,:H ;o2ernor of 0assachusetts 9+*---+*?+: $ohn %onrad Bucher L !.". %ongressman 9$acksonian-Pennsyl2ania, 0arch -, +*,+-0arch ,, +*,,: 8enry #dams Bullard 9B.#. 8ar2ard +*1/: L !.". %ongressman 9#nti-$acksonian-Louisiana, +*,+-+*,-H Whig-Louisiana, +*?1-+*?+: ;eorge Burd L !.". %ongressman 9#nti-$acksonian-Pennsyl2ania, +*,+-+*,?: .ristam Burges 9#.B. Brown +/>@: L !.". %ongressman 9#nti-$acksonian-Rhode 6sland, +*(?-+*,?: Rufus %hoate 9#.B. &artmouth +*+>: L !.". %ongressman 9Whig-0assachusetts, +*,+-+*,-: $ohn #llen %ollier L !.". %ongressman 9#nti-0asonic-<ew =ork, 0arch -, +*,+-0arch ,, +*,,: Lewis %ondict 9!ni2ersity of Pennsyl2ania +/>-: L !.". %ongressman 9Repu)lican-<ew $ersey, +*++-+*+/, +*(+-+*,,: "ilas %ondit 9#.B. Princeton +/>?: L !.". %ongressman 9#nti-$acksonian-<ew $ersey, +*,+-+*,,: Bates %ooke L !.". %ongressman 9#nti-0asonic-<ew =ork, 0arch -, +*,+-0arch ,, +*,,: Eleutheros %ooke L !.". %ongressman 9#nti-$acksonian-Dhio, 0arch -, +*,+-0arch ,, +*,,: Richard 0. %ooper L !.". %ongressman 9#nti-$acksonian-<ew $ersey, +*(>-+*,,:H Pres., "tate Bank of <ew $ersey at %amden 9+*+,--(: .homas %orwin L !.". %ongressman 9Whig-Dhio, +*,+-+*-1:H ;o2ernor of Dhio 9+*-1-+*-(:H "ecretary of the .reasury 9+*?1-+*?,: Richard %oulter L !.". %ongressman 9$acksonian-Pennsyl2ania, 0arch -, +*(/-0arch ,, +*,?: Ro)ert %raig L !.". %ongressman 9$acksonian-Cirginia, +*(>-+*,,, +*,?-+*-+: $oseph 8. %rane L !.". %ongressman 9#nti-$acksonian-Dhio, 0arch -, +*(>-0arch ,, +*,/: .homas 8artley %rawford 9#.B. Princeton +*1-: L !.". %ongressman 9$acksonian-Pennsyl2ania, +*(>-+*,,: William %reighton $r. L !.". %ongressman 9Repu)lican-Dhio, 0ay -, +*+,-0arch ,, +*+/, +*(/-+*(*, +*(>-+*,,: 8enry &aniel L !.". %ongressman 9$acksonian-Aentucky, 0arch -, +*(/-0arch ,, +*,,: $ohn &a2is 9B.#. =ale +*+(: L !.". %ongressman 9Whig-0assachusetts, +*(?-+*,-:H ;o2ernor of 0assachusetts 9+*,--+*,?, +*-+-+*-,: 8enry #le4ander "cammell &ear)orn 9B.#. William and 0ary +*1,: L !.". %ongressman 9#nti-$acksonian-0assachusetts, +*,+-+*,,: 8armar &enny L !.". %ongressman 9#nti-0asonic-Pennsyl2ania, &ecem)er +?, +*(>-0arch ,, +*,/: Lewis &ewart L !.". %ongressman 9$acksonian-Pennsyl2ania, 0arch -, +*,+-0arch ,, +*,,: Philip &oddridge L !.". %ongressman 9#nti-$acksonian-Cirginia, 0arch -, +*(>-<o2em)er +>, +*,(: William &rayton L !.". %ongressman 9$acksonian-"outh %arolina, 0ay +/, +*(?-0arch ,, +*,,: William Wolcott Ellsworth 9B.#. =ale +*+1: L !.". %ongressman 9#nti-$acksonian-%onnecticut, +*(>-+*,-:H ;o2. of %onnecticut 9+*,*-+*-(: ;eorge E2ans 9B.#. Bowdoin %ollege +*+?: L !.". %ongressman 9Whig-0aine, +*(>-+*-+:H !.". "enator 9+*-+-+*-/: $oshua E2ans $r. L !.". %ongressman 9$acksonian-Pennsyl2ania, +*(>-+*,,: Edward E2erett 9B.#. 8ar2ard +*++: L !.". %ongressman 9Whig-0assachusetts, +*(?-+*,?: 8orace E2erett 9#.B. Brown +/>/: L !.". %ongressman 9Whig-Cermont, +*(>-+*-,: $ames 7ord L !.". %ongressman 9$acksonian-Pennsyl2ania, +*(>-+*,,: $ohn ;ilmore L !.". %ongressman 9$acksonian-Pennsyl2ania, +*(>-+*,,: ;eorge ;rennell $r. 9#.B. &artmouth +*1*: L !.". %ongressman 9Whig-0assachusetts, +*(>-+*,>: William 8iester L !.". %ongressman 9#nti-0asonic-Pennsyl2ania, +*,+-+*,/: $ames Leonard 8odges L !.". %ongressman 9#nti-$acksonian-0assachusetts, +*(/-+*,,: 8enry 8orn L !.". %ongressman 9$acksonian-Pennsyl2ania, +*,+-+*,,: .homas 8urst 8ughes L !.". %ongressman 9#nti-$acksonian-<ew $ersey, +*(>- +*,,: $a)eO Williams 8untington 9B.#. =ale +*1@: L !.". %ongressman 9Whig-%onnecticut, +*(>-+*,-: Peter 6hrie $r. L !.". %ongressman 9$acksonian-Pennsyl2ania, +*(>-+*,,: Ralph 6. 6ngersoll 9B.#. =ale +*1*: L !.". %ongressman 9#nti-$acksonian-%onnecticut, +*(?-+*,,:H !.". 0inister to Russia 9+*-@-+*-*: William W. 6r2in L !.". %ongressman 9$acksonian-Dhio, +*(>-+*,,: $aco) %. 6sacks L !.". %ongressman 9$acksonian-.ennessee, +*(,-+*,,: &aniel $enifer L !.". %ongressman 9#nti-$acksonian-0aryland, +*,+-+*,,, +*,?-+*-+:H !.". 0inister to #ustria 9+*-+- +*-?: $oseph ;. Aendall 9B.#. 8ar2ard +*+1: L !.". %ongressman 9#nti-$acksonian-0assachusetts, +*(>-+*,,: $ohn L. Aerr L !.". %ongressman 9Whig-0aryland, +*(?-+*(>, +*,+-+*,,:H !.". "enator 90aryland, +*-+-+*-,: 8enry Aing L !.". %ongressman 9$acksonian-Pennsyl2ania, 0arch -, +*,+-0arch ,, +*,?: Ro)ert Perkins Letcher L !.". %ongressman 9#nti-$acksonian-Aentucky, +*(,-+*,,, +*,--+*,?:H ;o2ernor of Aentucky 9+*-1-+*--: $oel Aeith 0ann L !.". %ongressman 9$acksonian-Pennsyl2ania, +*,+-+*,?: .homas #le4ander 0arshall 9B.#. =ale +*+?: L !.". %ongressman 9#nti-$acksonian-Aentucky, +*,+-+*,?: Lewis 0a4well L !.". %ongressman 9#nti-$acksonian-Cirginia, +*(/-+*,,: William 0c%oy L !.". %ongressman 9$acksonian-Cirginia, +*++-+*,,: ;eorge 0c&uffie L !.". %ongressman 9&emocrat-"outh %arolina, +*(+-+*,-:H ;o2ernor of "outh %arolina 9+*,--+*,@: .homas 0cAean .hompson 0cAennan L !.". %ongressman 9#nti-0asonic-Pennsyl2ania, +*,+-+*,>, +*-(-+*-,:H "ec. of the 6nterior 9+*?1: %harles 7enton 0ercer 9#.B. Princeton +/>/: L !.". %ongressman 9Whig-Cirginia, +*+/-+*,>:

$ohn $ones 0illigan L !.". %ongressman 9#nti-$acksonian-&elaware, +*,+-+*,>: .homas <ewton $r. L !.". %ongressman 9Repu)lican-Cirginia, +*1+-+*(>, +*(>-+*,1, +*,+-+*,,: &utee $erauld Pearce 9#.B. Brown +*1*: L !.". %ongressman 9#nti-$acksonian-Rhode 6sland, +*(?-+*,/: Edmund 8. Pendleton 9B.#. %olum)ia +*1?: L !.". %ongressman 9#nti-$acksonian-<ew =ork, +*,+-+*,,: <athaniel Pitcher L !.". %ongressman 9$acksonian-<ew =ork, +*+>-+*(,, +*,+-+*,,: &a2id Potts $r. L !.". %ongressman 9#nti-0asonic-Pennsyl2ania, +*,+-+*,>: $ames 7itO Randolph L !.". %ongressman 9#nti-$acksonian-<ew $ersey, +*(*-+*,,:H !nited "tates collector of internal re2enue 9+*+?-+*-@: $ohn Reed 9#.B. Brown +*1,: L !.". %ongressman 97ederalistEWhig-0assachusetts, +*+,-+*+/, +*(+-+*-+: Erastus Root 9#.B. &artmouth +/>,: L !.". %ongressman 9$acksonian-<ew =ork, +*1,-+*1?, +*1>-+*++, +*+?-+*+/, +*,+-+*,,: William Russell L !.". %ongressman 9$acksonian-Dhio, +*(/-+*,,, +*-+-+*-,: Benedict $oseph "emmes L !.". %ongressman 9#nti-$acksonian-0aryland, +*(>-+*,,: William Biddle "hepard L !.". %ongressman 9#nti-$acksonian-<orth %arolina, +*(>-+*,/: #ugustine 8enry "hepperd L !.". %ongressman 9$acksonian-<orth %arolina, +*(/-+*,>, +*-+-+*-,, +*-/-+*?+: William "lade L !.". %ongressman 9#nti-0asonic-Cermont, <o2em)er +, +*,+-0arch ,, +*-,:H ;o2ernor of Cermont 9+*---+*-@: "amuel #. "mith L !.". %ongressman 9$acksonian-Pennsyl2ania, Dcto)er +,, +*(>-0arch ,, +*,,: 6saac "outhard L !.". %ongressman 9#nti-$acksonian-<ew $ersey, +*,+-+*,,: $ohn "el)y "pence L !.". %ongressman 9#nti-$acksonian-0aryland, +*(,-+*(?, +*,+-+*,,:H !.". "enator 90aryland, +*,@-+*-1: William "tan)ery L !.". %ongressman 9#nti-$acksonian-Dhio, Dcto)er >, +*(/-0arch ,, +*,,: Philander "tephens L !.". %ongressman 9$acksonian-Pennsyl2ania, +*(>-+*,,: #ndrew "tewart L !.". %ongressman 9#nti-0asonic-Pennsyl2ania, +*(+-+*(>, +*,+-+*,?, +*-,-+*->: William L. "torrs 9B.#. =ale +*+-: L !.". %ongressman 9#nti-$acksonian-%onnecticut, +*(>-+*,,, +*,>-+*-1: $oel Barlow "utherland 9B.#. !ni2ersity of Pennsyl2ania +*+(: L !.". %ongressman 9$acksonian-Pennsyl2ania, +*(/-+*,/: $ohn W. .aylor 9#.B. !nion %ollege +*1,: L !.". %ongressman 9Repu)lican-<ew =ork, +*+,-+*,,: Philemon .homas L !.". %ongressman 9Louisiana, +*,+-+*,?: %hristopher .ompkins L !.". %ongressman 9#nti-$acksonian-Aentucky, +*,+-+*,?: Phineas Lyman .racy 9B.#. =ale +*1@: L !.". %ongressman 9#nti-0asonic-<ew =ork, +*(/-+*,,: $oseph Cance L !.". %ongressman 9#nti-$acksonian-Dhio, +*(+-+*,?, +*-,-+*-/:H ;o2ernor of Dhio 9+*,@-+*,*: ;ulian %. Cerplanck 9B.#. %olum)ia +*1+: L !.". %ongressman 9$acksonian-<ew =ork +*(?-+*,,: "amuel 7inley Cinton 9B.#. Williams %ollege +*+-: L !.". %ongressman 9Whig-Dhio, +*(,-+*,/, +*-,-+*?+: ;eorge %or)in Washington L !.". %ongressman 9#nti-$acksonian-0aryland, +*(/-+*,,, +*,?-+*,/: $ohn ;oddard Watmough L !.". %ongressman 9#nti-$acksonian-Pennsyl2ania, +*,+-+*,?: Edward &ouglass White L !.". %ongressman 9Whig-Louisiana, +*(>-+*,-, +*,>-+*-,:H ;o2ernor of Louisiana 9+*,--+*,*: Elisha Whittlesey L !.". %ongressman 9Whig-Dhio, +*(,-+*,*:H 7irst %omptroller of the .reasury 9+*->-+*?/, +*@+-+*@,: 7rederick Whittlesey 9B.#. =ale +*+*: L !.". %ongressman 9#nti-0asonic-<ew =ork, +*,+-+*,?: %harles #. Wickliffe L !.". %ongressman 9$acksonian-Aentucky, +*(,-+*,,, +*@+-+*@,:H Postmaster ;eneral of the !.". 9+*-+-+*-?: Lewis Williams 9B.#. !ni2. of <orth %arolina +*1*: L !.". %ongressman 9Repu)lican-<orth %arolina, +*+?-+*-(: E)eneOer =oung 9B.#. =ale +*1@: L !.". %ongressman 9%onnecticut, +*(>-+*,?: /ay Gotes ?8@ /ays, @ Dissin+A: $ohn #dair L !.". %ongressman 9$acksonian-Aentucky, +*,+-+*,,:H ;o2ernor of Aentucky 9+*(1-+*(-: 0ark #le4ander 9B.#. !ni2ersity of <orth %arolina +*++: L !.". %ongressman 9$acksonian-Cirginia, +*+>-+*,,: $ohn #nderson 9B.#. Bowdoin %ollege +*+,: L !.". %ongressman 9$acksonian-0aine, +*(?-+*,,: William ". #rcher 9B.#. William and 0ary +*1@: L !.". %ongressman 9Whig-Cirginia, +*(1-+*,?:H !.". "enator 9Whig-Cirginia, +*-+-+*-/: $ames Bates L !.". %ongressman 9$acksonian-0aine, +*,+-+*,,: "amuel Beardsley L !.". %ongressman 9$acksonian-<ew =ork, +*,+-+*,@, +*-,-+*--:H #ttorney ;eneral of <ew =ork 9+*,@-+*,*: $ohn Bell L !.". %ongressman 9$acksonian-.ennessee, +*(/-+*-+:H !.". "enator 9Whig-.ennessee, +*-/-+*?>: $ohn .. Bergen L !.". %ongressman 9$acksonian-<ew =ork, +*,+-+*,,: Lauchlin Bethune L !.". %ongressman 9$acksonian-<orth %arolina, 0arch -, +*,+-0arch ,, +*,,: $ames Blair L !.". %ongressman 9$acksonian-"outh %arolina, +*(+-+*((, +*(>-+*,-: $ohn Blair L !.". %ongressman 9$acksonian-.ennessee, +*(,-+*,?: $oseph Bouck L !.". %ongressman 9$acksonian-<ew =ork, 0arch -, +*,+-0arch ,, +*,,: .homas .yler Bouldin L !.". %ongressman 9$acksonian-Cirginia, +*(>-+*,,, +*,,-+*,-: $ohn Branch L !.". %ongressman 9$acksonian-<orth %arolina, +*,+-+*,,:H !.". "enator 9+*(,-+*(>:H "ecretary of the <a2y 9+*(>-+*,+: %hurchill %. %am)releng L !.". %ongressman 9$acksonian-<ew =ork, +*(+-+*,>:H !.". 0inister to Russia 9+*-1-+*-+: $ohn %arr L !.". %ongressman 9$acksonian-6ndiana, +*,+-+*,/, +*,>-+*-+: .homas %handler L !.". %ongressman 9$acksonian-<ew 8ampshire, +*(>-+*,,: $oseph William %hinn 9B.#. !nion %ollege +*+>: L !.". %ongressman 9$acksonian-Cirginia, +*,+-+*,?: <athaniel 8er)ert %lai)orne L !.". %ongressman 9$acksonian-Cirginia, +*(?-+*,/: %lement %omer %lay L !.". %ongressman 9&emocrat-#la)ama, +*(>-+*,?:H ;o2ernor of #la)ama 9+*,@-+*,/: #ugustin "mith %layton L !.". %ongressman 9$acksonian-;eorgia, $anuary (+, +*,(-0arch ,, +*,?: Richard %oke $r. L !.". %ongressman 9$acksonian-Cirginia, +*(>-+*,,: 8enry William %onnor L !.". %ongressman 9$acksonian-<orth %arolina, +*(+-+*-+: Warren Ransom &a2is L !.". %ongressman 9<ullifier-"outh %arolina, +*(/-+*,?: %harles &ayan L !.". %ongressman 9$acksonian-<ew =ork, +*,+-+*,,: !lysses 7reeman &ou)leday L !.". %ongressman 9$acksonian-<ew =ork, +*,+-+*,,, +*,?-+*,/: $ohn 0yers 7elder 9B.#. =ale +*1-: L !.". %ongressman 9&emocrat-"outh %arolina, +*,+-+*,?: William 7itOgerald L !.". %ongressman 9$acksonian-.ennessee, +*,+-+*,,: .homas 7lournoy 7oster L !.". %ongressman 9$acksonian-;eorgia, +*(>-+*,?, +*-+-+*-,: <athan ;aither L !.". %ongressman 9$acksonian-Aentucky, +*(>-+*,,: William 7itOhugh ;ordon L !.". %ongressman 9$acksonian-Cirginia, $anuary (?, +*,1-0arch ,, +*,?: $ohn Aing ;riffin L !.". %ongressman 9<ullifier-"outh %arolina, +*,+-+*-+: .homas 8. 8all L !.". %ongressman 9$acksonian-<orth %arolina, +*+/-+*(?, +*(/-+*,?:

William 8all L !.". %ongressman 9$acksonian-.ennessee, 0arch -, +*,+-0arch ,, +*,,:H ;o2ernor of .ennessee 9+*(>: $oseph 8ammons L !.". %ongressman 9$acksonian-<ew 8ampshire, 0arch -, +*(>-0arch ,, +*,,: $oseph 0orrill 8arper L !.". %ongressman 9$acksonian-<ew 8ampshire, 0arch -, +*,+-0arch ,, +*,?: #l)ert ;allatin 8awes L !.". %ongressman 9$acksonian-Aentucky, 0arch -, +*,+-0arch ,, +*,/: 0ica'ah .homas 8awkins L !.". %ongressman 9$acksonian-<orth %arolina, &ecem)er +?, +*,+-0arch ,, +*-+: 0ichael 8offman L !.". %ongressman 9$acksonian-<ew =ork, +*(?-+*,,: William 8ogan 9B.#. %olum)ia +*++: L !.". %ongressman 9$acksonian-<ew =ork, +*,+-+*,,: %ornelius 8olland L !.". %ongressman 9$acksonian-0aine, &ecem)er @, +*,1-0arch ,, +*,,: Ben'amin %. 8oward 9#.B. Princeton +*1>: L !.". %ongressman 9$acksonian-0aryland, +*(>-+*,,, +*,?-+*,>: 8enry 8u))ard 9#.B. &artmouth +*1,: L !.". %ongressman 9$acksonian-<ew 8ampshire, +*(>-+*,?: Leonard $ar2is 9B.#. 8ar2ard +*11: L !.". %ongressman 9$acksonian-0aine, +*(>-+*,/: %a2e $ohnson L !.". %ongressman 9$acksonian-.ennessee, +*(>-+*,/, +*,>-+*-?:H Postmaster ;eneral of the !nited "tates 9+*-?-+*->: Edward Aa2anagh L !.". %ongressman 9$acksonian-0aine, +*,+-+*,?:H !.". %hargU d3#ffaires to Portugal 9+*,?-+*-+: William Aennon "r. L !.". %ongressman 9$acksonian-Dhio, +*(>-+*,,, +*,?-+*,/: #dam Aing L !.". %ongressman 9$acksonian-Pennsyl2ania, +*(/-+*,,: $ohn Aing L !.". %ongressman 9$acksonian-<ew =ork, 0arch -, +*,+-0arch ,, +*,,: 8enry ;ray)ill Lamar L !.". %ongressman 9$acksonian-;eorgia, &ecem)er /, +*(>-0arch ,, +*,,: 8umphrey 8owe Lea2itt L !.". %ongressman 9$acksonian-Dhio, +*,1-+*,-:H $udge of !.". &istrict %ourt for the &istrict of Dhio 9+*,--+*/+: $oseph Lecompte L !.". %ongressman 9$acksonian-Aentucky, 9+*(?-+*,,: &i4on 8all Lewis L !.". %ongressman 9&emocrat-#la)ama, +*(>-+*--:H !.". "enator 9#la)ama, +*---+*-*: %hittenden Lyon L !.". %ongressman 9$acksonian-Aentucky, +*(/-+*,?: "amuel Wright 0ardis L !.". %ongressman 9$acksonian-#la)ama, 0arch -, +*,+-0arch ,, +*,?: $ohn =oung 0ason L !.". %ongressman 9$acksonian-Cirginia, +*,+-+*,/:H "ecretary of the <a2y 9+*---+*-?, +*-@-+*->: $ohnathan 0c%arty L !.". %ongressman 9$acksonian-6ndiana, +*,+-+*,/: Rufus 0c6ntire 9#.B. &artmouth +*1>: L !.". %ongressman 9$acksonian-0aine, +*(/-+*,?: $ames 62er 0cAay L !.". %ongressman 9$acksonian-<orth %arolina, 0arch -, +*,+-0arch ,, +*->: .homas R. 0itchell 9B.#. 8ar2ard +*1(: L !.". %ongressman 9Repu)licanE$acksonian-"outh %arolina, +*(+-+*(,, +*(?-+*(>, +*,+-+*,,: &aniel <ewnan L !.". %ongressman 9$acksonian-;eorgia, 0arch -, +*,+-0arch ,, +*,,: William .hompson <uckolls L !.". %ongressman 9$acksonian-"outh %arolina, +*(/-+*,,: $ohn 0ercer Patton L !.". %ongressman 9$acksonian-Cirginia, <o2em)er (?, +*,1-#pril /, +*,*: $o) Pierson 9B.#. Williams %ollege +*++: L !.". %ongressman 9$acksonian-<ew =ork, +*,+-+*,?: $ames A. Polk L !.". %ongressman 9$acksonian-.ennessee, +*(?-+*,>:H President of the !nited "tates 9+*-?-+*->: Edward %. Reed 9#.B. &artmouth +*+(: L !.". %ongressman 9$acksonian-<ew =ork, +*,+-+*,,: #)raham Rencher L !.". %ongressman 9$acksonian-<orth %arolina, +*(>-+*,>, +*-+-+*-,:H !.". 0inister to Portugal 9+*-,-+*-/: $ohn $ones Roane L !.". %ongressman 9$acksonian-Cirginia, 0arch -, +*,+-0arch ,, +*,,: <athan "oule L !.". %ongressman 9$acksonian-<ew =ork, +*,+-+*,,: $esse "peight L !.". %ongressman 9&emocrat-<orth %arolina, +*(>-+*,/:H !.". "enator 9&emocrat-0ississippi, +*-?-+*-/: $ames 6srael "tandifer L !.". %ongressman 9$acksonian-.ennessee, +*(,-+*(?, +*(>-+*,/: 7rancis .homas L !.". %ongressman 9$ackson-0aryland, +*,+-+*-+, +*@+-+*@>:H ;o2ernor of 0aryland 9+*-+-+*--: Wiley .hompson L !.". %ongressman 9$acksonian-;eorgia, 0arch -, +*(+-0arch ,, +*,,: $ohn .homson L !.". %ongressman 9$acksonian-Dhio, +*(?-+*(/, +*(>-+*,/: #aron Ward L !.". %ongressman 9$acksonian-<ew =ork, +*(?-+*(>, +*,+-+*,/, +*-+-+*-,: &aniel Wardwell 9#.B. Brown +*++: L !.". %ongressman 9$acksonian-<ew =ork, +*,+-+*,/: $ames 0oore Wayne 9#.B. Princeton +*1*: L !.". %ongressman 9$acksonian-;eorgia, +*(>-+*,?: $ohn Wingate Weeks L !.". %ongressman 9$acksonian-<ew 8ampshire, +*(>-+*,,: ;rattan 8enry Wheeler L !.". %ongressman 9#nti-0asonic-<ew =ork, +*,+-+*,,: %amp)ell Patrick White L !.". %ongressman 9$acksonian-<ew =ork, +*(>-+*,?: Richard 8enry Wilde L !.". %ongressman 9Repu)lican-;eorgia, +*+?-+*+/, +*(?, +*(/-+*,?: $ohn ..8. Worthington L !.". %ongressman 9$acksonian-0aryland, +*,+-+*,,, +*,/-+*-+: #)sentB William ;. #ngel L !.". %ongressman 9$acksonian-<ew =ork, +*(?-+*(/, +*(>-+*,,: Ratliff Boon L !.". %ongressman 9$acksonian-6ndiana, +*(?-+*(/, +*(>-+*,>: $ohn Brodhead L !.". %ongressman 9$acksonian-<ew 8ampshire, +*(>-+*,,: $ohn %urtis Brodhead L !.". %ongressman 9$acksonian-<ew =ork, +*,+-+*,,, +*,/-+*,>: "amuel Price %arson L !.". %ongressman 9$acksonian-<orth %arolina, +*(?-+*,,:H "ecretary of "tate of the Repu)lic of .e4as 9+*,@-+*,*: $oseph &uncan L !.". %ongressman 9$acksonian-6llinois, +*(/-+*,-:H ;o2ernor of 6llinois 9+*,--+*,*: 7ree)orn ;arrettson $ewett L !.". %ongressman 9$acksonian-<ew =ork, +*,+-+*,,: ;errit =ates Lansing 9B.#. !nion %ollege +*11: L !.". %ongressman 9$acksonian-<ew =ork, +*,+-+*,/: $ames Lent L !.". %ongressman 9$acksonian-<ew =ork, 0arch -, +*(>-7e)ruary ((, +*,,: Ro)ert 0c%oy L !.". %ongressman 9$acksonian-Pennsyl2ania, <o2em)er ((, +*,+-0arch ,, +*,,: 8enry #ugustus Philip 0uhlen)erg L !.". %ongressman 9$acksonian-Pennsyl2ania, +*(>-+*,*:H !.". 0inister to #ustria 9+*,*-+*-1: $eremiah <elson 9#.B. &artmouth +/>1: L !.". %ongressman 9#nti-$acksonian-0assachusetts, +*1?-+*1/, +*+?-+*(?, +*,+-+*,,: 7ranklin E. Plummer L !.". %ongressman 9$acksonian-0ississippi, 0arch -, +*,+-0arch ,, +*,?: #ndrew "te2enson L !.". %ongressman 9$acksonian-Cirginia, +*(+-+*,-:H "peaker of the 8ouse of Representati2es 9+*(/-+*,-:H !.". 0inister to ;reat Britain 9+*,@-+*-+: "amuel $. Wilkin 9#.B. Princeton +*+(: L !.". %ongressman 9#nti-$acksonian-<ew =ork, +*,+-+*,,: <oteB #n attempt was made )y 0organ #. 8eard to assassinate !.". %ongressman .homas &. #rnold 9#nti-$acksonian-.ennessee: on 0ay +-, +*,(, as he descended the west steps of the !.". %apitol in Washington, &.%., !.".#. <oteB !.". %ongressman %harles %lement $ohnston 9$acksonian-Cirginia: died in office on $une +/, +*,(. <oteB !.". %ongressman ;eorge Edward 0itchell 9$acksonian-0aryland: died in office in Washington, &.%. on $une (*, +*,(.

#%y League Politi!ians and Their Iote on the /e!ond &ank o* the .nited /tates in 345J
0ea Gotes: !.". "enatorsB $ohn 0. %layton 9B.#. =ale +*+?: L !.". "enator 9#nti-$acksonian-&elaware, +*(>-+*,@H Whig-&elaware, +*-?-+*->H +*?,-+*?@: "amuel #ugustus 7oot 9B.#. =ale +/>/: L !.". "enator 9#nti-$acksonian-%onnecticut, +*(/-+*,,: #sher Ro))ins 9B.#. =ale +/*(: L !.". "enator 9Whig-Rhode 6sland, +*(?-+*,>: 8oratio "eymour 9B.#. =ale +/>/: L !.". "enator 9#nti-$acksonian-Cermont, +*(+-+*,,: ;ideon .omlinson 9B.#. =ale +*1(: L !.". "enator 9#nti-$acksonian-%onnecticut, +*,+-+*,/: Peleg "prague 9B.#. 8ar2ard +*+(: L !.". "enator 9#nti-$acksonian-0aine, +*(>-+*,?: .heodore 7relinghuysen 9#.B. Princeton +*1-: L !.". "enator 9#nti-$acksonian-<ew $ersey, +*(>-+*,?: #rnold <audain 9#.B. Princeton +*1@: L !.". "enator 9#nti-$acksonian-&elaware, +*,1-+*,@: ;eorge 0. &allas 9#.B. Princeton +*+1: L !.". "enator 9$acksonian-Pennsyl2ania, +*,+-+*,,: "amuel Bell 9#.B. &artmouth +/>,: L !.". "enator 9#nti-$acksonian-<ew 8ampshire, +*(,-+*,?: &aniel We)ster 9#.B. &artmouth +*1+: L !.". "enator 9Whig-0assachusetts, +*(/-+*-+, +*-?-+*?1: $ohn 8olmes 9#.B. Brown +/>@: L !.". "enator 9#dams Repu)lican-0aine, +*(1-+*(/, +*(>-+*,,: 0em)ers of the !.". 8ouse of Representati2esB 6saac %hapman Bates 9B.#. =ale +*1(: L !.". %ongressman 9Whig-0assachusetts, +*(/-+*,?: $ohn &a2is 9B.#. =ale +*+(: L !.". %ongressman 9Whig-0assachusetts, +*(?-+*,-: William Wolcott Ellsworth 9B.#. =ale +*+1: L !.". %ongressman 9#nti-$acksonian-%onnecticut, +*(>-+*,-: $a)eO Williams 8untington 9B.#. =ale +*1@: L !.". %ongressman 9Whig-%onnecticut, +*(>-+*,-: Ralph 6. 6ngersoll 9B.#. =ale +*1*: L !.". %ongressman 9&emocrat-%onnecticut, +*(?-+*,,: .homas #le4ander 0arshall 9B.#. =ale +*+?: L !.". %ongressman 9#nti-$acksonian-Aentucky, +*,+-+*,?: William L. "torrs 9B.#. =ale +*+-: L !.". %ongressman 9#nti-$acksonian-%onnecticut, +*(>-+*,,, +*,>-+*-1: Phineas Lyman .racy 9B.#. =ale +*1@: L !.". %ongressman 9#nti-0asonic-<ew =ork, +*(/-+*,,: 7rederick Whittlesey 9B.#. =ale +*+*: L !.". %ongressman 9#nti-0asonic-<ew =ork, +*,+-+*,?: E)eneOer =oung 9B.#. =ale +*1@: L !.". %ongressman 9%onnecticut, +*(>-+*,?: $ohn Tuincy #dams 9B.#. 8ar2ard +/*/: L !.". %ongressman 9Whig-0assachusetts, +*,+-+*-*:H President of the !.". 9+*(?-+*(>: 8enry #dams Bullard 9B.#. 8ar2ard +*1/: L !.". %ongressman 9#nti-$acksonian-Louisiana, +*,+-+*,-H Whig-Louisiana, +*?1-+*?+: Edward E2erett 9B.#. 8ar2ard +*++: L !.". %ongressman 9Whig-0assachusetts, +*(?-+*,?: $oseph ;. Aendall 9B.#. 8ar2ard +*+1: L !.". %ongressman 9#nti-$acksonian-0assachusetts, +*(>-+*,,: "ilas %ondit 9#.B. Princeton +/>?: L !.". %ongressman 9#nti-$acksonian-<ew $ersey, +*,+-+*,,: .homas 8artley %rawford 9#.B. Princeton +*1-: L !.". %ongressman 9$acksonian-Pennsyl2ania, +*(>-+*,,: %harles 7enton 0ercer 9#.B. Princeton +/>/: L !.". %ongressman 9Whig-Cirginia, +*+/-+*,>: Rufus %hoate 9#.B. &artmouth +*+>: L !.". %ongressman 9Whig-0assachusetts, +*,+-+*,-: ;eorge ;rennell $r. 9#.B. &artmouth +*1*: L !.". %ongressman 9Whig-0assachusetts, +*(>-+*,>: Erastus Root 9#.B. &artmouth +/>,: L !.". %ongressman 9$acksonian-<ew =ork, +*1,-+*1?, +*1>-+*++, +*+?-+*+/, +*,+-+*,,: .ristam Burges 9#.B. Brown +/>@: L !.". %ongressman 9#nti-$acksonian-Rhode 6sland, +*(?-+*,?: 8orace E2erett 9#.B. Brown +/>/: L !.". %ongressman 9Whig-Cermont, +*(>-+*-,: &utee $erauld Pearce 9#.B. Brown +*1*: L !.". %ongressman 9#nti-$acksonian-Rhode 6sland, +*(?-+*,/: $ohn Reed 9#.B. Brown +*1,: L !.". %ongressman 97ederalistEWhig-0assachusetts, +*+,-+*+/, +*(+-+*-+: Edmund 8. Pendleton 9B.#. %olum)ia +*1?: L !.". %ongressman 9#nti-$acksonian-<ew =ork, +*,+-+*,,: ;ulian %. Cerplanck 9B.#. %olum)ia +*1+: L !.". %ongressman 9$acksonian-<ew =ork +*(?-+*,,: $oel Barlow "utherland 9B.#. !ni2ersity of Pennsyl2ania +*+(: L !.". %ongressman 9$acksonian-Pennsyl2ania, +*(/-+*,/: /ay Gotes: !.". "enatorsB Elias Aent Aane 9B.#. =ale +*+,: L !.". "enator 9$acksonian-6llinois, +*(?-+*,?: William Learned 0arcy 9#.B. Brown +*1*: L !.". "enator 9$acksonian-<ew =ork, +*,+-+*,,: ;eorge 0. Bi)) 9#.B. Princeton +/>(: L !.". "enator 9$acksonian-Aentucky, +*++-+*+-, +*(>-+*,?: 0ahlon &ickerson 9#.B. Princeton +/*>: L !.". "enator 9$acksonian-<ew $ersey, +*+/-+*,,: $ohn 7orsyth 9#.B. Princeton +/>>: L !.". "enator 9$acksonian-;eorgia, +*+*-+*+>, +*(>-+*,-: ;eorge 0. .roup 9#.B. Princeton +/>/: L !.". "enator 9$acksonian-;eorgia, +*+@-+*+*, +*(>-+*,,: 0em)ers of the !.". 8ouse of Representati2esB $ohn 0yers 7elder 9B.#. =ale +*1-: L !.". %ongressman 9&emocrat-"outh %arolina, +*,+-+*,?: Leonard $ar2is 9B.#. 8ar2ard +*11: L !.". %ongressman 9$acksonian-0aine, +*(>-+*,/: .homas R. 0itchell 9B.#. 8ar2ard +*1(: L !.". %ongressman 9Repu)licanE$acksonian-"outh %arolina, +*(+-+*(,, +*(?-+*(>, +*,+-+*,,: Ben'amin %. 8oward 9#.B. Princeton +*1>: L !.". %ongressman 9$acksonianE&emocrat-0aryland, +*(>-+*,,, +*,?-+*,>: $ames 0oore Wayne 9#.B. Princeton +*1*: L !.". %ongressman 9$acksonian-;eorgia, +*(>-+*,?: 8enry 8u))ard 9#.B. &artmouth +*1,: L !.". %ongressman 9$acksonian-<ew 8ampshire, +*(>-+*,?: Rufus 0c6ntire 9#.B. &artmouth +*1>: L !.". %ongressman 9$acksonian-0aine, +*(/-+*,?: Edward %. Reed 9#.B. &artmouth +*+(: L !.". %ongressman 9$acksonian-<ew =ork, +*,+-+*,,: &aniel Wardwell 9#.B. Brown +*++: L !.". %ongressman 9$acksonian-<ew =ork, +*,+-+*,/: William 8ogan 9B.#. %olum)ia +*++: L !.". %ongressman 9$acksonian-<ew =ork, +*,+-+*,,: # sent: Ro)ert Woodward Barnwell 9B.#. 8ar2ard +*(+: L !.". %ongressman 9&emocrat-"outh %arolina, +*(>-+*,,: $eremiah <elson 9#.B. &artmouth +/>1: L !.". %ongressman 9#nti-$acksonian-0assachusetts, +*1?-+*1/, +*+?-+*(?, +*,+-+*,,: "amuel $. Wilkin 9#.B. Princeton +*+(: L !.". %ongressman 9#nti-$acksonian-<ew =ork, +*,+-+*,,:

#%y League Politi!ians who %oted ?Oea@ on the /e!ond &ank o* the .nited /tates in 345J

$ohn 0. %layton B.#. =ale +*+? !.". "enator 9#$&elaware, +*(>-+*,@H W&elaware, +*-?-+*->H D&elaware +*?,-+*?@:

"amuel #ugustus 7oot B.#. =ale +/>/ !.". "enator 9#$%onnecticut, +*(/-+*,,:

#sher Ro))ins B.#. =ale +/*( !.". "enator 9Whig-Rhode 6sland, +*(?-+*,>:

8oratio "eymour B.#. =ale +/>/ !.". "enator 9#$Cermont, +*(+-+*,,:

;ideon .omlinson B.#. =ale +*1( !.". "enator 9#$%onnecticut, +*,+-+*,/:

$ohn Tuincy #dams B.#. 8ar2ard +/*/ !.". %ongressman 9Whig0ass., +*,+-+*-*:H D2erseer of 8ar2ard !ni2ersity 9+*,1-+*-*:

Edward E2erett B.#. 8ar2ard +*++ Ph.&. ;ottingen +*+/ !.". %ongressman 9Whig-0assachusetts, +*(?-+*,?:

Peleg "prague B.#. 8ar2ard +*+( !.". "enator 9#nti$acksonian-0aine, +*(>-+*,?:

&aniel We)ster #.B. &artmouth +*1+ !.". "enator 9Whig-0ass., +*(/-+*-+, +*-?-+*?1:

"amuel Bell #.B. &artmouth +/>, !.". "enator 9#nti$acksonian-<ew 8ampshire, +*(,-+*,?:

6saac %hapman Bates B.#. =ale +*1( !.". %ongressman 9Whig-0assachusetts, +*(/-+*,?:

$ohn &a2is B.#. =ale +*+( !.". %ongressman 9Whig0assachusetts, +*(?+*,-:

William Wolcott Ellsworth B.#. =ale +*+1 !.". %ongressman 9#nti$acksonian-%onnecticut, +*(>-+*,-:

$a)eO W. 8untington B.#. =ale +*1@ !.". %ongressman 9Whig%onnecticut, +*(>-+*,-:

Rufus %hoate #.B. &artmouth +*+> !.". %ongressman 9Whig0assachusetts, +*,+-+*,-:

.heodore 7relinghuysen #.B. Princeton +*1!.". "enator 9#nti$acksonian-<ew $ersey, +*(>-+*,?:

#rnold <audain #.B. Princeton +*1@ !.". "enator 9#nti-$acksonian&elaware, +*,1-+*,@:

;eorge 0. &allas #.B. Princeton +*+1 !.". "enator 9$acksonianPennsyl2ania, +*,+-+*,,:

$ohn 8olmes #.B. Brown +/>@ !.". "enator 9#dams Repu)lican-0aine, +*(1+*(/, +*(>-+*,,:

;ulian %. Cerplanck B.#. %olum)ia +*1+ !.". %ongressman 9$acksonian-<ew =ork +*(?-+*,,:

President $ackson3s Ceto 0essage Regarding the "econd Bank of the !nited "tates
W#"86<;.D<, $uly +1, +*,(. .o the "enate. .he )ill “to modify and continue the act entitled “#n act to incorporate the su)scri)ers to the Bank of the !nited "tates was presented to me on the -th $uly instant. 8a2ing considered it with that solemn regard to the principles of the %onstitution which the day was calculated to inspire, and come to the conclusion that it ought not to )ecome a law, 6 herewith return it to the "enate, in which it originated, with my o)'ections. # )ank of the !nited "tates is in many respects con2enient for the ;o2ernment and useful to the people. Entertaining this opinion, and deeply impressed with the )elief that some of the powers and pri2ileges possessed )y the e4isting )ank are unauthoriOed )y the %onstitution, su)2ersi2e of the rights of the "tates, and dangerous to the li)erties of the people, 6 felt it my duty at an early period of my #dministration to call the attention of %ongress to the practica)ility of organiOing an institution com)ining all its ad2antages and o)2iating these o)'ections. 6 sincerely regret that in the act )efore me 6 can percei2e none of those modifications of the )ank charter which are necessary, in my opinion, to make it compati)le with 'ustice, with sound policy, or with the %onstitution of our country. .he present corporate )ody, denominated the president, directors, and company of the Bank of the !nited "tates, will ha2e e4isted at the time this act is intended to take effect twenty years. 6t en'oys an e4clusi2e pri2ilege of )anking under the authority of the ;eneral ;o2ernment, a monopoly of its fa2or and support, and, as a necessary conseGuence, almost a monopoly of the foreign and domestic e4change. .he powers, pri2ileges, and fa2ors )estowed upon it in the original charter, )y increasing the 2alue of the stock far a)o2e its par 2alue, operated as a gratuity of many millions to the stockholders. #n apology may )e found for the failure to guard against this result in the consideration that the effect of the original act of incorporation could not )e certainly foreseen at the time of its passage. .he act )efore me proposes another gratuity to the holders of the same stock, and in many cases to the same men, of at least se2en millions more. .his donation finds no apology in any uncertainty as to the effect of the act. Dn all hands it is conceded that its passage will increase at least so or ,1 per cent more the market price of the stock, su)'ect to the payment of the annuity of 5(11,111 per year secured )y the act, thus adding in a moment one-fourth to its par 2alue. 6t is not our own citiOens only who are to recei2e the )ounty of our ;o2ernment. 0ore than eight millions of the stock of this )ank are held )y foreigners. By this act the #merican Repu)lic proposes 2irtually to make them a present of some millions of dollars. 7or these gratuities to foreigners and to some of our own opulent citiOens the act secures no eGui2alent whate2er. .hey are the certain gains of the present stockholders under the operation of this act, after making full allowance for the payment of the )onus. E2ery monopoly and all e4clusi2e pri2ileges are granted at the e4pense of the pu)lic, which ought to recei2e a fair eGui2alent. .he many millions which this act proposes to )estow on the stockholders of the e4isting )ank must come directly or indirectly out of the earnings of the #merican people. 6t is due to them, therefore, if their ;o2ernment sell monopolies and e4clusi2e pri2ileges, that they should at least e4act for them as much as they are worth in open market. .he 2alue of the monopoly in this case may )e correctly ascertained. .he twenty-eight millions of stock would pro)a)ly )e at an ad2ance of ?1 per cent, and command in market at least 5-(,111,111, su)'ect to the payment of the present )onus. .he present 2alue of the monopoly, therefore, is 5+/,111,111, and this the act proposes to sell for three millions, paya)le in fifteen annual installments of 5(11,111 each. 6t is not concei2a)le how the present stockholders can ha2e any claim to the special fa2or of the ;o2ernment. .he present corporation has en'oyed its monopoly during the period stipulated in the original contract. 6f we must ha2e such a corporation, why should not the ;o2ernment sell out the whole stock and thus secure to the people the full market 2alue of the pri2ileges grantedR Why should not %ongress create and sell twenty-eight millions of stock, incorporating the purchasers with all the powers and pri2ileges secured in this act and putting the premium upon the sales into the .reasuryR But this act does not permit competition in the purchase of this monopoly. 6t seems to )e predicated on the erroneous idea that the present stockholders ha2e a prescripti2e right not only to the fa2or )ut to the )ounty of ;o2ernment. 6t appears that more than a fourth part of the stock is held )y foreigners and the residue is held )y a few hundred of our own citiOens, chiefly of the richest class. 7or their )enefit does this act e4clude the whole #merican people from competition in the purchase of this monopoly and dispose of it for many millions less than it is worth. .his seems the less e4cusa)le )ecause some of our citiOens not now stockholders petitioned that the door of competition might )e opened, and offered to take a charter on terms much more fa2ora)le to the ;o2ernment and country. But this proposition, although made )y men whose aggregate wealth is )elie2ed to )e eGual to all the pri2ate stock in the e4isting )ank, has )een set aside, and the )ounty of our ;o2ernment is proposed to )e again )estowed on the few who ha2e )een fortunate enough to secure the stock and at this moment wield the power of the e4isting institution. 6 can not percei2e the 'ustice or policy of this course. 6f our ;o2ernment must sell monopolies, it would seem to )e its duty to take nothing less than their full 2alue, and if gratuities must )e made once in fifteen or twenty years let them not )e )estowed on the su)'ects of a foreign go2ernment nor upon a designated and fa2ored class of men in our own country. 6t is )ut 'ustice and good policy, as far as the nature of the case will admit, to confine our fa2ors to our own fellow-citiOens, and let each in his turn en'oy an opportunity to profit )y our )ounty. 6n the )earings of the act )efore me upon these points 6 find ample reasons why it should not )ecome a law. 6t has )een urged as an argument in fa2or of rechartering the present )ank that the calling in its loans will produce great em)arrassment and distress. .he time allowed to close its concerns is ample, and if it has )een well managed its pressure will )e light, and hea2y only in case its management has )een )ad. 6f, therefore, it shall produce distress, the fault will )e its own, and it would furnish a reason against renewing a power which has )een so o)2iously a)used. But will there e2er )e a time when this reason will )e less powerfulR .o acknowledge its force is

to admit that the )ank ought to )e perpetual, and as a conseGuence the present stockholders and those inheriting their rights as successors )e esta)lished a pri2ileged order, clothed )oth with great political power and en'oying immense pecuniary ad2antages from their connection with the ;o2ernment. .he modifications of the e4isting charter proposed )y this act are not such, in my 2iew, as make it consistent with the rights of the "tates or the li)erties of the people. .he Gualification of the right of the )ank to hold real estate, the limitation of its power to esta)lish )ranches, and the power reser2ed to %ongress to for)id the circulation of small notes are restrictions comparati2ely of little 2alue or importance. #ll the o)'ectiona)le principles of the e4isting corporation, and most of its odious features, are retained without alle2iation. .he fourth section pro2ides “that the notes or )ills of the said corporation, although the same )e, on the faces thereof, respecti2ely made paya)le at one place only, shall ne2ertheless )e recei2ed )y the said corporation at the )ank or at any of the offices of discount and deposit thereof if tendered in liGuidation or payment of any )alance or )alances due to said corporation or to such office of discount and deposit from any other incorporated )ank. .his pro2ision secures to the "tate )anks a legal pri2ilege in the Bank of the !nited "tates which is withheld from all pri2ate citiOens. 6f a "tate )ank in Philadelphia owe the Bank of the !nited "tates and ha2e notes issued )y the "t. Louis )ranch, it can pay the de)t with those notes, )ut if a merchant, mechanic, or other pri2ate citiOen )e in like circumstances he can not )y law pay his de)t with those notes, )ut must sell them at a discount or send them to "t. Louis to )e cashed. .his )oon conceded to the "tate )anks, though not un'ust in itself, is most odious )ecause it does not measure out eGual 'ustice to the high and the low, the rich and the poor. .o the e4tent of its practical effect it is a )ond of union among the )anking esta)lishments of the nation, erecting them into an interest separate from that of the people, and its necessary tendency is to unite the Bank of the !nited "tates and the "tate )anks in any measure which may )e thought conduci2e to their common interest. .he ninth section of the act recogniOes principles of worse tendency than any pro2ision of the present charter. 6t enacts that “the cashier of the )ank shall annually report to the "ecretary of the .reasury the names of all stockholders who are not resident citiOens of the !nited "tates, and on the application of the treasurer of any "tate shall make out and transmit to such treasurer a list of stockholders residing in or citiOens of such "tate, with the amount of stock owned )y each. #lthough this pro2ision, taken in connection with a decision of the "upreme %ourt, surrenders, )y its silence, the right of the "tates to ta4 the )anking institutions created )y this corporation under the name of )ranches throughout the !nion, it is e2idently intended to )e construed as a concession of their right to ta4 that portion of the stock which may )e held )y their own citiOens and residents. 6n this light, if the act )ecomes a law, it will )e understood )y the "tates, who will pro)a)ly proceed to le2y a ta4 eGual to that paid upon the stock of )anks incorporated )y themsel2es. 6n some "tates that ta4 is now 6 per cent, either on the capital or on the shares, and that may )e assumed as the amount which all citiOen or resident stockholders would )e ta4ed under the operation of this act. #s it is only the stock held in the "tates and not that employed within them which would )e su)'ect to ta4ation, and as the names of foreign stockholders are not to )e reported to the treasurers of the "tates, it is o)2ious that the stock held )y them will )e e4empt from this )urden. .heir annual profits will therefore )e 6 per cent more than the citiOen stockholders, and as the annual di2idends of the )ank may )e safely estimated at / per cent, the stock will )e worth +1 or +? per cent more to foreigners than to citiOens of the !nited "tates. .o appreciate the effects which this state of things will produce, we must take a )rief re2iew of the operations and present condition of the Bank of the !nited "tates. By documents su)mitted to %ongress at the present session it appears that on the +st of $anuary, +*,(, of the twenty-eight millions of pri2ate stock in the corporation, 5*,-1?,?11 were held )y foreigners, mostly of ;reat Britain. .he amount of stock held in the nine Western and "outhwestern "tates is 5+-1,(11, and in the four "outhern "tates is 5?,@(,,+11, and in the 0iddle and Eastern "tates is a)out 5+,,?((,111. .he profits of the )ank in +*,+, as shown in a statement to %ongress, were a)out 5,,-??,?>*H of this there accrued in the nine western "tates a)out 5+,@-1,1-*H in the four "outhern "tates a)out 5,?(,?1/, and in the 0iddle and Eastern "tates a)out 5+,-@,,1-+. #s little stock is held in the West, it is o)2ious that the de)t of the people in that section to the )ank is principally a de)t to the Eastern and foreign stockholdersH that the interest they pay upon it is carried into the Eastern "tates and into Europe, and that it is a )urden upon their industry and a drain of their currency, which no country can )ear without incon2enience and occasional distress. .o meet this )urden and eGualiOe the e4change operations of the )ank, the amount of specie drawn from those "tates through its )ranches within the last two years, as shown )y its official reports, was a)out 5@,111,111. 0ore than half a million of this amount does not stop in the Eastern "tates, )ut passes on to Europe to pay the di2idends of the foreign stockholders. 6n the principle of ta4ation recogniOed )y this act the Western "tates find no adeGuate compensation for this perpetual )urden on their industry and drain of their currency. .he )ranch )ank at 0o)ile made last year 5>?,+-1, yet under the pro2isions of this act the "tate of #la)ama can raise no re2enue from these profita)le operations, )ecause not a share of the stock is held )y any of her citiOens. 0ississippi and 0issouri are in the same condition in relation to the )ranches at <atcheO and "t. Louis, and such, in a greater or less degree, is the condition of e2ery Western "tate. .he tendency of the plan of ta4ation which this act proposes will )e to place the whole !nited "tates in the same relation to foreign countries which the Western "tates now )ear to the Eastern. When )y a ta4 on resident stockholders the stock of this )ank is made worth +1 or +? per cent more to foreigners than to residents, most of it will ine2ita)ly lea2e the country. .hus will this pro2ision in its practical effect depri2e the Eastern as well as the "outhern and Western "tates of the means of raising a re2enue from the e4tension of )usiness and great profits of this institution. 6t will make the #merican people de)tors to aliens in nearly the whole amount due to this )ank, and send across the #tlantic from two to fi2e millions of specie e2ery year to pay the )ank di2idends. 6n another of its )earings this pro2ision is fraught with danger. Df the twenty-fi2e directors of this )ank fi2e are chosen )y the ;o2ernment and twenty )y the citiOen stockholders. 7rom all 2oice in these elections the foreign stockholders are e4cluded )y the charter. 6n proportion, therefore, as the stock is transferred to foreign holders the e4tent of suffrage in the choice of directors is curtailed. #lready is almost a third of the stock in foreign hands and not represented in elections. 6t is constantly passing out of the country, and this act will accelerate its departure. .he entire control of the institution would necessarily fall into the hands of a few citiOen stockholders, and the ease with which the o)'ect would )e accomplished would )e a temptation to designing men to secure that control in their own hands )y monopoliOing the remaining stock. .here is danger that a president and directors would then )e a)le to elect themsel2es from year to year, and without responsi)ility or control manage the whole concerns of the )ank during the e4istence of its charter. 6t is easy to concei2e that great e2ils to our country and its institutions millet flow from such a concentration of power in the hands of a few men irresponsi)le to the people.

6s there no danger to our li)erty and independence in a )ank that in its nature has so little to )ind it to our countryR .he president of the )ank has told us that most of the "tate )anks e4ist )y its for)earance. "hould its influence )ecome concentered, as it may under the operation of such an act as this, in the hands of a self-elected directory whose interests are identified with those of the foreign stockholders, will there not )e cause to trem)le for the purity of our elections in peace and for the independence of our country in warR .heir power would )e great whene2er they might choose to e4ert itH )ut if this monopoly were regularly renewed e2ery fifteen or twenty years on terms proposed )y themsel2es, they might seldom in peace put forth their strength to influence elections or control the affairs of the nation. But if any pri2ate citiOen or pu)lic functionary should interpose to curtail its powers or pre2ent a renewal of its pri2ileges, it can not )e dou)ted that he would )e made to feel its influence. "hould the stock of the )ank principally pass into the hands of the su)'ects of a foreign country, and we should unfortunately )ecome in2ol2ed in a war with that country, what would )e our conditionR Df the course which would )e pursued )y a )ank almost wholly owned )y the su)'ects of a foreign power, and managed )y those whose interests, if not affections, would run in the same direction there can )e no dou)t. #ll its operations within would )e in aid of the hostile fleets and armies without. %ontrolling our currency, recei2ing our pu)lic moneys, and holding thousands of our citiOens in dependence, it would )e more formida)le and dangerous than the na2al and military power of the enemy. 6f we must ha2e a )ank with pri2ate stockholders, e2ery consideration of sound policy and e2ery impulse of #merican feeling admonishes that it should )e purely +merican. 6ts stockholders should )e composed e4clusi2ely of our own citiOens, who at least ought to )e friendly to our ;o2ernment and willing to support it in times of difficulty and danger. "o a)undant is domestic capital that competition in su)scri)ing for the stock of local )anks has recently led almost to riots. .o a )ank e4clusi2ely of #merican stockholders, possessing the powers and pri2ileges granted )y this act, su)scriptions for 5(11,111,111 could )e readily o)tained. 6nstead of sending a)road the stock of the )ank in which the ;o2ernment must deposit its funds and on which it must rely to sustain its credit in times of emergency, it would rather seem to )e e4pedient to prohi)it its sale to aliens under penalty of a)solute forfeiture. 6t is maintained )y the ad2ocates of the )ank that its constitutionality in all its features ought to )e considered as settled )y precedent and )y the decision of the "upreme %ourt. .o this conclusion 6 can not assent. 0ere precedent is a dangerous source of authority, and should not )e regarded as deciding Guestions of constitutional power e4cept where the acGuiescence of the people and the "tates can )e considered as well settled. "o far from this )eing the case on this su)'ect, an argument against the )ank might )e )ased on precedent. Dne %ongress, in +/>+, decided in fa2or of a )ankH another, in +*++, decided against it. Dne %ongress, in +*+?, decided against a )ankH another, in +*+@, decided in its fa2or. Prior to the present %ongress, therefore, the precedents drawn from that source were eGual. 6f we resort to the "tates, the e4pressions of legislati2e, 'udicial, and e4ecuti2e opinions against the )ank ha2e )een pro)a)ly to those in its fa2or as - to +. .here is nothing in precedent, therefore, which, if its authority were admitted, ought to weigh in fa2or of the act )efore me. 6f the opinion of the "upreme %ourt co2ered the whole ground of this act, it ought not to control the coordinate authorities of this ;o2ernment. .he %ongress, the E4ecuti2e, and the %ourt must each for itself )e guided )y its own opinion of the %onstitution. Each pu)lic officer who takes an oath to support the %onstitution swears that he will support it as he understands it, and not as it is understood )y others. 6t is as much the duty of the 8ouse of Representati2es, of the "enate, and of the President to decide upon the constitutionality of any )ill or resolution which may )e presented to them for passage or appro2al as it is of the supreme 'udges when it may )e )rought )efore them for 'udicial decision. .he opinion of the 'udges has no more authority o2er %ongress than the opinion of %ongress has o2er the 'udges, and on that point the President is independent of )oth. .he authority of the "upreme %ourt must not, therefore, )e permitted to control the %ongress or the E4ecuti2e when acting in their legislati2e capacities, )ut to ha2e only such influence as the force of their reasoning may deser2e. But in the case relied upon the "upreme %ourt ha2e not decided that all the features of this corporation are compati)le with the %onstitution. 6t is true that the court ha2e said that the law incorporating the )ank is a constitutional e4ercise of power )y %ongressH )ut taking into 2iew the whole opinion of the court and the reasoning )y which they ha2e come to that conclusion, 6 understand them to ha2e decided that inasmuch as a )ank is an appropriate means for carrying into effect the enumerated powers of the ;eneral ;o2ernment, therefore the law incorporating it is in accordance with that pro2ision of the %onstitution which declares that %ongress shall ha2e power “to make all laws which shall )e necessary and proper for carrying those powers into e4ecution. 8a2ing satisfied themsel2es that the word >necessary? in the %onstitution means >needful7? >re@uisite7? >essential7? >conduci e to7? and that “a )ank is a con2enient, a useful, and essential instrument in the prosecution of the ;o2ernmentJs “fiscal operations, they conclude that to “use one must )e within the discretion of %ongress and that “the act to incorporate the Bank of the !nited "tates is a law made in pursuance of the %onstitutionH “)ut, say they, >-here the la- is not prohibited and is really calculated to effect any of the obAects intrusted to the Bo ernment7 to undertake here to in@uire into the degree of its necessity -ould be to pass the line -hich circumscribes the Audicial department and to tread on legislati e ground!? .he principle here affirmed is that the “degree of its necessity, in2ol2ing all the details of a )anking institution, is a Guestion e4clusi2ely for legislati2e consideration. # )ank is constitutional, )ut it is the pro2ince of the Legislature to determine whether this or that particular power, pri2ilege, or e4emption is “necessary and proper to ena)le the )ank to discharge its duties to the ;o2ernment, and from their decision there is no appeal to the courts of 'ustice. !nder the decision of the "upreme %ourt, therefore, it is the e4clusi2e pro2ince of %ongress and the President to decide whether the particular features of this act are necessary and proper in order to ena)le the )ank to perform con2eniently and efficiently the pu)lic duties assigned to it as a fiscal agent, and therefore constitutional, or unnecessary and improper, and therefore unconstitutional. Without commenting on the general principle affirmed )y the "upreme %ourt, let us e4amine the details of this act in accordance with the rule of legislati2e action which they ha2e laid down. 6t will )e found that many of the powers and pri2ileges conferred on it can not )e supposed necessary for the purpose for which it is proposed to )e created, and are not, therefore, means necessary to attain the end in 2iew, and conseGuently not 'ustified )y the %onstitution. .he original act of incorporation, section (6, enacts “that no other )ank shall )e esta)lished )y any future law of the !nited "tates during the continuance of the corporation here)y created, for which the faith of the !nited "tates is here)y pledgedB #ro ided, %ongress may renew e4isting charters for )anks within the &istrict of %olum)ia not increasing the capital thereof, and may also esta)lish any other )ank or )anks in

said &istrict with capitals not e4ceeding in the whole 5@,111,111 if they shall deem it e4pedient. .his pro2ision is continued in force )y the act )efore me fifteen years from the ad of 0arch, +*,@. 6f %ongress possessed the power to esta)lish one )ank, they had power to esta)lish more than one if in their opinion two or more )anks had )een “necessary to facilitate the e4ecution of the powers delegated to them in the %onstitution. 6f they possessed the power to esta)lish a second )ank, it was a power deri2ed from the %onstitution to )e e4ercised from time to time, and at any time when the interests of the country or the emergencies of the ;o2ernment might make it e4pedient. 6t was possessed )y one %ongress as well as another, and )y all %ongresses alike, and alike at e2ery session. But the %ongress of +*+@ ha2e taken it away from their successors for twenty years, and the %ongress of +*,( proposes to a)olish it for fifteen years more. 6t can not )e >necessary? or >proper? for %ongress to )arter away or di2est themsel2es of any of the powers 2ested in them )y the %onstitution to )e e4ercised for the pu)lic good. 6t is not “necessary to the efficiency of the )ank, nor is it >proper? in relation to themsel2es and their successors. .hey may properly use the discretion 2ested in them, )ut they may not limit the discretion of their successors. .his restriction on themsel2es and grant of a monopoly to the )ank is therefore unconstitutional. 6n another point of 2iew this pro2ision is a palpa)le attempt to amend the %onstitution )y an act of legislation. .he %onstitution declares that “the %ongress shall ha2e power to e4ercise e4clusi2e legislation in all cases whatsoe2er o2er the &istrict of %olum)ia. 6ts constitutional power, therefore, to esta)lish )anks in the &istrict of %olum)ia and increase their capital at will is unlimited and uncontrolla)le )y any other power than that which ga2e authority to the %onstitution. =et this act declares that %ongress shall not increase the capital of e4isting )anks, nor create other )anks with capitals e4ceeding in the whole 5@,111,111. .he %onstitution declares that %ongress shall ha2e power to e4ercise e4clusi2e legislation o2er this &istrict >in all cases -hatsoe er7? and this act declares they shall not. Which is the supreme law of the landR .his pro2ision can not )e >necessary? or >proper? or constitutional unless the a)surdity )e admitted that whene2er it )e “necessary and proper in the opinion of %ongress they ha2e a right to )arter away one portion of the powers 2ested in them )y the %onstitution as a means of e4ecuting the rest. Dn two su)'ects only does the %onstitution recogniOe in %ongress the power to grant e4clusi2e pri2ileges or monopolies. 6t declares that “%ongress shall ha2e power to promote the progress of science and useful arts )y securing for limited times to authors and in2entors the e4clusi2e right to their respecti2e writings and disco2eries. Dut of this e4press delegation of power ha2e grown our laws of patents and copyrights. #s the %onstitution e4pressly delegates to %ongress the power to grant e4clusi2e pri2ileges in these cases as the means of e4ecuting the su)stanti2e 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 )e granted as a means of accomplishing any other end. Dn e2ery other su)'ect which comes within the scope of %ongressional power there is an e2er-li2ing discretion in the use of proper means, which can not )e restricted or a)olished without an amendment of the %onstitution. E2ery act of %ongress, therefore, which attempts )y grants of monopolies or sale of e4clusi2e pri2ileges for a limited time, or a time without limit, to restrict or e4tinguish its own discretion in the choice of means to e4ecute its delegated powers is eGui2alent to a legislati2e amendment of the %onstitution, and palpa)ly unconstitutional. .his act authoriOes and encourages transfers of its stock to foreigners and grants them an e4emption from all "tate and national ta4ation. "o far from )eing >necessary and proper? that the )ank should possess this power to make it a safe and efficient agent of the ;o2ernment in its fiscal operations, it is calculated to con2ert the Bank of the !nited "tates into a foreign )ank, to impo2erish our people in time of peace, to disseminate a foreign influence through e2ery section of the Repu)lic, and in war to endanger our independence. .he se2eral "tates reser2ed the power at the formation of the %onstitution to regulate and control titles and transfers of real property, and most, if not all, of them ha2e laws disGualifying aliens from acGuiring or holding lands within their limits. But this act, in disregard of the undou)ted right of the "tates to prescri)e such disGualifications, gi2es to aliens stockholders in this )ank an interest and title, as mem)ers of the corporation, to all the real property it may acGuire within any of the "tates of this !nion. .his pri2ilege granted to aliens is not >necessary? to ena)le the )ank to perform its pu)lic duties, nor in any sense >proper7? )ecause it is 2itally su)2ersi2e of the rights of the "tates. .he ;o2ernment of the !nited "tates ha2e no constitutional power to purchase lands within the "tates e4cept “for the erection of forts, magaOines, arsenals, dockyards, and other needful )uildings, and e2en for these o)'ects only “)y the consent of the legislature of the "tate in which the same shall )e. By making themsel2es stockholders in the )ank and granting to the corporation the power to purchase lands for other purposes they assume a power not granted in the %onstitution and grant to others what they do not themsel2es possess. 6t is not necessary to the recei2ing, safe-keeping, or transmission of the funds of the ;o2ernment that the )ank should possess this power, and it is not proper that %ongress should thus enlarge the powers delegated to them in the %onstitution. .he old Bank of the !nited "tates possessed a capital of only 5++,111,111, which was found fully sufficient to ena)le it with dispatch and safety to perform all the functions reGuired of it )y the ;o2ernment. .he capital of the present )ank is 5,?,111,111Vat least twenty-four more than e4perience has pro2ed to )e necessary to ena)le a )ank to perform its pu)lic functions. .he pu)lic de)t which e4isted during the period of the old )ank and on the esta)lishment of the new has )een nearly paid off, and our re2enue will soon )e reduced. .his increase of capital is therefore not for pu)lic )ut for pri2ate purposes. .he ;o2ernment is the only >proper? 'udge where its agents should reside and keep their offices, )ecause it )est knows where their presence will )e “necessary. 6t can not, therefore, )e >necessary? or >proper? to authoriOe the )ank to locate )ranches where it pleases to perform the pu)lic ser2ice, without consulting the ;o2ernment, and contrary to its will. .he principle laid down )y the "upreme %ourt concedes that %ongress can not esta)lish a )ank for purposes of pri2ate speculation and gain, )ut only as a means of e4ecuting the delegated powers of the ;eneral ;o2ernment. By the same principle a )ranch )ank can not constitutionally )e esta)lished for other than pu)lic purposes. .he power which this act gi2es to esta)lish two )ranches in any "tate, without the in'unction or reGuest of the ;o2ernment and for other than pu)lic purposes, is not >necessary? to the due e4ecution of the powers delegated to %ongress. .he )onus which is e4acted from the )ank is a confession upon the face of the act that the powers granted )y it are greater than are >necessary? to its character of a fiscal agent. .he ;o2ernment does not ta4 its officers and agents for the pri2ilege of ser2ing it. .he )onus of a million and a half reGuired )y the original charter and that of three millions proposed )y this act are not e4acted for the pri2ilege of gi2ing “the necessary facilities for transferring the pu)lic funds from place to place within the !nited "tates or the .erritories thereof, and for distri)uting

the same in payment of the pu)lic creditors without charging commission or claiming allowance on account of the difference of e4change, as reGuired )y the act of incorporation, )ut for something more )eneficial to the stockholders. .he original act declares that it 9the )onus: is granted “in consideration of the e4clusi2e pri2ileges and )enefits conferred )y this act upon the said )ank, and the act )efore me declares it to )e “in consideration of the e4clusi2e )enefits and pri2ileges continued )y this act to the said corporation for fifteen years, as aforesaid. 6t is therefore for “e4clusi2e pri2ileges and )enefits conferred for their own use and emolument, and not for the ad2antage of the ;o2ernment, that a )onus is e4acted. .hese surplus powers for which the )ank is reGuired to pay can not surely )e >necessary? to make it the fiscal agent of the .reasury. 6f they were, the e4action of a )onus for them would not )e >proper!? 6t is maintained )y some that the )ank is a means of e4ecuting the constitutional power “to coin money and regulate the 2alue thereof. %ongress ha2e esta)lished a mint to coin money and passed laws to regulate the 2alue thereof. .he money so coined, with its 2alue so regulated, and such foreign coins as %ongress may adopt are the only currency known to the %onstitution. But if they ha2e other power to regulate the currency, it was conferred to )e e4ercised )y themsel2es, and not to )e transferred to a corporation. 6f the )ank )e esta)lished for that purpose, with a charter unaltera)le without its consent, %ongress ha2e parted with their power for a term of years, during which the %onstitution is a dead letter. 6t is neither necessary nor proper to transfer its legislati2e power to such a )ank, and therefore unconstitutional. By its silence, considered in connection with the decision of the "upreme %ourt in the case of 0c%ulloch against the "tate of 0aryland, this act takes from the "tates the power to ta4 a portion of the )anking )usiness carried on within their limits, in su)2ersion of one of the strongest )arriers which secured them against 7ederal encroachments. Banking, like farming, manufacturing, or any other occupation or profession, is a business, the right to follow which is not originally deri2ed from the laws. E2ery citiOen and e2ery company of citiOens in all of our "tates possessed the right until the "tate legislatures deemed it good policy to prohi)it pri2ate )anking )y law. 6f the prohi)itory "tate laws were now repealed, e2ery citiOen would again possess the right. .he "tate )anks are a Gualified restoration of the right which has )een taken away )y the laws against )anking, guarded )y such pro2isions and limitations as in the opinion of the "tate legislatures the pu)lic interest reGuires. .hese corporations, unless there )e an e4emption in their charter, are, like pri2ate )ankers and )anking companies, su)'ect to "tate ta4ation. .he manner in which these ta4es shall )e laid depends wholly on legislati2e discretion. 6t may )e upon the )ank, upon the stock, upon the profits, or in any other mode which the so2ereign power shall will. !pon the formation of the %onstitution the "tates guarded their ta4ing power with peculiar 'ealousy. .hey surrendered it only as it regards imports and e4ports. 6n relation to e2ery other o)'ect within their 'urisdiction, whether persons, property, )usiness, or professions, it was secured in as ample a manner as it was )efore possessed. #ll persons, though !nited "tates officers, are lia)le to a poll ta4 )y the "tates within which they reside. .he lands of the !nited "tates are lia)le to the usual land ta4, e4cept in the new "tates, from whom agreements that they will not ta4 unsold lands are e4acted when they are admitted into the !nion. 8orses, wagons, any )easts or 2ehicles, tools, or property )elonging to pri2ate citiOens, though employed in the ser2ice of the !nited "tates, are su)'ect to "tate ta4ation. E2ery pri2ate )usiness, whether carried on )y an officer of the ;eneral ;o2ernment or not, whether it )e mi4ed with pu)lic concerns or not, e2en if it )e carried on )y the ;o2ernment of the !nited "tates itself, separately or in partnership, falls within the scope of the ta4ing power of the "tate. <othing comes more fully within it than )anks and the )usiness of )anking, )y whomsoe2er instituted and carried on. D2er this whole su)'ect-matter it is 'ust as a)solute, unlimited, and uncontrolla)le as if the %onstitution had ne2er )een adopted, )ecause in the formation of that instrument it was reser2ed without Gualification. .he principle is conceded that the "tates can not rightfully ta4 the operations of the ;eneral ;o2ernment. .hey can not ta4 the money of the ;o2ernment deposited in the "tate )anks, nor the agency of those )anks in remitting itH )ut will any man maintain that their mere selection to perform this pu)lic ser2ice for the ;eneral ;o2ernment would e4empt the "tate )anks and their ordinary )usiness from "tate ta4ationR 8ad the !nited "tates, instead of esta)lishing a )ank at Philadelphia, employed a pri2ate )anker to keep and transmit their funds, would it ha2e depri2ed Pennsyl2ania of the right to ta4 his )ank and his usual )anking operationsR 6t will not )e pretended. !pon what principal, then, are the )anking esta)lishments of the Bank of the !nited "tates and their usual )anking operations to )e e4empted from ta4ationR 6t is not their pu)lic agency or the deposits of the ;o2ernment which the "tates claim a right to ta4, )ut their )anks and their )anking powers, instituted and e4ercised within "tate 'urisdiction for their pri2ate emolumentVthose powers and pri2ileges for which they pay a )onus, and which the "tates ta4 in their own )anks. .he e4ercise of these powers within a "tate, no matter )y whom or under what authority, whether )y pri2ate citiOens in their original right, )y corporate )odies created )y the "tates, )y foreigners or the agents of foreign go2ernments located within their limits, forms a legitimate o)'ect of "tate ta4ation. 7rom this and like sources, from the persons, property, and )usiness that are found residing, located, or carried on under their 'urisdiction, must the "tates, since the surrender of their right to raise a re2enue from imports and e4ports, draw all the money necessary for the support of their go2ernments and the maintenance of their independence. .here is no more appropriate su)'ect of ta4ation than )anks, )anking, and )ank stocks, and none to which the "tates ought more pertinaciously to cling. 6t can not )e necessary to the character of the )ank as a fiscal agent of the ;o2ernment that its pri2ate )usiness should )e e4empted from that ta4ation to which all the "tate )anks are lia)le, nor can 6 concei2e it >proper? that the su)stanti2e and most essential powers reser2ed )y the "tates shall )e thus attacked and annihilated as a means of e4ecuting the powers delegated to the ;eneral ;o2ernment. 6t may )e safely assumed that none of those sages who had an agency in forming or adopting our %onstitution e2er imagined that any portion of the ta4ing power of the "tates not prohi)ited to them nor delegated to %ongress was to )e swept away and annihilated as a means of e4ecuting certain powers delegated to %ongress. 6f our power o2er means is so a)solute that the "upreme %ourt will not call in Guestion the constitutionality of an act of %ongress the su)'ect of which “is not prohi)ited, and is really calculated to effect any of the o)'ects intrusted to the ;o2ernment, although, as in the case )efore me, it takes away powers e4pressly granted to %ongress and rights scrupulously reser2ed to the "tates, it )ecomes us to proceed in our legislation with the utmost caution. .hough not directly, our own powers and the rights of the "tates may )e indirectly legislated away in the use of means to e4ecute su)stanti2e powers. We may not enact that %ongress shall not ha2e the power of e4clusi2e legislation o2er the &istrict of %olum)ia, )ut we may pledge the faith of the !nited "tates that as a means of e4ecuting other powers it shall not )e e4ercised for twenty years or fore2er. We may not pass an act prohi)iting the "tates to ta4 the )anking )usiness carried on within their limits, )ut we may, as a means of e4ecuting our powers o2er other o)'ects, place that )usiness in the hands of our agents and then declare it e4empt from "tate ta4ation in their hands. .hus may our own powers and the rights of the "tates, which we can not directly curtail or in2ade, )e frittered away and e4tinguished in the use of means employed )y us to e4ecute other powers. .hat a )ank of the !nited "tates, competent to all the duties which may )e

reGuired )y the ;o2ernment, might )e so organiOed as not to infringe on our own delegated powers or the reser2ed rights of the "tates 6 do not entertain a dou)t. 8ad the E4ecuti2e )een called upon to furnish the pro'ect of such an institution, the duty would ha2e )een cheerfully performed. 6n the a)sence of such a call it was o)2iously proper that he should confine himself to pointing out those prominent features in the act presented which in his opinion make it incompati)le with the %onstitution and sound policy. # general discussion will now take place, eliciting new light and settling important principlesH and a new %ongress, elected in the midst of such discussion, and furnishing an eGual representation of the people according to the last census, will )ear to the %apitol the 2erdict of pu)lic opinion, and, 6 dou)t not, )ring this important Guestion to a satisfactory result. !nder such circumstances the )ank comes forward and asks a renewal of its charter for a term of fifteen years upon conditions which not only operate as a gratuity to the stockholders of many millions of dollars, )ut will sanction any a)uses and legaliOe any encroachments. "uspicions are entertained and charges are made of gross a)use and 2iolation of its charter. #n in2estigation unwillingly conceded and so restricted in time as necessarily to make it incomplete and unsatisfactory discloses enough to e4cite suspicion and alarm. 6n the practices of the principal )ank partially un2eiled, in the a)sence of important witnesses, and in numerous charges confidently made and as yet wholly unin2estigated there was enough to induce a ma'ority of the committee of in2estigationVa committee which was selected from the most a)le and honora)le mem)ers of the 8ouse of Representati2esVto recommend a suspension of further action upon the )ill and a prosecution of the inGuiry. #s the charter had yet four years to run, and as a renewal now was not necessary to the successful prosecution of its )usiness, it was to ha2e )een e4pected that the )ank itself, conscious of its purity and proud of its character, would ha2e withdrawn its application for the present, and demanded the se2erest scrutiny into all its transactions. 6n their declining to do so there seems to )e an additional reason why the functionaries of the ;o2ernment should proceed with less haste and more caution in the renewal of their monopoly. .he )ank is professedly esta)lished as an agent of the e4ecuti2e )ranch of the ;o2ernment, and its constitutionality is maintained on that ground. <either upon the propriety of present action nor upon the pro2isions of this act was the E4ecuti2e consulted. 6t has had no opportunity to say that it neither needs nor wants an agent clothed with such powers and fa2ored )y such e4emptions. .here is nothing in its legitimate functions which makes it necessary or proper. Whate2er interest or influence, whether pu)lic or pri2ate, has gi2en )irth to this act, it can not )e found either in the wishes or necessities of the e4ecuti2e department, )y which present action is deemed premature, and the powers conferred upon its agent not only unnecessary, )ut dangerous to the ;o2ernment and country. It is to e re+retted that the ri(h and po!er"ul too o"ten end the a(ts o" +o&ernment to their sel"ish purposes3 :istin(tions in so(iety !ill al!ays e$ist under e&ery just +o&ernment3 FLuality o" talents, o" edu(ation, or o" !ealth (an not e produ(ed y human institutions3 In the "ull enjoyment o" the +i"ts o" %ea&en and the "ruits o" superior industry, e(onomy, and &irtue, e&ery man is eLually entitled to prote(tion y la!J ut !hen the la!s underta.e to add to these natural and just ad&anta+es arti"i(ial distin(tions, to +rant titles, +ratuities, and e$(lusi&e pri&ile+es, to ma.e the ri(h ri(her and the potent more po!er"ul, the hum le mem ers o" so(ietyMthe "armers, me(hani(s, and la orersM!ho ha&e neither the time nor the means o" se(urin+ li.e "a&ors to themsel&es, ha&e a ri+ht to (omplain o" the injusti(e o" their *o&ernment3 There are no ne(essary e&ils in +o&ernment3 Its e&ils e$ist only in its a uses3 I" it !ould (on"ine itsel" to eLual prote(tion, and, as %ea&en does its rains, sho!er its "a&ors ali.e on the hi+h and the lo!, the ri(h and the poor, it !ould e an unLuali"ied lessin+3 In the a(t e"ore me there seems to e a !ide and unne(essary departure "rom these just prin(iples3 <or is our ;o2ernment to )e maintained or our !nion preser2ed )y in2asions of the rights and powers of the se2eral "tates. 6n thus attempting to make our ;eneral ;o2ernment strong we make it weak. 6ts true strength consists in lea2ing indi2iduals and "tates as much as possi)le to themsel2esVin making itself felt, not in its power, )ut in its )eneficenceH not in its control, )ut in its protectionH not in )inding the "tates more closely to the center, )ut lea2ing each to mo2e uno)structed in its proper or)it. F$perien(e should tea(h us !isdom3 Dost o" the di""i(ulties our *o&ernment no! en(ounters and most o" the dan+ers !hi(h impend o&er our 4nion ha&e sprun+ "rom an a andonment o" the le+itimate o je(ts o" *o&ernment y our national le+islation, and the adoption o" su(h prin(iples as are em odied in this a(t3 Dany o" our ri(h men ha&e not een (ontent !ith eLual prote(tion and eLual ene"its, ut ha&e esou+ht us to ma.e them ri(her y a(t o" 8on+ress3 -y attemptin+ to +rati"y their desires !e ha&e in the results o" our le+islation arrayed se(tion a+ainst se(tion, interest a+ainst interest, and man a+ainst man, in a "ear"ul (ommotion !hi(h threatens to sha.e the "oundations o" our 4nion3 It is time to pause in our (areer to re&ie! our prin(iples, and i" possi le re&i&e that de&oted patriotism and spirit o" (ompromise !hi(h distin+uished the sa+es o" the >e&olution and the "athers o" our 4nion3 I" !e (an not at on(e, in justi(e to interests &ested under impro&ident le+islation, ma.e our *o&ernment !hat it ou+ht to e, !e (an at least ta.e a stand a+ainst all ne! +rants o" monopolies and e$(lusi&e pri&ile+es, a+ainst any prostitution o" our *o&ernment to the ad&an(ement o" the "e! at the e$pense o" the many, and in "a&or o" (ompromise and +radual re"orm in our (ode o" la!s and system o" politi(al e(onomy3 6 ha2e now done my duty to my country. 6f sustained )y my fellow citiOens, 6 shall )e grateful and happyH if not, 6 shall find in the moti2es which impel me ample grounds for contentment and peace. 6n the difficulties which surround us and the dangers which threaten our institutions there is cause for neither dismay nor alarm. 7or relief and deli2erance let us firmly rely on that kind Pro2idence which 6 am sure watches with peculiar care o2er the destinies of our Repu)lic, and on the intelligence and wisdom of our countrymen. .hrough 8is a)undant goodness and heir patriotic de2otion our li)erty and !nion will )e preser2ed. V#<&REW $#%A"D<. "ourceB httpBEEwww.milestonedocuments.comEdocumentFdetail.phpRidW,1SmoreWfullte4t

183@ )residential Fle(tion 8andidates

Andrew Jackson 26emocrat5, Henry Clay 2;hi%5, ;illiam ;irt 2Anti?"asonic5, John 8loyd 2.ullifier5

!The +ank, "r' Ban +uren, is tryin% to kill me, ,ut # will kill it'0 1 President Andrew Jackson, to "artin Ban +uren, 1839

.he Panic of +*,/ )egan on 0ay +1, +*,/ when e2ery )ank in <ew =ork %ity stopped payment in specie 9gold and sil2er coinage:. .he Panic of +*,/ was followed )y a si4-year depression, with )ank failures and rise in unemployment. 9PictureB Li)rary of %ongress:

X"tate "treet, Boston3 engra2ed after a picture )y W.8. Bartlett, pu)lished in +merican 'cenery, circa +*-1. .he 0assachusetts "tate Board of Education and the first go2ernment schools 9“pu)lic schools : in Boston were esta)lished in +*,/ following the Broad "treet Riot.

4'3' 3upreme Court Case (cCu!!och )# (ary!and 2181I5
-uled .nanimously 68<: Chie* $usti!e $ohn 1arshall Presiding

"CC4CCACH B' "A/*CA.6, 1P 4' 3' 31G 2181I5
Case Pre$iew 8ull Te)t of Case

4'3' 3upreme Court
McCulloch v. Maryland, 17 U.S. 4 Wheat. 316 316 (1819)
1!Cullo!h %. 1aryland 36 ../. 02 Wheat.7 53K
/<<;< T; T3/ C;,<T ;6 A++/AL- ;6 T3/ -TAT/ ;6 (A<=LA1D -y!!a"us Con%ress has power to incorporate a ,ank The Act of the 10th of April, 181G, ch' ::, to Lincorporate the su,scri,ers to the +ank of the 4nited 3tatesL is a law made in pursuance of the Constitution' The =o$ernment of the 4nion, thou%h limited in its powers, is supreme within its sphere of action, and its laws, when made in pursuance of the Constitution, form the supreme law of the land' There is nothin% in the Constitution of the 4nited 3tates similar to the Articles of Confederation, which e)clude incidental or implied powers' #f the end ,e le%itimate, and within the scope of the Constitution, all the means which are appropriate, which are plainly adapted to that end, and which are not prohi,ited, may constitutionally ,e employed to carry it into effect' The power of esta,lishin% a corporation is not a distinct so$erei%n power or end of =o$ernment, ,ut only the means of carryin% into effect other powers which are so$erei%n' ;hene$er it ,ecomes an appropriate means of e)ercisin% any of the powers %i$en ,y the Constitution to the =o$ernment of the 4nion, it may ,e e)ercised ,y that =o$ernment' #f a certain means to carry into effect of any of the powers e)pressly %i$en ,y the Constitution to the =o$ernment of the 4nion ,e an appropriate measure, not prohi,ited ,y the Constitution, the de%ree of its necessity is a (uestion of le%islati$e discretion, not of -udicial co%ni>ance' The +ank of the 4nited 3tates has, constitutionally, a ri%ht to esta,lish its ,ranches or offices of discount and deposit within any state' The 3tate within which such ,ranch may ,e esta,lished cannot, without $iolatin% the Constitution, ta) that ,ranch' The 3tate %o$ernments ha$e no ri%ht to ta) any of the constitutional means employed ,y the =o$ernment of the 4nion to e)ecute its constitutional powers' The 3tates ha$e no power, ,y ta)ation or otherwise, to retard, impede, ,urthen, or in any manner control the operations of the constitutional laws enacted ,y Con%ress to carry into effect the powers $ested in the national =o$ernment' This principle does not e)tend to a ta) paid ,y the real property of the +ank of the 4nited 3tates in common with the other real property in a particular state, nor to a ta) imposed on the proprietary interest which the citi>ens of that 3tate may hold in this institution, in common with other property of the same description throu%hout the 3tate' This was an action of de,t, ,rou%ht ,y the defendant in error, John James, who sued as well for himself as for the 3tate of "aryland, in the County Court of +altimore County, in the said 3tate, a%ainst the plaintiff in error, "cCulloch, to reco$er certain penalties, under the act of the Ce%islature of "aryland hereafter mentioned' Jud%ment ,ein% rendered a%ainst the plaintiff in error, upon the followin%

statement of facts a%reed and su,mitted to the court ,y the parties, was affirmed ,y the Court of Appeals of the 3tate of "aryland, the hi%hest court of law of said 3tate, and the cause was ,rou%ht ,y writ of error to this Court' #t is admitted ,y the parties in this cause, ,y their counsel, that there was passed, on the 10th day of April, 181G, ,y the Con%ress of the 4nited 3tates, an act entitled, Lan act to incorporate the su,scri,ers to the +ank of the 4nited 3tates<L and that there was passed on the 11th day of 8e,ruary, 1818, ,y the =eneral Assem,ly of "aryland, an act, entitled, Lan act to impose a ta) on all ,anks, or ,ranches thereof, in the 3tate of "aryland, not chartered "y the !e'is!ature,L Pa%e 1P 4' 3' 318 which said acts are made part of this 3tatement, and it is a%reed, may ,e read from the statute ,ooks in which they are respecti$ely printed' #t is further admitted that the President, directors and company of the +ank of the 4nited 3tates, incorporated ,y the act of Con%ress aforesaid, did or%ani>e themsel$es, and %o into full operation, in the City of Philadelphia, in the 3tate of Pennsyl$ania, in pursuance of the said act, and that they did on the VVV day of VVVVV 181P, esta,lish a ,ranch of the said ,ank, or an office of discount and deposit, in the City of +altimore, in the 3tate of "aryland, which has, from that time until the first day of "ay 1818, e$er since transacted and carried on ,usiness as a ,ank, or office of discount and deposit, and as a ,ranch of the said +ank of the 4nited 3tates, ,y issuin% ,ank notes and discountin% promissory notes, and performin% other operations usual and customary for ,anks to do and perform, under the authority and ,y the direction of the said President, directors and company of the +ank of the 4nited 3tates, esta,lished at Philadelphia as aforesaid' #t is further admitted that the said President, directors and company of the said ,ank had no authority to esta,lish the said ,ranch, or office of discount and deposit, at the City of +altimore, from the 3tate of "aryland, otherwise than the said 3tate ha$in% adopted the Constitution of the 4nited 3tates and composin% one of the 3tates of the 4nion' #t is further admitted that James ;illiam "cCulloch, the defendant ,elow, ,ein% the cashier of the said ,ranch, or office of discount and Pa%e 1P 4' 3' 31I deposit did, on the se$eral days set forth in the declaration in this cause, issue the said respecti$e ,ank notes therein descri,ed, from the said ,ranch or office, to a certain =eor%e ;illiams, in the City of +altimore, in part payment of a promissory note of the said ;illiams, discounted ,y the said ,ranch or office, which said respecti$e ,ank notes were not, nor was either of them, so issued on stamped paper in the manner prescri,ed ,y the act of assem,ly aforesaid' #t is further admitted that the said President, directors and company of the +ank of the 4nited 3tates, and the said ,ranch, or office of discount and deposit ha$e not, nor has either of them, paid in ad$ance, or otherwise, the sum of J1 ,000, to the Treasurer of the ;estern 3hore, for the use of the 3tate of "aryland, ,efore the issuin% of the said notes, or any of them, nor since those periods' And it is further admitted that the Treasurer of the ;estern 3hore of "aryland, under the direction of the =o$ernor and Council of the said 3tate, was ready, and offered to deli$er to the said President, directors and company of the said ,ank, and to the said ,ranch, or office of discount and deposit, stamped paper of the kind and denomination re(uired and descri,ed in the said act of assem,ly' The (uestion su,mitted to the Court for their decision in this case is as to the $alidity of the said act of the =eneral Assem,ly of "aryland on the %round of its ,ein% repu%nant to the Constitution of the 4nited 3tates and the act of Con%ress aforesaid, or to one of them' 4pon the fore%oin% statement of facts and the pleadin%s in this cause 2all errors in Pa%e 1P 4' 3' 390 which are here,y a%reed to ,e mutually released5, if the Court should ,e of opinion that the plaintiffs are entitled to reco$er, then -ud%ment, it is a%reed, shall ,e entered for the plaintiffs for J9, 00 and costs of suit' + ut if the Court should ,e of opinion that the plaintiffs are not entitled to reco$er upon the statement and pleadin%s aforesaid, then -ud%ment of non %ros shall ,e entered, with costs to the defendant' #t is a%reed that either party may appeal from the decision of the County Court to the Court of Appeals, and from the decision of the Court of Appeals to the 3upreme Court of the 4nited 3tates, accordin% to the modes and usa%es of law, and ha$e the same ,enefit of this statement of facts in the same manner as could ,e had if a -ury had ,een sworn and impanneled in this cause and a special $erdict had ,een found, or these facts had appeared and ,een stated in an e)ception taken to the opinion of the Court, and the CourtDs direction to the -ury thereon' Copy of the act of the Ce%islature of the 3tate of "aryland, referred to in the precedin% 3tatement' LAn act to im%ose a ta2 on a!! "anks or "ranches thereof, in the$ L-tate of (ary!and not chartered "y the !e'is!ature$

L+e it enacted ,y the =eneral Assem,ly of "aryland that if any ,ank has esta,lished or shall, without authority from the 3tate first had and o,tained esta,lish any ,ranch, office of discount and Pa%e 1P 4' 3' 391 deposit, or office of pay and receipt in any part of this 3tate, it shall not ,e lawful for the said ,ranch, office of discount and deposit, or office of pay and receipt to issue notes, in any manner, of any other denomination than fi$e, ten, twenty, fifty, one hundred, fi$e hundred and one thousand dollars, and no note shall ,e issued e)cept upon stamped paper of the followin% denominations< that is to say, e$ery fi$e dollar note shall ,e upon a stamp of ten cents< e$ery ten dollar note, upon a stamp of twenty cents< e$ery twenty dollar note, upon a stamp of thirty cents< e$ery fifty dollar note, upon a stamp of fifty cents< e$ery one hundred dollar note, upon a stamp of one dollar< e$ery fi$e hundred dollar note, upon a stamp of ten dollars< and e$ery thousand dollar note, upon a stamp of twenty dollars< which paper shall ,e furnished ,y the Treasurer of the ;estern 3hore, under the direction of the =o$ernor and Council, to ,e paid for upon deli$ery< pro$ided always that any institution of the a,o$e description may relie$e itself from the operation of the pro$isions aforesaid ,y payin% annually, in ad$ance, to the Treasurer of the ;estern 3hore, for the use of 3tate, the sum of J1 ,000'L LAnd ,e it enacted that the President, cashier, each of the directors and officers of e$ery institution esta,lished or to ,e esta,lished as aforesaid, offendin% a%ainst the pro$isions aforesaid shall forfeit a sum of J 00 for each and e$ery offence, and e$ery person ha$in% any a%ency in circulatin% any note aforesaid, not stamped as aforesaid directed, shall forfeit a sum not e)ceedin% J100, Pa%e 1P 4' 3' 399 e$ery penalty aforesaid to ,e reco$ered ,y indictment or action of de,t in the county court of the county where the offence shall ,e committed, one?half to the informer and the other half to the use of the 3tate'L LAnd ,e it enacted that this act shall ,e in full force and effect from and after the first day of "ay ne)t' L Pa%e 1P 4' 3' :00 "A/3HACC, Chief Justice, deli$ered the opinion of the Court' #n the case now to ,e determined, the defendant, a so$erei%n 3tate, denies the o,li%ation of a law enacted ,y the le%islature of the 4nion, and the plaintiff, on his part, contests the $alidity of an act which has ,een passed ,y the le%islature of that 3tate' The Constitution of our country, in its most interestin% and $ital parts, is to ,e considered, the conflictin% powers of the =o$ernment of the 4nion and of its mem,ers, as marked in that Constitution, are to ,e discussed, and an opinion %i$en which may essentially influence the %reat operations of the =o$ernment' .o tri,unal can approach such a (uestion without a deep sense of its importance, and of the awful responsi,ility in$ol$ed in its decision' +ut it must ,e decided peacefully, or remain a source of Pa%e 1P 4' 3' :01 hostile le%islation, perhaps, of hostility of a still more serious nature< and if it is to ,e so decided, ,y this tri,unal alone can the decision ,e made' An the 3upreme Court of the 4nited 3tates has the Constitution of our country de$ol$ed this important duty' The first (uestion made in the cause is ?? has Con%ress power to incorporate a ,ank@ #t has ,een truly said that this can scarcely ,e considered as an open (uestion entirely unpre-udiced ,y the former proceedin%s of the .ation respectin% it' The principle now contested was introduced at a $ery early period of our history, has ,een reco%nised ,y many successi$e le%islatures, and has ,een acted upon ,y the Judicial 6epartment, in cases of peculiar delicacy, as a law of undou,ted o,li%ation' #t will not ,e denied that a ,old and darin% usurpation mi%ht ,e resisted after an ac(uiescence still lon%er and more complete than this' +ut it is concei$ed that a dou,tful (uestion, one on which human reason may pause and the human -ud%ment ,e suspended, in the decision of which the %reat principles of li,erty are not concerned, ,ut the respecti$e powers of those who are e(ually the representati$es of the people, are to ,e ad-usted, if not put at rest ,y the practice of the =o$ernment, ou%ht to recei$e a considera,le impression from that practice' An e)position of the Constitution, deli,erately esta,lished ,y le%islati$e acts, on the faith of which an immense property has ,een ad$anced, ou%ht not to ,e li%htly disre%arded' The power now contested was e)ercised ,y the first Con%ress elected under the present Constitution' Pa%e 1P 4' 3' :09

The ,ill for incorporatin% the +ank of the 4nited 3tates did not steal upon an unsuspectin% le%islature and pass uno,ser$ed' #ts principle was completely understood, and was opposed with e(ual >eal and a,ility' After ,ein% resisted first in the fair and open field of de,ate, and afterwards in the e)ecuti$e ca,inet, with as much perse$erin% talent as any measure has e$er e)perienced, and ,ein% supported ,y ar%uments which con$inced minds as pure and as intelli%ent as this country can ,oast, it ,ecame a law' The ori%inal act was permitted to e)pire, ,ut a short e)perience of the em,arrassments to which the refusal to re$i$e it e)posed the =o$ernment con$inced those who were most pre-udiced a%ainst the measure of its necessity, and induced the passa%e of the present law' #t would re(uire no ordinary share of intrepidity to assert that a measure adopted under these circumstances was a ,old and plain usurpation to which the Constitution %a$e no countenance' These o,ser$ations ,elon% to the cause< ,ut they are not made under the impression that, were the (uestion entirely new, the law would ,e found irreconcila,le with the Constitution' #n discussin% this (uestion, the counsel for the 3tate of "aryland ha$e deemed it of some importance, in the construction of the Constitution, to consider that instrument not as emanatin% from the people, ,ut as the act of so$erei%n and independent 3tates' The powers of the =eneral =o$ernment, it has ,een said, are dele%ated ,y the 3tates, who alone are truly so$erei%n, and must ,e e)ercised in su,ordination to the 3tates, who alone possess supreme dominion' Pa%e 1P 4' 3' :03 #t would ,e difficult to sustain this proposition' The con$ention which framed the Constitution was indeed elected ,y the 3tate le%islatures' +ut the instrument, when it came from their hands, was a mere proposal, without o,li%ation or pretensions to it' #t was reported to the then e)istin% Con%ress of the 4nited 3tates with a re(uest that it mi%ht L,e su,mitted to a con$ention of dele%ates, chosen in each 3tate ,y the people thereof, under the recommendation of its le%islature, for their assent and ratification'L This mode of proceedin% was adopted, and ,y the con$ention, ,y Con%ress, and ,y the 3tate le%islatures, the instrument was su,mitted to the people' They acted upon it in the only manner in which they can act safely, effecti$ely and wisely, on such a su,-ect ?? ,y assem,lin% in con$ention' #t is true, they assem,led in their se$eral 3tates ?? and where else should they ha$e assem,led@ .o political dreamer was e$er wild enou%h to think of ,reakin% down the lines which separate the 3tates, and of compoundin% the American people into one common mass' Af conse(uence, when they act, they act in their 3tates' +ut the measures they adopt do not, on that account, cease to ,e the measures of the people themsel$es, or ,ecome the measures of the 3tate %o$ernments' 8rom these con$entions the Constitution deri$es its whole authority' The %o$ernment proceeds directly from the people< is Lordained and esta,lishedL in the name of the people, and is declared to ,e ordained, Lin order to form a more perfect union, esta,lish -ustice, insure domestic tran(uillity, and secure Pa%e 1P 4' 3' :0: the ,lessin%s of li,erty to themsel$es and to their posterity'L The assent of the 3tates in their so$erei%n capacity is implied in callin% a con$ention, and thus su,mittin% that instrument to the people' +ut the people were at perfect li,erty to accept or re-ect it, and their act was final' #t re(uired not the affirmance, and could not ,e ne%ati$ed, ,y the 3tate =o$ernments' The Constitution, when thus adopted, was of complete o,li%ation, and ,ound the 3tate so$erei%nties' #t has ,een said that the people had already surrendered all their powers to the 3tate so$erei%nties, and had nothin% more to %i$e' +ut surely the (uestion whether they may resume and modify the powers %ranted to =o$ernment does not remain to ,e settled in this country' "uch more mi%ht the le%itimacy of the =eneral =o$ernment ,e dou,ted had it ,een created ,y the 3tates' The powers dele%ated to the 3tate so$erei%nties were to ,e e)ercised ,y themsel$es, not ,y a distinct and independent so$erei%nty created ,y themsel$es' To the formation of a lea%ue such as was the Confederation, the 3tate so$erei%nties were certainly competent' +ut when, Lin order to form a more perfect union,L it was deemed necessary to chan%e this alliance into an effecti$e =o$ernment, possessin% %reat and so$erei%n powers and actin% directly on the people, the necessity of referrin% it to the people, and of deri$in% its powers directly from them, was felt and acknowled%ed ,y all' The =o$ernment of the 4nion then 2whate$er may ,e the influence of this fact on the case5 is, Pa%e 1P 4' 3' :0 emphatically and truly, a =o$ernment of the people' #n form and in su,stance, it emanates from them' #ts powers are %ranted ,y them, and are to ,e e)ercised directly on them, and for their ,enefit'

This =o$ernment is acknowled%ed ,y all to ,e one of enumerated powers' The principle that it can e)ercise only the powers %ranted to it would seem too apparent to ha$e re(uired to ,e enforced ,y all those ar%uments which its enli%htened friends, while it was dependin% ,efore the people, found it necessary to ur%e< that principle is now uni$ersally admitted' +ut the (uestion respectin% the e)tent of the powers actually %ranted is perpetually arisin%, and will pro,a,ly continue to arise so lon% as our system shall e)ist' #n discussin% these (uestions, the conflictin% powers of the =eneral and 3tate =o$ernments must ,e ,rou%ht into $iew, and the supremacy of their respecti$e laws, when they are in opposition, must ,e settled' #f any one proposition could command the uni$ersal assent of mankind, we mi%ht e)pect it would ,e this ?? that the =o$ernment of the 4nion, thou%h limited in its powers, is supreme within its sphere of action' This would seem to result necessarily from its nature' #t is the =o$ernment of all< its powers are dele%ated ,y all< it represents all, and acts for all' Thou%h any one 3tate may ,e willin% to control its operations, no 3tate is willin% to allow others to control them' The nation, on those su,-ects on which it can act, must necessarily ,ind its component parts' +ut this (uestion is not left to mere reason< the people ha$e, in e)press terms, decided it ,y sayin%, Pa%e 1P 4' 3' :0G Lthis Constitution, and the laws of the 4nited 3tates, which shall ,e made in pursuance thereof,L Lshall ,e the supreme law of the land,L and ,y re(uirin% that the mem,ers of the 3tate le%islatures and the officers of the e)ecuti$e and -udicial departments of the 3tates shall take the oath of fidelity to it' The =o$ernment of the 4nited 3tates, then, thou%h limited in its powers, is supreme, and its laws, when made in pursuance of the Constitution, form the supreme law of the land, Lanythin% in the Constitution or laws of any 3tate to the contrary notwithstandin%'L Amon% the enumerated powers, we do not find that of esta,lishin% a ,ank or creatin% a corporation' +ut there is no phrase in the instrument which, like the Articles of Confederation, e)cludes incidental or implied powers and which re(uires that e$erythin% %ranted shall ,e e)pressly and minutely descri,ed' 7$en the 10th Amendment, which was framed for the purpose of (uietin% the e)cessi$e -ealousies which had ,een e)cited, omits the word Le)pressly,L and declares only that the powers Lnot dele%ated to the 4nited 3tates, nor prohi,ited to the 3tates, are reser$ed to the 3tates or to the people,L thus lea$in% the (uestion whether the particular power which may ,ecome the su,-ect of contest has ,een dele%ated to the one =o$ernment, or prohi,ited to the other, to depend on a fair construction of the whole instrument' The men who drew and adopted this amendment had e)perienced the em,arrassments resultin% from the insertion of this word in the Articles Pa%e 1P 4' 3' :0P of Confederation, and pro,a,ly omitted it to a$oid those em,arrassments' A Constitution, to contain an accurate detail of all the su,di$isions of which its %reat powers will admit, and of all the means ,y which they may ,e carried into e)ecution, would partake of the proli)ity of a le%al code, and could scarcely ,e em,raced ,y the human mind' #t would pro,a,ly ne$er ,e understood ,y the pu,lic' #ts nature, therefore, re(uires that only its %reat outlines should ,e marked, its important o,-ects desi%nated, and the minor in%redients which compose those o,-ects ,e deduced from the nature of the o,-ects themsel$es' That this idea was entertained ,y the framers of the American Constitution is not only to ,e inferred from the nature of the instrument, ,ut from the lan%ua%e' ;hy else were some of the limitations found in the Ith section of the 1st article introduced@ #t is also in some de%ree warranted ,y their ha$in% omitted to use any restricti$e term which mi%ht pre$ent its recei$in% a fair and -ust interpretation' #n considerin% this (uestion, then, we must ne$er for%et that it is a Constitution we are e)poundin%' Althou%h, amon% the enumerated powers of =o$ernment, we do not find the word L,ankL or Lincorporation,L we find the %reat powers, to lay and collect ta)es< to ,orrow money< to re%ulate commerce< to declare and conduct a war< and to raise and support armies and na$ies' The sword and the purse, all the e)ternal relations, and no inconsidera,le portion of the industry of the nation are intrusted to its =o$ernment' #t can ne$er ,e pretended Pa%e 1P 4' 3' :08 that these $ast powers draw after them others of inferior importance merely ,ecause they are inferior' 3uch an idea can ne$er ,e ad$anced' +ut it may with %reat reason ,e contended that a =o$ernment intrusted with such ample powers, on the due e)ecution of which the happiness and prosperity of the .ation so $itally depends, must also ,e intrusted with ample means for their e)ecution' The power ,ein% %i$en, it is the interest of the .ation to facilitate its e)ecution' #t can ne$er ,e their interest, and cannot ,e presumed to ha$e ,een their intention, to clo% and em,arrass its e)ecution ,y withholdin% the most appropriate means' Throu%hout this $ast repu,lic, from the 3t' Croi) to the =ulf of "e)ico, from the Atlantic to the Pacific, re$enue is to ,e collected and e)pended, armies are to ,e marched and supported' The e)i%encies of the .ation may re(uire that the treasure raised in the north should ,e transported to the south that raised in the east, con$eyed to the west, or that this order should ,e re$ersed' #s that construction of the Constitution to ,e preferred which would render these operations difficult, ha>ardous and e)pensi$e@ Can we adopt that construction 2unless the words imperiously re(uire it5 which would impute to the framers of that instrument, when %rantin% these powers for the pu,lic %ood, the intention of impedin% their e)ercise, ,y withholdin% a choice of means@ #f, indeed, such ,e the mandate of the Constitution, we ha$e

only to o,ey< ,ut that instrument does not profess to enumerate the means ,y which the powers it confers may ,e e)ecuted< nor does it prohi,it the creation of a corporation, Pa%e 1P 4' 3' :0I if the e)istence of such a ,ein% ,e essential, to the ,eneficial e)ercise of those powers' #t is, then, the su,-ect of fair in(uiry how far such means may ,e employed' #t is not denied that the powers %i$en to the =o$ernment imply the ordinary means of e)ecution' That, for e)ample, of raisin% re$enue and applyin% it to national purposes is admitted to imply the power of con$eyin% money from place to place as the e)i%encies of the .ation may re(uire, and of employin% the usual means of con$eyance' +ut it is denied that the =o$ernment has its choice of means, or that it may employ the most con$enient means if, to employ them, it ,e necessary to erect a corporation' An what foundation does this ar%ument rest@ A n this aloneE the power of creatin% a corporation is one appertainin% to so$erei%nty, and is not e)pressly conferred on Con%ress' This is true' +ut all le%islati$e powers appertain to so$erei%nty' The ori%inal power of %i$in% the law on any su,-ect whate$er is a so$erei%n power, and if the =o$ernment of the 4nion is restrained from creatin% a corporation as a means for performin% its functions, on the sin%le reason that the creation of a corporation is an act of so$erei%nty, if the sufficiency of this reason ,e acknowled%ed, there would ,e some difficulty in sustainin% the authority of Con%ress to pass other laws for the accomplishment of the same o,-ects' The =o$ernment which has a ri%ht to do an act and has imposed on it the duty of performin% that act must, accordin% to the dictates of reason, ,e allowed Pa%e 1P 4' 3' :10 to select the means, and those who contend that it may not select any appropriate means that one particular mode of effectin% the o,-ect is e)cepted take upon themsel$es the ,urden of esta,lishin% that e)ception' The creation of a corporation, it is said, appertains to so$erei%nty' This is admitted' +ut to what portion of so$erei%nty does it appertain@ 6oes it ,elon% to one more than to another@ #n America, the powers of so$erei%nty are di$ided ,etween the =o$ernment of the 4nion and those of the 3tates' They are each so$erei%n with respect to the o,-ects committed to it, and neither so$erei%n with respect to the o,-ects committed to the other' ;e cannot comprehend that train of reasonin%, which would maintain that the e)tent of power %ranted ,y the people is to ,e ascertained not ,y the nature and terms of the %rant, ,ut ,y its date' 3ome 3tate Constitutions were formed ,efore, some since, that of the 4nited 3tates' ;e cannot ,elie$e that their relation to each other is in any de%ree dependent upon this circumstance' Their respecti$e powers must, we think, ,e precisely the same as if they had ,een formed at the same time' Had they ,een formed at the same time, and had the people conferred on the =eneral =o$ernment the power contained in the Constitution, and on the 3tates the whole residuum of power, would it ha$e ,een asserted that the =o$ernment of the 4nion was not so$erei%n, with respect to those o,-ects which were intrusted to it, in relation to which its laws were declared to ,e supreme@ #f this could not ha$e ,een asserted, we cannot well comprehend the process of reasonin% Pa%e 1P 4' 3' :11 which maintains that a power appertainin% to so$erei%nty cannot ,e connected with that $ast portion of it which is %ranted to the =eneral =o$ernment, so far as it is calculated to su,ser$e the le%itimate o,-ects of that =o$ernment' The power of creatin% a corporation, thou%h appertainin% to so$erei%nty, is not, like the power of makin% war or le$yin% ta)es or of re%ulatin% commerce, a %reat su,stanti$e and independent power which cannot ,e implied as incidental to other powers or used as a means of e)ecutin% them' #t is ne$er the end for which other powers are e)ercised, ,ut a means ,y which other o,-ects are accomplished' .o contri,utions are made to charity for the sake of an incorporation, ,ut a corporation is created to administer the charity< no seminary of learnin% is instituted in order to ,e incorporated, ,ut the corporate character is conferred to su,ser$e the purposes of education' .o city was e$er ,uilt with the sole o,-ect of ,ein% incorporated, ,ut is incorporated as affordin% the ,est means of ,ein% well %o$erned' The power of creatin% a corporation is ne$er used for its own sake, ,ut for the purpose of effectin% somethin% else' .o sufficient reason is therefore percei$ed why it may not pass as incidental to those powers which are e)pressly %i$en if it ,e a direct mode of e)ecutin% them' +ut the Constitution of the 4nited 3tates has not left the ri%ht of Con%ress to employ the necessary means for the e)ecution of the powers conferred on the =o$ernment to %eneral reasonin%' To its enumeration of powers is added that of makin% Lall Pa%e 1P 4' 3' :19 laws which shall ,e necessary and proper for carryin% into e)ecution the fore%oin% powers, and all other powers $ested ,y this Constitution in the =o$ernment of the 4nited 3tates or in any department thereof'L

The counsel for the 3tate of "aryland ha$e ur%ed $arious ar%uments to pro$e that this clause, thou%h in terms a %rant of power, is not so in effect, ,ut is really restricti$e of the %eneral ri%ht which mi%ht otherwise ,e implied of selectin% means for e)ecutin% the enumerated powers' #n support of this proposition, they ha$e found it necessary to contend that this clause was inserted for the purpose of conferrin% on Con%ress the power of makin% laws' That, without it, dou,ts mi%ht ,e entertained whether Con%ress could e)ercise its powers in the form of le%islation' +ut could this ,e the o,-ect for which it was inserted@ A =o$ernment is created ,y the people ha$in% le%islati$e, e)ecuti$e and -udicial powers' #ts le%islati$e powers are $ested in a Con%ress, which is to consist of a senate and house of representati$es' 7ach house may determine the rule of its proceedin%s, and it is declared that e$ery ,ill which shall ha$e passed ,oth houses shall, ,efore it ,ecomes a law, ,e presented to the President of the 4nited 3tates' The Pth section descri,es the course of proceedin%s ,y which a ,ill shall ,ecome a law, and then the 8th section enumerates the powers of Con%ress' Could it ,e necessary to say that a le%islature should e)ercise le%islati$e powers, in the shape of le%islation@ After allowin% each house to prescri,e Pa%e 1P 4' 3' :13 its own course of proceedin%, after descri,in% the manner in which a ,ill should ,ecome a law, would it ha$e entered into the mind of a sin%le mem,er of the con$ention that an e)press power to make laws was necessary to ena,le the le%islature to make them@ That a le%islature, endowed with le%islati$e powers, can le%islate is a proposition too self?e$ident to ha$e ,een (uestioned' +ut the ar%ument on which most reliance is placed is drawn from that peculiar lan%ua%e of this clause' Con%ress is not empowered ,y it to make all laws which may ha$e relation to the powers conferred on the =o$ernment, ,ut such only as may ,e Lnecessary and properL for carryin% them into e)ecution' The word LnecessaryL is considered as controllin% the whole sentence, and as limitin% the ri%ht to pass laws for the e)ecution of the %ranted powers to such as are indispensa,le, and without which the power would ,e nu%atory' That it e)cludes the choice of means, and lea$es to Con%ress in each case that only which is most direct and simple' #s it true that this is the sense in which the word LnecessaryL is always used@ 6oes it always import an a,solute physical necessity so stron% that one thin% to which another may ,e termed necessary cannot e)ist without that other@ ;e think it does not' #f reference ,e had to its use in the common affairs of the world or in appro$ed authors, we find that it fre(uently imports no more than that one thin% is con$enient, or useful, or essential to another' To employ the means necessary to an end is %enerally understood as employin% any means calculated to Pa%e 1P 4' 3' :1: produce the end, and not as ,ein% confined to those sin%le means without which the end would ,e entirely unattaina,le' 3uch is the character of human lan%ua%e that no word con$eys to the mind in all situations one sin%le definite idea, and nothin% is more common than to use words in a fi%urati$e sense' Almost all compositions contain words which, taken in a their ri%orous sense, would con$ey a meanin% different from that which is o,$iously intended' #t is essential to -ust construction that many words which import somethin% e)cessi$e should ,e understood in a more miti%ated sense ?? in that sense which common usa%e -ustifies' The word LnecessaryL is of this description' #t has not a fi)ed character peculiar to itself' #t admits of all de%rees of comparison, and is often connected with other words which increase or diminish the impression the mind recei$es of the ur%ency it imports' A thin% may ,e necessary, $ery necessary, a,solutely or indispensa,ly necessary' To no mind would the same idea ,e con$eyed ,y these se$eral phrases' The comment on the word is well illustrated ,y the passa%e cited at the ,ar from the 10th section of the 1st article of the Constitution' #t is, we think, impossi,le to compare the sentence which prohi,its a 3tate from layin% Limposts, or duties on imports or e)ports, e)cept what may ,e a,solutely necessary for e)ecutin% its inspection laws,L with that which authori>es Con%ress Lto make all laws which shall ,e necessary and proper for carryin% into e)ecutionL the powers of the =eneral =o$ernment without feelin% a con$iction that the con$ention understood itself to chan%e materially Pa%e 1P 4' 3' :1 the meanin% of the word Lnecessary,L ,y prefi)in% the word La,solutely'L This word, then, like others, is used in $arious senses, and, in its construction, the su,-ect, the conte)t, the intention of the person usin% them are all to ,e taken into $iew' Cet this ,e done in the case under consideration' The su,-ect is the e)ecution of those %reat powers on which the welfare of a .ation essentially depends' #t must ha$e ,een the intention of those who %a$e these powers to insure, so far as human prudence could insure, their ,eneficial e)ecution' This could not ,e done ,y confidin% the choice of means to such narrow limits as not to lea$e it in the power of Con%ress to adopt any which mi%ht ,e appropriate, and which were conduci$e to the end' This pro$ision is made in a Constitution intended to endure for a%es to come, and conse(uently to ,e adapted to the $arious crises of human affairs' To ha$e prescri,ed the means ,y which =o$ernment should, in all future time, e)ecute its powers would ha$e ,een to chan%e entirely the character of the instrument and %i$e it the properties of a le%al code' #t would ha$e ,een an unwise attempt to pro$ide ,y immuta,le rules for e)i%encies which, if foreseen at all, must ha$e ,een seen dimly, and which can ,e ,est pro$ided for as they occur' To ha$e declared

that the ,est means shall not ,e used, ,ut those alone without which the power %i$en would ,e nu%atory, would ha$e ,een to depri$e the le%islature of the capacity to a$ail itself of e)perience, to e)ercise its reason, and to accommodate its le%islation to circumstances' Pa%e 1P 4' 3' :1G #f we apply this principle of construction to any of the powers of the =o$ernment, we shall find it so pernicious in its operation that we shall ,e compelled to discard it' The powers $ested in Con%ress may certainly ,e carried into e)ecution, without prescri,in% an oath of office' The power to e)act this security for the faithful performance of duty is not %i$en, nor is it indispensa,ly necessary' The different departments may ,e esta,lished< ta)es may ,e imposed and collected< armies and na$ies may ,e raised and maintained< and money may ,e ,orrowed, without re(uirin% an oath of office' #t mi%ht ,e ar%ued with as much plausi,ility as other incidental powers ha$e ,een assailed that the con$ention was not unmindful of this su,-ect' The oath which mi%ht ,e e)acted ?? that of fidelity to the Constitution ?? is prescri,ed, and no other can ,e re(uired' *et he would ,e char%ed with insanity who should contend that the le%islature mi%ht not superadd to the oath directed ,y the Constitution such other oath of office as its wisdom mi%ht su%%est' 3o, with respect to the whole penal code of the 4nited 3tates, whence arises the power to punish in cases not prescri,ed ,y the Constitution@ All admit that the =o$ernment may le%itimately punish any $iolation of its laws, and yet this is not amon% the enumerated powers of Con%ress' The ri%ht to enforce the o,ser$ance of law ,y punishin% its infraction mi%ht ,e denied with the more plausi,ility ,ecause it is e)pressly %i$en in some cases' Con%ress is empowered Lto pro$ide for the punishment Pa%e 1P 4' 3' :1P of counterfeitin% the securities and current coin of the 4nited 3tates,L and Lto define and punish piracies and felonies committed on the hi%h seas, and offences a%ainst the law of nations'L The se$eral powers of Con%ress may e)ist in a $ery imperfect 3tate, to ,e sure, ,ut they may e)ist and ,e carried into e)ecution, althou%h no punishment should ,e inflicted, in cases where the ri%ht to punish is not e)pressly %i$en' Take, for e)ample, the power Lto esta,lish post?offices and post?roads'L This power is e)ecuted ,y the sin%le act of makin% the esta,lishment' +ut from this has ,een inferred the power and duty of carryin% the mail alon% the post road from one post office to another' And from this implied power has a%ain ,een inferred the ri%ht to punish those who steal letters from the post office, or ro, the mail' #t may ,e said with some plausi,ility that the ri%ht to carry the mail, and to punish those who ro, it, is not indispensa,ly necessary to the esta,lishment of a post office and post road' This ri%ht is indeed essential to the ,eneficial e)ercise of the power, ,ut not indispensa,ly necessary to its e)istence' 3o, of the punishment of the crimes of stealin% or falsifyin% a record or process of a Court of the 4nited 3tates, or of per-ury in such Court' To punish these offences is certainly conduci$e to the due administration of -ustice' +ut Courts may e)ist, and may decide the causes ,rou%ht ,efore them, thou%h such crimes escape punishment' The ,aneful influence of this narrow construction on all the operations of the =o$ernment, and the a,solute Pa%e 1P 4' 3' :18 impractica,ility of maintainin% it without renderin% the =o$ernment incompetent to its %reat o,-ects, mi%ht ,e illustrated ,y numerous e)amples drawn from the Constitution and from our laws' The %ood sense of the pu,lic has pronounced without hesitation that the power of punishment appertains to so$erei%nty, and may ,e e)ercised, whene$er the so$erei%n has a ri%ht to act, as incidental to his Constitutional powers' #t is a means for carryin% into e)ecution all so$erei%n powers, and may ,e used althou%h not indispensa,ly necessary' #t is a ri%ht incidental to the power, and conduci$e to its ,eneficial e)ercise' #f this limited construction of the word LnecessaryL must ,e a,andoned in order to punish, whence is deri$ed the rule which would reinstate it when the =o$ernment would carry its powers into e)ecution ,y means not $indicti$e in their nature@ #f the word LnecessaryL means Lneedful,L Lre(uisite,L Lessential,L Lconduci$e to,L in order to let in the power of punishment for the infraction of law, why is it not e(ually comprehensi$e when re(uired to authori>e the use of means which facilitate the e)ecution of the powers of =o$ernment, without the infliction of punishment@ #n ascertainin% the sense in which the word LnecessaryL is used in this clause of the Constitution, we may deri$e some aid from that with which it it is associated' Con%ress shall ha$e power Lto make all laws which shall ,e necessary and proper to carry into e)ecutionL the powers of the =o$ernment' #f the word LnecessaryL was used in that strict and ri%orous sense for which the counsel for the 3tate of Pa%e 1P 4' 3' :1I

"aryland contend, it would ,e an e)traordinary departure from the usual course of the human mind, as e)hi,ited in composition, to add a word the only possi,le effect of which is to (ualify that strict and ri%orous meanin%, to present to the mind the idea of some choice of means of le%islation not strained and compressed within the narrow limits for which %entlemen contend' +ut the ar%ument which most conclusi$ely demonstrates the error of the construction contended for ,y the counsel for the 3tate of "aryland is founded on the intention of the con$ention as manifested in the whole clause' To waste time and ar%ument in pro$in% that, without it, Con%ress mi%ht carry its powers into e)ecution would ,e not much less idle than to hold a li%hted taper to the sun' As little can it ,e re(uired to pro$e that, in the a,sence of this clause, Con%ress would ha$e some choice of means' That it mi%ht employ those which, in its -ud%ment, would most ad$anta%eously effect the o,-ect to ,e accomplished' That any means adapted to the end, any means which tended directly to the e)ecution of the Constitutional powers of the =o$ernment, were in themsel$es Constitutional' This clause, as construed ,y the 3tate of "aryland, would a,rid%e, and almost annihilate, this useful and necessary ri%ht of the le%islature to select its means' That this could not ,e intended is, we should think, had it not ,een already contro$erted, too apparent for contro$ersy' ;e think so for the followin% reasonsE 1st' The clause is placed amon% the powers of Con%ress, not amon% the limitations on those powers' Pa%e 1P 4' 3' :90 9d' #ts terms purport to enlar%e, not to diminish, the powers $ested in the =o$ernment' #t purports to ,e an additional power, not a restriction on those already %ranted' .o reason has ,een or can ,e assi%ned for thus concealin% an intention to narrow the discretion of the .ational Ce%islature under words which purport to enlar%e it' The framers of the Constitution wished its adoption, and well knew that it would ,e endan%ered ,y its stren%th, not ,y its weakness' Had they ,een capa,le of usin% lan%ua%e which would con$ey to the eye one idea and, after deep reflection, impress on the mind another, they would rather ha$e dis%uised the %rant of power than its limitation' #f, then, their intention had ,een, ,y this clause, to restrain the free use of means which mi%ht otherwise ha$e ,een implied, that intention would ha$e ,een inserted in another place, and would ha$e ,een e)pressed in terms resem,lin% these' L#n carryin% into e)ecution the fore%oin% powers, and all others,L &c', Lno laws shall ,e passed ,ut such as are necessary and proper'L Had the intention ,een to make this clause restricti$e, it would un(uestiona,ly ha$e ,een so in form, as well as in effect' The result of the most careful and attenti$e consideration ,estowed upon this clause is that, if it does not enlar%e, it cannot ,e construed to restrain, the powers of Con%ress, or to impair the ri%ht of the le%islature to e)ercise its ,est -ud%ment in the selection of measures to carry into e)ecution the Constitutional powers of the =o$ernment' #f no other moti$e for its insertion can ,e su%%ested, a sufficient one is found in the desire to remo$e all dou,ts respectin% Pa%e 1P 4' 3' :91 the ri%ht to le%islate on that $ast mass of incidental powers which must ,e in$ol$ed in the Constitution if that instrument ,e not a splendid ,au,le' ;e admit, as all must admit, that the powers of the =o$ernment are limited, and that its limits are not to ,e transcended' +ut we think the sound construction of the Constitution must allow to the national le%islature that discretion with respect to the means ,y which the powers it confers are to ,e carried into e)ecution which will ena,le that ,ody to perform the hi%h duties assi%ned to it in the manner most ,eneficial to the people' Cet the end ,e le%itimate, let it ,e within the scope of the Constitution, and all means which are appropriate, which are plainly adapted to that end, which are not prohi,ited, ,ut consist with the letter and spirit of the Constitution, are Constitutional' X That a corporation must ,e considered as a means not less usual, not of hi%her di%nity, not more re(uirin% a particular specification than other means has ,een sufficiently pro$ed' #f we look to the ori%in of corporations, to the manner in which they ha$e ,een framed in that =o$ernment from which we ha$e deri$ed most of our le%al principles and ideas, or to the uses to which they ha$e ,een applied, we find no reason to suppose that a Constitution, omittin%, and wisely omittin%, to enumerate all the means for carryin% into e)ecution the %reat powers $ested in =o$ernment, ou%ht to ha$e specified this' Had it ,een intended to %rant this power as one which should ,e distinct and independent, to ,e e)ercised in any case whate$er, it Pa%e 1P 4' 3' :99 would ha$e found a place amon% the enumerated powers of the =o$ernment' +ut ,ein% considered merely as a means, to ,e employed only for the purpose of carryin% into e)ecution the %i$en powers, there could ,e no moti$e for particularly mentionin% it'

The propriety of this remark would seem to ,e %enerally acknowled%ed ,y the uni$ersal ac(uiescence in the construction which has ,een uniformly put on the 3d section of the :th article of the Constitution' The power to Lmake all needful rules and re%ulations respectin% the territory or other property ,elon%in% to the 4nited 3tatesL is not more comprehensi$e than the power Lto make all laws which shall ,e necessary and proper for carryin% into e)ecutionL the powers of the =o$ernment' *et all admit the constitutionality of a Territorial =o$ernment, which is a corporate ,ody' #f a corporation may ,e employed, indiscriminately with other means, to carry into e)ecution the powers of the =o$ernment, no particular reason can ,e assi%ned for e)cludin% the use of a ,ank, if re(uired for its fiscal operations' To use one must ,e within the discretion of Con%ress if it ,e an appropriate mode of e)ecutin% the powers of =o$ernment' That it is a con$enient, a useful, and essential instrument in the prosecution of its fiscal operations is not now a su,-ect of contro$ersy' All those who ha$e ,een concerned in the administration of our finances ha$e concurred in representin% its importance and necessity, and so stron%ly ha$e they ,een felt that 3tatesmen of the first class, whose pre$ious opinions Pa%e 1P 4' 3' :93 a%ainst it had ,een confirmed ,y e$ery circumstance which can fi) the human -ud%ment, ha$e yielded those opinions to the e)i%encies of the nation' 4nder the Confederation, Con%ress, -ustifyin% the measure ,y its necessity, transcended, perhaps, its powers to o,tain the ad$anta%e of a ,ank< and our own le%islation attests the uni$ersal con$iction of the utility of this measure' The time has passed away when it can ,e necessary to enter into any discussion in order to pro$e the importance of this instrument as a means to effect the le%itimate o,-ects of the =o$ernment' +ut were its necessity less apparent, none can deny its ,ein% an appropriate measure< and if it is, the decree of its necessity, as has ,een $ery -ustly o,ser$ed, is to ,e discussed in another place' 3hould Con%ress, in the e)ecution of its powers, adopt measures which are prohi,ited ,y the Constitution, or should Con%ress, under the prete)t of e)ecutin% its powers, pass laws for the accomplishment of o,-ects not intrusted to the =o$ernment, it would ,ecome the painful duty of this tri,unal, should a case re(uirin% such a decision come ,efore it, to say that such an act was not the law of the land' +ut where the law is not prohi,ited, and is really calculated to effect any of the o,-ects intrusted to the =o$ernment, to undertake here to in(uire into the decree of its necessity would ,e to pass the line which circumscri,es the -udicial department and to tread on le%islati$e %round' This Court disclaims all pretensions to such a power' Pa%e 1P 4' 3' :9: After this declaration, it can scarcely ,e necessary to say that the e)istence of 3tate ,anks can ha$e no possi,le influence on the (uestion' .o trace is to ,e found in the Constitution of an intention to create a dependence of the =o$ernment of the 4nion on those of the 3tates, for the e)ecution of the %reat powers assi%ned to it' #ts means are ade(uate to its ends, and on those means alone was it e)pected to rely for the accomplishment of its ends' To impose on it the necessity of resortin% to means which it cannot control, which another =o$ernment may furnish or withhold, would render its course precarious, the result of its measures uncertain, and create a dependence on other =o$ernments which mi%ht disappoint its most important desi%ns, and is incompati,le with the lan%ua%e of the Constitution' +ut were it otherwise, the choice of means implies a ri%ht to choose a national ,ank in preference to 3tate ,anks, and Con%ress alone can make the election' After the most deli,erate consideration, it is the unanimous and decided opinion of this Court that the act to incorporate the +ank of the 4nited 3tates is a law made in pursuance of the Constitution, and is a part of the supreme law of the land' The ,ranches, proceedin% from the same stock and ,ein% conduci$e to the complete accomplishment of the o,-ect, are e(ually constitutional' #t would ha$e ,een unwise to locate them in the charter, and it would ,e unnecessarily incon$enient to employ the le%islati$e power in makin% those su,ordinate arran%ements' The %reat duties of the ,ank are prescri,ed< those duties re(uire ,ranches< and the ,ank itself Pa%e 1P 4' 3' :9 may, we think, ,e safely trusted with the selection of places where those ,ranches shall ,e fi)ed, reser$in% always to the =o$ernment the ri%ht to re(uire that a ,ranch shall ,e located where it may ,e deemed necessary' #t ,ein% the opinion of the Court that the act incorporatin% the ,ank is constitutional, and that the power of esta,lishin% a ,ranch in the 3tate of "aryland mi%ht ,e properly e)ercised ,y the ,ank itself, we proceed to in(uireE 9' ;hether the 3tate of "aryland may, without $iolatin% the Constitution, ta) that ,ranch@

That the power of ta)ation is one of $ital importance< that it is retained ,y the 3tates< that it is not a,rid%ed ,y the %rant of a similar power to the =o$ernment of the 4nion< that it is to ,e concurrently e)ercised ,y the two =o$ernments ?? are truths which ha$e ne$er ,een denied' +ut such is the paramount character of the Constitution that its capacity to withdraw any su,-ect from the action of e$en this power is admitted' The 3tates are e)pressly for,idden to lay any duties on imports or e)ports e)cept what may ,e a,solutely necessary for e)ecutin% their inspection laws' #f the o,li%ation of this prohi,ition must ,e conceded ?? if it may restrain a 3tate from the e)ercise of its ta)in% power on imports and e)ports ?? the same paramount character would seem to restrain, as it certainly may restrain, a 3tate from such other e)ercise of this power as is in its nature incompati,le with, and repu%nant to, the constitutional laws of the 4nion' A law a,solutely repu%nant to another as entirely Pa%e 1P 4' 3' :9G repeals that other as if e)press terms of repeal were used' An this %round, the counsel for the ,ank place its claim to ,e e)empted from the power of a 3tate to ta) its operations' There is no e)press pro$ision for the case, ,ut the claim has ,een sustained on a principle which so entirely per$ades the Constitution, is so intermi)ed with the materials which compose it, so interwo$en with its we,, so ,lended with its te)ture, as to ,e incapa,le of ,ein% separated from it without rendin% it into shreds' This %reat principle is that the Constitution and the laws made in pursuance thereof are supreme< that they control the Constitution and laws of the respecti$e 3tates, and cannot ,e controlled ,y them' 8rom this, which may ,e almost termed an a)iom, other propositions are deduced as corollaries, on the truth or error of which, and on their application to this case, the cause has ,een supposed to depend' These are, 1st' That a power to create implies a power to preser$e< 9d' That a power to destroy, if wielded ,y a different hand, is hostile to, and incompati,le with these powers to create and to preser$e< 3d' That, where this repu%nancy e)ists, that authority which is supreme must control, not yield to that o$er which it is supreme' These propositions, as a,stract truths, would perhaps ne$er ,e contro$erted' Their application to this case, howe$er, has ,een denied, and ,oth in maintainin% the affirmati$e and the ne%ati$e, a splendor of elo(uence, and stren%th of ar%ument seldom if e$er surpassed ha$e ,een displayed' Pa%e 1P 4' 3' :9P The power of Con%ress to create and, of course, to continue the ,ank was the su,-ect of the precedin% part of this opinion, and is no lon%er to ,e considered as (uestiona,le' That the power of ta)in% it ,y the 3tates may ,e e)ercised so as to destroy it is too o,$ious to ,e denied' +ut ta)ation is said to ,e an a,solute power which acknowled%es no other limits than those e)pressly prescri,ed in the Constitution, and, like so$erei%n power of e$ery other description, is intrusted to the discretion of those who use it' +ut the $ery terms of this ar%ument admit that the so$erei%nty of the 3tate, in the article of ta)ation itself, is su,ordinate to, and may ,e controlled ,y, the Constitution of the 4nited 3tates' How far it has ,een controlled ,y that instrument must ,e a (uestion of construction' #n makin% this construction, no principle, not declared, can ,e admissi,le which would defeat the le%itimate operations of a supreme =o$ernment' #t is of the $ery essence of supremacy to remo$e all o,stacles to its action within its own sphere, and so to modify e$ery power $ested in su,ordinate %o$ernments as to e)empt its own operations from their own influence' This effect need not ,e stated in terms' #t is so in$ol$ed in the declaration of supremacy, so necessarily implied in it, that the e)pression of it could not make it more certain' ;e must, therefore, keep it in $iew while construin% the Constitution' The ar%ument on the part of the 3tate of "aryland is not that the 3tates may directly resist a law of Con%ress, ,ut that they may e)ercise their Pa%e 1P 4' 3' :98 acknowled%ed powers upon it, and that the Constitution lea$es them this ri%ht, in the confidence that they will not a,use it' +efore we proceed to e)amine this ar%ument and to su,-ect it to test of the Constitution, we must ,e permitted to ,estow a few considerations on the nature and e)tent of this ori%inal ri%ht of ta)ation, which is acknowled%ed to remain with the 3tates' #t is admitted that the power of ta)in% the people and their property is essential to the $ery e)istence of =o$ernment, and may ,e le%itimately e)ercised on the o,-ects to which it is applica,le, to the utmost e)tent to which the =o$ernment may choose to carry it' The only security a%ainst the a,use of this power is found in the structure of the =o$ernment itself' #n imposin% a ta), the le%islature acts upon its constituents' This is, in %eneral, a sufficient security a%ainst erroneous and oppressi$e ta)ation' The people of a 3tate, therefore, %i$e to their =o$ernment a ri%ht of ta)in% themsel$es and their property, and as the e)i%encies of =o$ernment cannot ,e limited, they prescri,e no limits to the e)ercise of this ri%ht, restin% confidently on the interest of the le%islator

and on the influence of the constituent o$er their representati$e to %uard them a%ainst its a,use' +ut the means employed ,y the =o$ernment of the 4nion ha$e no such security, nor is the ri%ht of a 3tate to ta) them sustained ,y the same theory' Those means are not %i$en ,y the people of a particular 3tate, not %i$en ,y the constituents of the le%islature which claim the ri%ht to ta) them, ,ut ,y the people of all the 3tates They are %i$en ,y all, Pa%e 1P 4' 3' :9I for the ,enefit of all ?? and, upon theory, should ,e su,-ected to that =o$ernment only which ,elon%s to all' #t may ,e o,-ected to this definition that the power of ta)ation is not confined to the people and property of a 3tate' #t may ,e e)ercised upon e$ery o,-ect ,rou%ht within its -urisdiction' This is true' +ut to what source do we trace this ri%ht@ #t is o,$ious that it is an incident of so$erei%nty, and is coe)tensi$e with that to which it is an incident' All su,-ects o$er which the so$erei%n power of a 3tate e)tends are o,-ects of ta)ation, ,ut those o$er which it does not e)tend are, upon the soundest principles, e)empt from ta)ation' This proposition may almost ,e pronounced self?e$ident' The so$erei%nty of a 3tate e)tends to e$erythin% which e)ists ,y its own authority or is introduced ,y its permission, ,ut does it e)tend to those means which are employed ,y Con%ress to carry into e)ecution powers conferred on that ,ody ,y the people of the 4nited 3tates@ ;e think it demonstra,le that it does not' Those powers are not %i$en ,y the people of a sin%le 3tate' They are %i$en ,y the people of the 4nited 3tates, to a =o$ernment whose laws, made in pursuance of the Constitution, are declared to ,e supreme' Conse(uently, the people of a sin%le 3tate cannot confer a so$erei%nty which will e)tend o$er them' #f we measure the power of ta)ation residin% in a 3tate ,y the e)tent of so$erei%nty which the people of a sin%le 3tate possess and can confer on its =o$ernment, we ha$e an intelli%i,le standard, applica,le Pa%e 1P 4' 3' :30 to e$ery case to which the power may ,e applied' ;e ha$e a principle which lea$es the power of ta)in% the people and property of a 3tate unimpaired< which lea$es to a 3tate the command of all its resources, and which places ,eyond its reach all those powers which are conferred ,y the people of the 4nited 3tates on the =o$ernment of the 4nion, and all those means which are %i$en for the purpose of carryin% those powers into e)ecution' ;e ha$e a principle which is safe for the 3tates and safe for the 4nion' ;e are relie$ed, as we ou%ht to ,e, from clashin% so$erei%nty< from interferin% powers< from a repu%nancy ,etween a ri%ht in one =o$ernment to pull down what there is an acknowled%ed ri%ht in another to ,uild up< from the incompati,ility of a ri%ht in one =o$ernment to destroy what there is a ri%ht in another to preser$e' ;e are not dri$en to the perple)in% in(uiry, so unfit for the -udicial department, what de%ree of ta)ation is the le%itimate use and what de%ree may amount to the a,use of the power' The attempt to use it on the means employed ,y the =o$ernment of the 4nion, in pursuance of the Constitution, is itself an a,use ,ecause it is the usurpation of a power which the people of a sin%le 3tate cannot %i$e' ;e find, then, on -ust theory, a total failure of this ori%inal ri%ht to ta) the means employed ,y the =o$ernment of the 4nion, for the e)ecution of its powers' The ri%ht ne$er e)isted, and the (uestion whether it has ,een surrendered cannot arise' +ut, wai$in% this theory for the present, let us resume the in(uiry, whether this power can ,e e)ercised Pa%e 1P 4' 3' :31 ,y the respecti$e 3tates, consistently with a fair construction of the Constitution@ That the power to ta) in$ol$es the power to destroy< that the power to destroy may defeat and render useless the power to create< that there is a plain repu%nance in conferrin% on one =o$ernment a power to control the constitutional measures of another, which other, with respect to those $ery measures, is declared to ,e supreme o$er that which e)erts the control, are propositions not to ,e denied' +ut all inconsistencies are to ,e reconciled ,y the ma%ic of the word CA.8#67.C7' Ta)ation, it is said, does not necessarily and una$oida,ly destroy' To carry it to the e)cess of destruction would ,e an a,use, to presume which would ,anish that confidence which is essential to all =o$ernment' +ut is this a case of confidence@ ;ould the people of any one 3tate trust those of another with a power to control the most insi%nificant operations of their 3tate =o$ernment@ ;e know they would not' ;hy, then, should we suppose that the people of any one 3tate should ,e willin% to trust those of another with a power to control the operations of a =o$ernment to which they ha$e confided their most important and most $alua,le interests@ #n the Ce%islature of the 4nion alone are all represented' The Ce%islature of

the 4nion alone, therefore, can ,e trusted ,y the people with the power of controllin% measures which concern all, in the confidence that it will not ,e a,used' This, then, is not a case of confidence, and we must consider it is as it really is' Pa%e 1P 4' 3' :39 #f we apply the principle for which the 3tate of "aryland contends, to the Constitution %enerally, we shall find it capa,le of chan%in% totally the character of that instrument' ;e shall find it capa,le of arrestin% all the measures of the =o$ernment, and of prostratin% it at the foot of the 3tates' The American people ha$e declared their Constitution and the laws made in pursuance thereof to ,e supreme, ,ut this principle would transfer the supremacy, in fact, to the 3tates' #f the 3tates may ta) one instrument, employed ,y the =o$ernment in the e)ecution of its powers, they may ta) any and e$ery other instrument' They may ta) the mail< they may ta) the mint< they may ta) patent ri%hts< they may ta) the papers of the custom house< they may ta) -udicial process< they may ta) all the means employed ,y the =o$ernment to an e)cess which would defeat all the ends of =o$ernment' This was not intended ,y the American people' They did not desi%n to make their =o$ernment dependent on the 3tates' =entlemen say they do not claim the ri%ht to e)tend 3tate ta)ation to these o,-ects' They limit their pretensions to property' +ut on what principle is this distinction made@ Those who make it ha$e furnished no reason for it, and the principle for which they contend denies it' They contend that the power of ta)ation has no other limit than is found in the 10th section of the 1st article of the Constitution< that, with respect to e$erythin% else, the power of the 3tates is supreme, and admits of no control' #f this ,e true, the distinction ,etween property and Pa%e 1P 4' 3' :33 other su,-ects to which the power of ta)ation is applica,le is merely ar,itrary, and can ne$er ,e sustained' This is not all' #f the controllin% power of the 3tates ,e esta,lished, if their supremacy as to ta)ation ,e acknowled%ed, what is to restrain their e)ercisin% control in any shape they may please to %i$e it@ Their so$erei%nty is not confined to ta)ation< that is not the only mode in which it mi%ht ,e displayed' The (uestion is, in truth, a (uestion of supremacy, and if the ri%ht of the 3tates to ta) the means employed ,y the =eneral =o$ernment ,e conceded, the declaration that the Constitution and the laws made in pursuance thereof shall ,e the supreme law of the land is empty and unmeanin% declamation' #n the course of the ar%ument, the 8ederalist has ,een (uoted, and the opinions e)pressed ,y the authors of that work ha$e ,een -ustly supposed to ,e entitled to %reat respect in e)poundin% the Constitution' .o tri,ute can ,e paid to them which e)ceeds their merit< ,ut in applyin% their opinions to the cases which may arise in the pro%ress of our =o$ernment, a ri%ht to -ud%e of their correctness must ,e retained< and to understand the ar%ument, we must e)amine the proposition it maintains and the o,-ections a%ainst which it is directed' The su,-ect of those num,ers from which passa%es ha$e ,een cited is the unlimited power of ta)ation which is $ested in the =eneral =o$ernment' The o,-ection to this unlimited power, which the ar%ument seeks to remo$e, is stated with fulness and clearness' #t is Lthat an indefinite power of ta)ation in the latter 2the =o$ernment Pa%e 1P 4' 3' :3: of the 4nion5 mi%ht, and pro,a,ly would, in time, depri$e the former 2the =o$ernment of the 3tates5 of the means of pro$idin% for their own necessities, and would su,-ect them entirely to the mercy of the .ational Ce%islature' As the laws of the 4nion are to ,ecome the supreme law of the land< as it is to ha$e power to pass all laws that may ,e necessary for carryin% into e)ecution the authorities with which it is proposed to $est it< the .ational =o$ernment mi%ht, at any time, a,olish the ta)es imposed for 3tate o,-ects upon the pretence of an interference with its own' #t mi%ht alle%e a necessity for doin% this, in order to %i$e efficacy to the national re$enues< and thus, all the resources of ta)ation mi%ht, ,y de%rees, ,ecome the su,-ects of federal monopoly, to the entire e)clusion and destruction of the 3tate =o$ernments'L The o,-ections to the Constitution which are noticed in these num,ers were to the undefined power of the =o$ernment to ta), not to the incidental pri$ile%e of e)emptin% its own measures from 3tate ta)ation' The conse(uences apprehended from this undefined power were that it would a,sor, all the o,-ects of ta)ation, Lto the e)clusion and destruction of the 3tate =o$ernments'L The ar%uments of the 8ederalist are intended to pro$e the fallacy of these apprehensions, not to pro$e that the =o$ernment was incapa,le of e)ecutin% any of its powers without e)posin% the means it employed to the em,arrassments of 3tate ta)ation' Ar%uments ur%ed a%ainst these o,-ections and these apprehensions are to ,e understood as relatin% to the points they Pa%e 1P 4' 3' :3

mean to pro$e' Had the authors of those e)cellent essays ,een asked whether they contended for that construction of the Constitution which would place within the reach of the 3tates those measures which the =o$ernment mi%ht adopt for the e)ecution of its powers, no man who has read their instructi$e pa%es will hesitate to admit that their answer must ha$e ,een in the ne%ati$e' #t has also ,een insisted that, as the power of ta)ation in the =eneral and 3tate =o$ernments is acknowled%ed to ,e concurrent, e$ery ar%ument which would sustain the ri%ht of the =eneral =o$ernment to ta) ,anks chartered ,y the 3tates, will e(ually sustain the ri%ht of the 3tates to ta) ,anks chartered ,y the =eneral =o$ernment' +ut the two cases are not on the same reason' The people of all the 3tates ha$e created the =eneral =o$ernment, and ha$e conferred upon it the %eneral power of ta)ation' The people of all the 3tates, and the 3tates themsel$es, are represented in Con%ress, and, ,y their representati$es, e)ercise this power' ;hen they ta) the chartered institutions of the 3tates, they ta) their constituents, and these ta)es must ,e uniform' +ut when a 3tate ta)es the operations of the =o$ernment of the 4nited 3tates, it acts upon institutions created not ,y their own constituents, ,ut ,y people o$er whom they claim no control' #t acts upon the measures of a =o$ernment created ,y others as well as themsel$es, for the ,enefit of others in common with themsel$es' The difference is that which always e)ists, and always must e)ist, ,etween the action of the whole on a Pa%e 1P 4' 3' :3G part, and the action of a part on the whole ?? ,etween the laws of a =o$ernment declared to ,e supreme, and those of a =o$ernment which, when in opposition to those laws, is not supreme' +ut if the full application of this ar%ument could ,e admitted, it mi%ht ,rin% into (uestion the ri%ht of Con%ress to ta) the 3tate ,anks, and could not pro$e the ri%hts of the 3tates to ta) the +ank of the 4nited 3tates' The Court has ,estowed on this su,-ect its most deli,erate consideration' The result is a con$iction that the 3tates ha$e no power, ,y ta)ation or otherwise, to retard, impede, ,urden, or in any manner control the operations of the constitutional laws enacted ,y Con%ress to carry into e)ecution the powers $ested in the =eneral =o$ernment' This is, we think, the una$oida,le conse(uence of that supremacy which the Constitution has declared' ;e are unanimously of opinion that the law passed ,y the Ce%islature of "aryland, imposin% a ta) on the +ank of the 4nited 3tates is unconstitutional and $oid' This opinion does not depri$e the 3tates of any resources which they ori%inally possessed' #t does not e)tend to a ta) paid ,y the real property of the ,ank, in common with the other real property within the 3tate, nor to a ta) imposed on the interest which the citi>ens of "aryland may hold in this institution, in common with other property of the same description throu%hout the 3tate' +ut this is a ta) on the operations of the ,ank, and is, conse(uently, a ta) on the operation of an instrument employed ,y the =o$ernment Pa%e 1P 4' 3' :3P of the 4nion to carry its powers into e)ecution' 3uch a ta) must ,e unconstitutional' J46="7.T' This cause came on to ,e heard, on the transcript of the record of the Court of Appeals of the 3tate of "aryland, and was ar%ued ,y counsel< on consideration whereof, it is the opinion of this Court that the act of the Ce%islature of "aryland is contrary to the Constitution of the 4nited 3tates, and $oid, and therefore that the said Court of Appeals of the 3tate of "aryland erred, in affirmin% the -ud%ment of the +altimore County Court, in which -ud%ment was rendered a%ainst James ;' "cCulloch< ,ut that the said Court of Appeals of "aryland ou%ht to ha$e re$ersed the said -ud%ment of the said +altimore County Court, and ou%ht to ha$e %i$en -ud%ment for the said appellant, "cCulloch' #t is, therefore, ad-ud%ed and ordered that the said -ud%ment of the said Court of Appeals of the 3tate of "aryland in this case ,e, and the same here,y is, re$ersed and annulled' And this Court, proceedin% to render such -ud%ment as the said Court of Appeals should ha$e rendered, it is further ad-ud%ed and ordered that the -ud%ment of the said +altimore County Court ,e re$ersed and annulled, and that -ud%ment ,e entered in the said +altimore County Court for the said James ;' "cCulloch' X -ee (onta'ue )# <ichardson, 9: Conn' 3:8' 3ourceE httpESSsupreme'-ustia'comSusS1PS31GScase'html

4'3' 3upreme Court Justice Joseph 3tory, Commentaries on the Constitution 3EYY 1938??8I 2written in 18335
P 3J54. The "lain im"ort o* the !lause is, that !ongress shall ha%e all the in!idental and instrumental "owers, ne!essary and "ro"er to !arry into e)e!ution all the e)"ress "owers. #t neither enlarges any "ower s"e!i*i!ally granted: nor is it a grant o* any new "ower to !ongress. &ut it is merely a de!laration *or the remo%al o* all un!ertainty, that the means o* !arrying into e)e!ution those, otherwise granted, are in!luded in the grant. Whene%er, there*ore, a ;uestion arises !on!erning the !onstitutionality o* a "arti!ular "ower, the *irst ;uestion is, whether the "ower e expressed in the !onstitution. #* it e, the ;uestion is de!ided. #* it e not expressed, the ne)t in;uiry must e, whether it is "ro"erly an in!ident to an e)"ress "ower, and ne!essary to its e)e!ution. #* it e, then it may e e)er!ised y !ongress. #* not, !ongress !annot e)er!ise it. Y 193I' +ut still a %round of contro$ersy remains open, as to the true interpretation of the terms of the clause< and it has ,een contested with no small share of earnestness and $i%our' ;hat, then, is the true constitutional sense of the words Lnecessary and properL in this clause@ #t has ,een insisted ,y the ad$ocates of a ri%id interpretation, that the word LnecessaryL is here used in its close and most intense meanin%< so that it is e(ui$alent to a"so!ute!y and indis%ensa"!y necessary' #t has ,een said, that the constitution allows only the means, which are necessary7 not those, which are merely con)enient for effectin% the enumerated powers' #f such a latitude of construction ,e %i$en to this phrase, as to %i$e any non?enumerated power, it will %o far to %i$e e$ery one< for there is no one, which in%enuity mi%ht not torture into a con$enience in some way or other to some one of so lon% a list of enumerated powers' #t would swallow up all the dele%ated powers, and reduce the whole to one phrase' Therefore it is, that the constitution has restrained them to the necessary means< that is to say, to those means, without which the 'rant of the %ower wou!d "e nu'atory' A little difference in the de%ree of con$enience cannot constitute the necessity, which the constitution refers to' Y 19:0' The effect of this mode of interpretation is to e)clude all choice of means< or, at most, to lea$e to con%ress in each case those only, which are most direct and simple' #f, indeed, such implied powers, and such only, as can ,e shown to ,e indispensa,ly necessary, are within the pur$iew of the clause, there will ,e no end to difficulties, and the e)press powers must practically ,ecome a mere nullity' #t will ,e found, that the operations of the %o$ernment, upon any of its powers, will rarely admit of a ri%id demonstration of the necessity 2in this strict sense5 of the particular means' #n most cases, $arious systems or means may ,e resorted to, to attain the same end< and yet, with respect to each, it may ,e ar%ued, that it is not constitutional, ,ecause it is not indispensa,le< and the end may ,e o,tained ,y other means' The conse(uence of such reasonin% would ,e, that, as no means could ,e shown to ,e constitutional, none could ,e adopted' 8or instance, con%ress possess the power to make war, and to raise armies, and incidentally to erect fortifications, and purchase cannon and ammunition, and other munitions of war' +ut war may ,e carried on without fortifications, cannon, and ammunition' .o particular kind of arms can ,e shown to ,e a,solutely necessary< ,ecause $arious sorts of arms of different con$enience, power, and utility are, or may ,e resorted to ,y different nations' ;hat then ,ecomes of the power@ Con%ress has power to ,orrow money, and to pro$ide for the payment of the pu,lic de,t< yet no particular method is indispensa,le to these ends' They may ,e attained ,y $arious means' Con%ress has power to pro$ide a na$y< ,ut no particular si>e, or form, or e(uipment of ships is indispensa,le' The means of pro$idin% a na$al esta,lishment are $ery $arious< and the applications of them admit of infinite shades of opinion, as to their con$enience, utility, and necessity' ;hat then is to ,e done@ Are the powers to remain dormant@ ;ould it not ,e a,surd to say, that con%ress did not possess the choice of means under such circumstances, and ou%ht not to ,e empowered to select, and use any means, which are in fact conduci$e to the e)ercise of the powers %ranted ,y the constitution@ Take another e)ample< con%ress has, dou,tless, the authority, under the power to re%ulate commerce, to erect li%ht?houses, ,eacons, ,uoys, and pu,lic piers, and authori>e the employment of pilots' +ut it cannot ,e affirmed, that the e)ercise of these powers is in a strict sense necessary< or that the power to re%ulate commerce would ,e nu%atory without esta,lishments of this nature' #n truth, no particular re%ulation of commerce can e$er ,e shown to ,e e)clusi$ely and indispensa,ly necessary< and thus we should ,e dri$en to admit, that all re%ulations are within the scope of the power, or that none are' #f there ,e any %eneral principle, which is inherent in the $ery definition of %o$ernment, and essential to e$ery step of the pro%ress to ,e made ,y that of the 4nited 3tates, it is, that e$ery power, $ested in a %o$ernment, is in its nature so$erei%n, and includes, ,y force of the term, a ri%ht to employ all the means re(uisite, and fairly applica,le to the attainment of the end of such power< unless they are e)cepted in the constitution, or are immoral, or are contrary to the essential o,-ects of political society' Y 19:1' There is another difficulty in the strict construction a,o$e alluded to, that it makes the constitutional authority depend upon casual and temporary circumstances, which may produce a necessity to?day, and chan%e it tomorrow' This alone shows the fallacy of the reasonin%' The e)pediency of e)ercisin% a particular power at a particular time must, indeed, depend on circumstances< ,ut the constitutional ri%ht of e)ercisin% it must ,e uniform and in$aria,le< the same today as to?morrow' Y 19:9' .either can the de%ree, in which a measure is necessary, e$er ,e a test of the le%al ri%ht to adopt it' That must ,e a matter of opinion, 2upon which different men, and different ,odies may form opposite -ud%ments,5 and can only ,e a test of e)pediency' The relation ,etween the measure and the end, ,etween the nature of the means employed towards the e)ecution of a power, and the o,-ect of that power, must ,e the criterion of constitutionality< and not the %reater or less of necessity or e)pediency' #f the le%islature possesses a ri%ht of choice as to the means, who can limit that choice@ ;ho is appointed an umpire, or ar,iter in cases, where a discretion is confided to a %o$ernment@ The $ery idea of such a controllin% authority in the e)ercise of its powers is a $irtual denial of

the supremacy of the %o$ernment in re%ard to its powers' #t repeals the supremacy of the national %o$ernment, proclaimed in the constitution' Y 19:3' #t is e(ually certain, that neither the %rammatical, nor the popular sense of the word, Lnecessary,L re(uires any such construction' Accordin% to ,oth, LnecessaryL often means no more than needfu!, re*uisite, incidenta!, usefu!, or conduci)e to' #t is a common mode of e)pression to say, that it is necessary for a %o$ernment, or a person to do this or that thin%, when nothin% more is intended or understood, than that the interest of the %o$ernment or person re(uires, or will ,e promoted ,y the doin% of this or that thin%' 7$ery oneDs mind will at once su%%est to him many illustrations of the use of the word in this sense' To employ the means, necessary to an end, is %enerally understood, as employin% any means calculated to produce the end, and not as ,ein% confined to those sin%le means, without which the end would ,e entirely unattaina,le' Y 19::' 3uch is the character of human lan%ua%e, that no word con$eys to the mind in all situations one sin%le definite idea< and nothin% is more common, than to use words in a fi%urati$e sense' Almost all compositions contain words, which, taken in their ri%orous sense, would con$ey a meanin%, different from that, which is o,$iously intended' #t is essential to -ust interpretation, that many words, which import somethin% e)cessi$e, should ,e understood in a more miti%ated sense< in a sense, which common usa%e -ustifies' The word LnecessaryL is of this description' #t has not a fi)ed character peculiar to itself' #t admits of all de%rees of comparison< and is often connected with other words, which increase or diminish the impression, which the mind recei$es of the ur%ency it imports' A thin% may ,e necessary, $ery necessary, a,solutely or indispensa,ly necessary' #t may ,e little necessary, less necessary, or least necessary' To no mind would the same idea ,e con$eyed ,y any two of these se$eral phrases' The tenth section of the first article of the constitution furnishes a stron% illustration of this $ery use of the word' #t contains a prohi,ition upon any state to Llay any imposts or duties, &c' e)cept what may ,e a"so!ute!y necessary for e)ecutin% its inspection laws'L .o one can compare this clause with the other, on which we are commentin%, without ,ein% struck with the con$iction, that the word $a"so!ute!y,$ here prefi)ed to Lnecessary,L was intended to distin%uish it from the sense, in which, standin% alone, it is used in the other' P 3J2=. That the restri!ti%e inter"retation must e a andoned, in regard to !ertain "owers o* the go%ernment, !annot e reasona ly dou ted. #t is uni%ersally !on!eded, that the "ower o* "unishment a""ertains to so%ereignty, and may e e)er!ised, whene%er the so%ereign has a right to a!t, as in!idental to his !onstitutional "owers. #t is a means *or !arrying into e)e!ution all so%ereign "owers, and may e used, although not indis"ensa ly ne!essary. #*, then, the restri!ti%e inter"retation must e a andoned, in order to 9usti*y the !onstitutional e)er!ise o* the "ower to "unish: when!e is the rule deri%ed, whi!h would reinstate it, when the go%ernment would !arry its "owers into o"eration, y means not %indi!ti%e in their nature? #* the word, Fne!essaryF means needful, requisite, essential, conducive to, to let in the "ower o* "unishment, why is it not e;ually !om"rehensi%e, when a""lied to other means used to *a!ilitate the e)e!ution o* the "owers o* the go%ernment? Y 19:G' The restricti$e interpretation is also contrary to a sound ma)im of construction, %enerally admitted, namely, that the powers contained in a constitution of %o$ernment, especially those, which concern the %eneral administration of the affairs of the country, such as its finances, its trade, and its defence, ou%ht to ,e li,erally e)pounded in ad$ancement of the pu,lic %ood' This rule does not depend on the particular form of a %o$ernment, or on the particular demarcations of the ,oundaries of its powers< ,ut on the nature and o,-ects of %o$ernment itself' The means, ,y which national e)i%encies are pro$ided for, national incon$eniences o,$iated, and national prosperity promoted, are of such infinite $ariety, e)tent, and comple)ity, that there must of necessity ,e %reat latitude of discretion in the selection, and application of those means' Hence, conse(uently, the necessity and propriety of e)ercisin% the authorities, entrusted to a %o$ernment, on principles of li,eral construction' Y 19:P' #t is no $alid o,-ection to this doctrine to say, that it is calculated to e)tend the powers of the %o$ernment throu%hout the entire sphere of state le%islation' The same thin% may ,e said, and has ,een said, in re%ard to e$ery e)ercise of power ,y implication and construction' There is always some chance of error, or a,use of e$ery power< ,ut this furnishes no %round of o,-ection a%ainst the power< and certainly no reason for an adherence to the most ri%id construction of its terms, which would at once arrest the whole mo$ements of the %o$ernment' The remedy for any a,use, or misconstruction of the power, is the same, as in similar a,uses and misconstructions of the state %o$ernments' #t is ,y an appeal to the other departments of the %o$ernment< and finally to the people, in the e)ercise of their electi$e franchises' Y 19:8' There are yet other %rounds a%ainst the restricti$e interpretation deri$ed from the lan%ua%e, and the character of the pro$ision' The lan%ua%e is, that con%ress shall ha$e power Lto make all laws, which shall ,e necessary and %ro%er#L #f the word LnecessaryL were used in the strict and ri%orous sense contended for, it would ,e an e)traordinary departure from the usual course of the human mind, as e)hi,ited in solemn instruments, to add another word Lproper<L the only possi,le effect of which is to (ualify that strict and ri%orous meanin%, and to present clearly the idea of a choice of means in the course of le%islation' #f no means can ,e resorted to, ,ut such as are indispensa,ly necessary, there can ,e neither sense, nor utility in addin% the other word< for the necessity shuts out from $iew all consideration of the propriety of the means, as contradistin%uished from the former' +ut if the intention was to use the word LnecessaryL in its more li,eral sense, then there is a peculiar fitness in the other word' #t has a sense at once admonitory, and directory' #t re(uires, that the means should ,e, "on> fide, appropriate to the end'

Y 19:I' The character of the clause e(ually for,ids any presumption of an intention to use the restricti$e interpretation' #n the first place, the clause is placed amon% the powers of con%ress, and not amon% the limitations on those powers' #n the ne)t place, its terms purport to enlar%e, and not to diminish, the powers $ested in the %o$ernment' #t purports, on its face, to ,e an additional power, not a restriction on those already %ranted' #f it does not, in fact, 2as seems the true construction,5 %i$e any new powers, it affirms the ri%ht to use all necessary and proper means to carry into e)ecution the other powers< and thus makes an e2%ress power, what would otherwise ,e merely an im%!ied power' #n either aspect, it is impossi,le to construe it to ,e a restriction' #f it ha$e any effect, it is to remo$e the implication of any restriction' #f a restriction had ,een intended, it is impossi,le, that the framers of the constitution should ha$e concealed it under phraseolo%y, which purports to enlar%e, or at least %i$e the most ample scope to the other powers' There was e$ery moti$e on their part to %i$e point and clearness to e$ery restriction of national power< for they well knew, that the national %o$ernment would ,e more endan%ered in its adoption ,y its supposed stren%th, than ,y its weakness' #t is inconcei$a,le, that they should ha$e dis%uised a restriction upon its powers under the form of a %rant of power' They would ha$e sou%ht other terms, and ha$e imposed the restraint ,y ne%ati$es' And what is e(ually stron%, no one, in or out of the state con$entions, at the time when the constitution was put upon its deli$erance ,efore the people, e$er dreamed of, or su%%ested, that it contained a restriction of power' The whole ar%ument on each side, of attack and of defence, %a$e it the positi$e form of an e)press power, and not of an e)press restriction' Y 19 0' 4pon the whole, the result of the most careful e)amination of this clause is, that, if it does not enlar%e, it cannot ,e construed to restrain the powers of con%ress, or to impair the ri%ht of the le%islature to e)ercise its ,est -ud%ment, in the selection of measures to carry into e)ecution the constitutional powers of the national %o$ernment' The moti$e for its insertion dou,tless was, the desire to remo$e all possi,le dou,t respectin% the ri%ht to le%islate on that $ast mass of incidental powers, which must ,e in$ol$ed in the constitution, if that instrument ,e not a splendid pa%eant, or a delusi$e phantom of so$erei%nty' Cet the end ,e le%itimate< let it ,e within the scope of the constitution< and all means, which are appropriate, which are plainly adapted to the end, and which are not prohi,ited, ,ut are consistent with the letter and spirit of the instrument, are constitutional' Y 19 1' #t may ,e well, in this conne)ion, to mention another sort of implied power, which has ,een called with %reat propriety a resultin% power, arisin% from the a%%re%ate powers of the national %o$ernment' #t will not ,e dou,ted, for instance, that, if the 4nited 3tates should make a con(uest of any of the territories of its nei%h,ours, the national %o$ernment would possess so$erei%n -urisdiction o$er the con(uered territory' This would, perhaps, rather ,e a result from the whole mass of the powers of the national %o$ernment, and from the nature of political society, than a conse(uence or incident of the powers specially enumerated' #t may, howe$er, ,e deemed, if an incident to any, an incident to the power to make war' Ather instances of resultin% powers will easily su%%est themsel$es' The 4nited 3tates are nowhere declared in the constitution to ,e a so$erei%nty entitled to sue, thou%h -urisdiction is %i$en to the national courts o$er contro$ersies, to which the 4nited 3tates shall ,e a party' #t is a natural incident, resultin% from the so$erei%nty and character of the national %o$ernment' 3o the 4nited 3tates, in their political capacity, ha$e a ri%ht to enter into a contract, 2althou%h it is not e)pressly pro$ided for ,y the constitution,5 for it is an incident to their %eneral ri%ht of so$erei%nty, so far as it is appropriate to any of the ends of the %o$ernment, and within the constitutional ran%e of its powers' 3o con%ress possess power to punish offences committed on ,oard of the pu,lic ships of war of the %o$ernment ,y persons not in the military or na$al ser$ice of the 4nited 3tates, whether they are in port, or at sea< for the -urisdiction on ,oard of pu,lic ships is e$ery where deemed e)clusi$ely to ,elon% to the so$erei%n' Y 19 9' And not only may implied powers, ,ut implied e)emptions from state authority, e)ist, althou%h not e)pressly pro$ided for ,y law' The collectors of the re$enue, the carriers of the mail, the mint esta,lishment, and all those institutions, which are pu,lic in their nature, are e)amples in point' #t has ne$er ,een dou,ted, that all, who are employed in them, are protected, while in the line of their duty, from state control< and yet this protection is not e)pressed in any act of con%ress' #t is incidental to, and is implied in, the se$eral acts, ,y which those institutions are created< and is preser$ed to them ,y the -udicial department, as a part of its functions' A contractor for supplyin% a military post with pro$isions cannot ,e restrained from makin% purchases within a state, or from transportin% pro$isions to the place, at which troops are stationed' He could not ,e ta)ed, or fined, or lawfully o,structed, in so doin%' These incidents necessarily flow from the supremacy of the powers of the 4nion, within their le%itimate sphere of action' Y 19 3' #t would ,e almost impractica,le, if it were not useless, to enumerate the $arious instances, in which con%ress, in the pro%ress of the %o$ernment, ha$e made use of incidental and implied means to e)ecute its powers' They are almost infinitely $aried in their ramifications and details' #t is proposed, howe$er, to take notice of the principal measures, which ha$e ,een contested, as not within the scope of the powers of con%ress, and which may ,e distinctly traced in the operations of the %o$ernment, and in leadin% party di$isions' P 3J=2. Bne o* the earliest and most im"ortant measures, whi!h ga%e rise to a ;uestion o* !onstitutional "ower, was the a!t !hartering the ank o* the .nited /tates in 36L3. That ;uestion has o*ten sin!e een dis!ussed: and though the measure has een re"eatedly san!tioned y !ongress, y the e)e!uti%e, and y the 9udi!iary, and has o tained the like *a%our in a great ma9ority o* the states, yet it is, u" to this %ery hour, still de ated u"on !onstitutional grounds, as i* it were still new, and untried. #t is im"ossi le, at this time, to treat it, as an o"en ;uestion, unless the !onstitution is *or e%er to remain an unsettled te)t, "ossessing no "ermanent attri utes, and in!a"a le o* ha%ing any as!ertained sense: %arying with e%ery !hange o* do!trine, and o* "arty: and deli%ered o%er to intermina le dou ts. #* the !onstitution is to e only, what the administration o* the day may wish it to e: and is to assume any, and all sha"es, whi!h may suit the o"inions and theories o* "u li! men, as they

su!!essi%ely dire!t the "u li! !oun!ils, it will e di**i!ult, indeed, to as!ertain, what its real %alue is. #t !annot "ossess either !ertainty, or uni*ormity, or sa*ety. #t will e one thing to8day, and another thing to8morrow, and again another thing on ea!h su!!eeding day. The "ast will *urnish no guide, and the *uture no se!urity. #t will e the re%erse o* a law: and entail u"on the !ountry the !urse o* that misera le ser%itude, so mu!h a horred and denoun!ed, where all is %ague and un!ertain in the *undamentals o* go%ernment. P 3J==. The reasoning, u"on whi!h the !onstitutionality o* a national ank is denied, has een already in some degree stated in the "re!eding remarks. #t turns u"on the stri!t inter"retation o* the !lause, gi%ing the au)iliary "owers ne!essary, and "ro"er to e)e!ute the other enumerated "owers. #t is to the *ollowing e**e!t: The "ower to in!or"orate a ank is not among those enumerated in the !onstitution. #t is known, that the %ery "ower, thus "ro"osed, as a means, was re9e!ted, as an end, y the !on%ention, whi!h *ormed the !onstitution. + "ro"osition was made in that ody, to authoriAe !ongress to o"en !anals, and an amendatory one to em"ower them to !reate !or"orations. &ut the whole was re9e!ted: and one o* the reasons o* the re9e!tion urged in de ate was, that they then would ha%e a "ower to !reate a ank, whi!h would render the great !ities, where there were "re9udi!es and 9ealousies on that su 9e!t, ad%erse to the ado"tion o* the !onstitution. #n the ne)t "la!e, all the enumerated "owers !an e !arried into e)e!ution without a ank. + ank, there*ore, is not necessary, and !onse;uently not authoriAed y this !lause o* the !onstitution. #t is urged, that a ank will gi%e great *a!ility, or !on%enien!e to the !olle!tion o* ta)es. #* this were true, yet the !onstitution allows only the means, whi!h are necessary, and not merely those, whi!h are convenient *or e**e!ting the enumerated "owers. #* su!h a latitude o* !onstru!tion were allowed, as to !onsider !on%enien!e, as 9usti*ying the use o* su!h means, it would swallow u" all the enumerated "owers. There*ore, the !onstitution restrains !ongress to those means, without whi!h the "ower would e nugatory. Y 19 G' .or can its con$enience ,e satisfactorily esta,lished' +ank?,ills may ,e a more con$enient $ehicle, than treasury orders, for the purposes of that department' +ut a little difference in the de%ree of con$enience cannot constitute the necessity contemplated ,y the constitution' +esides< the local and state ,anks now in e)istence are competent, and would ,e willin% to undertake all the a%ency re(uired for those $ery purposes ,y the %o$ernment' And if they are a,le and willin%, this esta,lishes clearly, that there can ,e no necessity for esta,lishin% a national ,ank' #f there would e$er ,e a superior con$eniency in a national ,ank, it does not follow, that there e)ists a power to esta,lish it, or that the ,usiness of the country cannot %o on $ery well without it' Can it ,e thou%ht, that the constitution intended, that for a shade or two of con$enience, more or less, con%ress should ,e authori>ed to ,reak down the most ancient and fundamental laws of the states, such as those a%ainst mortmain, the laws of aliena%e, the rules of descent, the acts of distri,ution, the laws of escheat and forfeiture, and the laws of monopoly@ .othin% ,ut a necessity, in$inci,le ,y any other means, can -ustify such a prostration of laws, which constitute the pillars of our whole system of -urisprudence' #f con%ress ha$e the power to create one corporation, they may create all sorts< for the power is no where limited< and may e$en esta,lish monopolies' #ndeed this $ery charter is a monopoly' P 3J=6. The reasoning, y whi!h the !onstitutionality o* the national ank has een sustained, is !ontained in the *ollowing summary. The "owers !on*ided to the national go%ernment are un;uestiona ly, so *ar as they e)ist, so%ereign and su"reme. #t is not, and !annot e dis"uted, that the "ower o* !reating a !or"oration is one elonging to so%ereignty. &ut so are all other legislati%e "owers: *or the original "ower o* gi%ing the law on any su 9e!t whate%er is a so%ereign "ower. #* the national go%ernment !annot !reate a !or"oration, e!ause it is an e)er!ise o* so%ereign "ower, neither !an it, *or the same reason, e)er!ise any other legislati%e "ower. This !onsideration alone ought to "ut an end to the a stra!t in;uiry, whether the national go%ernment has "ower to ere!t a !or"oration, that is, to gi%e a legal or arti*i!ial !a"a!ity to one or more "ersons, distin!t *rom the natural !a"a!ity. For, i* it e an in!ident to so%ereignty, and it is not "rohi ited, it must elong to the national go%ernment in relation to the o 9e!ts entrusted to it. The true di**eren!e is this: where the authority o* a go%ernment is general, it !an !reate !or"orations in all !ases: where it is !on*ined to !ertain ran!hes o* legislation, it !an !reate !or"orations only as to those !ases. #t !annot e denied, that im"lied "owers may e delegated, as well as e)"ress. #t *ollows, that a "ower to ere!t !or"orations may as well e im"lied, as any other thing, i* it e an instrument or means o* !arrying into e)e!ution any s"e!i*ied "ower. The only ;uestion in any !ase must e, whether it e su!h an instrument or means, and ha%e a natural relation to any o* the a!knowledged o 9e!ts o* go%ernment. Thus, !ongress may not ere!t a !or"oration *or su"erintending the "oli!e o* the !ity o* Philadel"hia, e!ause they ha%e no authority to regulate the "oli!e o* that !ity. &ut i* they "ossessed the authority to regulate the "oli!e o* su!h !ity, they might, un;uestiona ly, !reate a !or"oration *or that "ur"ose: e!ause it is in!ident to the so%ereign legislati%e "ower to regulate a thing, to em"loy all the means, whi!h relate to its regulation, to the est and greatest ad%antage. Y 19 8' A stran%e fallacy has crept into the reasonin% on this su,-ect' #t has ,een supposed, that a corporation is some %reat, independent thin%< and that the power to erect it is a %reat, su,stanti$e, independent power< whereas, in truth, a corporation is ,ut a le%al capacity, (uality, or means to an end< and the power to erect it is, or may ,e, an implied and incidental power' A corporation is ne$er the end, for which other powers are e)ercised< ,ut a means, ,y which other o,-ects are accomplished' .o contri,utions are made to charity for the sake of an incorporation< ,ut a corporation is created to administer the charity' .o seminary of learnin% is instituted in order to ,e incorporated< ,ut the corporate character is conferred to su,ser$e the purposes of education' .o city was e$er ,uilt with the sole o,-ect of ,ein% incorporated< ,ut it is incorporated as affordin% the ,est means of ,ein% well %o$erned' 3o a mercantile company is formed with a certain capital for carryin% on a particular ,ranch of ,usiness' Here, the ,usiness to ,e prosecuted is the end'

The association, in order to form the re(uisite capital, is the primary means' #f an incorporation is added to the association, it only %i$es it a new (uality, an artificial capacity, ,y which it is ena,led to prosecute the ,usiness with more con$enience and safety' #n truth, the power of creatin% a corporation is ne$er used for its own sake< ,ut for the purpose of effectin% somethin% else' 3o that there is not a shadow of reason to say, that it may not pass as an incident to powers e)pressly %i$en, as a mode of e)ecutin% them' P 3J=L. #t is true, that among the enumerated "owers we do not *ind that o* esta lishing a ank, or !reating a !or"oration. &ut we do *ind there the great "owers to lay and !olle!t ta)es: to orrow money: to regulate !ommer!e: to de!lare and !ondu!t war: and to raise and su""ort armies and na%ies. >ow, i* a ank e a *it means to e)e!ute any or all o* these "owers, it is 9ust as mu!h im"lied, as any other means. #* it e Fne!essary and "ro"erF *or any o* them, how is it "ossi le to deny the authority to !reate it *or su!h "ur"oses? There is no more "ro"riety in gi%ing this "ower in express terms, than in gi%ing any other in!idental "owers or means in e)"ress terms. #* it had een intended to grant this "ower generally, and to make it a distin!t and inde"endent "ower, ha%ing no relation to, ut rea!hing eyond the other enumerated "owers, there would then ha%e een a "ro"riety in gi%ing it in e)"ress terms, *or otherwise it would not e)ist. Thus, it was "ro"osed in the !on%ention, to gi%e a general "ower Fto grant !harters o* in!or"oration:F88to Fgrant !harters o* in!or"oration in !ases, where the "u li! good may re;uire them, and the authority o* a single state may e in!om"etent:F88and Fto grant letters o* in!or"oration *or !anals, Q!.F #* either o* these "ro"ositions had een ado"ted, there would ha%e een an o %ious "ro"riety in gi%ing the "ower in e)"ress terms: e!ause, as to the two *ormer, the "ower was general and unlimited, and rea!hing *ar eyond any o* the other enumerated "owers: and as to the latter, it might e *ar more e)tensi%e than any in!ident to the other enumerated "owers. &ut the re9e!tion o* these "ro"ositions does not "ro%e, that !ongress in no !ase, as an in!ident to the enumerated "owers, should ere!t a !or"oration: ut only, that they should not ha%e a su stanti%e, inde"endent "ower to ere!t !or"orations eyond those "owers. Y 19G0' #ndeed, it is most manifest, that it ne$er could ha$e ,een contemplated ,y the con$ention, that con%ress should, in no case, possess the power to erect a corporation' ;hat otherwise would ,ecome of the territorial %o$ernments, all of which are corporations created ,y con%ress@ There is no where an e)press power %i$en to con%ress to erect them' +ut under the confederation, con%ress did pro$ide for their erection, as a resultin% and implied ri%ht of so$erei%nty, ,y the cele,rated ordinance of 1P8P< and con%ress, under the constitution, ha$e e$er since, without (uestion, and with the uni$ersal appro,ation of the nation, from time to time created territorial %o$ernments' *et con%ress deri$e this power only ,y implication, or as necessary and proper, to carry into effect the e)press power to re%ulate the territories of the 4nited 3tates' #n the con$ention, two propositions were made and referred to a committee at the same time with the propositions already stated respectin% %rantin% of charters, Lto dispose of the unappropriated lands of the 4nited 3tates,L and Lto institute temporary %o$ernments for new states arisin% therein'L +oth these propositions shared the same fate, as those respectin% charters of incorporation' +ut what would ,e thou%ht of the ar%ument, ,uilt upon this foundation, that con%ress did not possess the power to erect territorial %o$ernments, ,ecause these propositions were silently a,andoned, or annulled in the con$ention@ Y 19G1' This is not the only case, in which con%ress may erect corporations' 4nder the power to accept a cession of territory for the seat of %o$ernment, and to e)ercise e)clusi$e le%islation therein< no one can dou,t, that con%ress may erect corporations therein, not only pu,lic, ,ut pri$ate corporations' They ha$e constantly e)ercised the power< and it has ne$er yet ,een ,reathed, that it was unconstitutional' *et it can ,e e)ercised only as an incident to the power of %eneral le%islation' And if so, why may it not ,e e)ercised, as an incident to any specific power of le%islation, if it ,e a means to attain the o,-ects of such power@ P 3JKJ. That a national ank is an a""ro"riate means to !arry into e**e!t some o* the enumerated "owers o* the go%ernment, and that this !an e est done y ere!ting it into a !or"oration, may e esta lished y the most satis*a!tory reasoning. #t has a relation, more or less dire!t, to the "ower o* !olle!ting ta)es, to that o* orrowing money, to that o* regulating trade etween the states, and to those o* raising and maintaining *leets and armies. +nd it may e added, that it has a most im"ortant earing u"on the regulation o* !urren!y etween the states. #t is an instrument, whi!h has een usually a""lied y go%ernments in the administration o* their *is!al and *inan!ial o"erations. +nd in the "resent times it !an hardly re;uire argument to "ro%e, that it is a !on%enient, a use*ul, and an essential instrument in the *is!al o"erations o* the go%ernment o* the .nited /tates. This is so generally admitted y sound and intelligent statesmen, that it would e a waste o* time to endea%our to esta lish the truth y an ela orate sur%ey o* the mode, in whi!h it tou!hes the administration o* all the %arious ran!hes o* the "owers o* the go%ernment. Y 19G3' #n re%ard to the su%%estion, that a proposition was made, and re-ected in the con$ention to confer this $ery power, what was the precise nature or e)tent of this proposition, or what were the reasons for refusin% it, cannot now ,e ascertained ,y any authentic document, or e$en ,y any accurate recollection of the mem,ers' As far as any document e)ists, it specifies only canals' #f this pro$es any thin%, it pro$es no more, than that it was thou%ht ine)pedient to %i$e a power to incorporate for the purpose of openin% canals %enerally' +ut $ery different accounts are %i$en of the import of the proposition, and of the moti$es for re-ectin% it' 3ome affirm, that it was confined to the openin% of canals and o,structions of ri$ers< others, that it em,raced ,anks< and others, that it e)tended to the power of incorporations %enerally' 3ome, a%ain, alle%e, that it was disa%reed to, ,ecause it was thou%ht improper to $est in con%ress a power of erectin% corporations< others, ,ecause they thou%ht it unnecessary to specify the power< and ine)pedient to furnish an additional topic of o,-ection to the constitution' #n this state of the matter, no inference whate$er can ,e drawn from it' +ut, whate$er may ha$e ,een the pri$ate intentions of the framers of the constitution, which can rarely ,e esta,lished ,y the mere fact of their $otes,

it is certain, that the true rule of interpretation is to ascertain the pu,lic and -ust intention from the lan%ua%e of the instrument itself, accordin% to the common rules applied to all laws' The people, who adopted the constitution, could know nothin% of the pri$ate intentions of the framers' They adopted it upon its own clear import, upon its own naked te)t' .othin% is more common, than for a law to effect more or less, the intention of the persons, who framed it< and it must ,e -ud%ed of ,y its words and sense, and not ,y any pri$ate intentions of mem,ers of the le%islature' Y 19G:' #n re%ard to the faculties of the ,ank, if con%ress could constitutionally create it, they mi%ht confer on it such faculties and powers, as were fit to make it an appropriate means for fiscal operations' They had a ri%ht to adapt it in the ,est manner to its end' .o one can pretend, that its ha$in% the faculty of holdin% a capital< of lendin% and dealin% in money< of issuin% ,ank notes< of recei$in% deposits< and of appointin% suita,le officers to mana%e its affairs< are not hi%hly useful and e)pedient, and appropriate to the purposes of a ,ank' They are -ust such, as are usually %ranted to state ,anks< and -ust such, as %i$e increased facilities to all its operations' To say, that the ,ank mi%ht ha$e %one on without this or that faculty, is nothin%' ;ho, ,ut con%ress, shall say, how few, or how many it shall ha$e, if all are still appropriate to it, as an instrument of %o$ernment, and may make it more con$enient, and more useful in its operations@ .o man can say, that a sin%le faculty in any national charter is useless, or irrele$ant, or strictly improper, that is conduci$e to its end, as a national instrument' 6epri$e a ,ank of its trade and ,usiness, and its $ital principles are destroyed' #ts form may remain, ,ut its su,stance is %one' All the powers %i$en to the ,ank are to %i$e efficacy to its functions of trade and ,usiness' Y 19G ' As to another su%%estion, that the same o,-ects mi%ht ha$e ,een accomplished throu%h the state ,anks, it is sufficient to say, that no trace can ,e found in the constitution of any intention to create a dependence on the states, or state institutions, for the e)ecution of its %reat powers' #ts own means are ade(uate to its end< and on those means it was e)pected to rely for their accomplishment' #t would ,e utterly a,surd to make the powers of the constitution wholly dependent on state institutions' +ut if state ,anks mi%ht ,e employed, as con%ress ha$e a choice of means, they had a ri%ht to choose a national ,ank, in preference to state ,anks, for the financial operations of the %o$ernment' Proof, that they mi%ht use one means, is no proof, that they cannot constitutionally use another means' Y 19GG' After all, the su,-ect has ,een settled repeatedly ,y e$ery department of the %o$ernment, le%islati$e, e)ecuti$e, and -udicial' The states ha$e ac(uiesced< and a ma-ority ha$e constantly sustained the power' #f it is not now settled, it ne$er can ,e' #f it is settled, it would ,e too much to e)pect a re?ar%ument, whene$er any person may choose to (uestion it' Y 19GP' Another (uestion, which has for a lon% time a%itated the pu,lic councils of the nation, is, as to the authority of con%ress to make roads, canals, and other internal impro$ements' Y 19G8' 3o far, as re%ards the ri%ht to appropriate money to internal impro$ements %enerally, the su,-ect has already passed under re$iew in considerin% the power to lay and collect ta)es' The doctrine there contended for, which has ,een in a %reat measure ,orne out ,y the actual practice of the %o$ernment, is, that con%ress may appropriate money, not only to clear o,structions to na$i%a,le ri$ers< to impro$e har,ours< to ,uild ,reakwaters< to assist na$i%ation< to erect forts, li%ht?houses, and piers< and for other purposes allied to some of the enumerated powers< ,ut may also appropriate it in aid of canals, roads, and other institutions of a similar nature, e)istin% under state authority' The only limitations upon the power are those prescri,ed ,y the terms of the constitution, that the o,-ects shall ,e for the common defence, or the %eneral welfare of the 4nion' The true test is, whether the o,-ect ,e of a local character, and local use< or, whether it ,e of %eneral ,enefit to the states' #f it ,e purely local, con%ress cannot constitutionally appropriate money for the o,-ect' +ut, if the ,enefit ,e %eneral, it matters not, whether in point of locality it ,e in one state, or se$eral< whether it ,e of lar%e, or of small e)tent< its nature and character determine the ri%ht, and con%ress may appropriate money in aid of it< for it is then in a -ust sense for the %eneral welfare' Y 19GI' +ut it has ,een contended, that the constitution is not confined to mere appropriations of money< ,ut authori>es con%ress directly to undertake and carry on a system of internal impro$ements for the %eneral welfare< where$er such impro$ements fall within the scope of any of the enumerated powers' Con%ress may not, indeed, en%a%e in such undertakin%s merely ,ecause they are internal impro$ements for the %eneral welfare, unless they fall within the scope of the enumerated powers' The distinction ,etween this power, and the power of appropriation is, that in the latter, con%ress may appropriate to any purpose, which is for the common defence or %eneral welfare< ,ut in the former, they can en%a%e in such undertakin%s only, as are means, or incidents to its enumerated powers' Con%ress may, therefore, authori>e the makin% of a canal, as incident to the power to re%ulate commerce, where such canal may facilitate the intercourse ,etween state and state' They may authori>e li%ht?houses, piers, ,uoys, and ,eacons to ,e ,uilt for the purposes of na$i%ation' They may authori>e the purchase and ,uildin% of custom?houses, and re$enue cutters, and pu,lic ware?houses, as incidents to the power to lay and collect ta)es' They may purchase places for pu,lic uses< and erect forts, arsenals, dock?yards, na$y?yards, and ma%a>ines, as incidents to the power to make war' Y 19P0' 8or the same reason con%ress may authori>e the layin% out and makin% of a military road, and ac(uire a ri%ht o$er the soil for such purposes< and as incident thereto they ha$e a power to keep the road in repair, and pre$ent all o,structions thereto' +ut in these, and the like cases, the %eneral -urisdiction of the state o$er the soil, su,-ect only to the ri%hts of the 4nited 3tates, is not e)cluded' As, for e)ample, in case of a military road< althou%h a state cannot pre$ent repairs on the part of the 4nited 3tates, or authori>e any

o,structions of the road, its %eneral -urisdiction remains untouched' #t may punish all crimes committed on the road< and it retains in other respects its territorial so$erei%nty o$er it' The ri%ht of soil may still remain in the state, or in indi$iduals, and the ri%ht to the easement only in the national %o$ernment' There is a %reat distinction ,etween the e)ercise of a power, e)cludin% alto%ether state -urisdiction, and the e)ercise of a power, which lea$es the state -urisdiction %enerally in force, and yet includes, on the part of the national %o$ernment, a power to preser$e, what it has created' Y 19P1' #n all these, and other cases, in which the power of con%ress is asserted, it is so upon the %eneral %round of its ,ein% an incidental power< and the course of reasonin%, ,y which it is supported, is precisely the same, as that adopted in relation to other cases already considered' #t is, for instance, admitted, that con%ress cannot authori>e the makin% of a canal, e)cept for some purpose of commerce amon% the states, or for some other purpose ,elon%in% to the 4nion< and it cannot make a military road, unless it ,e necessary and proper for purposes of war' To %o o$er the reasonin% at lar%e would, therefore, ,e little more, than a repetition of what has ,een already fully e)pounded' The Journal of the Con$ention is not supposed to furnish any additional li%hts on the su,-ect, ,eyond what ha$e ,een already stated' Y 19P9' The resistance to this e)tended reach of the national powers turns also upon the same %eneral reasonin%, ,y which a strict construction of the constitution has ,een constantly maintained' #t is said, that such a power is not amon% those enumerated in the constitution< nor is it implied, as a means of e)ecutin% any of them' The power to re%ulate commerce cannot include a power to construct roads and canals, and impro$e the na$i%ation of watercourses in order to facilitate, promote, and secure such commerce, without a latitude of construction departin% from the ordinary import of the terms, and incompati,le with the nature of the constitution' The li,eral interpretation has ,een $ery uniformly asserted ,y con%ress< the strict interpretation has not uniformly, ,ut has upon se$eral important occasions ,een insisted upon ,y the e)ecuti$e' #n the present state of the contro$ersy, the duty of for,earance seems inculcated upon the commentator< and the reader must decide for himself upon his own $iews of the su,-ect' Y 19P3' Another (uestion has ,een made, how far con%ress could make a law %i$in% to the 4nited 3tates a preference and priority of payment of their de,ts, in cases of the death, or insol$ency, or ,ankruptcy of their de,tors, out of their estates' #t has ,een settled, upon deli,erate ar%ument, that con%ress possess such a constitutional power' #t is a necessary and proper power to carry into effect the other powers of the %o$ernment' The %o$ernment is to pay the de,ts of the 4nion< and must ,e authori>ed to use the means, which appear to itself most eli%i,le to effect that o,-ect' #t may purchase, and remit ,ills for this o,-ect< and it may take all those precautions, and make all those re%ulations, which will render the transmission safe' #t may, in like manner, pass all laws to render effectual the collection of its de,ts' #t is no o,-ection to this ri%ht of priority, that it will interfere with the ri%hts of the state so$erei%nties respectin% the di%nity of de,ts, and will defeat the measures, which they ha$e a ri%ht to adopt to secure themsel$es a%ainst delin(uencies on the part of their own re$enue or other officers' This o,-ection, if of any a$ail, is an o,-ection to the powers %i$en ,y the constitution' The mischief su%%ested, so far as it can really happen, is the necessary conse(uence of the supremacy of the laws of the 4nited 3tates on all su,-ects, to which the le%islati$e power of con%ress e)tends' Y 19P:' #t is under the same implied authority, that the 4nited 3tates ha$e any ri%ht e$en to sue in their own courts< for an e)press power is no where %i$en in the constitution, thou%h it is clearly implied in that part respectin% the -udicial power' And con%ress may not only authori>e suits to ,e ,rou%ht in the name of the 4nited 3tates, ,ut in the name of any artificial person, 2such as the Postmaster?=eneral,5 or natural person for their ,enefit' #ndeed, all the usual incidents appertainin% to a %ersona! so$erei%n, in relation to contracts, and suin%, and enforcin% ri%hts, so far as they are within the scope of the powers of the %o$ernment, ,elon% to the 4nited 3tates, as they do to other so$erei%ns' The ri%ht of makin% contracts and institutin% suits is an incident to the %eneral ri%ht of so$erei%nty< and the 4nited 3tates, ,ein% a ,ody politic, may, within the sphere of the constitutional powers confided to it, and throu%h the instrumentality of the proper department, to which those powers are confided, enter into contracts not prohi,ited ,y law, and appropriate to the -ust e)ercise of those powers< and enforce the o,ser$ance of them ,y suits and -udicial process' Y 19P ' There are almost innumera,le cases, in which the au)iliary and implied powers ,elon%in% to con%ress ha$e ,een put into operation' +ut the o,-ect of these Commentaries is, rather to take notice of those, which ha$e ,een the su,-ect of animad$ersion, than of those, which ha$e hitherto escaped reproof, or ha$e ,een silently appro$ed' Y 19PG' 4pon the %round of a strict interpretation, some e)traordinary o,-ections ha$e ,een taken in the course of the practical operations of the %o$ernment' The $ery first act, passed under the %o$ernment, which re%ulated the time, form, and manner, of administerin% the oaths prescri,ed ,y the constitution, was denied to ,e constitutional' +ut the o,-ection has lon% since ,een a,andoned' #t has ,een dou,ted, whether it is constitutional to permit the secretaries to draft ,ills on su,-ects connected with their departments, to ,e presented to the house of representati$es for their consideration' #t has ,een dou,ted, whether an act authori>in% the president to lay, re%ulate, and re$oke, em,ar%oes was constitutional' #t has ,een dou,ted, whether con%ress ha$e authority to esta,lish a military academy' +ut these o,-ections ha$e ,een silently, or practically a,andoned' Y 19PP' +ut the most remarka,le powers, which ha$e ,een e)ercised ,y the %o$ernment, as au)iliary and implied powers, and which, if any, %o to the utmost $er%e of li,eral construction, are the layin% of an unlimited em,ar%o in 180P, and the purchase of Couisiana in 1803, and its su,se(uent admission into the 4nion, as a state' These measures were ,rou%ht forward, and supported, and carried, ,y

the known and a$owed friends of a strict construction of the constitution< and they were -ustified at the time, and can ,e now -ustified, only upon the doctrines of those, who support a li,eral construction of the constitution' The su,-ect has ,een already hinted at< ,ut it deser$es a more deli,erate re$iew' Y 19P8' #n re%ard to the ac(uisition of CouisianaE??The treaty of 1803 contains a cession of the whole of that $ast territory ,y 8rance to the 4nited 3tates, for a sum e)ceedin% ele$en millions of dollars' There is a stipulation in the treaty on the part of the 4nited 3tates, that the inha,itants of the ceded territory shall ,e incorporated into the 4nion, and admitted, as soon as possi,le, accordin% to the principles of the federal constitution, to the en-oyment of all the ri%hts, ad$anta%es, and immunities of citi>ens of the 4nited 3tates' Y 19PI' #t is o,$ious, that the treaty em,raced se$eral $ery important (uestions, each of them upon the %rounds of a strict construction full of difficulty and delicacy' #n the first place, had the 4nited 3tates a constitutional authority to accept the cession and pay for it@ #n the ne)t place, if they had, was the stipulation for the admission of the inha,itants into the 4nion, as a state, constitutional, or within the power of con%ress to %i$e it effect@ Y 1980' There is no pretence, that the purchase, or cession of any forei%n territory is within any of the powers e)pressly enumerated in the constitution' #t is no where in that instrument said, that con%ress, or any other department of the national %o$ernment, shall ha$e a ri%ht to purchase, or accept of any cession of forei%n territory' The power itself 2it has ,een said5 could scarcely ha$e ,een in the contemplation of the framers of it' #t is, in its own nature, as dan%erous to li,erty, as suscepti,le of a,use in its actual application, and as likely as any, which could ,e ima%ined, to lead to a dissolution of the 4nion' #f con%ress ha$e the power, it may unite any forei%n territory whatsoe$er to our own, howe$er distant, howe$er populous, and howe$er powerful' 4nder the form of a cession, we may ,ecome united to a more powerful nei%h,our or ri$al< and ,e in$ol$ed in 7uropean, or other forei%n interests, and contests, to an intermina,le e)tent' And if there may ,e a stipulation for the admission of forei%n states into the 4nion, the whole ,alance of the constitution may ,e destroyed, and the old states sunk into utter insi%nificance' #t is incredi,le, that it should ha$e ,een contemplated, that any such o$erwhelmin% authority should ,e confided to the national %o$ernment with the consent of the people of the old states' #f it e)ists at all, it is unforeseen, and the result of a so$erei%nty, intended to ,e limited, and yet not sufficiently %uarded' The $ery case of the cession of Couisiana is a strikin% illustration of the doctrine' #t admits, ,y conse(uence, into the 4nion an immense territory, e(ual to, if not %reater, than that of all the 4nited 3tates under the peace of 1P83' #n the natural pro%ress of e$ents, it must, within a short period, chan%e the whole ,alance of power in the 4nion, and transfer to the ;est all the important attri,utes of the so$erei%nty of the whole' #f, as is well known, one of the stron% o,-ections ur%ed a%ainst the constitution was, that the ori%inal territory of the 4nited 3tates was too lar%e for a national %o$ernment< it is inconcei$a,le, that it could ha$e ,een within the intention of the people, that any additions of forei%n territory should ,e made, which should thus dou,le e$ery dan%er from this source' The treaty?makin% power must ,e construed, as confined to o,-ects within the scope of the constitution' And, althou%h con%ress ha$e authority to admit new states into the firm, yet it is demonstra,le, that this clause had sole reference to the territory then ,elon%in% to the 4nited 3tates< and was desi%ned for the admission of the states, which, under the ordinance of 1P8P, were contemplated to ,e formed within its old ,oundaries' #n re%ard to the appropriation of money for the purposes of the cession the case is still stron%er' #f no appropriation of money can ,e made, e)cept for cases within the enumerated powers, 2and this clearly is not one,5 how can the enormous sum of ele$en millions ,e -ustified for this o,-ect@ #f it ,e said, that it will ,e Lfor the common defence, and %eneral welfareL to purchase the territory, how is this reconcilea,le with the strict construction of the constitution@ #f con%ress can appropriate money for one o,-ect, ,ecause it is deemed for the common defence and %eneral welfare, why may they not appropriate it for all o,-ects of the same sort@ #f the territory can ,e purchased, it must ,e %o$erned< and a territorial %o$ernment must ,e created' +ut where can con%ress find authority in the constitution to erect a territorial %o$ernment, since it does not possess the power to erect corporations@ Y 1981' 3uch were the o,-ections, which ha$e ,een, and in fact may ,e, ur%ed a%ainst the cession, and the appropriations made to carry the treaty into effect' The friends of the measure were dri$en to the adoption of the doctrine, that the ri%ht to ac(uire territory was incident to national so$erei%nty< that it was a resultin% power, %rowin% necessarily out of the a%%re%ate powers confided ,y the federal constitution< that the appropriation mi%ht -ustly ,e $indicated upon this %round, and also upon the %round, that it was for the common defence and %eneral welfare' #n short, there is no possi,ility of defendin% the constitutionality of this measure, ,ut upon the principles of the li,eral construction, which has ,een, upon other occasions, so earnestly resisted' Y 1989' As an incidental power, the constitutional ri%ht of the 4nited 3tates to ac(uire territory would seem so naturally to flow from the so$erei%nty confided to it, as not to admit of $ery serious (uestion' The constitution confers on the %o$ernment of the 4nion the power of makin% war, and of makin% treaties< and it seems conse(uently to possess the power of ac(uirin% territory either ,y con(uest or treaty' #f the cession ,e ,y treaty, the terms of that treaty must ,e o,li%atory< for it is the law of the land' And if it stipulates for the en-oyment ,y the inha,itants of the ri%hts, pri$ile%es, and immunities of citi>ens of the 4nited 3tates, and for the admission of the territory into the 4nion, as a state, these stipulations must ,e e(ually o,li%atory' They are within the scope of the constitutional authority of the %o$ernment, which has the ri%ht to ac(uire territory, to make treaties, and to admit new states into the 4nion' Y 1983' The more recent ac(uisition of 8lorida, which has ,een uni$ersally appro$ed, or ac(uiesced in ,y all the states, can ,e maintained only on the same principles< and furnishes a strikin% illustration of the truth, that constitutions of %o$ernment re(uire a li,eral construction to effect their o,-ects, and that a narrow interpretation of their powers, howe$er it may suit the $iews of

speculati$e philosophers, or the accidental interests of political parties, is incompati,le with the permanent interests of the state, and su,$ersi$e of the %reat ends of all %o$ernment, the safety and independence of the people' Y 198:' The other instance of an e)traordinary application of the implied powers of the %o$ernment, a,o$e alluded to, is the em,ar%o laid in the year 180P, ,y the special recommendation of President Jefferson' #t was a$owedly recommended, as a measure of safety for our $essels, our seamen, and our merchandise from the then threatenin% dan%ers from the ,elli%erents of 7urope< and it was e)plicitly stated Lto ,e a measure of precaution called for ,y the occasion<L and Lneither hostile in its character, nor as -ustifyin%, or incitin%, or leadin% to hostility with any nation whate$er'L #t was in no sense, then, a war measure' #f it could ,e classed at all, as flowin% from, or as an incident to, any of the enumerated powers, it was that of re%ulatin% commerce' #n its terms, the act pro$ided, that an em,ar%o ,e, and here,y is, laid on all ships and $essels in the ports, or within the limits or -urisdiction, of the 4nited 3tates, &c' ,ound to any forei%n port or place' #t was in its terms unlimited in duration< and could ,e remo$ed only ,y a su,se(uent act of con%ress, ha$in% the assent of all the constitutional ,ranches of the le%islature' Y 198 ' .o one can reasona,ly dou,t, that the layin% of an em,ar%o, suspendin% commerce for a limited period, is within the scope of the constitution' +ut the (uestion of difficulty was, whether con%ress, under the power to re%ulate commerce with forei%n nations, could constitutionally suspend and interdict it wholly for an unlimited period, that is, ,y a permanent act, ha$in% no limitation as to duration, either of the act, or of the em,ar%o' #t was most seriously contro$erted, and its constitutionality denied in the 7astern states of the 4nion, durin% its e)istence' An appeal was made to the -udiciary upon the (uestion< and it ha$in% ,een settled to ,e constitutional ,y that department of the %o$ernment, the decision was ac(uiesced in, thou%h the measure ,ore with almost une)ampled se$erity, upon the 7astern states< and its ruinous effects can still ,e traced alon% their e)tensi$e sea,oard' The ar%ument was, that the power to re%ulate did not include the power to annihilate commerce, ,y interdictin% it permanently and entirely with forei%n nations' The decision was, that the power of con%ress was so$erei%n, relati$e to commercial intercourse, (ualified ,y the limitations and restrictions contained in the constitution itself' .on?intercourse and 7m,ar%o laws are within the ran%e of le%islati$e discretion< and if con%ress ha$e the power, for purposes of safety, of preparation, or counteraction, to suspend commercial intercourse with forei%n nations, they are not limited, as to the duration, any more, than as to the manner and e)tent of the measure' Y 198G' That this measure went to the utmost $er%e of constitutional power, and especially of implied power, has ne$er ,een denied' That it could not ,e -ustified ,y any, ,ut the most li,eral construction of the constitution, is e(ually undenia,le' #t was the fa$ourite measure of those, who were %enerally the ad$ocates of the strictest construction' #t was sustained ,y the people from a ,elief, that it was promoti$e of the interests, and important to the safety of the 4nion' Y 198P' At the present day, few statesmen are to ,e found, who seriously contest the constitutionality of the acts respectin% either the em,ar%o, or the purchase and admission of Couisiana into the 4nion' The %eneral $oice of the nation has sustained, and supported them' ;hy, then, should not that %eneral $oice ,e e(ually respected in relation to other measures of $ast pu,lic importance, and ,y many deemed of still more $ital interest to the country, such as the tariff laws, and the national ,ank charter@ Can any measures furnish a more instructi$e lesson, or a more salutary admonition, in the whole history of parties, at once to moderate our >eal, and awaken our $i%ilance, than those, which stand upon principles repudiated at one time upon constitutional scruples, and solemnly adopted at another time, to su,ser$e a present %ood, or foster the particular policy of an administration@ ;hile the principles of the constitution should ,e preser$ed with a most %uarded caution, and a most sacred re%ard to the ri%hts of the states< it is at once the dictate of wisdom, and enli%htened patriotism to a$oid that narrowness of interpretation, which would dry up all its $ital powers, or compel the %o$ernment 2as was done under the confederation,5 to ,reak down all constitutional ,arriers, and trust for its $indication to the people, upon the dan%erous political ma)im, that the safety of the people is the supreme law, ?sa!us %o%u!i su%rema !e27@ a ma)im, which mi%ht ,e used to -ustify the appointment of a dictator, or any other usurpation' Y 1988' There remain one or two other measures of a political nature, whose constitutionality has ,een denied< ,ut which, ,ein% of a transient character, ha$e left no permanent traces in the constitutional -urisprudence of the country' /eference is here made to the Alien and 3edition laws, passed in 1PI8, ,oth of which were limited to a short duration, and e)pired ,y their own limitation' Ane 2the Alien act5 authori>ed the president to order out of the country such aliens, as he should deem dan%erous to the peace and safety of the 4nited 3tates< or should ha$e reasona,le %rounds to suspect to ,e concerned in any treasona,le, or secret machinations a%ainst the %o$ernment of the 4nited 3tates, under se$ere penalties for diso,edience' The other declared it a pu,lic crime, punisha,le with fine and imprisonment, for any persons unlawfully to com,ine, and conspire to%ether, with intent to oppose any measure or measures of the 4nited 3tates, &c'< or with such intent, to counsel, ad$ise, or attempt to procure any insurrection, unlawful assem,ly, or com,ination< or to write, print, utter, or pu,lish, or cause, or procure to ,e written, &c', or willin%ly to assist in writin%, &c', any false, scandalous, and malicious writin% or writin%s a%ainst the %o$ernment of the 4nited 3tates, or either house of con%ress, or the president, with intent to defame them, or to ,rin% them into contempt, or disrepute, or to e)cite a%ainst them the hatred of the people, or to stir up sedition< or to e)cite any unlawful com,ination for opposin%, or resistin% any law, or any lawful act of the president, or to resist, oppose, or defeat any such law or act< or to aid, encoura%e, or a,et any hostile desi%ns of any forei%n nations a%ainst the 4nited 3tates' #t pro$ided, howe$er, that the truth of the writin% or li,el mi%ht ,e %i$en in e$idence< and that the -ury, who tried the cause, should ha$e a ri%ht to determine the law and the fact, under the direction of the court, as in other cases'

Y 198I' The constitutionality of ,oth the acts was assailed with %reat earnestness and a,ility at the time< and was defended with e(ual masculine $i%our' The %round of the ad$ocates, in fa$our of these laws, was, that they resulted from the ri%ht and duty in the %o$ernment of self?preser$ation, and the like duty and protection of its functionaries in the proper dischar%e of their official duties' They were impu%ned, as not conforma,le to the letter or spirit of the constitution< and as inconsistent in their principles with the ri%hts of citi>ens, and the li,erty of the press' The Alien act was denounced, as e)ercisin% a power not dele%ated ,y the constitution< as unitin% le%islati$e and -udicial functions, with that of the e)ecuti$e< and ,y this 4nion as su,$ertin% the %eneral principles of free %o$ernment, and the particular or%ani>ation and positi$e pro$isions of the constitution' #t was added, that the 3edition act was open to the same o,-ection, and was e)pressly for,idden ,y one of the amendments of the constitution, on which there will ,e occasion hereafter to comment' At present it does not seem necessary to present more than this %eneral outline, as the measures are not likely to ,e renewed< and as the doctrines, on which they are maintained, and denounced, are not materially different from those, which ha$e ,een already considered' The Founders' Constitution Bolume 3, Article 1, 3ection 8, Clause 18, 6ocument 91 httpESSpress?pu,s'uchica%o'eduSfoundersSdocumentsSa1V8V18s91'html The 4ni$ersity of Chica%o Press 3tory, Joseph' Commentaries on the Constitution of the ,nited -tates' 3 $ols' +oston, 1833' 3ourceE httpESSpress?pu,s'uchica%o'eduSfoundersSdocumentsSa1V8V18s91'html

President $ames 0onroe is seen discussing with his ad2isors the policy later known as the 0onroe &octrine. 7rom left to rightB "ecretary of "tate $ohn Tuincy #dams, "ecretary of the .reasury William 8. %rawford, #ttorney ;eneral William Wirt, President 0onroe 9standing:, "ecretary of War $ohn %. %alhoun, "ecretary of the <a2y "amuel "outhard, and Postmaster ;eneral $ohn 0cLean.

/eport on a .ational +ank 26ecem,er 13, 1PI05

/eport on the 7sta,lishment of a "int 2January 98, 1PI15

../. /enate De ate on the &ank o* the .nited /tates 036L37

Congressional De ate on the &ank o* the .nited /tates 036L37

Post"onement o* &ank o* the ../. &ill 034337 4'3' 3enate, 8e,ruary 90, 1811

../. 'ouse o* -e"resentati%es Pro!eedings in 343K, *rom the Congressional -e!ords 0343K7

../. /enate Pro!eedings in 343K, *rom the Congressional -e!ords 0343K7

Congressional -e!ord, 1ar!h 32, 343K, &ank o* the .nited /tates 0343K7

+ank of the 4nited 3tates, a ,ill from the House of /epresentati$es to incorporate the, read ''' 90: read a second time, and referred ''' 90 reported without amendment ''' 931 de,ate on the ,ill ''' 93 amendments proposed ''' 9:0 consideration of the amendments ''' 9 1, 9 3, 9 de,ate on the ,ill as amended ''' 9 8 reported to the 3enate, and ordered, as amended, to ,e printed ''' 9P: a%ain considered ''' 9PG read a third time, and passed as amended ''' 981 ,9 P


+n +!t to #n!or"orate the /u s!ri ers to the &ank o* the .nited /tates 0343K7

-enewal o* the &ank o* the .nited /tates 0345J7 Q President +ndrew $a!kson,s Ieto 1essage in $uly 345J

a ,ill from the 3enate to renew and modify the charter of the +ank of the 4nited 3tates was twice read and de,ated, 3: :< resumed, 3 0P< a%ain taken up, 383 < ordered to a third readin%, and passed, 38 9'

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