vored us with a new exposition of the word necessary." He says that necessary, as applicable to a mean to produce an end, should be construed so as to produce the greatest possible quantum of public utility. I have been taught to conceive that the true exposition of a necessary mean to produce a given end was that mean without which the end could not be produced.

[H. OF R.

not as a consolidated Government, and am not prepared or disposed at present to relinquish that idea. A gentleman from New York (Mr. LAWRENCE) has remarked, that the Government is consolidated quoad the powers granted, and of course quoad their incidents; but he should first have shown that the authority contended for is one of those granted, or incidental to some one of them, before the application can

The gentleman's reasoning, however, if pur-be made. The observation can have no tendensued, will be found to teem with dangerous ef- cy to establish either of those positions. What fects, and would justify the assumption of any effect would this doctrine, if admitted, have given authority whatever. Terms are to be so upon the State Governments? And how would construed as to produce the greatest degree of it be relished by them? Their dignity and conpublic utility. Congress are to be the judges sequence will not only be prostrated by it but of this degree of utility. This utility, when their very existence radically subverted. A decided on, will be the ground of constitution- third resource of deducing this constitutional ality. Hence, any measure may be proved con-authority is resorted to the expediency of the stitutional, which Congress may judge to be proposed measure itself. I presume the great useful. These deductions would suborn the object of the Constitution was to distribute all Constitution itself, and blot out the great dis-governmental rights between the several State tinguishing characteristic of the free Constitu- Governments and the Government of the Unittions of America, as compared with the despo-ed States; the expediency, therefore, of the extic Governments of Europe, which consist in ercise of all constitutional rights, as they relate having the boundaries of governmental authori- to State or General Governments, is properly ty clearly marked out and ascertained. The contemplated and decided by the Constitution, exclusive jurisdiction over ten miles square has and not by the Governments among which the been adverted to by one gentleman (Mr. AMES) distribution is made. A gentleman from South as a specified authority, to which the one con- Carolina (Mr. SMITH) has said, that the expetended for is suggested to be incidental; he has diency and constitutionality of the proposed reasoned in this manner: Congress possess ju- measure cannot be considered separately, berisdiction over ten miles square, &c., Congress cause the constitutionality grows out of the ex-may therefore establish a Bank within the ten pediency. This is but candidly unveiling the miles square, and, as principle is not applicable subject of that sophistical mask which has been to place, Congress may exercise the same au- ingeniously thrown over it by some gentlemen; thority any where else. This seems to me to for all the arguments adduced in favor of the be an ingenious improvement upon sophistical measure, from whatever source they arise, if deduction; the gentleman, however, should have pursued, will be found to rush into the great reflected, that the ground upon which he built one of expediency, to bear down all constituthe right to exercise this authority, was that of tional provisions, and to end themselves in the exclusive jurisdiction, and to extend the princi- unlimited ocean of despotism. ple it is necessary to extend the right of exclu- Several gentlemen have said, that this authosive jurisdiction; without this, the basis of his rity may be safely exercised, since it does not argument fails, and the superstructure, how-interfere with the rights of States or individuever beautified, must follow; for the principle, als. I think this assertion not very correct; if if at all deducible from that source, is express the States be constitutionally entitled to the exly confined to place, and cannot operate be-ercise of this authority, it is an intrusion on yond it.

their rights to do an act which would eventualI shall now consider the second resource, ly destroy or impede the freest exercise of that whence the constitutional right of exercising authority; for it is totally immaterial whether the the proposed authority is derived-its inciden- effect be produced by the operation of this, or tality to the mere creation and existence of Go- by an inhibition in express terms. The States vernment. It has been observed, that in all may not only incorporate banks, but may of Governments there are certain rights tacitly right prohibit the circulation of bank paper granted, and certain other rights retained; that within their respective limits; the act, thereit is impossible, in framing a Constitution, to fore, if it be intended to have an effectual operenumerate every minute governmental right, ation, will certainly infringe this right, or exist and that such an attempt would be chimerical at the mercy of the State Governments. This and vain. And hence the incidentality of this reasoning, however, places the subject in anauthority to the mere existence of Government other point of view a little singular. It conis inferred. These observations seem to me to templates the authority contended for as vacant apply to a Government growing out of a State ground, and justifies the tenure by the mere of society, and not to a Government composed title of occupancy. In almost all the remarks of chartered rights from previously existing Go-in favor of the measure, gentlemen seem to vernments, or the people of those Governments. have forgotten the peculiar nature of this GovI have been taught to consider this as a federal, Jernment. It being composed of mere charter

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Bank of the United States.

[FEB. 7, 1791.

might vary the application of general rules, drawn from Governments of a different nature, and which possess the unquestioned right of grauting charters of incorporation.

ed authorities, all authority not contained within that charter would, from the nature of the grant, have been retained to the granting party; and I will venture to assert, that this opinion was the sine qua non of the adoption and ex- In the first place, the right of exercising that istence of this Government; but if this opinion authority by the Government is at least probhad been doubtful, Congress themselves have lematical, it is no where granted in express made an express declaration in favor of this terms; the Legislature, therefore, can have no construction to the proposed amendments to competent security against a judicial decision the Constitution. Gentlemen have inferred a but a dependant or a corrupt court. I presume constitutional right to exercise the authority that a law to punish with death those who councontended for from a fourth resource the for- terfeit the paper emitted by the bank will be mer usages and habits of Congress. In affirm- consequent upon the existence of this act. ance of this argument, several acts of Congress Hence a judicial decision will probably be had have been referred to-the power of removal of the most serious and awful nature; the life from office, the government of the Western Ter- of an individual at stake on the one hand, an ritory, the cession from North Carolina, the pur-improvident act of the Government on the chase of West Point, &c. I shall not examine other. A distrust arising from this cause will into the propriety of these several acts, though for ever keep the bank in jeopardy, and the I conceive it would not be difficult to show, that they differ materially, upon constitutional grounds, from the one now proposed. I shall only remark, that, if Congress have heretofore been in the usage and habit of disregarding and violating the Constitution, it is high time that that habit and usage be corrected. I hope and trust that the people of the United States will not tamely see the only security of their rights and liberties invaded and violated, but also see one violation of it with impunity boldly urged as an argument to justify another.

very first trial of this nature will probably subject the bank to a run which it will be unable to withstand; for all stockholders will require the greatest possible security for their money, and a distrust of such an institution will be its destruction. This observation seems to me to have peculiar force, from the great proportion of paper to that of gold and silver, upon which the bank is proposed to be founded. The peculiar relation between the General and State Governments will naturally produce a contest for governmental rights, until long experience An instance of a similar exercise of authority shall settle the precise boundaries between by the Congress, which existed under the for- them. The present measure appears to me to mer Confederation, has been mentioned in be an unprovoked advance in this scramble for favor of its exercise by the present Congress. authority, and a mere experiment how far we The argument has been, that as the powers of may proceed without involving the opposition the present Congress are greater than those of of the State Governments. It should be rethe former Congress, and the former were com- marked that this Government is in its childpetent to the exercise of this right, the present hood; it is therefore unfitted for such bold and must be more so. It is to be remarked, that manly enterprises, and policy would dictate that act was the child of necessity, and that that it should wait at least until it may have Congress doubted its legitimacy, and the act become more matured or invigorated. Two itself was never confirmed by a judicial deci- modes of administering this Government presion; and it should be also remarked, that the sent themselves; the one with mildness and same Congress did not pretend to possess the moderation, by keeping within the known right to punish those who should counterfeit boundaries of the Constitution, the other by the the paper of the bank, and recommended it to creation and operation of fiscal mechanism; the the States to confirm the act which they had first will ensure us the affections of the people, done, and to pass laws for the purpose of pun- the only natural and substantial basis of Repubishing those who should counterfeit the paper; lican Governments; the other will arise and and it is a little remarkable that this circum- exist in oppression and injustice, will increase stance, which is one of the most essential to the previously existing jealousies of the people, the existence and operation of this act, is with- and must be ultimately discarded, or bring held from our view. But as I think arguments about a radical change in the nature of our drawn from this source wholly foreign to the Government. Having suggested these observsubject, I shall make no other remark upon ations upon the measure in general, I shall now them. I shall now suggest a few observations proceed to point out a few objections to the respecting the expediency of the proposed details of the bill. I think the authority given measure. In doing this I shall not say any to the bank to purchase and hold lands objecthing as to the utility of banks in general, nor tionable; in the first place, I doubt the constias to the effects of the banks of England, Scot-tutional right of Congress to invest such an land, Holland, &c. I possess not sufficient practical or theoretical knowledge to justify the inquiry; I shall only point out a few circumstances which are peculiarly attached to the Government we are now administering, which

authority; the lands within the United States are holden of the individual States, and not of the United States; and that tenure appears to me to be the true ground upon which the right to exercise that authority grows. I believe it

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the clauses for laying and collecting taxes, imposts, excises, &c.; for borrowing money, and for making all laws necessary and proper for carrying these powers into effect; and that these do not authorize the establishment of a National Bank.

is admitted, that although Congress may natu-ing to this subject, except what is contained in ralize a foreigner they cannot authorize him to purchase lands; and I think the case at least as strong, when they first create an artificial person, and then invest the authority; besides, if we have any reference to the experience of other countries, we shall find it dangerous to allow incorporated bodies to hold lands at all. To ascertain this, the gentleman from VirgiThe exercise of that right produced great op- nia proposes a candid interpretation of the Conpression in England, and nothing but the mas-stitution, which we shall agree to, and he offers terly activity of an absolute Prince could apply to assist us with his rules of interpretation, for a competent remedy. A gentleman from Mas- his good intentions in doing which we give him sachusetts (Mr. SEDGWICK) has denied that full credit; but as he acknowledges that he has the bank is invested with this right. It is true been long decided against the authority of Conit is confined to the mode of purchasing by gress to establish a bank, and is therefore premortgage, but that is the most effectual mode of judiced against the measure; as his rules, being purchasing, and the most ruinous to the land-made for the occasion, are the result of his inholder.

I will merely mention one other objection without a comment-the authority given to make laws not contrary to law or its own Constitution; but the most objectionable clause is that which limits its duration, and pledges the Faith of the United States that no other bank shall be established in the mean time, however dangerous and offensive the present measure might prove in its operation, and whatever may be the utility and advantage in any other scheme of banking which experience may suggest. Such a stipulation cannot be justified but from the most pointed necessity, and from the maturest deliberation. When I search for the necessity of this measure, it escapes me; it is not pretended in the bill itself; the chief sti mulus which I can discover to the existence of this measure is to give artificial impulse to the value of stock. This is not a sufficient justification; the subject has not been sufficiently considered, and I therefore hope it may be postponed to some future session of Congress; many evils may be avoided by such a conduct, none can result from it.

Mr. GERRY said, he should principally confine himself to the objections of the gentleman first up from Virginia, (Mr. MADISON,) not from a disrespect to the observations of other gentlemen in the opposition, but because he considered their arguments as grafts on the original stock of those urged by the gentleman alluded to, and if the trunk fell, its appendages must fall also.

The objects of the bill were to render the fiscal administration successful, to give facility to loans on sudden emergencies, and to benefit trade and industry in general; and that these were objects of bigh importance had not been denied, neither had it been asserted that they ought not, if possible, to be attained.

It is objected, however, that the mode proposed by the bill is unconstitutional, and the bill itself defective.

The mode proposed is a National Bank; to establish which he thought Congress were as competent as either House were to adjourn from day to day.

It is said that Congress have no power relat

terpretation, and not his interpretation of the rules; as they are not sanctioned by law exposition, or approved by experienced judges of the law, they cannot he considered as a criterion for regulating the judgment of the House, but may, if admitted, prove an ignis fatuus that may lead to destruction.

We wish not, however, by establishing our own rules of interpretation, to enjoy the privilege which is denied to the gentleman, but will meet him on fair ground, by applying rules which have the sanction mentioned; and as the learned Judge Blackstone has laid down such, it is presumed the gentleman from Virginia will not contend for a preference, or refuse to be tried by this standard.

The Judge observes, "That the fairest and most rational method to interpret the will of the Legislator is by exploring his intentions at the time when the law was made by signs the most natural and probable; and these signs are either the words, the context, the subject-matter, the effect and consequence, or the spirit and reason of the law." With respect to words, the Judge observes, that they are generally understood in their usual and most ordinary signification, not so much regarding the grammar as their general and popular use."

66

The gentlemen on different sides of the question do not disagree with respect to the meaning of the terms taxes, duties, imposts, excises, &c. or of borrowing money, but of the word necessary: and the question is, what is the general and popular meaning of this term? Perhaps the answer to the question will be truly this, that in a general and popular one the word does not admit of a definite meaning, but that this varies according to the subject and circumstances. With respect to the subject for instance, if the people, speaking of a garrison besieged by a superior force, and without provisions, or a prospect of relief, should say it was under the necessity of surrendering, they would mean a physical necessity, for troops cannot subsist long without provisions; but if speaking of a debtor, the people should say, he was frightened by his creditor, and then reduced to the necessity of paying his debts, they would mean a legal, which is very different from a

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tion than is given by gentlemen in the opposition. Thus their artillery is turned on themselves, for their own interpretation is an argument against itself.

duals? These, as has been shown, are too re- consequences, the rule is, where the words mote; and if not, we have not been able, with- bear none, or a very absurd signification, if out the assistance of an ally, to obtain foreign literally understood, we must a little deviate loans during the war, and perhaps the power from the received sense of them." In the prein whose assistance we may rely would be hos-sent case, the gentlemen in the opposition genetile to us. Such dependance, then, as has been rally, as well as the gentleman first up from stated, would necessarily leave us in a deplo- Virginia, give the whole clause by which Conrable state; and it must be evident that a pre-gress are authorized" to make all laws nevious arrangement to aid loans in cases of sud- cessary and proper," &c. no meaning whatever; den emergency is necessary and proper in the for they say, the former Congress had the same general and popular use of the term, inasmuch power under the Confederation without this as any other measure that Congress can adopt clause as the present Congress have with it. The would be inadequate to the purpose of common Federalist is quoted on this occasion, but aldefence; and what previous arrangement can though the author of it discovered great ingewe make so proper as that of a National Bank? nuity, this part of his performance I consider If gentlemen in the opposition know of any, let as a political heresy. His doctrine, indeed, was them produce it, and let the merits of it be in- calculated to lull the consciences of those who vestigated; for it is unreasonable to propose a differed in opinion with him at that time; and rejection of this plan without producing a better. having accomplished his object, he is probably The plan proposed by the Secretary of the desirous that it may die with the opposition itTreasury, which is now the subject of discus- self. The rule in this case says, that where sion, does honor, like all his other measures, to the words bear no signification, we must dehis head and heart; it will be mutually bene- viate a little; and as this deviation cannot be ficial to the stockholders and to Government, made by giving the words less than no meanand consequently so to the people. The stock-ing, it must be made by a more liberal construcholders by this plan will be deeply interested in supporting Government; because three quarters of their capital, consisting of funded certificates, depend on the existence of Government, which therefore is the prop of their capital, the main pillar that supports the bank. Again, the credit of Government, which is immaterial to the other banks, is essential to the National Bank, for the annual interest of three quarters of its capital, which must form a great share of its profits, will depend altogether on the credit of Government, and produce, on the part of the stockholders, the strongest attachment to it. On the other hand, it will be the interest of Government to support the bank, as well on account of the benefits which the public will generally derive from the institution, and the profits arising from the shares of Government in the stock which will be hereafter noticed, as of the supplies of money which it will be for the interest of the bank to furnish in cases of urgent necessity. Whenever these exist, Congress may lay a tax for supplying the Treasury, and anticipate it with certainty by means of the National Bank. It being then our duty to provide for the common defence in cases of emergency, the provision must evidently be made by taxes, loans, or by arrangements for obtaining the latter on the earliest notice; and previous taxes and loans being oppressive, improper, and unnecessary, the arrangements for aiding loans become indispensable, and a bank consequently necessary and constitutional.

The third rule of the Judge, relative to the "subject-matter" of a law, it is unnecessary to apply, because the members agree in their ideas relative to the meaning of the terms taxes, duties, loans, &c.

The fourth rule, which relates to "effects and consequences," is important; and here the learned Judge observes that "as to effects and

The last mentioned rule relates to the spirit and reason of the law, and the Judge is of opinion "that the most universal and effectual way of discovering the true meaning of a law, when the words are dubious, is by considering the reason and spirit of it, or the cause which moved the Legislature to enact it." The causes which produced the Constitution were an imperfect Union, want of public and private justice, internal commotions, a defenceless community, neglect of the public welfare, and danger to our liberties. These are known to be the causes not only by the preamble of the Constitution but also from our own knowledge of the history of the times that preceded the establishment of it. If these weighty causes produced the Constitution, and it not only gives power for removing them, but also authorizes Congress to make all laws necessary and proper for carrying these powers into effect, shall we listen to assertions that these words have no meaning, and that this Constitution has not more energy than the old? Shall we thus unnerve the Government, leave the Union, as it was under the Confederation, defenceless against a banditti of Creek Indians, and thus relinquish the protection of its citizens? Or shall we, by a candid and liberal construction of the powers expressed in the Constitution, promote the great and important objects thereof? Each member must determine for himself; I shall without hesitation choose the latter, and leave the people and States to determine whether or not I am pursuing their true interest. If it is inquired where we are to draw the line of a liberal construction, I will also inquire where the line of restriction is to be drawn?