MAY 28, 1832.]

Indian Appropriations.

[SENATE.

of the Whole, the amendment reported by the Committee on Indian Affairs, appropriating 5,000 dollars to be expend. ed, under the direction of the Secretary of War, for the relief of the Seminole Indians, on account of the failure of their crops last year.

The amendment was agreed to.

Mr. TIPTON then moved to amend the bill, by striking out the proviso that no portion of the money appropri ated by this bill shall be used to reward agents for settling disputes among themselves.

Mr. DALLAS, also, made some remarks in reply to Mr. BENTON, and in favor of immediate action on the question. Mr. BENTON said that the President, in the passage read by the Senator from Delaware, left the discussion of the question to the representatives of the people and to the people themselves. The people themselves had not yet had an opportunity to discuss the question. They had not been able to read, much less to consider, any thing in regard to the question. Congress had collected information, stated facts, and drawn up reasonings upon the question, all which had been ordered to be printed for distribution among the people. But if we would give effect to the order to print, if we would give effect to the Executive recommendation, we must let the people have time to read what we may submit to them. The effect Mr. TIPTON asked if it would not be better to permit and purpose of the resolution submitted by him last year a few blankets to be given to divert the Indians from their was to excite discussion, not to decide this question. It customary habit of having blood for blood, than to risk is by discussion here that the people abroad are informed. the repetition of outrages similar to those which had been He did not object to the discussion now, only for the rea-perpetrated by the Sacs or the Menominees. A discreson that the discussion will interfere with other business, tionary power confided to the agents might prevent this and detain us from our homes. effusion of blood.

Mr. FRELINGHUYSEN, regarding this as the best feature in the bill, objected to its being stricken out, and asked for the yeas and nays on the question. The yeas and nays were ordered.

Mr. MARCY said he hoped the Senator from Massachu- Mr. FRELINGHUYSEN replied that the committee of setts would put his proposition in blank, that we may in- the other House had inserted in the bill the clause which it crease the amount of the bonus. It had been declared by was now proposed to strike out; and he considered that, a very intelligent friend of the bank, that the renewal of in introducing it, the committee had done a great public the charter would increase the value of the stock, by the service. He did not wish to see a continuance of this sysamount of seventeen millions of dollars. It was proper, tem of bribes, but would prefer that a moral influence therefore, that the Government should have a suitable should be brought to bear upon these people. If the equivalent for the benefit thus to be conferred on the agents were to tell them that, unless they abandoned their stockholders. sanguinary habits, the Government of the United States The question was then taken on Mr. WEBSTER'S amend-would withdraw its countenance and protection from them, ment, and it was decided in the affirmative-yeas 32, nays 10. it would have more influence than all the bribes which On motion of Mr. BENTON, the yeas and nays being could be given them, in the form of blankets and rum. desired by one-fifth of the Senators present, those who He was desirous to prevent agents from exercising this disvoted are as follows: cretionary power; and hoped the vote of the Senate would YEAS.—Messrs. Bell, Buckner, Chambers, Clay, Clay-sustain the course of the House of Representatives. ton, Dallas, Ellis, Ewing, Foot, Frelinghuysen, Grundy, Mr. WHITE made a few observations similar in their Hayne, Hendricks, Johnston, King, Knight, Miller, import, stating that the gentleman of the other House who Moore, Naudain, Poindexter, Prentiss, Robbins, Robin- had introduced the clause, and in whose opinion he had son, Seymour, Silsbee, Tazewell, Tipton, Tomlinson, much confidence, believed that disputes were sometimes Waggaman, Webster, White, Wilkins.

NAYS.—Messrs. Benton, Brown, Dickerson, Dudley, Hill, Mangum, Marcy, Smith, Sprague, Troup.

Mr. WEBSTER then submitted two amendments, and moved that they be printed; which was ordered.

The first authorizes the Secretary of the Treasury, in addition to that now held by the United States, to purchase stock in the bank to an amount not exceeding three millions of dollars; and the second provides that Congress may hereafter pass a law restraining the bank, or any of its branches, from making or keeping in circulation, after the 4th of March, 1836, any notes or bills of less amount dollars.

than

Mr. HAYNE rose to inquire whether the gentleman proposed, by his first amendment, that the United States should subscribe for the additional stock at its par value, or go into the market and purchase it at the market price. If the latter, he would suggest that Congress could, at any time hereafter, if thus disposed to invest its surplus revenue, pass a law to buy stock to the amount that it might be deemed proper at the time to hold. There was no necessity for appending such a provision to the charter, unless it was intended to give the United States an advantage over other purchasers in the market.

On motion of Mr. CLAYTON,
The Senate then adjourned.

MONDAY, MAY 28.

INDIAN APPROPRIATIONS.

On motion of Mr. WHITE, the Senate postponed all the preceding orders, and took up the bill making appropriations for the Indian Department for the year 1832. The Senate then procedeed to consider, as in Committee

VOL. VIII.--62

got up for the purpose of obtaining the rewards held out by Government. He knew of no such practices himself; but, if they existed, they ought to be discouraged. He thought the motion calculated to embarrass the bill, and was sorry the gentleman from Indiana had made it. He would be compelled to vote against it.

The question was then taken on the motion to amend; and decided as follows:

YEAS.--Messrs. Dallas, Forsyth, Hendricks, King, Smith, Tipton, Waggaman.--7.

NAYS. Messrs. Bell, Brown, Buckner, Chambers, Clay, Clayton, Dickerson, Dudley, Foot, Frelinghuysen, Grundy, Hill, Holmes, Johnston, Kane, Knight, Mangum, Marcy, Miller, Moore, Naudain, Poindexter, Prentiss, Robbins, Robinson, Ruggles, Seymour, Sprague, Tazewell, Tomlinson, Troup, Webster, White, Wilkins.--34. So the motion was negatived.

The bill was then reported to the Senate as amended; and the amendments being concurred in, the bill was ordered to be engrossed, and read a third time.

Mr. CLAY presented a petition from George Johnson and others, of New York, manufacturers of hair cloth, &c. praying that the reduction of duties proposed by the Secretary of the Treasury might not become a law.

Mr. C., in presenting this petition, availed himself of the opportunity to state that, from this petition, and from a number of letters which had been addressed to him, concerning the state of our manufactures, and the prosperous condition of some of them, he had become convinced that it was a solemn duty which Congress owed to the country to proceed in the work of regulating the duties with the greatest caution. They might not be aware that they were giving a fatal stroke to some branches of the arts, while

SENATE.]

Bank of the United States.

incautiously legislating on the subject, which more full consideration would have induced them to avoid. He had thought it his duty to make this remark, and he would move that the petition be laid on the table and printed. The motion was agreed to.

BANK OF THE UNITED STATES.

The Senate then again proceeded to consider the bill to modify and continue the charter of the Bank of the United States.

The question being on the amendments proposed by Mr. WEBSTER, being in substance-

1st. That the Secretary of the Treasury should, at any time hereafter, when directed by the President, have the power to purchase additional stock in the bank to an amount not exceeding three millions; and

2d. That it should not be lawful for the bank, after the 4th of March, 1831, to issue any notes of a less value than dollars.

[MAY 28, 1832.

their circulating medium, to transact their ordinary business and dealing. Therefore, he was opposed to a higher sum than ten dollars, and would only agree to this, as a discretionary favor resting in Congress whether it might be prudent hereafter to fix on that amount.

After a few remarks from Mr. FOOT and Mr. CHAMBERS, the question was taken on filling the blank with twenty dollars, when it was agreed to; and the amendment thus shaped was concurred in.

Mr. MOORE then moved his amendment, 1st, that no branch should be established in any State, without the assent of the State; and, 2d, that every branch shall be liable to taxation in the State as the State banks are, or in proportion as other property is taxed.

Mr. HOLMES asked for a division of the amendment. Mr. FORSYTH moved a modification of the amendment, so as to exclude so much of it as requires the assent of the States to the location of a branch within their limits. His reason was, that, as some of the States entertained

Mr. WEBSTER acceded to the suggestion of the gen-doubts as to the constitutionality of the power exercised in tleman from South Carolina, that, in reference to his first amendment, Congress could act hereafter, whenever such action should be called for by circumstances. He would not therefore press that amendment.

The amendment was then withdrawn.

the establishment of these branches, he did not desire that they should be placed in a situation to be sufferers on account of their conscientious scruples. If there were local as well as general benefits resulting from these establishments, these States ought not to be shut out from the enjoyment of these advantages on account of their doubts. Some discussion took place on this proposition, in which Messrs. SPRAGUE, EWING, FORSYTH, KANE, BENTON, BUCKNER, MILLER, KING, CHAMBERS, CLAY, and TAZEWELL took part.

Mr. WEBSTER said a few words in defence of his second amendment, which imposed no restriction until after the expiration of the present charter. The effect of his proposition would be to introduce more specie into circulation, and to banish the small notes with which the country is inundated. He moved to fill the blank with Mr. JOHNSTON said this amendment contained two ten dollars, but expressed his willingness to vote for a distinct propositions, which ought to have been separately higher restriction, if any Senator should move it. presented for discussion. The two propositions received Mr. BENTON would propose to substitute twenty dol-the consideration of the committee: it was determined finallars, and would ask for the yeas and nays on the question. ly to limit the extension of the branches to the number He alluded to the precedent in England of fixing on a high already established, unless by the consent of the States, amount, and to the evils that had occurred from a contra- and to take a bonus, in lieu of all other taxes, either of the ry system, by the efforts of counterfeiters being confined General Government or of the States.

to notes of small amount, as circulating among the labor- It is now proposed to reverse both, first, by making the ing and poorer classes, who were less able to detect the operation of the charter depend on the consent of the forgery. The notes of the United States' Bank, also, cir-States to the establishment of a branch within their limits culating to the greatest distance, where counterfeits were and jurisdiction, and then to give the States the further less liable to be detected, if of a low amount, and thus power of taxing them. circulating among the marketing class, might induce the same evils.

Both of these, if adopted, defeat totally the end of the charter, or they make the operation of an act of Congress Mr. FOOT was in favor of the amendment, but not in depend on the will of each of the States. These propothe extent of the gentleman from Missouri, [Mr. BENTON.]sitions are founded either on constitutional objections to Eight years ago, he [Mr. F.] had made an attempt to pro- the power of Congress over the subject, or on the expehibit the circulation of notes under five dollars. He be-diency of the exercise of this restraining power on the part lieved, if the measure could be made general--if the of the several States.

power extended to raise the amount of State notes, it With regard then, 1st, to the constitutional power. The would have the effect to increase the circulation of specie. passage of the act presupposes the power; and besides He would be in favor of making it ten dollars; but not till the sanction of all the branches of the Government, which the State banks, by one consent, shall limit theirs to five it must receive, it has already been twice chartered, and dollars. For, if the notes of the Bank of the United States sustained by the judgment of the Supreme Court. Those were high, no benefit from it would accrue to the coun-who believe there is no power to grant the charter, cannot try; for they would not be brought in circulation through save their consciences, or the constitution either, by this the States. He was willing to leave a discretionary power limitation. in Congress, when the States would come into it.

We either have the power, or we have not. If we have

Mr. SMITH was in favor of the limitation of ten dollars; it, the assent of the States is not necessary to confer or but would be opposed to a higher restriction than five dol- confirm it. If we have not the power, they cannot give lars, unless the States were limited to be under five dol-it by their assent. It either derogates from the power, or lars. Of all the evils that could be fall the country, that of implies a doubt of the authority of Congress, or it obtains a sudden return to a specie currency would be the worst. If it were to be brought about, it must be gradually.

for them the authority to do what is otherwise an unconstitutional act, by unconstitutional means. If we have the power, it is plenary; if we have it not, it cannot be conferred by the assent or sanction of one or all the States, It can only be given by an amendment to the constitution.

Mr. CLAY mentioned the state of the banking system in Kentucky--the failure of several banks. When he first heard the amendment, he was opposed to it. The proposition to pass an enactment thus restricting the amount of Now, 2dly, with regard to the expediency. It is to the notes, would seriously affect the resources of that give the States the power to defeat, and one of them may, State--they had no bank of their own, and, by raising the and probably will, defeat the operation of the law. The notes of the bank above five dollars, they would have to bank is instituted for great national purposes, not for the have recourse to the notes of their neighboring States for mere pecuniary benefit of the States, although that is a

MAY 28, 1832.]

Bank of the United States.

[SENATE.

great object--not for the benefit of stockholders--not for choose? We have already heard, in the course of this the mere discounting of notes-but to receive and distri- debate, of two cases in which States attempted to exerbute the revenue-to furnish a sound currency, a general cise a power of this kind, when they did not constitutionmedium of circulation through all the States-to equalize ally possess it. Two States have taxed the branches, for exchange, and other objects of a public nature. the avowed purpose of driving them out of their limits, How can these purposes be attained, unless the branches and were prevented from accomplishing this object mereare established in all the commercial States? Two-thirds ly by force of judicial decisions against their right. If, of the revenue is received in the single city of New York. then, these attempts have been made to exercise this powThat great emporium is also the centre of a great part of er, when it was not legally possessed, and against the will all the commerce of the United States; and perhaps half of Congress, is there any doubt it will be exercised when of all the bills, domestic and foreign, either pass through its exercise shall be permitted, and invited by the proposor terminate there. If New York refuses to admit a branch, ed amendment? No doubt, in my mind, the power, if where and how will you receive the revenue, and how granted, will be exercised, and the main object of continudistribute it? How can you regulate exchange, or furnishing the bank thus defeated.

a general circulation? Will not that single State, then,

I have already said that the second branch of the amend. counteract the design of Congress? And other intermedi- ment is as objectionable and as destructive as the first. I ate States would do the same thing. Suppose Louisiana think it so. It appears to me to give ample power, by should refuse, must the benefit of this charter to all the means of taxation, to expel the bank from any State which Western States be defeated by her refusal to admit a may choose to expel it. It gives a power of taxation, branch into her city, the commercial centre of at least ten without fixed limits, or any reasonable guards. And a States in the Union? If, therefore, the bank is founded power of taxation, without fixed limits, and without guards, on any public national objects, and it can be justified on is a power to embarrass, a power to oppress, a power to no other, is it wise and proper to make its utility depend expel, a power to destroy. The States are to be allowed on the assent of each of the States? To give them the to tax the branches according to the amount of their loans power by anticipation to annul our own laws, and defeat and discounts, in like manner as other banks, or other the wisest purposes? property in the State, shall be liable to taxation.

With regard to the power of taxation. It matters little Now, sir, some of the States have no banks. Of course to the bank whether they pay a bonus to the Government, they tax no banks. In other States, the banks pay the or a tax to the States--but both would be unjust. If they State a bonus, on their creation, and are not otherwise pay it to us, it either goes to the treasury for the use and taxed. In other cases, the State in effect itself owns the benefit of all, or it may be applied, in our discretion, to bank, and a tax on it, therefore, would be merely nominal. any public object, or divided among the States. If we Besides, no State is to be bound to lay this tax, as it taxes give the power to the States to tax, it will operate more its own banks. It has an option to tax it in that manner, favorably upon some States. Louisiana would receive a or as other property is taxed. What other property? It much larger share, from being the emporium of the West, may be as lottery tickets, gaming tables, or other things than the other States. Besides, the power to tax, as a which may be deemed fit to be discouraged or suppressed, franchise, is an unlimited power over the subject, and may are taxed. The bank may be classed with other nuisan be used to exclude or expel the bank from the State. ces, and driven out or put down by taxation. All this you give the power to tax like other banks, some States is perfectly within the scope of the amendment. The have no banks, and many do not tax their banks; some do license is broad enough to authorize any thing which may tax them, but in general they stipulate a bonus. If like be designed or wished. other property, there will be the difficulty of ascertaining the capital and regulating the rates; collision with the States hostile to the bank will be unavoidable.

If

The amount of the bonus--how we shall employ it, or divide it, is a distinct question.

Now, sir, in the first place, I doubt exceedingly our power to adopt this amendment, and I pray the deliberate consideration of the Senate, in regard to this point. Besides, why confer the power? If they have the pow-In the first place, let me ask, what is the constitutional er, then it is unnecessary; if they have not, shall Congress ground on which Congress created this corporation, and give the States the power to do what they can do without, on which we now propose to continue it? There is no and at the same time to destroy a great national institution? express authority to create a bank, or any other corpoThe jurisdiction over the subject is exclusive. The assent ration, given to us by the constitution. The power is of the States is no more necessary or proper than it would derived by implication. It has been exercised, and can be to ask them to establish a custom-house, or to carry the be exercised, only on the ground of a just necessity. It is mail or march troops within their limits. to be maintained, if at all, on the allegation that the establishment of a national bank is a just and necessary means of carrying on the Government, and of executing the Mr. WEBSTER said he trusted the Senate would not powers conferred on Congress by the constitution. On act on these proposition, without fully understanding their this ground, Congress has established this bank, and on bearing and extent. For my own part, said he, I look this it is now proposed to be continued. And it has upon the two parts of the amendment as substantially of already been judicially decided that Congress having the same character. Each, in my opinion, confers a power established a bank for these purposes, the constitution of in the States to expel the bank at their pleasure; in the United States prohibits the States from taxing it. Obother words, entirely to defeat the operations and destroy serve, sir, it is the constitution, not the law, which lays the capacity for usefulness of the whole bank. The sim- this prohibition on the States. The charter of the bank ple question is, shall we, by our own act, in the charter does not declare that the States shall not tax it. It says itself, give the States permission to expel the bank and all not one word on that subject. The restraint is imposed its branches from their limits, at their own pleasure? The not by Congress, but by a higher authority, the constitution. first part of the amendment gives this permission in ex- Now, sir, I ask how we can relieve the States from this press terms; and the latter part gives it in effect, by au- constitutional prohibition. It is true that this prohibition thorizing the States to tax the loans and issues of the bank, is not imposed in express terms; but it results from the with no effectual limitation. It appears to me idle to say general provisions of the constitution, and has been judithat this power may be safely given, because it will not be cially decided to exist in full force. This is a protection, exercised. It is to be given, I presume, on the supposi- then, which the constitution of the United States, by its tion that probably some of the States will choose to exer-own force, holds over this instrument, which Congress cise it; else why is it given at all? And will they not so has deemed necessary to be created, in order to carry on

SENATE.]

Bank of the United States.

[MAY 28, 1832.

the Government, so soon as Congress, exercising its own and issues, properly speaking, are the loans and discounts judgment, has chosen to create it. Can we throw off, of the bank. The office, as an agent, conducts the ar from this Government, this constitutional protection? I rangements, it is true; but the notes which are issued are think it clear we cannot. We cannot repeal the constitu- notes of the bank, and the debts created are debts due to tion. We cannot say that every power, every branch, the bank. The circulation is the circulation of the bank. every institution, and every law of this Government, Now the truth is, what the States claim, or what this shall not have all the force, all the sanction, and all amendment proposes to give them, is, a right to tax the the protection, which the constitution gives it. By the circulation of the bank. It is on this right that the arguconstitution, every law of Congress is finally to be consi- ment rests. The common way of stating it is, that, since dered, and its construction ultimately settled by the Su- State banks pay a tax to the State, these branch banks, preme Court of the United States. These very acts, coming among them, ought to pay a similar tax. But before referred to, taxing the banks, were held valid by the State banks pay the tax to the State for the privilege of more or fewer of the States' judicatures, but were finally circulation; and the proposition is, therefore, neither pronounced unconstitutional by the Supreme Court of the more nor less than that the United States' Bank shall pay United States; and this, not by force of any words in the the States for the same privilege. The circulation of the charter, but by force of the constitution itself. I ask bills is the substance. The locality of the office is but an whether it is competent for us to reverse this provision of incident. An office is created, for example, on Connectithe constitution, and to say that the laws of Congress cut river, either in Massachusetts, Vermont, Connecticut, shall receive their ultimate construction from the State or New Hampshire. The notes of the bank are loaned at courts. Again: the constitution gives Congress a right this office, and put into circulation in all these States. Now to lay duties of imposts, and it prohibits the exercise of no one will say that the State where the office happens to any such power by the States. Now, it so happens that be placed, should have a right to lay this tax, and the the national treasury is full, and the State treasuries are far other States have no such right. This would be a merely less so. It might be thought very convenient that a part arbitrary distinction. It would be founded on no real or of the receipts at the custom-houses should be received by substantial difference, and no man could seriously con the States. But will any man say that Congress could tend for it, as it seems to me. Under this very amendnow authorize the States to lay and collect imposts under ment, Pennsylvania would be authorized to collect a large any restrictions or limitations whatever? No one will pre-tax, and New Jersey no tax at all, although the State cir tend it. That would be to make a new partition of power culation of New Jersey is as much infringed and diminished between this Government and the State Governments. as that of Pennsylvania by the circulation of the Bank of Mr. Madison has very correctly observed, that the assent the United States. The States which have the benefit of of the States cannot confer a new power on Congress, ex-branches, (if it be a benefit,) are to have the further adcept in those cases especially provided in the constitution.vantage of taxation, while other States are to have neither This is very true; and it is equally true that the States can- the one nor the other. Founding the claim on the State not obtain a new power, by the consent of Congress, right to derive benefit from the paper circulation which against the prohibition of the constitution, except in those exists within it, the advocates of the claim are clearly not cases which are expressly so provided for in the constitu- consistent with themselves when they maintain a measure tion itself. which professes to protect that right in some States, and to leave it unprotected in others.

These reasons, sir, lead me to think that if, for purposes connected with the beneficial administration of the But the inequality of the operation of this amendment Government, we deem it necessary to continue this cor- is not the only, nor the main, objection to it. It proceeds poration, we are not at liberty to repeal any protection, on a principle not to be admitted. It asserts, or it takes or any immunity, with which the constitution surrounds for granted, that the power of authorizing and regulating We cannot give to a law of the United States less the paper currency of the country is an exclusive State than its constitutional effect. The constitution says that every such law, passed in pursuance of the constitution, shall be paramount to any State law. We cannot enact that it shall not be so: for that would be to repeal, so far,

it.

right. The ground assumed can be no less broad than this: because the Bank of the United States having the grant of a power from Congress to issue notes for circulation, its right is perfect, if Congress could make such the constitution. grant. It owes nothing to the States, if Congress could Allow me now, Mr. President, to inquire on what give what it has undertaken to give; that is to say, if Conground it is that the States claim this power of taxation. gress, of its own authority, may confer a right to issue They do not claim it as a power to tax all property of paper for circulation. Now, sir, whosoever denies this their own citizens. This they possess, without denial or right in Congress, denies, of course, its power to create doubt. Every stockholder in the bank is liable to be such a bank as now exists; at least, so it strikes me. The taxed for his property therein, by the State of which he Bank of the United States is quite unconstitutional, if the is a citizen. This right is exercised, I believe, by all the whole paper circulation belongs to the States; because States which lay taxes on money at interest, income, and the Bank of the United States is a bank of circulation, other subjects of that kind. It is, then, not that they may be and was so intended to be by Congress, which expressly authorized to tax the property of their own citizens; nor authorized the circulation of notes and bills. The power is it because any State does not participate in the advan- of issuing notes for circulation is not an indispensable ingre tage of the premium or bonus paid by the bank to dient in the constitution of a bank merely as a bank. Government for the charter. That sum goes into the The earlier banks did not possess it, and many good ones treasury for the general good of all. have existed without it. A bank with no such power

Nor can the claim be sustained, nor indeed is it asserted, might yet very well collect the public revenue, (provided on the strength of the mere circumstance that a branch there was a proper medium in which it could be paid,) or an office is established in a State. Such office or could tolerably well remit the revenue to the treasury, branch is but an agency. It is no body politic or corpo- and could deal usefully, to some extent, in the business of rate. It has no legal existence of itself. It is but an agent exchange.

of the general corporation. That these agents have their On what ground is it, then, that Congress possesses the residence or place of business in a particular State, is not power not only to create a bank, but a bank of circulaof itself the foundation of any claim. But, according to tion? Simply, as I suppose, because Congress possesses the language of the amendment, the ground of this claim a constitutional control over the currency of the country, to tax is evidently the loans and issues; and these loans and has power to provide a safe medium of circulation, as

r 28, 1832.]

Bank of the United States.

[SENATE.

1 for other purposes as for the collection of its own Mr. MOORE said, I regret extremely, sir, the protracted ts and revenue. The bank, therefore, already pos- discussion to which this proposition has given rise; and, es unconstitutional power, if the paper circulation be sir, I regret it none the less on account of the seeming subject, exclusively, of State right or State regulation. necessity which it has devolved on me to throw myself eed, sir, it is not a little startling that such exclusive upon the indulgence of the Senate, whilst I attempt, in a at should now be asserted. I observed, the other day, brief manner, to support it. , in my opinion, it was very difficult to maintain, on As far as this amendment has received opposition upon face of the constitution itself, and independent of long constitutional principles, I may be permitted to congratutinued practice, the doctrine that the States could au- late myself that it has fallen to the lot of the honorable rize the circulation of bank paper at all. They can- Senator from Virginia, [Mr. TAZEWELL,] than whom none coin money; can they then coin that which becomes is better qualified for the task, of placing this matter upon actual and almost the universal substitute for money? its true ground, and of removing every difficulty and not the right of issuing paper, intended for circulation, objection that has been urged on this score; this has been the place and as the representative of metallic cur- done most ably and effectually, and I think I may add to cy, derived merely from the power of coining and the satisfaction of all. ulating that metallic currency? As bringing this mat- But, sir, I think I have just reason to complain that to a just test, let me ask whether Congress, if it had great injustice has been done me, and the amendment I the power of coining money, and of regulating the have had the honor to propose, by gentlemen in the oppoe of foreign coins, could create a bank, with the sition applying arguments and objections as if to meet ver to circulate bills. For one, I think it would be feature and principle not contained in the amendment. icult to make that out. Where, then, do the States, Sir, it cannot be disguised that the main opposition to whom all control over the metallic currency is alto- this proposition has been predicated upon the assumed her prohibited, get this power? It is true that, in fact, that, if successful, it would recognise the right in the er countries, private bankers, having no legal authority States to impose taxation "ad libitum," or to an amount r the coin, issue notes for circulation. But this they which would exclude or expel these institutions from the lways with the consent of Government, expressed or country. This is not my object; the amendment contains lied; and Government restrains and regulates all their no such feature, and is obnoxious to no such objections. rations at its pleasure. It would be a startling propo- It expressly provides that the tax shall be such as is imin, in any other part of the world, that the prerogative posed upon other banks or upon other property owned by oining money, held by Government, was liable to be citizens of the State; but if the phraseology be objeceated, counteracted, or impeded, by another preroga- tionable, amend it, make it a reasonable tax, or establish held in other hands, of authorizing a paper circulation. any other proper rate of taxation of which the subject is is further to be observed, that the States cannot issue susceptible; but let not gentlemen intimate that the of credit; not that they cannot make them a legal object is, or that the effect will be, to produce expulsion. ler, but that they cannot issue them at all. Is not this I cannot believe, Mr. President, the effect of the modiear indication of the intent of the constitution to re-fication would be to prejudice the institution. I have in the States as well from establishing a paper circu-been actuated by no such views in bringing it forward; in, as from interfering with the metallic circulation? but I do sincerely believe it right and just, and that with ks have been created by States with no capital what-it the institution will be more popular, and, if the modifitheir notes being put into circulation simply on the cation is adopted, that the citizens will invite the location dit of the State or the State law. What are the issues of its branches in the State of Alabama. uch banks but bills of credit issued by the State? Sir, if I am not greatly mistaken, a portion of them confess, Mr. President, that the more I reflect on this have already done so; for as well as my memory serves ject, the more clearly does my mind approach the con- me, in the memorial which I had the honor of presenting on that the creation of State banks, for the purpose, from the citizens of Mobile, asking the rechartering of with the power of circulating paper, is not consistent this institution, it is solicited upon these terms. the grants and prohibitions of the constitution. But, honorable Senators from Massachusetts and Pennsylvania this is not now the question. The question is not [Messrs. WEBSTER and DALLAS] ask with great emphasis, ather the States have the exclusive power; it is, what does this amendment propose to tax? whether the ther they alone have the power. May they rightfully banking house, the office of discount and deposite, &c. lude the United States from all interference with the I answer, sir, that it proposes to tax the very subjecter currency? Are we interlopers, when we create a matter in relation to this institution, which is constitutionk of circulation Do we owe them a seignorage for ally a proper subject for taxation. circulation of bills, by a corporation created by Con- Gentlemen may call it a franchise, a faculty, an immuniss Up to the present time, the States have been ty, a banking privilege, or by any other name they may stent with a concurrent power. They have indeed be pleased to give it; we care not; but they object to this trolled vastly the larger portion of the circulation; but tax, because it is upon the loans and issues of the bank. y have not claimed exclusive authority over the whole. Let them point out a better mode of getting at the object; ey have demanded no tax or tribute from a bank issuing it is well known that these branches have no actual capital; er under the authority of Congress. Nor do I know but it is equally well known that they are authorized to any State or States now insist upon it. It may be carry on banking operations upon a nominal capital. By individual States have put forth such claims, in their the State laws, other bank capital is taxed, and private islative capacity; but, at present, I recollect no instance. moneyed capital of an individual is taxed at interest; and, amendment, however, which is now proposed, asserts sir, I can see no solid objection to the taxing of this bankclaim, and I cannot consent to yield to it. We seeming operation, and in this way. But it is alleged that "it be making the last struggle for the authority of Con- is not a subject of taxation by the laws of the State, s to interfere at all with the actual currency of the because it is foreign capital." Now, sir, is this so; is this intry. I shall never agree to surrender that authority; tenable? fould as soon yield the coinage power itself; nor do I With due deference to the opinion of other gentlemen, nk there would be much greater danger, nor a much I must be permitted to say that I view the power of taxaarer departure from constitutional principle, in con- tion as one of the highest attributes of State sovereignty, ting to such surrender, than in acquiescing in what is and that the State possesses this power in the most unliproposed. mited extent over all objects or subjects of property

But the