Whole No, 414.
The "North-Carolina Free Press,"
BV GEORGE HOWARD,
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MESSAGE
From the President of the U. States,
returning the Hank Bill, with his
objections, &c.
(continued from our last.)
In another point of view, this
provision is a palpable attempt
to amend the Constitution by an
act of legislation. The Consti
tution declares that the "Con
gress shall have power to exer
cise exclusive legislation in all
Cases whatsoever" overtheDis
trict of Columbia. Its consti
tutional power, therefore, to es
tablish Banks in the District of
Columbia, and increase their
capital at will, is unlimited and
uncontrollable by any other
power than that" which gave
authority to the Constitution.
Yet this act declares that Con
gress shall not increase the
capital of existing banks, nor
create other banks with capitals
exceeding in ihe whole six mil
lions of dollar.. The Consti
tution declares, that Congress
shall have power to exercise
exclusive legislation over this
District, "in alt cases tchatso
ever;'" and this act declares
they shall not. Which is the
supreme law of the land! This
provision cannot be "necessary"
or "proper," or constitutional,
unless the absurdity be admit
ted, that whenever it be "ne
cessary and proper," in the
opinion of Congress, they have
a right to barter away one por
tion of the powers vested in
them by the Constitution as a
means of executing the rest.
On two subjects only does
the Constitution recognise in
Congress the power to grant
exclusive privileges or monopo
lies. It declares that "Con
gress shall have power to pro
mote the progress of science
and the useful arts, by securing,
for limited times, to authors and
inventors, the exclusive right to
their respective writings and
discoveries." Out of this ex
press delegation of power, have
grown our laws of patents and
copy-rights. As the Constitu
tion expressly delegates to Con
gress the power to grant exclu
sive privileges in these cases as
the means of executing the sub
stantive power "to promote the
progress of science and useful
arts," it is consistent with the
fair rules of construction to con
clude that such a power was not
intended to be granted as a
means of accomplishing any
other end. On every other
subject which comes within the
scope of Congressional power,
there is an ever living discretion
in the use of proper means which
cannot be restricted or abolish
ed without an amendment of the
Constitution. Every act of
TarhwmSh (MS'tombe Counly, N. cJt
Congress, therefore, which at
tempts by grants of monopolies,
or sale of exclusive privileges
tor a limited time, or a time
without limit, to restrict or ex
tinguish its discretion in the
choice of means to execute its
delegated powers, is equivalent
to a legislative amendment of
the Constitution, and palpably
unconstitutional.
This act authorises and en
courages transfers of its stock
to foreigners, and grants them
an exemption from all state and
national taxation. So far from
being "necessary and roper"
that the Bank should possess
this power, to make it a safe
and efficient agent of the Gov
ernment in its fiscal operations,
it is calculated to convert the
Bank of the United States into
a foreign bank, to impoverish
our people in time of peace, to
disseminate a foreign influence
through every section of the
republic and in war, to endan
ger our independence.
The several States reserved
the power at the formation of
the Constitution, to regulate
and control titles and transfers
of real property, and most, if
not all ot them, have laws dis
qualifying aliens from acquiring
or holding lands within their
limits. But this net, in disre
gard of the undoubted right of
the States to prescribe such
disqualifications, gives to aliens,
stockholders in this Bank, an
interest and title, as members
of the corporation, to all the
real property it may acquire
within any of the States of this
Union. This privilege granted
to aliens is not "necessary" to
enable the Bank to perform its
public duties, nor in any sense
"proper" because it is vitally
subversive of the rights of the
States.
The government of the Uni
ted States have no constitution
al power to purchase lands
within the States, except "for
the erection of forts, magazines,
arsenal, dock-yards, and other
needful buildings," and even for
these objects only "by the con
sent of the Legislature of the
State in which the same shall
be." By making themselves
stockholders in the Bank, and
granting to the corporation the
power to purchase lands for
other purposes, they assume a
power not granted in the Con
stitution, and grant to others
what they do not themselves
possess. It is not necessary to
the receiving, safe keeping, or
transmission of the funds of the
government, that the Bank
should possess this power, and
it is not proper that Congress
should thus enlarge the powers
delegated to them in the Con
stitution. The old Bank of the United
States possessed a capital of
only eleven millions of dollars,
which was found fully sufficient
to enable it, with despatch and
safety, to perform all the func
tions required of it by the gov
ernment. The capital of the
present Bank is thirty-five mil
lions of dollars at least twenty-four
more than experience
has proved to be necessary to
enable a bank to perform its
public functions. The public
debt which existed during the
period of the old Bank, and on
the establishment of the new,
lias been nearly paid off, and our
revenue will soon be reduced,
tins increase of capital is,
therefore, not for public, but for
private purposes.
The government is the only
"proper" judge where its agents
should reside and keep their
offices, because it best knows
where their presence will be
"necessary." It cannot, there
fore, be 'necessary' or 'proper'
to authorize the Bank to locate
branches where it pleases, to
perform the public service,
without consulting the govern
ment, and contrary to its will.
The principle laid down by the
Supreme Court concedes,' that
Congress cannot establish a
bank for purposes of private
speculation and gain, but only
as a means ot executing the de
legated powers of the General
r:..., i.
vjuveuimeui. oy tne same
principle, a branch bank cannot
constitutionally be established
for other than public purposes
The power which this act gives
to establish two branches in any
State without the injunction or
request of the government, and
for other than public purposes,
is not 'necessary' to the due ex
ecution of the powers delegated
to Congress.
The bonus which is exacted
from the Bank is a confession
upon the face of the act, that
the powers granted by it are
greater than are 'necessary' to
its character of a fiscal agent.
The government does not tax
its officers and agents for the
privilege of serving it. 'The
bonus of a million and a half,
required by the original charter,
and that of three millions pro
posed by this act, are not exac
ted for the privilege of iriviug
the necessary facilities ior trans-
furring the public ihniln from
place to place, within the United
States, or the territories thereof,
aud for distributing the same in
paymentof the public creditors,
without charging commission or
claiming allowance on account
of the difference of exchange" their taxing power with peculiar
as required by the act of incur-'jealousy. They surrendered it
poration, but for something only as it regards imports and
more beneficial to the stock- exports. In relation to every
holders. The original act de-1 other object within their juris
clares, that it (the bonus) is j diction, whether persons, prop
granted "in consideration of theUrty, business or profession, it
exclusive benefits and privileges was secured in as ample a man
continued by this net to the said j ner as it was before possessed,
corporation for fifteen years asjAll persons, though United
aforesaid." It is, therefore, for j States officers, are liable to a
"exclusive privileges and bene- poll tax by the States within
fits" conferred for their own use)
and emolument, and not for the! the United States are liable to
advantage of the government, Ithc usual land tax, except in the
that a bonus is exacted. These new Stales from whom agree
surplus powers, for which thejnients that they will not tax un
Bank is required to pay, cannot jsold lands, are .exacted when
surely be "necessary" to makeitheyareadmittedintothe Union:
it the fiscal agent of the Trea- j horses, wagons, any beasts or
sury. If they were, the exac- j vehicles, tools or property, be
tion of a bonus for them would longing to private citizens, tho'
not be "proper." J employed in the service of the
' It is maintained by some thati United States are subject to
the Bank is a means of execu-l State taxation. Every private
ting the constitutional power! business, whether carried on by
"to com monevand reu ate the!
value thereof." Congress have
established a mint to coin mo
ney, and passed laws to regu
late the value thereof. The
money so coined, with its value
so regulated, and such foreign
coins as Congress may adopt,
are the only currency known to
the Constitution. But if they
have other power to regulate
the currency, it was conferred
to be exorcised by themselves
7, 1833,
and not to be transferred to a
corporation. If the Bank be
established for that purpose,
with a charter unalterable, with
out its consent, Congress have
parted with their power for a
term of years, during which the
Constitution is a dead letter,
ft is neither necessary nor pro
per to transfer its legislative
powers to such a Bank, and
therefore unconstitutional.
By its silence, considered in
connexion with the decision of
the Supreme Court in the case
of McCulIoch against the State
of Maryland, this act takes from
the States the power to tax a
portion of the banking business
carried on within their limits, in
subversion of one of the strong
est barriers which secured them
against federal encroachments-
! Banking, like farming, rnanu-
fncturing, or any other occupa
tion or profession, is a business,
the right to follow which is nut
originally derived from the laws.
Every citizen and every compa
ny of citizens in all of our
States, possessed the right un
til the State Legislatures deem
ed it good policy to prohibit
private banking bylaw. If the
prohibitory State laws were now
repealed, every citizen would
again possess the right. The
State Banks are a qualified res
toration of the right which has
been taken away by the laws
against banking, guarded by
such provisions and limitations
as m the opinion of the State
I Legislatures, the public interest
-requires. These corporations,
j unless there be an exemption in
j their charter, are, like private
bankers and banking compa
nies, subject to fctate taxation.
The manner in which these
taxes shall be laid depends
' wholly on legislative discretion.
It may be upon the Bunk, upon
! the stock, upon the profits, or in
! any other mode which the sove-
reign power shall will.
Upon the formation of the
Constitution, the States guarded
which they reside; the lands of
an omecr ol tne uenerai kjqv
eminent or not, whether it be
mixed with public concerns or
not, even if it be carried on by
the government of the United
States itself, separately or in
partnership, falls within the
scope of the taxing power of the
State. Nothing comes more
fully within it than banks and
and the business of banking, by
whomsoever instituted and car
ried on. Over this whole sub
Vol Fill No 50.
ject matter, it is just as abso
lute, unlimited and uneontrola
ble as if the Constitution had
never been adopted, because in
the formation of that instrument,
it was reserved without qualifi
cation. The principle is conceded,
that the States cannot rightfully
tax the operations of the General
Government. They cannot tax
the money of the government
deposited in the State Banks,
nor the agency of those Banks
in remitting it; but will any man
maintain that their mere selec
tion to perform this public ser
vice for the General Govern
ment would exempt the State
Banks and their ordinary busi
ness from State taxation. Had
the United States, instead of
establishing a Bank at Philadel
phia, employed a private banker
to keep and transmit their
funds, would it have deprived
Pennsylvania of the right to lax
Ins Bank and his usual banking
operations! It will not be pre
tended. Upon what principle,
then, are the banking establish
ments of the Bank of the Uni
ted States and their usual bank
ing operations, to be exempted
from taxation. It is not their
public agency or the deposits of
the government which the States
claim a right to tax, but their
banks and their banking pow
ers, instituted and exercised
within State jurisdiction for
their private emolument those
powers and privileges for which
they pay a bonus and which the
States tax in their own banks.
The exercise of these powers
within a State, no matter by
whom, or under what authority,
whether by private citizens in
their original right, by corporate
bodies created by the States,
by foreigners or the agents of
foreign governments located
within their limits, forms a legi
timate object of State taxation.
From this, and like sources,
from the persons, property, and
business, that are found resi
ding, located or carried on un
der their jurisdiction, must the
States since the surrender of the
right to raise a revenue from
imports and exports, draw all
the money necessary for I he
support of their governments
and the maintenance of their
independence. There is no
more appropriate subject of
taxation than banks, banking
and bank stocks, and none to
which the States ought more
pertinaciously to cling.
It cannot be necessary to tho
character of the Bank, as the
fiscal agent of the government,
that its private business should
be exempted from that taxation
to which all the State banks
are liable; nor can 1 conceive it
"proper" that the substantive
and most essential powers re
served by the States shall be
thus attacked and annihilated as
a means of executing the pow
ers delegated u the General
Government. It may be safely
assumed that none of those sa
ges who had an agency in form
ing or adopting the Constitu
tion, ever imagined that any
portion of the taxing power of
the States, not prohibited to
them nor delegated to Con
gress, was to be swept away
and annihilated as a means of
executing certain powers dele
gated to Congress.