THURSDAY AFTERNOON, NOVEMBER 16, 1837.

Agreeably to leave given,

SEVENTH ARTICLE.

The convention again resolved itself into a committee of the whole, MI. REIGART in the chair, on the report of the committee to whom was referred the seventh article of the constitution.

The second section thereof being still before the committee,

Mr. JENKS rose and said, it would be recollected that the committee had risen at his suggestion this morning, for the purpose of giving an Opportunity to members to consider more maturely some principles which might be introduced into this section. He perceived that the genleman from the county of Philadelphia, who offered the amendment vhich had been reported, was not now in his seat; and inasmuch as he, Mr. J.) had not yet had sufficient time to make up his mind on the proriety of offering an amendment which had suggested itself to his mind, he hould not trouble the committee with it at this time. When the amendents should come up on second reading in convention, an opportunity ould again be offered to him, of which he might avail himself to make ome proposition. He would not now, therefore, detain the committee ith any farther remarks on the subject.

P

And, no farther amendment having been offered to the said second secon; the committee of the whole proceeded to the consideration of so much the report of the committee, as declares it inexpedient to amend the ird section-which said section is in the following words, viz:

Sect. 3. The rights, privileges, immunities and estates of religious cieties and corporate bodies, shall remain as if the constitution of this ate had not been altered or amended."

A motion was made by Mr. READ, of Susquehanna, to amend the me, by striking out the section, and inserting, in lieu thereof, the folwing, viz:

"Sect. 3. The stockholders of all banks hereafter chartered, re-chared, revived, continued, or relieved from forfeiture, shall be made liable : the debts of the corporate body."

Mr. FORWARD said, that he presumed the gentleman from the county Susquehanna. (Mr. Read) would have no objection if the third section the constitution of 1790 should stand, merely affirming the rights and ivileges of certain religious societies. Mr. F. meant to say that, even the proposition of the gentleman from Susquehanna should be adopted, s clause of the section of the old constitution might still, he supposed, remain as it was. He could not see what object was to be attained interfering with it; and he would be glad if the gentleman from Susehanna would state his views.

Mr. READ said, he would state in answer to the suggestion of the gentleman from the county of Allegheny, (Mr. Forward) that he had prepared, and intended to submit to the consideration of the committee seriatim, some eight or nine new sections to the seventh article of the old constitution; and that, in doing so, he should, he supposed, have provided a substitute for that clause of the third section, which the gentleman thought ought to remain as it was. If he (Mr. R.) should be so fortunate as to succeed in getting into this article several of the amendments which he was about to propose, the object of the gentleman could be effected, even if I should not bring in, what may amount to a substitute, by adding the clause after the committee should have disposed of the various sec tions which he proposed to offer.

It is very probable, continued Mr. R., that, upon this subject of banking-a subject which is now intimately connected with all the affairs of this country-a subject which enters into the minds and reflection of every intelligent man throughout the union-a subject which is now in great disorder and confusion, and in reference to which we are all at fault, scarcely knowing how to act, or where to turn, that we may arrive at correct and safe conclusions. It is, I say, very probable that the opinions which I entertain, and which I shall not hesitate boldly to avowmay go much farther, than it can be supposed a majority of the members of this convention are prepared to go. Looking at the matter in this light, I have prepared my amendments, or at least have intended to prepare them, in such a manner as to meet not my own individual views altogether, but what I have supposed might be regarded as the views of a majority of the members of this body. But, Mr. Chairman, in the remarks which I am about to submit on this, the first of the series of my amendments, it is my intention to give my views frankly and fully on the subject of banking generally; though I do not design to carry out those views, in any of these amendments, to the full extent of my own wishes-or to the extent to which I should carry them out, if I could suppose that I should receive the support of a majority. I have stated, however, that I do not believe that the majority of this body is disposed to go the same length as I am myself willing and desirous to go. if I had the I have determined, therefore, to shape my course accordingly.

power.

It was remarked the other day, in the course of some observations made in committee by the president of this convention, (Mr. Sergeant, when on the subject of the judiciary, that, in his opinion, the stability of or republican institutions depended upon the decision of the question then under discussion before the committee. Without saying any thing as to the correctness or incorrectness of this opinion, it seems time, Mr. Chairman. that it may be affirmed with great truth-and probably with more unques tionable accuracy, that the continuance, the stability, the perpetuation of our republican institutions does depend-nay, even that the fate of this commonwealth of Pennsylvania, is now hanging on the action of this convention, in relation to this very subject of banking. Sir, I do believe that it is. It is, in my opinion, a subject of great importance to the peʊple of this country-important at all times, but emphatically so at the present crisis. Since the first day of the meeting of this convention, the the country has been disturbed, agitated, convulsed from one end to the other, by the confusion, the derangement, the fluctuations, the embar

rassments and disasters which have been produced in consequence of some error or deficiency, in our practice or in the notions we entertain in relation this subject. These are facts so well known to every individual in the land, that it is needless for me to dwell upon them. We have all felt the injurious results of this state of things; and there has not been a day nor an hour for many months past, in which the fatal evidences of them have not forced themselves upon our attention. Is it not time, then, that the people of the state of Pennsylvania, and especially that this convention, to whose keeping the dearest interests of the people are committed, should awaken en masse to an examination of the evils of our monetary system, with a serious and inflexible determination to apply every lawful and proper corrective. I, Mr. Chairman, rejoice that an opportunity is now afforded us to enter into a thorough investigation of this system, and I will not suffer myself to doubt that we shall all approach it, with a single view to the public good.

Mr. Chairman:-' -The amendment now before you, together with eight others, which I intend to offer in succession, have been framed with a view to meet what I suppose to be the sentiments of a majority of this convention. My own individual opinions, sir, in regard to the necessary restrictions upon corporations, and especially banking institutions, are, I am aware, far in advance of the sentiments of that majority. In the remarks I am about to submit, I shall "take the responsibility" of fearlessly declaring my own opinions on the subject of banking and currency. Sir, 1 am impressed with the belief-nay-I may say I have a deep and settled conviction, that the permanence, stability, and eventual success of our republican institution are suspended upon the action of this body in regard to this particular subject. If so, sir, is it not time that the people of Pennsylvania, en masse, and especially this convention, to whom the interests of the people are committed, should awaken to a consideration and thorough examination of the evils of our monetary system? The fact that an industrious, enterprising, and intelligent people, surrounded with all the elements of wealth and prosperity, should, in a time of profound peace, blessed with abundant harvests, and all the varied productions of active industry, be perodically subjected to scenes of embarrassment, panic, and distress, such as the last twenty years have exhibited, proves some fundamental and fatal error in the mode and manner of transacting business. Sir, is it not the duty of this convention, to seek out and correct such error?

That fatal error will be found in our paper banking system.

This declaration is not made under any party feeling, or political prejudice, but under a thorough conviction that the strongest advocate of that system, who will take the trouble to examine the subject with the single purpose of eliciting truth, will finally acknowledge the correctness of the proposition. The subject of currency is somewhat complex in its operations and influences upon the interests and prosperity of society; and the favored few, the monied nobility of this republican land, who have been amassing princely fortunes, for the last half century, by its secret and insiduous operations, have a direct interest in mystifying the subject as much as possible. These causes combined, have deprived the great mass of the community of the time and opportunity to acquire that full and particular knowledge of its operations and effects necessary

to the protection of their rights. While the mass of the people have been endeavoring to discharge all their duties to society, by a course of honest and laborious industry, the bank speculators have been craftily and insidulously devising, and gradually fastening upon them, a system of extortion, peculation, and invisible taxation, more onerous to be borne, and more destructive of their vital interests, than all the injuries which impelled our fathers to a separation from the mother country. A system by which the real wealth of the country, the productions of the farm and the work shop, the fruits of honest industry, are transferred from the producer to the banker and speculator, by a secret agency, or bank magic, utterly inexplicable to the operatives, by the sweat of whose brow real wealth is created or produced. A system by which the requisite stimulant to honest industry is either destroyed, and the main-aye si, the only sources of real wealth are dried up, and the currents of pros perity cease to flow, or the producer must exchange the fruits of his labor, for a fictitious, worthless paper medium, at all times liable to perish on his hands, at the will or caprice of a board of bank directors. For it is a notorious fact, too palpable to be denied by any honest man, that such is the power and influence of the banks, at the present time, that they regard no law or restriction, any farther than they deem it their interests so to do.

What then is our condition? And how long are we to submit to a state of vassalage, imposed by the aristocracy of wealth," which always controls banking institutions? And, secondly, how are we to be released from this fearful power, which is paralyzing industry, and prey. ing on the very vitals of society? I grant you, sir, that these are grave questions, and the difficulty in giving satisfactory answers is greatly increased by the consideration that we are surrounded by states in the same lamentable condition with ourselves, over whose policy we have no control, and who may not feel disposed to co-operate with us in any measure of radical reform. However incompetent I may be to answer these questions, they must be met, and answered by this con vention. The united wisdom of this body must be adequate to the task; and the people expect some measure to be devised, and to be incorporated into the fundamental code, which shall give efficient future protection against those grievious calamities, under which they have so long suffered, originating in a depreciating currency. This con vention cannot, without dereliction of duty, separate, and leave the peo ple exposed to all the varied evils of unrestricted legislative power, in regard to corporations, and especially banking institutions.

The time has now arrived when the legislature must be restricted, in regard to this particular subject, or the foundations of the social compet will be broken up. The struggle has already commenced, between the "democracy of numbers," fighting for the restoration and preservation of their individual rights; and the aristocracy of wealth," warring for the continuance of exclusive privileges, totally inconsistent with the rights of man, the prosperity of the country, and the letter and spirit of our written constitutions.

The general government is a government of limited powers. It possesses no powers, except those specifically granted, and such auxiliary powers as may be necessary to carry the specific powers into full execu.

tion. That the power to charter a bank is not specifically granted to congress, is admitted, and that it is not a necessary auxiliary power, has been shown by others, and can, at any time, be shown to the satisfaction of any reasonable inquirer. The right accorded to the general government, "to regulate the currency," applies only to the constitutional currency, and never can be construed to embrace a paper currency, which the general government was not authorized to issue, and which the states were expressly forbid to issue. I may add, in relation to a national bank, that it is matter of history, and also apparent on the face of the journals, that an amendment was offered granting the power to congress, which was rejected by the framers of that charter of our rights-and wisely too. They had participated in the revolutionary struggle, wherein the necessities of the colonies, the disparity of resources, and the holy nature of the cause, had, in a measure, justified a resort to a national paper currency. But they had also experienced the re-action of that then necessary measure. They had felt, and suffered, under the operation of the continental paper money system; and not believing that any subsequent event could justify a like resort to a fearful expedient, they strove, by every guard within their reach, to protect their offspring against the curse of a depreciating, inconvertible paper currency. The fundamental law of this Union, then, does not authorize congress to charter a bank, in any form, or under any circumstances. The same fundamental law declares, that "no state, shall coin money, or emit bills of credit." That is to say, no state shall coin money, or make, introduce, use, or authorize any substitute for money. This is the plain, common sense construction of the clause, that "no state shall emit bills of credit," or bank notes, which are bills of credit, not based directly on the credit of the state, but on the credit of a corporation, the creature of a state. Money is gold and silver coin, and nothing else, by the express provisions of that instru

ment.

Thus, the separate states are expressly prohibited, by their own voluntary compact, from meddling, or interfering, with the currency of the country; and what a state cannot do, directly, she cannot do indirectly, or through the agency of a corporation. What "one does by his agent, he does by himself," is a maxim as old as the elements of civilized society. The distinction sometimes taken, by bank advocates, that, although a state may not emit bills of credit, or promises to pay, as a substitute for the constitutional currency, yet, that she may authorize her agents to do so; that is to say, that she may confer a power which she does not possess, is too weak a subterfuge to pass current in a school room debate.

True it is, sir, that we have all been estranged from the principles and spirit of the constitution. The entire people from Maine to Florida, have been beguiled from their true interests, by the gradually increasing desire to amass wealth, independently of industry; and have put a construction on the constitution consistent with the existence of state banks. And that construction has prevailed as legitimate, till most of us had acquired a habit of considering it a binding exposition of the meaning of that instru

ment.

The local position of Pennsylvania, surrounded as she was, by paper money manufacturing states, has given strength and support to this wide