notes, or to pass such notes, knowing them to be counterfeit; also making it felony without benefit of clergy, for any president, inspector, director, officer, or servant of the bank, to convert any of the property, money, or credit of the said bank to his own use, or in any other way to be guilty of fraud or embezzlement, as officers or servants of the bank.”

Under these resolutions a subscription was opened for the national bank: this subscription was not confined to Pennyslvania: the citizens of other States trusted their property to the publick faith; and before the end of December, 1781, the subscription was filled, "from an expectation of a charter of incorporation from congress." Application was made to congress by the president and directors, then chosen, for an act of incorporation. "The exigencies of the United States rendered it indispensably necessary that such an act should be immediately passed." Congress, at the same time that they passed the act of incorporation, recommended to the legislature of each state, to pass such laws as they might judge necessary for giving its ordinance its full operation, agreeably to the true intent and meaning thereof, and according to the recommendations contained in the resolution of the 26th day of May preceding.

The bank immediately commenced its operations. Its seeds were small, but they were vigorous. The sums paid in by individuals upon their subscriptions did not amount in the whole, to seventy thousand dollars. The sum invested by the United States, in bank stock, amounted to something more than two hundred and fifty thou

• See the act in the appendix.

d

sand dollars but this sum may be said to have been paid in with one hand and borrowed with the other; and before the end of the first three months, farther sums were advanced to the United States, and an advance was made to this state. Besides, numerous accommodations were afforded to individuals. Little was it then imagined that the bank would ever be represented as unfriendly to circulation. It was viewed as the source and as the support of credit, both private and publick as such, it was hated and dreaded by the enemies of the United States: as such, it was loved and fostered by their friends.

Pennsylvania, distinguished on numerous occasions by her faithful and affectionate attachment to federal principles, embraced, in the first session of her legislature after the establishment of the bank, the opportunity of testifying her approbation of an act, which had been found to be indispensably necessary. Harmonizing with the sentiments and recommendations of the United States, the assembly passed an act, "for preventing and punishing the counterfeiting of the common seal, bank bills, and bank notes, of the president, directors, and company of the Bank of North America." In the preamble to this act, which, according to the constitution of this state, expresses the reasons and motives for passing it, the "necessity" of taking "effectual measures for preventing and punishing frauds and cheats which may be put upon the president, directors, and company of the Bank of North America," is explicitly declared by the legisla

ture.

◄ See in the appendix the different sums advanced to this state. • 18th of March, 1782.

g

The sentiments and conduct of other states, respecting the establishment of the national bank by congress, were similar to those of Pennsylvania. The general assembly of Rhode Island and Providence Plantations f made it felony, without benefit of clergy, "to counterfeit any note or notes issued, or to be issued, from the Bank of North America, as approved and established by the United States in Congress assembled." The state of Connecticut enacted, that a tax should be laid, payable in 66 money, or notes issued by the directors of the national bank, established by an ordinance of the United States in congress assembled." By a law of Massachussetts, the subscribers to the national bank, approved of by the United States, were "incorporated, on the behalf of that commonwealth, by the name of the president, directors and company of the Bank of North America, according to the terms of the ordinance to incorporate the said subscribers, passed by the United States in congress assembled on the thirty first day of December, 1781." The same law further enacts, "that all notes or bills, which have been or shall be issued by, for, or in the name of the said president, directors, and company, and payable on demand, shall be receivable in the payment of all taxes, debts and duties, due or that may become due, or payable to, or for account of, the said United States." In the preamble of this law, the legislature declares that " a national bank is of great service, as well to the publick as to individuals."

The president and directors of the bank had a delicate and a difficult part to act. On one hand, they were obliged to guard against the malice and exertions of their

f January Sessions, 1782.

¤ 10th January, 1782.

enemies: on the other, it was incumbent on them to sooth the timidity of some of their friends. The credit of a bank, as well as all other credit, depends on opinion. Opinion, whether well or ill founded, produces, in each case, the same effects upon conduct. Some thought that an act of incorporation from the legislature of this state would be beneficial; none apprehended that it could ever be hurtful to the national bank. Prudence, therefore, and a disposition, very natural in that season of doubt and diffidence, to gratify the sentiments, and even the prejudices, of such as might become subscribers or customers to the bank, directed an application to the assembly for "a charter, similar to that granted by the United States in congress assembled." But though the directors were willing to avail themselves of encou ragement from every quarter, they meant not to relinquish any of their rights, or to change the foundation on which they rested. They made their application in their corporate character. They expressly mentioned to the assembly, that the United States in congress assembled had granted to the bank a charter of incorporation, and that the institution was to be carried on under their immediate auspices. The legislature thought that it was proper and reasonable to grant the request of the president and directors of the Bank of North America; and assigned, as a reason for the act, "that the United States in congress assembled, from a conviction of the support which the finances of the United States would receive from the establishment of a national bank, passed an ordinance to incorporate the subscribers for this purpose,

h

h Their letter to the president of the supreme executive council, on this occasion, is in the appendix.

i 1st. of April, 1782.

by the name and style of the president, directors, and company of the Bank of North America."

The first clause of the law enacts, that "those who are, and those who shall become subscribers to the said bank, be, and forever hereafter shall be, a corporation and body politick, to all intents and purposes."

It is further enacted, that "the said corporation be, and shall be forever hereafter, able and capable in law to do and execute all and singular matters and things, that to them shall or may appertain to do."

To show, in the most striking light, the kind sentiments of the legislature towards the institution, it is further enacted, that "this act shall be construed and taken most favourably and beneficially for the said corporation."

On these facts and proceedings, two questions of much national importance present themselves to our view and examination.

I. Is the Bank of North America legally and constitutionally instituted and organized, by the charter of incorporation granted by the United States in congress assembled ?

II. Would it be wise or politick in the legislature of Pennsylvania, to revoke the charter which it has granted to the institution?

The discussion of these two questions will naturally lead us to the proper conclusions concerning the validity and the utility of the bank.