affairs at pleasure, and make money scarce or plenty, at will, I would require the votes of two-thirds of the legislature to pass a charter.

Mr. S. here gave way to]

Mr. STEVENS, who moved that the committee rise. Lost. Ayes 43, noes 56.]

Mr. STERIGERE resumed:

I feel very reluctant to trespass on the time of the committee at this time of night, but as the subject was an important one, I feel it to be my duty to give my views upon it.

In stating to the convention the propositions and restrictions for which I would be disposed to vote, I am free to declare that I have as much confidence in the legislature of our commonwealth, as any man on this floor. I am by no means disposed to call in question their integrity or honesty; but there are times when the legislature do not express the public will; and erroneous legislation sometimes takes place from improper motives, and sometimes from proper motives. If one legislature act faithlessly, fraudulently, or even improvidently, there should be a remedy. I am, therefore, disposed to give a power to the legislature, to correct all bad legislation, so that the public will may be carried into effect, when it is ascertained that previous acts of the legislature have been injurious to the public interest. We cannot trust to mere restrictions in the charters of banks, for they are too easily evaded. Let them, therefore, be put upon the good behaviour principle. Every one knows the restrictions which were placed in the charter of the United States Bank, in 1816, and every one recollects its proceedings under that charter, and how little they were regarded. This is one example of the inefficiency of mere restrictions. Nothing can control these institutions so well as a visitorial power in the legislature.

No man could have believed it possible that the restrictions imposed on the directors of the banks, at that time, would have been so shamefully evaded, as they were. They were most shamefully disregarded, as any one who has taken any notice of the report made on that subject, must know. I am not disposed to make charges against the directors of any bank. The remarks I make, are intended to apply to the system. I know nothing of the directors; all their proceedings are secret, and there are no means, generally, of knowing whether they are proper or not. How far it is proper to throw the veil of secrecy over their proceedings, is, to my mind, a matter of much doubt. We all know that there once was a time, when it was thought to be improper that any man should know any thing about bank proceedings. Such, however, is not the case at this time. All the banks are now compelled to throw open their books to the stockholders; but still they are prohibited from throwing open the private accounts of the stockholders. This, I think, is an erroneous idea; although, I am free to say, that my mind is not entirely settled on that point. There is no doubt, however, that the favors granted to individuals, have been beyond all the limits of sound discretion, and I look upon it as necessary that the amounts of the discounts to individuals, should be limited. This, I think, will be a better means of restrain

ing the banks from making improper loans, than would the suggestion contained in the recent message of the governor, to the legislature of this state, to take their property into the state coffers.

Mr Chairman, I have now come to a conclusion with my remarks on this very important question. I am aware that my argument has been an irregular one; but the rule by which we are now bound down to a given space of time, and that space, too, so very brief, imposed a difficulty as to the course I had chalked out, in addition to the difficulty which I natu. rally feel in discussing such intricate topics.

I am disposed to go at once to the root of the evil, because I believe that banking institutions, unless properly regulated and restrained, are injurious to the best interests of the country. I shall, therefore, vote in favor of all such propositions as I believe calculated to promote the public welfare, and to secure the public liberties. I shall, however, vote against the proposition now before the Chair.

I close by reading a proposition, which I now give notice, I intend to offer for the adoption of the committee at a proper opportunity, and which I desire to see made part of the present provision of the constitu

tion.

It is as follows:

"The legislature shall have power to repeal, or alter, any charter which has been, or may be, granted to any bank, whenever, in their opinion, the same is injurious to the citizens of the commonwealth; but no such alteration shall be binding on any bank, unless the same be assented to by a majority of the stockholders, certified in such manner as may be proscribed by law: And in case the bank, whose charter may be altered, shall neglect, or refuse, to assent to such alteration, within the time fixed by law, the chartered privileges granted to such bank, shall thenceforth cease and determine, except so far, and for so long a time, as may be necessary to collect its debts and wind up its concerns, not exceeding two years. Provided: that when any bank charter shall be repealed or altered, or shall cease, as aforesaid, in case any bonus or sum of money, other than a tax on the stock, or annual profits of the bank, may have been paid to the state by such bank, for the privileges granted to it, the state shall retain, for the privileges enjoyed, only so much of such bonus or sum, as will be a just proportion of the bonus, or sum, such bank was to pay for the privileges granted-having a due regard to the amount of capital, and the duration of the charter, to be determined in such manner as may be provided by law.

"No bank, rail road company, navigation company, or canal company, shall be chartered, unless three-fifths of all the members of each branch of the legislature, concur therein. No bank shall be chartered with a capital of more than two hundred thousand dollars, unless two-thirds of all the members of each branch of the legislature, concur therein; nor any bank, with a capital of more than five hundred thousand dollars, unless three-fourths of all the members of each branch concur therein.

"Nor shall any bank be chartered with a capital greater than one million of dollars, nor for a longer period than ten years, unless the law charter

ing the same, be passed by three-fourths of all the members of each branch of the legislature, at two successive sessions, and be approved by the governor.

And the bill which may be passed the first session, shall be published, with the laws enacted at such session. No bonus shall be required, or allowed to be paid by any bank, for the corporate privileges granted to it; and every law chartering or re-chartering a bank, which provides for the payment of any such bonus, shall be wholly void; but all sums of money required to be paid by any bank, for such privileges, shall be a yearly, or half yearly, tax on the stock or the profits of the company."

With these remarks, said Mr. S., thrown together in this crude and hasty manner, I leave the subject.

Mr. WOODWARD,* of Luzerne, moved to amend the amendment by adding to the end thereof the words following, viz:

"And the legislature may repeal, change, or modify the charters of all banks heretofore incorporated, or which may hereafter be incorporated in this commonwealth, whether the power to repeal, change, or modify, be reserved in such charters or not; but when the legislature shall repeal the charter of any bank, or reserve any of its corporate privileges, they shall provide adequate and sufficient compensation to the stockholders of such bank."

Mr. WOODWARD moved that the committee rise, report progress, and ask leave to sit again; which motion was decided in the negative.

Mr. WOODWARD said, he had a few remarks to make on the subject of his proposition; and if the committee wished to hear them at this time, he would proceed. He had introduced this amendment with reluctance. In the present temper of the convention, he would not have brought it forward, but for certain resolutions, which were adopted by the convention in Harrisburg, before the adjournment to this city. He was fully aware of the difficulties against which he had to contend. He might be told that he was going against the expressed will of the majority of this body, in which, it was, at all times, his pleasure to acquiesce. These resolutions, however, seemed to make it necessary that there should be some amendment to the constitution, in reference to this subject. They would not have any influence on the legislature, except a moral influence. But, whatever influence they were calculated to bring to bear in this commonwealth, it would be contrary to the genius and object of our institutions, and subversive of the liberties of the people. With this conviction impressed on his mind, deeply impressed as any honest conviction could be, he should consider himself recreant to his duty, if he did not attempt to obtain some amendment which would counteract the effect of these resolutions.

[Mr. M'CAUEN-Mr. Woodward having yielded the floor-moved that the committee rise, report progress, and ask leave to sit again, which was decided in the negative-ayes 43, noes 49.]

* Dee page 36.

Mr. WOODWARD resumed. The resolution to which he particularly referred, was in the following words :

Resolved, That it is the sense of the convention, that a charter duly granted, under an act of assembly, to a bank or other private corporation, is, when accepted, a contract with the parties to whom the grant is made; and, if such charter be unduly granted, or subsequently misused, it may be avoided by the judgment of a court of justice in due course of law, and not otherwise, unless, in pursuance of a power expressly reserved in the charter itself."

The phraseology of this resolution, seemed to him to be obscure and uncertain. Ile did not clearly understand it. A charter" duly" granted is, when accepted a contract, but if such" charter be " unduly granted" or misused, it may be avoided by the courts, &c. There may be undue circumstances attending the grant of a charter, which will call most loudly for executive and legislative interposition, and for which the courts could afford no adequate remedy; and does the resolution mean to affirm that every charter to a bank, under whatever circumstances granted, is beyond legislative reach, and not to be repealed? It means this, if any thing. To such a proposition he could not be brought to assent.

On the 25th of March, 1824, the legislature passed a law to re-charter certain banks, and they reserved the power to revoke, alter, or annul the charter of any of the banks, thereby chartered, whenever the public interest should require it, and all the acts in orporating banks, since that period, with one exception, have expressly reserved the same power, as extended and applied to the new bank the restrictions, limitations, and penalties of the general act of 1824, so that there is now only one bank in Pennsylvania, whose charter is not liable to be revoked, altered, or annulled by the legislature.

The United States Bank of Pennsylvania, is the only exception. In its charter, there is no such reservation expressed, and nothing referring it to the general bank law. That bank, therefore, is the only one, to whose charter the doctrine of this resolution is applicable.

[Mr. MARTIN-Mr. Woodward having yielded the floor for the purpose -moved that the committee rise, report progress, and ask leave to sit again; which motion was decided in the negative-ayes 42, noes 57.] Mr. WOODWARD resumed:

The object, then, of this resolution, I take to be, to assert that the United States Bank-because no other bank can be the subject of such an assertion-is entirely independent of all legislative action, so long as, in the judgment of a court of justice, it does not violate the terms and conditions of its charter.

[Mr. W. here gave way to Mr. INGERSOLL, who moved that the committee now rise.

And on the question,

Will the committee of the whole agree to the motion?

The yeas and nays were required by Mr. INGERSOLL, and nineteen others, and are as follow, viz :

YEAS--Messrs. Ayres, Banks, Barclay, Bedford, Bell, Bonham, Carey, Clarke, of Indiana, Coates, Craig, Crain, Cummin, Curll, Dillinger, Doran, Dunlop, Earle, Fleming, Foulk rod, Fry, Fuller, Gamble, Grenell, Helffenstein, Houpt, Ingersoll, Jenks, Keim, Krebs, Maclay, Magee, Martin, M'Cahen, M'Dowell, Nevin, Read, Ritter,

Scheetz, Sellers, Seltzer, Shellito, Smith, of Columbia, Sterigere, Stickel, Sturdevant, Taggart, Weaver, Weidman, Woodward--49.

NAYS--Messrs. Agnew, Baldwin, Barndollar, Barnitz, Biddle, Bigelow, Brown, of Northampton, Brown, of Philadelphia, Chambers, Chandler, of Philadelphia, Chauncey, Clarke, of Beaver, Clark, of Dauphin, Cleavinger, Cline, Cochran, Cope, Cox, Crawford, Crum, Cunningham, Darlington, Darrah, Denny, Dickey, Dickerson, Forward, Gearhart, Gilmore, Harris, Hayhurst, Hays, Henderson, of Dau phin, Hiester, Hopkinson, Kennedy, Kerr, Konigmacher, Mann, M'Call, M'Sherry, Meredith, Merkel, Miller, Montgomery, Overfield, Pennypacker, Pollock, Porter, of Lancaster, Porter, of Northampton, Purviance, Reigart, Royer, Russell, Sieger, Scott, Serrill, Sill, Smyth, of Centre, Snively, Stevens, Thomas, Todd, Young, Sergeant, President-65.

So the committee refused to rise.]

Mr. WOODWARD resumed:

On the 18th of February, 1836, the law passed, re-chartering the Bank of the United States-he said re-chartering, because it was, in fact, re-chartering it, and there was no such provision contained in its charter in relation to leaving the power in the hands of the legislature, to modify, and repeal it, as was contained in the other bank charters in Pennsylva nia. Then he wished to say, that if this resolution which he had read, was to be understood by the public, as the mover of it, and that majority who adopted it, intended that it should be understood, it only embraces that one bank-the Bank of the United States-which has a capital of thirty-five millions, and which has the power of controling all the interests of Pennsylvania. The resolution places that bank entirely beyond the legislature of the commonwealth, which created it, and beyond the power of the people of the commonwealth, who have a right to re-model their form of government when they please. The people of Pennsylvania, have an acknowledged right, both by the constitution of the United States, and the constitution of their own state, to alter, modify, and reform their government; but according to this resolution, they have not a right to touch this institution, which is to remain sacred for thirty years.

Sir, we have an institution, created on the soil of Pennsylvania, more powerful than the Queen of England in her own dominions; more powerful than the King of France, or the Emperor of Russia. Yes, sir, it is an institution which can exercise a greater influence, for good or for evil, over the people of this commonwealth, than either of these sovereigns can exercise over their subjects. It concentrates more power than the government of Pennsylvania, or that of the whole Union. It may make war or peace-preserve or destroy the constitutional currency-give value to every man's property and labor, and control our whole political system. Such an institution has been established in Pennsylvania, and it is now declared to be beyond the reach of the popular arm. Whatever may be its influence on a million and a half of people, their representatives are to have no power to control or modify, in any manner, its action. He apprehended that this was the most fatal blow, ever yet aimed at our liberties. It is calculated to lay those liberties low, and if the gentleman who moved this resolution, and his friends who supported it, will consent to submit the proposition to the people, they shall see with what indignant scorn it will be rejected. Why, sir, ought not such a proposition as this to be submitted to the people? Is a principle like that of the resolution,