Alexander Hamilton

“ It is admitted, that in regard to the Western Territory something more is intended: even the institution of a government; that is, the creation of a body politic, or corporation of the highest nature; one which in its maturity will be able itself to create other corporations. Why, then, does not the same clause authorize the erection of a corporation in respect to the regulation or disposal of any other of the property of the United States? ”

“ To that legal or artificial person, once created, the common law of every state, of itself annexes all those incidents and attributes which are represented as a prostration of the main pillars of their jurisprudence.—It is certainly not accurate to say, that the erection of a corporation, is against those different heads of the state laws; because, it is rather to create a kind of person, or entity, to which they are inapplicable, and to which the general rule of those laws assigns a different regimen. ”

“ A bank has a direct relation to the power of borrowing money, because it is an usual, and in sudden emergencies, an essential instrument, in the obtaining of loans to government.
A nation is threatened with a war; large sums are wanted on a sudden to make the requisite preparations; taxes are laid for the purpose; but it requires time to obtain the benefit of them; anticipation is indispensable. If there be a bank, the supply can at once be had; if there be none, loans from individuals must be sought. ”

“ This general and indisputable principle, puts at once an end to the abstract question, Whether the United States have power to erect a corporation; that is to say, to give a legal or artificial capacity to one or more persons, distinct from the natural? ”

“ The Secretary of State introduces his opinion with an observation, that the proposed incorporation undertakes to create certain capacities, properties, or attributes, which are against the laws of alienage, descents, escheat and forfeiture, distribution and monopoly; and to confer a power to make laws, paramount to those of the states. And nothing, says he, in another place, but a necessity, invincible by other means, can justify such a prostration of laws, which constitute the pillars of our whole system of jurisprudence, and are the foundation laws of the state governments. ”

“ This other fact, that banks are an usual engine in the administration of national finances, and an ordinary, and the most effectual, instrument of loans, and one which, in this country, has been found essential, pleads strongly against the supposition, that a government clothed with most of the important prerogatives of sovereignty, in relation to its revenues, its debt, its credit, its defence, its trade, its intercourse with foreign nations, is forbidden to make use of that instrument as an appendage to its own authority. ”

“ Why may not the United States constitutionally employ the means usual in other countries for attaining the ends intrusted to them?
A power to make all needful rules and regulations concerning territory, has been construed to mean a power to erect a government. A power to regulate trade is a power to make all needful rules and regulations concerning trade. ”

“ A general legislative authority, implies a power to erect corporations in all cases; a particular legislative power, implies authority to erect corporations in relation to cases arising under that power only. Hence the affirming, that, as incident to sovereign power, Congress may erect a corporation in relation to the collection of their taxes, is no more to affirm that they may do whatever else they please, than the saying they have a power to regulate trade, would be to affirm, that they have a power to regulate religion ”

“ The heads of the power to regulate commerce with foreign nations, are stated to be,
To prohibit them or their commodities from our ports. To impose duties on them where none existed before, or to increase existing duties on them. To subject them to any species of Customhouse regulation. To grant them any exemptions or privileges which policy may suggest. This enumeration is far more exceptionable than either of the former: It omits every thing that relates to the citizens, vessels, or commodities, of the United States. ”

“ But with regard to the first point, the bill neither prohibits any state from erecting as many banks as it pleases, nor any number of individuals from associating to carry on the business; and, consequently, is free from the charge of establishing a monopoly: for monopoly implies a legal impediment to the carrying on the trade by others than those to whom it is granted.
And, with regard to the second point, there is still less foundation. The by-laws of such an institution as a bank, can operate only upon its own members; can only concern the disposition of its own property ”

“ The laws of alienage cannot apply to an artificial person, because it can have no country. Those of descent cannot apply to it, because it can have no heirs. Those of escheat are foreign from it, for the same reason. Those of forfeiture, because it cannot commit a crime. Those of distribution, because, though it may be dissolved, it cannot die. As truly might it be said, that the exercise of the power of prescribing the rule by which foreigners shall be naturalized, is against the law of alienage, while it is in fact only to put them into a situation to cease to be the subjects of that law. ”

“ The legislative power of borrowing money, and of making all laws necessary and proper for carrying into execution that power, seems obviously competent to the appointment of the organ through which the abilities and wills of individuals may be most efficaciously exerted, for the accommodation of the government by loans. ”

“ To all questions of this nature, the practice of mankind ought to have great weight against the theories of individuals.
The fact, for instance, that all the principal commercial nations have made use of trading corporations or companies, for the purpose of external commerce, is a satisfactory proof, that the establishment of them, is an incident to the regulation of commerce. ”

“ A bank, then, whose bills are to circulate in all the revenues of the country, is evidently a general object; and for that very reason, a constitutional one, as far as regards the appropriation of money to it, whether it will really be a beneficial one or not, is worthy of careful examination ”

“ Having observed, that the power of erecting corporations is not expressly granted to Congress, the Attorney-General proceeds thus:
If it can be exercised by them, it must be,
Because the nature of federal government implies it: Because it is involved in some of the specified powers of legislation: Because it is necessary and proper, to carry into execution some of the specified powers. ”

“ A like mode of reasoning would prove, that there was no power to incorporate the inhabitants of a town with a view to a more perfect police: For it is certain, that an incorporation may be dispensed with, though it is better to have one. It is to be remembered, that there is no express power in any state constitution, to erect corporations. ”

“ Nay, so far does he go in his restrictive interpretation of the word, as even to make the case of necessity, which shall warrant the constitutional exercise of the power, to depend on casual and temporary circumstances; an idea which alone refutes the construction. The expediency of exercising a particular power, at a particular time, must indeed depend on circumstances ”

“ They, therefore, have no tendency to disprove, that each and every of the powers to which they relate, includes that of erecting corporations, which they certainly do, as the subsequent illustrations will more and more evince. ”

“ It is not denied that there are implied, as well as express powers; and that the former are as effectually delegated as the latter: and for the sake of accuracy, it shall be mentioned, that there is another class of powers, which may be properly denominated resulting powers. ”

“ Of the power to prohibit the exportation of commodities, which not only exists at all times, but which in time of war it would be necessary to exercise, particularly with relation to naval and warlike stores. ”

“ If the end be clearly comprehended within any of the specified powers, and if the measure have an obvious relation to that end, and is not forbidden by any particular provision of the constitution; ”