Was a national bank constitutional?

OCR: 4 cited passage(s) are machine-read (OCR) text of old printings; quotations reproduce the stored OCR text, misreadings included.

1. WHAT HE SAID (the record)

Record ledger

• BELIEF (1791-02-15): Thomas Jefferson believed that a national bank was not constitutional. He argued that the Constitution only allows means that are 'necessary' for carrying out enumerated powers, and since a bank is not necessary, it is not authorized. (key quote above) [1]
• BELIEF (1791-02-15): Thomas Jefferson believed that a national bank was not constitutional because the thing could be done without assuming a non-enumerated power, and therefore did not meet the degree of necessity required to justify such an assumption. (key quote above) [2]
• BELIEF (1802-10-07): Thomas Jefferson believed that it was important to prevent the Bank of the United States from monopolizing banking business, partly due to concerns about foreign influence and public good. He argued for maintaining competition among banks to ensure stability and support for the government. "Were the Bank of the United States to swallow up the others and monopolize the whole banking business of the United States... It is certainly for the public good to keep all the banks competitors for our favors..." [3]
• ACTION (1808-11-08): Thomas Jefferson submitted an opinion on the constitutionality of the Bank of the United States while serving as Secretary of State. The passage shows that he expressed a view on the question, though it does not specify his conclusion. "Opinion of Thomas Jefferson, Secretary of State, on the Bank of the United States." [4]
• BELIEF (1811-05-03): Thomas Jefferson does not state whether he believes a national bank is constitutional, but he notes that Mr. Gallatin had never committed himself publicly on the constitutionality of the institution, and Jefferson himself was indignant at the bank's hostility to the government. "He was not in Congress when that was established, and, therefore, had never committed himself publicly on the constitutionality of that institution, nor do I recollect ever to have heard him declare himself on it." [5]
• BELIEF (1813-06-24): Thomas Jefferson believed that banks should be set up by individuals with monied capital, not by the government, and that the practice of issuing paper in exchange for discounted bills, as done in Great Britain, was harmful and led to financial ruin. He argued against the unlimited emission of bank paper, which he associated with economic decline. "It is from Great Britain we copy the idea of giving paper in exchange for discounted bills... The unlimited emission of bank paper has banished all her specie, and is now, by a depreciation acknowledged by her own statesmen, carrying her rapidly to bankruptcy..." [6]
• BELIEF (1813-11-06): Thomas Jefferson believed that the establishment of a national bank was unconstitutional. He based this belief on the 'want of constitutional power' as the grounds for Congress's decision against the renewal of the charter of the bank of the United States. "After the solemn decision of Congress against the renewal of the charter of the bank of the United States, and the grounds of that decision, (the want of constitutional power,)" [7]
• BELIEF (1819-11-07): Thomas Jefferson believed that Congress did not have the right to establish banks, and he suggested that states should deny this right and settle the constitutional question. He also noted that the bank of the United States might conform to state regulations or face closure. [8]
• ACTION (undated): Thomas Jefferson did not believe a national bank was constitutional in 1791, but later signed its second charter in 1816. This shows that his position, as recorded at different times, may differ according to various readings. "Madison believed that the United States Bank was unconstitutional and refused in 1 8 1 1 to recharter it ; but in 1816 Madison signed its second charter." [9]
• ACTION (editor's note) (undated; editor's note, not his words): Thomas Jefferson denied the authority of the Federal Government to create national banks. "he denied the authority of the Federal Government to create national banks and other corporations or to appropriate public moneys for works of internal improvements" [10]

What cuts against it

• ACTION (1802-10-07): Thomas Jefferson supported the Bank of Baltimore and expressed concerns about the Bank of the United States monopolizing banking business, indicating a pragmatic approach to banking. "Were the Bank of the United States to swallow up the others and monopolize the whole banking business of the United States... It is certainly for the public good to keep all the banks competitors for our favors..." [3]

2. HOW IT APPLIES (reasoning; inference is marked)

1. Jefferson believed that the Constitution only allows means that are "necessary" for carrying out enumerated powers. [1]

2. He argued that a national bank is not necessary, as the functions of a bank could be achieved through other means like treasury orders and bills of exchange. [2]

3. Jefferson believed that the Constitution delegates certain powers to the United States, and the creation of a national bank exceeded those delegated powers. [11]

4. He argued that the convenience provided by a national bank did not constitute the necessity required for assuming any non-enumerated power. [12]

5. Jefferson believed that the establishment of a national bank was unconstitutional because it represented a right that remained exclusively with the States. [13]

3. HIS TAKE

Record coverage: DIRECT

The record is not silent on the constitutionality of a national bank.

Extrapolation: Thomas Jefferson believed that a national bank was not constitutional. He argued that the Constitution only allows means that are "necessary" for carrying out enumerated powers, and since a bank is not necessary, it is not authorized. He also believed that the Constitution delegates certain powers to the United States, and the creation of a national bank exceeded those delegated powers.

Competing readings: The record shows that Jefferson's approach to banking policy evolved over time, as he later supported the second charter of the Bank of the United States. This indicates a pragmatic approach to banking and economic policy, rather than a rigid adherence to his initial constitutional interpretation.

Confidence: High, based on direct statements from Jefferson in multiple passages.