Jefferson's Opinion on the Constitutionality of a National Bank

Point/Counterpoint -

The bill for establishing a national bank, in 1791, undertakes, among other things,--

1. To form the subscribers into a corporation.

2. To enable them, in their corporate capacities, to receive grants of lands; and, so far, is against the laws of mortmain.

3. To make alien subscribers capable of holding lands; and so far is against the laws of alienage.

4. To transmit these lands, on the death of a proprietor, to a certain line of successors; and so far, changes the course of descents.

5. To put the lands out of the reach of forfeiture, or escheat; and so far, is against the laws of forfeiture and escheat.

6. To transmit personal chattels to successors, in a certain line; and so far, is against the laws of distribution.

7. To give them the sole and exclusive right of banking, under the national authority; and, so far, is against the laws of monopoly.

8. To communicate to them a power to make laws, paramount to the laws of the states; for so they must be construed, to protect the institution from the control of the state legislatures; and so probably they will be construed.

I consider the foundation of the Constitution as laid on this ground--that all powers not delegated to the United States, by the Constitution, nor prohibited by it to the states, are reserved to the states, or to the people. To take a single step beyond the boundaries thus specially drawn around the powers of Congress, is to take possession of a boundless field of power, no longer susceptible of any definition.

The incorporation of a bank, and the powers assumed by this bill, have not, in my opinion, been delegated to the United States by the Constitution.

Thomas Jefferson
February 15, 1791