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Reconstructing the National Bank Controversy - Politics and Law in the Early American Republic (Paperback)
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Reconstructing the National Bank Controversy - Politics and Law in the Early American Republic (Paperback)
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The Bank of the United States sparked several rounds of intense
debate over the meaning of the Constitution's Necessary and Proper
Clause, which authorizes the federal government to make laws that
are "necessary" for exercising its other powers. Our standard
account of the national bank controversy, however, is incomplete.
The controversy was much more dynamic than a two-sided debate over
a single constitutional provision and was shaped as much by
politics as by law. With Reconstructing the National Bank
Controversy, Eric Lomazoff offers a far more robust account of the
constitutional politics of national banking between 1791 and 1832.
During that time, three forces--changes within the Bank itself,
growing tension over federal power within the Republican coalition,
and the endurance of monetary turmoil beyond the War of 1812
--drove the development of our first major debate over the scope of
federal power at least as much as the formal dimensions of the
Constitution or the absence of a shared legal definition for the
word "necessary." These three forces--sometimes alone, sometimes in
combination--repeatedly reshaped the terms on which the Bank's
constitutionality was contested. Lomazoff documents how these three
dimensions of the polity changed over time and traces the manner in
which they periodically led federal officials to adjust their
claims about the Bank's constitutionality. This includes the
emergence of the Coinage Clause--which gives Congress power to
"coin money, regulate the value thereof"--as a novel justification
for the institution. He concludes the book by explaining why a more
robust account of the national bank controversy can help us
understand the constitutional basis for modern American monetary
politics.
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