of folly, it served as
a fitting preface to his policy in relation to the incorporation of
the Merchants' Bank of New York, a policy that proved fatal to his
ambition and to the influence of the Livingstons. Already doing
business under the general laws, two Republican Legislatures had
refused to incorporate the Merchants' Bank. But during the legislative
session of 1805 the bank people determined to have their way, and in
the efforts that followed they used methods and means common enough
afterward, but probably unknown before that winter. Although in no
wise connected with the scandal growing out of the controversy, Lewis
favoured the incorporation of the bank. On the other hand, DeWitt
Clinton opposed it, maintaining that two banks in New York City were
sufficient. However, the Governor, backed by the Federalists and a
small Republican majority, was successful. In the Council of Revision,
Ambrose Spencer opposed the act of incorporation on the ground that
existing banks, possessing five million dollars of capital, with
authority to issue notes and create debts to the amount of fifteen
million more, were sufficient, especially as the United States had
suffered an alarming decrease of specie, and as no one save a few
individuals, inspired solely by cupidity, had asked for a new bank.
Spencer, however, relied principally in his attack upon affidavits of
Obadiah German, the Republican leader of the Assembly, and Stephen
Thorn of the same body, charging that Senator Ebenezer Purdy, the
father of the measure, had offered them large rewards for their votes,
German having Purdy's admission that he had become convinced of the
propriety of incorporating the bank after a confidential conference
with its directors. From this it was to be inferred, argued Spencer,
that before such improper means were made use of, Purdy himself, whose
vote was necessary to its passage, was averse to its incorporation.
"To sanction a bill thus marked in its progress through one branch of
the Legislature with bribery and corruption," concluded the Judge,
"would be subversive of all pure legislation, and become a reproach to
a government hitherto renowned for the wisdom of its councils and the
integrity of its legislatures."[152] But Spencer's opposition and
Purdy's resignation, to avoid an investigation, did not defeat the
measure, which had the support of Chief Justice Kent, a Federalist,
and two members of the Livingston family, a majority of the