The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1846-02-28
UNcoNsTITUTIoNALITY OF BANKS.


UNCONSTITUTIONAL OF BANKS.
By reference to the first page of to-day's paper,
our readers will find the opinions of President
MADISON, on the tenth section of the first Article
of the Constitution the United States, which pro-
vides that, no State shall emit bills Of credit I"
IF il were unconstitutional for the States to emit
bills Of credit" Immediately after the organization
Of the General Government under the Constitu.
ton it is unconstitutional n0to, and violation of
suffered by the American people. How long will
it be, if the people silently acquiesce in this un-
doubted violation of the Constitution, before ano-
ther and more dangerous infringement OF tina: in
strument takes place? Daniel w ebster, in speech
from which We have frequently quoted, says
"Whether the States can constitutionaliy exercise
this power, or delegate it to others, is point which
do not intend, at present, either to concede or to
argue 1t is much to be hoped that no controversy
on the point may ever become necessary" The
people say controversy may and has become ne
cessary, and that they will no longer tamey submit
to open and palpable violations Of the Constitution
of these United States.
In taking the high ground that our common
banking institutions are unconstitutional we are
sustained by the opinions Of our most eminent
jurists Judge STORY, in his Abridged Commen-
tares on the Constitution OF the United States,
speaking Of the prohibition to "emit bills of cred
it,"quotes the same paragraph, above referred to,
as expressing President MADISON s opinions, and
says that this language was "justfed by that of
almost every contemporary writer, and attested in
its truth by facls, from which the mind npoiutari-
ly turns a,oay at once ,o,th disgust and indigna-
tion" He further says: I" 1t would seem to bs
obvious that as the States are expressly prohibited
from coming money, the prohibition would be
,ohoiiy Intellectual, if they might create paper
currency and circulate II as money"
What, them" says Judge Story, is the true
meaning OF the phrase b" bills OF credit in the COLI
sttuon! In its enlarged, aud perhaps in its literal
sense, it may comprehend any Instrument, by which
state engages to pay money at a future day land
OF course, for which 1t obtains present credit }
and thus it would include certificate given for
money borrowed. But the language Of the con-
stitution itself, and the mischief to be prevented
which we know from the history of our country,
equally limit the Interpretation OF the terms. The
word emit" is never employed in describing
those contracts, by which state binds itself TO pay
money at future day for services actually recev-
ed, or for money borrowed for present use. Nor
are instruments, executed for such purposes, in
common language denomnated =" bills of credit "
To emit bills of credit conveys to the mind the
idea of issuing paper intended to circulate through
the community for its ordinary purposes, as money,
which paper is redeemable al future day. This is
the sense, in which the terms of the constitution
have been generally understood. The phrase (ss
we have seen) was well known, and generally used
to indicate the paper currency issued by the states
during their colonial dependence. During the war
oil our revolution the paper currency issued by
congress was constantly denominated, in the acts
of that body, bills of credit and the like appella-
ton was applied to similar currency issued by the
states The phrase had thus acquired determinate
aud appropriate meaning. At the time of the adop-
ton of the constitution, bills of credit were uni
versally understood to signify paper medium in
tended to circulate between individuals, and be-
tween government and individuals, for the ordina-
ry purposes of society. Such medium has always
been liable to considerable huctuatioD. Its value
is continually changing; and these changes, often
great and sudden, expose individuals to immense
losses, are the sources of runous speculatons, and
destroy all proper confidence between man and
man. In no country, more than our own, had
these truths been felt in all their force. In none
had more intense suffering, or more widespread
ing rum accompanied the system. Il was, there
fore, the object of the prohibition to cut up the
whole mischief by the roots, because it had been
deeply felt throughout all the statcs and had deeply
affected the prosperity of all. The object of the
prohibition was not 10 prohibit the thing, when il
bore particular name; but to prohibit the thing,
whatever form or name it might assume. II the
words are not merely empty sounds, the prohibi.
ton must comprehend the emission of any paper
medium by state government for the purposes of
common circulation. II would be pIeposterous to
suppose, that the constitution meant solemnly to
prohibit an issue under one denomination, leaving
the power complete to issue the same thing under
another. 1t can never bs seriously contended that
the constitution means to prohibit names, aud not
things; to deal with shadows, and to leave substan-
ces. What would be the consequences of such .
construction. That very important act, big with
great and ruinous mischief, and on that account
forbidden by words the most appropriate for It's
description, might yet be performed by the suhsti-
tuition of name. That the constitution, even in
of its vital provisions. might be openly evaded
by giving new name to an old thing. Call the
thing bill of credit, and tits prohibited Call the
same thing certificate, and it is constitutional,
If the people become satisfied that banks are un-
constitutional can they longer tolerate them' Can
they so far forget themselves, in their eager desire
for gain. that they will tramps under foot that
cred instrument As well might they at once say
that the Constitution is dead letter, and disregard
itin every particular.