The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1857-10-31
How to Dispense with Paper Money..Let
Congress Impose n Tax on Small Bank 4

How to Dispense with Paper Money..Let
Congress Impose n Tax on Small Bank 4
Notes. -
Heretofore It has been attempted, by the
instrumentality ofaction in the several States
to effect a currency reform. This has been
Impossible; for although some States might
prohibit the circulation of bank notes, 9th.
ers would continue it, and Still continue to
deluge the prohibition states with their ennis.
sions.
= The tine btan is-and ace incits tie friends
Of Il constitutional currency 10 ft-.toT Con-
gres, to 7,ass q laU Imposing q d1ect Tar up
or tie circulation 9fbaak notes as currency.
The power Of congress to dc this is unques-
tionabe ne constitution expressly gives
congress the power to lew direct taxes
In the case Of banks it has already been cx-
ercised. In 1913 it passed law taxing
banks in all their departments OF circula-
tion-deposit and exchange. The tax was
about a cent on every dollar bill issued
This tax was continued until 1917. 1t was
then taken of, while an indirect tax was
continued on sugar. salt, and other neces-
ssri, Of life.
To comment upon this odious distinction
is entirely unnecessary. Banks have spec
ial privileges granted 10 them, and ought to
! ay more taxes than those who have not
these spe ial privileges. We call for the re-
imposition of the tax, by congress, on bank
paper issues. Let it be from the first so
high as to prohibit all notes from circulation
of less denomination than twenty dollars.
Gradually it could be increased upon the
large bills, until the true constitutional cur
rency of gold and silver was restored. 1t
was never intended by the trainers Of the
81, tL.r. Oh he. oil e,
money than gold and silver. They were
hard money men. They had seen the evils
of the paper issues Of the old continental
congress in the days Of the revolution. The
depreciation in value of those notes was so
great that it beggared thousands, and bro t
financial ruin and distress upon the coun-
try. They inserted provision in our pres
ent constitution making nothing bu' coin
legal tender for debts, and they forbid states
from issuing bills Of credit. This they sup
posed would accomplish the purpose. Bat
the states have evaded it, and have delega-
ted to individuals the power TO issue what
they had not the right to do themselves
The violation OF the constitution, in the issue
of notes, has so long been practsed, and has
become SO interviewer with the business OF
the country, that the courts in view Of the
immense cor sequences have Stunned a de-
cision on the point, and allowed the cIreu,a-
ton to continue.
Let congress now perform what the courts
have omitted to do. The next congress
will be democratic. We hope to see it be-
fore it adjourEs. impose the tax upon banks,
and take off the tax from salt. The tax on
bark bills should be graduated; the smaller
the denomination the heavier should the tax
be. None but large bills would then be is
sued by the hanks, and large bills are more
in the character OF bill. Of exchange than a
currency. BY driving all bills under TWEEN
" or fifty dollars from circulation, the chan
ncls Of trade, and the common money trans
actions OF every day life will be filled with
nothing but gold and silver. The Congress
which restores to the people a sound metal
lie currency and drives from genera, cIrcu,a-
ton a.. bank promises TO pay, Wi. render 4
greater service than any which has met since
the constitution was formed, and will gain
an immorta, fame tor itself in the achieves
Of the future. The country Is ripe for it
NO measure could toe more popular or meet
with more hearty approval from the dem
ocratic masses. The bali for ths consti;u-
tional currency ought to be Immediately set
in notion Cii.emH4ti Enquirer.