The Kansas herald of freedom., 1858-02-13
c0v. Denver. nanI-ys,o M...,es.

-A-oJ ~ - WCtA A1St u lu41ll6 MuCt44Ci
the Legislature of this Territory has the
power to charter banks and authorize
them to issue notes or bills of credit for
a circulating medium. After astruggle OF
more than forty years Congress finally
decided that they had not the power TO
establish National Bank, and there are
very few at this day who do hot endorse
the wisdom of that decision. The power
of Congress to legislate for the people of
the Territories is not expressly given by
any provision in the Constitution, but it
springs from that obligation imposed on
every government to afford protection to
her own citizens. In order to carry ont
this obligation Congress has the right,
anywhere within the boundaries of the
American Union, aud not within the lin
its of an organized State, to make such
rules and regulations as may be necessary
for the government of the people residing
there, not inconsistent with the provisions
of the Federal Constitution. In The ex-
ersise of these powers Congress delegated,
with some reservations, their authority
over such subjects to the legislative pow
er of the Territory. The language of the
Organic Act, See. "a, is very explicit, and
reads as follows
"The legislative power of the Territory
shall extend to all rightful subjects of
legislation, consistent with the Constitu-
tion of the United States and the pro-
visions of this act"
The Constitution gives to Congress the
right ITO exercise exclusive legislation in
all cases whatsoever over the District of
Columbia, but even there it was limited
by the deed of cession. The other places
to which such right extends are " forts,
magazines, arsenals, dock-yards, and other
needful buildings" In all else the pow
ers of Congress are expressly defined or
grow out of some absolute necessity, and
it has been determined that the power to
charter Bank is neither necessary or
incidental power.
Did Congress, then, intend by the Or
ganic Act to confer authority on the Leg
islative power of this Territory which she
did not herself possess No one will
pretend for moment that such was the
intention-for it is expressly declared
otherwise. If this power cannot be found
to have been conferred on Congress by the
Constitution, nor on the legislative power
of this Territory by the Constitution and
the Organic Act, under what authority is
it proposed to pass the bill before me?
The Constitution further declares that
no State shall "coin money, emit bills of
credit, make anything but gold or silver
tender, in payment of debts" and can it
be presumed that when the States were
debarred the right to exercise such powers,
that the Territories would be allowed to
do so ? If there could be doubt about
| it, reference to the tenth article of the
amendments to the Constitution would
set that doubt at rest threads as follows:
"The powers not delegated to the
United States by the Constitution, nor
prohibited by it to the States, are reserved
to the States respectively, or to the peo-
ple."
The powers now sought to be exercised
are prohibited to the States, and Congress
has decided that they have not been dele
gated to the United States. Under and
| by what authority, then, can the Territory
assume such powers
Passing by this question of power, /
now proceed to examine the bill itself.
1t authorizes the Banks proposed to be
created "to purchase, possess, use and sell
| any property the same as individuals" /"
See Section 1.
! 1t authorizes them, and declares that
''they shall have power to use as specie all
sight drafts or certificates of deposits
made by responsible specie paying Bank
ing houses in this Territory or in ST. Lou
is, Chicago, Cincinnati, Philadelphia, Bos-
ton, or New York." See Section 19.
Section 10 provides that "no Bank shall
at any time suspend or refuse the pay
ment in specie of any of its notes." &c.
By an examination of these provisions
it will be seen that the proposed banks
would be authorized to enter the lists in
connection with individuals, for the buy
Ling and selling of every thing, and in
paying for the same to use bank notes,
sight crafts or certificates of deposit. II
specie should be demanded, they could
turn to their charter and show that they
"have power to use as specie" all such pa.
per evidences of debt. There would
never be necessity for them TO suspend,
for the Bank of Leavenworth would be
authorized to redeem her notes in the
notes of the Bank of Lawrence the Bank
of Lawrence redeem hers in the notes ol
the Bank of Wyandott, and the Bank o.
Wyandott redeem hers in the notes of the
Bank of Leavenworth thus making &
, continual circuit, and if these banks should
, get tired Of this circular motion, they
could send the note-holder out of the
Territory by giving him sight drafts, GER
tifeates of deposit on eastern banks. A!
these operations might be found success
. iul. their circulation could be extended t.
an unlimited amount, for the capital stocE
being fixed first at one hundred Thousand
: dollars for each bank, it can sfterward
be increased indefinitely by the addition
, | of fifty thousand at a time, and thus
through the agencies which the twenty
seventh section authorizes them to estab
lish in every town, hamlet or neighbor
hood throughout the length and bFeadtl
. of the Territory, they would be able t
interfere in the business affairs of ever.
citizen, and food the country with an II
redeemable and irresponsible paper cur
rency, which they would be authorized +
, "use as specie," but which could not be $
. used by any body else.
The twelfth section provides ths
whenever the Directors of either BAN
shall deposit with the Comptroller a
8 amount of the State Bonds of any interes
, paying State in the Union, or of the Unit
ed States, equal to twenty-five thousan'
dollars ($25, ,00O1 at the current rates
D the New York Stock Exchange &c
making no provision against receiyin
!. State or United States Stocks at pre-
mium, when it is well known that sud
. den revuIsion is sure to reduce the ecu
Q rent rates. of value attached to such evi
|. Idences of Indebtedness, and that in n
. event could more than the face Of tn
bonds be collected.
The twenty-sixth section embraces a
e attempt to legislate in advance for an
0 future State which may be formed out {
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