The daily Evansville journal. (Evansville, Ind.) 1862-1863, 1863-01-24
EVANSVILLE, IND. SATURDAY MORNING,

OF any paper medium by State govern
ment, for the purpose of common circu-
lation." And he also says: BILLS oi
credit signify paper medium, intended
to circulate between individuals, and be.
tween Government and individuals, for
the ordinary purposes of society" That
the notes of the Bank of Kentucky came
within this difntion and decision. is
clearly stated by Justice Story. In that
case also it was expressly decided, that
4 If the issues be unconstitutional, the
notes given for the loan of them are void.
! tits said, howeve<, that the bills are issu-
ed by bank, not by the State; but the
bank is created by the State, and author
lied by the State to issue these notes, to
circulate as money. In the language of
Chief Justice Marshall, in this case,
And can this make any real difference? =?
is the proposition to be maintained that
the Constitution me mt to prohibit names
and not things" On this subject, JUS
tice Story says: THAT State may
riEshtf.ll -tirr-pronIDIt1ons of the
Constitution by acting through the instru-
mentality of agents in the evasion in
stead of acting in its own direct name, is
a doctrine to which l can never sub
scribe, &c. -
am conscious that Justice Story also
said in the same case, drguendo: The
States may create banks as we'll as other
corporations, upon priUGte capital; and
so FAR AS THIS PROHIBITION IS CONCERN
ED, may rightfully authorize them to is
sue bank bills or notes as currency, sub
ject always to the control Of Congress,
whose powers extend to the entire regu-
Ldtion Of the curreacy Of the country"
1t will be observed that Justice Story
gives no opinion as to whether the issues
Of such banks are constitutional, wheth-
er they conflict or not with the power of
Congress to regulate coin or commerce.
He only says (and the limitation Is most
signigcant,) they do not violate the pro-
hibition as to bills of credit (from which
| dissent;) hut he does declare that to
Congress belongs the entire regulation
the currency" Now, this power must
rest on the authority of Congress to reg
vlate coin and commerce. But these
powers, we have seen, were not concur
rent, but cOncluSice; and, in the Ian
guage of Chief Justice Marshall, in de-
llvering the unanimous opinion of the
Supreme Court in the case before quoted
from Wheaton 1913, as to any such pow
er that should be exercised exclusively
by Congress, the subject is as completely
taken from the State Legislature as if
they had been forbidden 70 act q, ~
All, tirvn,--rhv agree tAat congress
has the entire regulation of the curren-
= l.. 0f
incorporated by States are unconstitu-
tional, not because such issues are bills
of credit, but because they violate the
exclusive authority of Congress- to regu
late commerce, coin, ssud its value. l
er Been adjudicated by the Supreme
Court, yet, if their decision in fourth and
ninth Wheaton is maintained, such bank
issues are clearly unconstitutional Its
clear, also, whatever may be the bank
issues, based only upon private capital,
or, in the language of Judge Story, " if
the corporate stock, and that only by the
charter, is made liable for the debts of
the bank" yet, if the bank issues are
based on the " funds or credit of
the State, such issues do violate the pro-
hibition against bills of credit. Such
bank issues, then, as are furnished and
countersigned by State officers, acting
underSState laws, and are secured by the
deposit with the State of its own stock,
are most clearly unconstitutional.
In No A (by Hamilton) of the FEEDER
alist, the great contemporaneous exposi-
tor of the Constitution, prepared by
Hamilton, Madison, and Chief Justice
jay, of the Supreme Court of the United
States), it is said: 1.-THE same reasons
which show the necessity of denying
to the States the power of regulating
coin, prove with equal force that they
ought not to be at liberty to substitute
paper medium instead of coin. Such
was the opinion Of the two great founders
of the Constitution, (Hamilton and Madi-
sony, and its first judicial expositor, the
eminent Chief Justice Jay. Justice
Story quotes and approves this remarka-
BILE passage, and says, "that the pro-
hibition aimed at a paper medium which
was intended to circulate as money, and
to that alone.
In his message of December 3, 1916,
President Madison, referring expressly to
bank and paper medium, said: 1t is
essential that the nation should possess a
currency of equal value, credit and use,
wherever it may circulate. The Consti-
tuition has entrusted Congress ercIusirely
with the power of creating and reguldt-
ocf State violations OF the Federal Con,
stitution. The rebellion is the child OF
State ursurpation, State supremacy,
! State allegiance, and State secession;
| And now the Government is paralyzed
| financially, in its efforts to suppress tnt m
rebellion, by a question as to State banks
denreciating the currency, and Stat'
banks based on State stocks. Inc GOV
eminent wishes currency, not redun
Jant and to borrow money to save tn
Union. But one State says, we nav
t nlaced all our surplus money in Stat
; hanks hanks and an other State (as in the cas-
of New York; says, we have based tn
; circulation of these banks, mainly on ou
: own State bonds, and you must do not
}, inc which will injurlously effect the
l. value. !,
II is true the Union is in danger, b.
. orc not the credits Of State banks ar
q. State bonds of higher value than Il
"a Union? The State first, the Union afte
e. ward Our paramount duty is to Q
Of State, and that to the Union is suoor'
y, nate Why, this is the very Language.
., rebellion-the echo of South Caroll