The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1863-01-30
securities since that date. seems now to re-

securities since that date, seems now 10 re
quire bonds of a higher value.
l would then provide twenty-years
loan, for all that may be made the basis O
the new bank circulation. But il is not
six. but only four per cent. twenty years
loan that is proposed. by deducting one pc
cent. semi annually from the interest of th
bonds made the basis of this bank circula
ton. This deduction would only be fai
equivalent for the expenses incurred by III,
Government in furnishing the circulation
! for the release of taxes, for the deposit o
, public moneys with these banks. for max
ing their notes legal tender. and receiving
them for all dues except customs. The tai
on all other bank circulation should be on,
and a half per cent semi annually, secured
by adequate penalties.
If. under this system, during this stu
/ pendous rebellion, involving the existence
! of the Government, with armies and ex
pend,tures uuexampled in history, the Sec
retary (ss, with the aid of Congress and the
bank, believe he can, should secure us q
sound and uniform currency, and negotiate
vast loans, running twenty years at par
the Government paying only four per cent
interest per annum. he will have accomplish
ed financial miricle, and deserved fame
nearest to that Of the first and greatest ol
his predecessors, the peerless Hamilton.
have contended. during the last fourth
Of century. that all State bank currency is
unconstitutional. This rebellion will de-
monstrate the truth of that proposition, and
the question ultimately be so decided BY
the Supreme Court of the United States
This, it is true. might require some Of those
Judges, it then living. to change their opin
ION on some points !; but this has been do ne
before, and even on constitutional ques.
tions aud State banks will fall before
judicial action, as we'll as nulli6cation, State
allegiance. secession, and the whole brood
of kindred heresies.
A republic which can not regulate its
currency, or which leaves that power with
thirty -four separate States. each legislating
at its pleasure aud without uniformity.
abandons an essential national authority,
and this abdication has furnished one of
the main supports of the rebellion. With
nothing but a national currency. the revolt
ed States never could have successfully in
augurated this war, and we must deprive
them in all time to come of this terrible ally
Of treason. To permit the States to provide
the circulating medium. the money of the
country. is to enable them to furnish the
er to overthrow the Government.
With only such q national currency as is
now proposed, issued by the Government to
these banks. organized by Congress. and
based on the deposit in the Federal Treasu-
rv of United States stock, the rebellion
would have been impossible. Our Govern
ment was so mild and beniguant. that we
deemed i, exempt from the assault of trail
h,,k IL haa tod DO
lusion, and warned us to provide all the
safeguards indicated by experience as neces-
sary to maintain the Union. Among the
most important, is the resumption by the
Government of the great sovereign function
of regulating the currency, and giving to it
uniformity and nationality. Such was clear
~ the intention Of the Constitution. The
Government has, by the constitution, the
erclusive power to regulate commerce with
foreign nations, and among the several
States. But commerce is regulated mainly
by money. and by it all interstate and in
ternational exchanges Of products are made.
II the currency Is redundant. prices rise,
exports are diminished. and the reverse fol-
lows with a contracted circulation. But
banks initiate or restrict the currency at their
pleasure, and thus control prices, commerce,
exports, imports and revenue. But they
also destroy or deprecate the money Of tn,
Government, and deprive it Of a vital pow
er. Thus. the nation issues Treasury Notes,
and makes them legal tender the banks
make such notes the basis of
bank issues, in the ratio of three to one, and
the whole currency necessarily becomes re-
dundant and deprecated and thus this
essential power Of the Government is con-
trollei by the States, and, for all practical
purposes. annihiiated.
Chief Justice Marshall, in delivering the
unanimous opinion of the Supreme Court of
the United States "a Wheaton 1913 } said
. Wherever the terms in which a power is
granted to Congress, or the nature of the
power require that it should be exercised
exclusively BY Congress, the subject is as
taken from the State Legislature
as if they had been forbidden to act on it,
Now. it has been decided by the Supreme
Court of the United States % Wheaton }
that. this power to regulate commerce ex-
tends to the land. IS we'll as to the scater,
that it includes Intercourse and navigation
and vessels, as vehicles Of commerce, that
it includes an embargo which is prohibitory.
that this power is " EXCLUSIVELY vested in
Congress-" and "no part Of 1t can be
exercised By State" Now, the question,
whether the notes of State bank. issued
on the authority Of State. and designed to
circulate as money, conflicts with this clause
of the Constitution. has necer been decided
5y the Supreme Cont Of ahe United Stofes.
This is a new and momentous question,
never yet aijudica.ed by the Supreme
Court; but how they would now decide
that point. with the light thrown upon it by
this rebellion, I can not doubt.
The Government also has the sole power
to lay and collect duties. which "shall be
uniform throughout the United States,' and
The States are prohibited from exercising
Ibis authority. Bat this power also is in
I.ct controlled By the banks. and the rev
enue from imports increased or diminished.
to their action. Indeed. they can
modify or repeal tariffs at their pleasure. for. !
they have only to initiate the circulation.
and prices rise here to the extent OF the
5,t;a.. and the tariff becomes imperative.
n, III the branches Of our industry, the