The Burlington weekly hawk-eye. [volume] (Burlington [Iowa]) 1860-1876, 1863-03-14
POWER OVER THE CURRENCY.
From the National IntefIesneer.

Il us known to our readers that Congress, BY
its recent legislation, has perfected the policy
necessary for the Inauguration of the national
banking syste m recommended by Mr. Secretary
Chase Aud it would seem that the new bank
ing law, ii 1t goes into operation, will at once be
subjected to judicial Interpretation. The New
York Journal Of Commerce quotes the following
from the annual report of Mr. Fl. d. Van Dyck,
the present Superintendent of the Banking De-
parsment CT New York, made to the Legislature
and just published:
/ "Whatever may be the action OF Congress In
the premise, have full faith that the Legisla-
ture of New York will protect its honor and the
interests OF common constituency with dignity
aud nrmness. Under the existing laws no asso-
citation or person can issue, within this State,
notes to circulate as money, without depositing
the required securities in this department.
Without legislative instructions to the contrary,
it will be my duty. during my continuance in
Office, to enforce this provision against all asso-
| Citations or Individuals claiming authority from
any other source. 1t occasion requires shall
not hesitate to bring the question to the test Of
! Judicial decision, that We may learn au.horita-
| lively wha. powers over local institutions are
| still left 10 the States -
| There would perhaps, be some advantage re-
sultihg froa, such question as Mr. Van Dyck
threatens to bring up, for it would lead to re-
examination OF some very important disputed
points as to the respective powers Of the General
and State Governments in the matter of curren.
! cy Several questions under this head have
been previously decided by the highest judicial
| tribunal il the country but it may be doubted
whether definite conclusions have been reached
on all branches of this delicate and important
| subject.
In the year 1919, in the case of McCulloch vs..
the State of Maryland, it was decided that the
States had no right TO tax the issues of the Bank
OF the United States. Judge Story did not
over-estimate the bearing of this important de.
cisiol when he held that Tin political point of
view it was of the deepest consequence to the
nation, because it tended 80 establish the Con.
snsusion upon its great original principles" in
respect to the uationa. currency.
1t is known tina: Judge Story was clear in
the opinion that, under the Constitution, the
States haze no right to tissue bills of credit
in the shape of bank bills uttered by State au-
thority. Ia the case Of Briscoe vs.. the Bank
OF the Commonwealth u kentucky, the guess
ton was raised whether the act of the Legis-
lature Of Kentucky, establishing this State
Bank and authorizing it to issue bank notes in
the usual form, was unconstitutional, because |
infringing the clause o. the Constitution which |
declares that no State shaft ''emit bill Of cred
IT. or make anything but gold and silver
coin a tender IN payment of debts"
1t Is known that in this case the court held !
(Nr. Justice McLean delivering the opinionl
that the act of incorporation was constitutions
al and that to constitute bill of credit" ia
the sense excluded by the Constitution, it
must be issued directly by State in its own
name, and contain a pledge of its faith and be
designed to circulate as money. s.a
In this case Judge Story delivered sepa-
rate opinion, dissenting from the decision of
the court. In the course of his argument he
went into a historical review of the origin and
significance of the term ''bili of credit" as it
was known in colonial times and during the
period of the Revolutionary war, for the pur.
pose Of proving that q '.bill of Credit as the
term Is employed by the trainers of the Con.
stitution, ''signi6es paper medium intended
to circulate between individuals and between
Government and individuals for the ordinary
purposes Of society" According to the defini.
ton of the term given by Chief Justice Mar
shall in the case Of Craig vs.. the State OF Mis-
souri,, Judge Story maintained it was not es- I
sential that such bank bills should be legal
tender, nor that they should contain any OK.
press promise by the State to pay them, on
which credit IS given, nor that they should be
issued directly By the State in its own name
He, therefore, held that the issues of the Bank
Of the Commonwealth Of Kentucky, under the
charter it had received from the State, were
"6ilis Of credit" aud, as such, unconstitu- i
tional.
We do no. know Cow far the same constitu- q
tlonal questions as 10 tue respective powers of
the State anu Federal Government over the cur.
rencY Of the country will come up for review
under tha recent acts of Congress, but whatever
shape they may assume they will be exceedingly
important and delicate. :
The Indications are numerous that the but I
.ernut season is about over. The prospects are o
hat q crop of the fruit of the tree will be
ailura Il Is as,,ertained that the shell of fha :