Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1864-05-03

required BY the business wants Of the country.
and will work great mischief IL vacuum - not
created for them by the suppression of the State
banks. The currency beng abundant. il stands
10 reason that swsrm of ne~ institutions for
issuing more currency will only hasten our ruin.
Whether il sould be wise. If Congress were free
act 20 replace banks of established credit and
sOlidiIy by mushroom growth Of untried instl-
tutions i a question will not now discuss.
Instead Of this. prefer demonstrate that
Congress has no liberty OF action in the matter
Congress may establish system of national
banks; but attempts to destroy the State banks
are 10 clear and manifest violation OF the Con-
stitution.
The Superior Court Of the United States. in
the case OF BriscOe We Bank OF the Common
wealth OF Kentucky. declared chat the power to
grant act of Incorporation lis power incident
To the sovereignty. and there l. no limitation on
it, exercise by the Sites, in respect the incor
pOratiOn OF bsnks At the time the Constitution
vas adopted, the Bank Of North America, and
the Massachusetts Bank. aud some others were
in operation IL cannot therefore be supposed
that the notes of these banks we're intended TO be
inhibited by the Constitution"
Congress has no uower TO prevent the State
banks issuing any species OF currency they please.
Judge Nelson decided. year before last. at the
circuit OOuIt III AiDduF. tuat the act OF OOu-
gress passed two years ago prohibiting the issue
by State banks OF notes OF less denomination
than one dollar, was unconstitutional The
grounds of his decision were thus stated by Nj.
SpauldIng, the Republican representative OF the
Buffalo district. IN speech ia the last Congress:
His decision was placed upon the ground that
any state has the power 10 incorporate banks,
and authorize them To issue circulating notes of
any denomination either above or below that OF
one dollar. and that Congress has no power to in
terlere with state authority in respect to the issue
of such notes. This power on the part of state.
is incident 10 sovereignty and there is no limita-
ton In the Constitution of the United States on
the exercise of such power by the states, and
therefore that Congress has exceeded its powers
in attempting to prohibit state banks from ssu-
ing notes OF 4 less denomination than one dollar
am informed that Judge Swayne gave a SINH
lar opinion al the Circuit Court held in Ohio dur
ing the month of October last
Ii follows from these citations that Congress
which respects the Constitution or the soemnty
OF Judicial decisions cannot undertake either tn
legisate the state banks out of existence or To
suppress their circulation. But If they cannot do
it directly, can they circumyent the Constitution
aud do it by subtertugel Can the taxing pow
er be used for this purposel
The power TO lay and collect taxes is limited
OY the ODItCts LOT WHICH lt WAS conferred IL
cannot be perverted 20 the accomplishment oil
objects which are in contraventiOn of other parts
OF the Constitution or destructive OF rights that
unquestionably belong to the States Such A
latitudnarian construction of the taxing power
is one OF the most dangerous assumptions that
Congress could possibly make. Congress has
power to tax; but suppose it should lay tax on
the commissions of all militia officers IN the
several States SD heavy to prevent the ac
ceptance of such commissions would this be Il
constitutional method of annihilatng the militia
of the States and banishing from the country all
military organizations which are not under the
direct control OF the Federal Government Con
gress was clothed with the tax power for the
| purpose of raising revenue; and taxes may be sc
laid incidentally to favor oGher objects which
are themselves constitutional But TO use that
power to attain unconstitutional ends by ndirec
ton. is as wanton and dangerous violation oil
the Constitution as can be imagined. Its ten
dency is to the absorption by Congress of all the
other powers OF the Government, and of all the
reserved powers of the States; for there is
nothing which Congress cannot do if ii may tax
out Of existence all obstacles to its unlimited
discretion.