The Nashville daily union. [volume] (Nashville, Tenn.) 1862-1866, 1865-12-07

Z hands Of the people To some extent
:, doubtless. they are. But whsre one an.
. oi tbs money Is be a bv he p.onis. tfer.
: are Thousands 10 the hands of sn-culat,rs
! siF' this measure viii bring 20 relief b CD,
Z people, while it viii put millions iu %,
/ sets % those who trade unon their mis-.
i2rtanes- To redeem these notes wound add
ak, eight OF ten millions 10 The public deb.
OF TIE state-no one can tell exactly o. aP.
e. proximaiely how much. To such q policy
an opposed, unless We aYe under q LEGAL
and moral obligation to adopt u, and b tnis
aspect q the qRestion VIII pay my respects
in due Time.
M Speaker, We can nov see why in this
9ii! m lea GOV. Browaiow "a nos authorized
and empowered % nomiasta these c1nmis-
sioners II this policy IS ta be adopted. it !.
essential 70 have commissioners who are in
.s'or % o., and such commissioner Gov.
ofoWnlos would never uamiuaie. Wanton
= .slls have oeea made upon the Governor.
elt tnis - not one Of then. This ding al
the Governor was inspired, not by maiis-
nuy, out by policy. Sir. an In favor Of he
enginai BAL, because b auth0rirrs and re-
qnves the Governor to nominate the COM
missioncrs.
bat g Is urged in argument that refusal
% redeem The legitimate issues Of she Bank
Z /
OF All hcresics IN commercial elhics-and
tais Is made an objection 30 The original
oat Ihis "a not . valid ohiectien = she
tllL tnere = uot worl sid on the original
1iu about the redemption Of The issues lt
- ieu sn open question, % be discussed
oeioro the people IN the next can
vass- Anything wrong In that2 The peo-
/ pie IS che party most deeply interested.
L't their voice be heard. Bul, sir, it is a.
sumcd and argued, that a refusal b. re-
I deem, Is population This assumption /
| deny. 1 deny that the State Of tennessee
. under any m raj or legal Obligation %
/ redeem the legal issues OF the Bank OF Ten
nessee, beyond she amount OF capital stock.
/ lt, indeed, the obligation goci totbai extent.
/ The question has been raisei, and We may
As well meet Il here aud nov. i regret that
the discussion of this Is devolvad upou me.
/ 10 Is legal question. I am no lawyer. But
/ think can comprehend principle and
see its application.
have already alluded % two cases IN The
supreme Court OF the Uniled states. in
which this question has been settled. There
are other cases, but have Rot had time 10
consult them.
Il state, in its sovereign capacity, issues
notes or certificates 20 clrcu ate as mouev.
upon is credit, and involving the faith III
the Safe, such State does an act repugnaut
70 the Constitution Of the United States, and
Is, therefore, without any validity. 10 Is
one Of those things which State cauuot do Z
NO state shall euter into any treaty, az [
iesianeei or confederation grant letters Ut l
marque aud rcprsal coin money, emit bills |
Of credit make any thing but gold and sil. [
yer cola q tender IN pas meut OF debts, etc." |
Con. Art, See. i0.l
ono State shall emit bills OF credit" |
Whist is a bin OF crsdty What did the /
Constitut on mean TO forbid Chief Justice I
Marshall answers.
''ro emit bills Of credit conveys 20 the /
mind the idea Of issuing paper intended 20 |
circulate through The community Tor us or
dinary purposes, as money, which paper IS
redeemable az a future day. This Is che |
sense in which the terms have always been |
understood"
"The term has acquired an appropriate /
meaning and bills Of credit signify q /
paper medium intended 90 circulate bet seen /
individuals, and b.tseen government and /
individuals, for the ordinary purposes OF
society"
"If the prohibition means ANYTHING. 90 !
words arc not empty sounds, &c must COM
prehend the emission OF sEY paper medium.
by state government for the purpose OF /
G mmou circulation" IA, S, Peters b. 1891. |
From these definitions 10 is evident that "a i
state government cannot issue a. money
for common circulation, notes. b lls OF certi- |
icaies, and this has always been the doc
triue held By The supreme Nauoua. Judi
catory.
But we have smother case. Briscos against
the Bank Of the Commonwealth Of Ken /
lucky, IN which there 10 modification Of |
this doctrine. In this case the following
propositions are affirmed.
ar. tn. =. E.fH
meaning Of the constitution it must be issued /
by State, involve the faith Of The STATE. /
aud be designed TO circulate as money. on \
the faith Of the State, ia the ordinary uses
OF business"
"Notes issued aud payable in gold and /
silver by the Bank Of the C0mmonWca tth i
oi Kentucky corporation created by /
law Of that State, having capital which |
the holders OF the notes could resort D. i
for payment, containing no promise By the /
state, are not bills of credit within ths l
meaning Of the constitution, although the /
State was The sole stoekholder % the nauk. !" /
When a Stale becomes a stockholder boz /
a banking corporation, it imparts none Of its /
attributes ofs0vereiguty 10 the latter, and i
can, as a stccEholder, excrciss no other /
power thsn any other holder of stock Of The !
same amount" tBaisooE v. Bank Of the /
Commonwealth Of heHtHckFs "a, m, aud " /
Peters, p. AIS and 419.)
In this case, Ct is settled that Stale can
net emit or issue mites, bills or cartihratrs.
70 circulate as money, becnuse such notes.
bills or certificates are In character. and iu
the ofico which they are intended 10 per-
form, bills OF credit. aud inhibited bv The I
Constitution, things, aud not names. being
prohibited by that Instrument. But isis also /
settled that a State may, as Ksnucky and
other States did, create q corp9ration by
law, and then, In the character % privaie
individual, take stock ia the same, but not
otherwise. But IL Is worthy Of remark that
ty Of the Court. Judge storey delivered en-
able dissenting opinion, from which I ask
the indulgence OF the House 10 read single
passage. 1 know, Mr.. Speaker, that tbs
discussion is irksome, but Il Is important.
and has bean forced upon us. Would that
il had fallen into Other and ADLER hands
than mine.
Judge Story, dissenting, says ''When
this cause was i0rmally argued before This
sourt, q majority Of the Judges who then
heard il were decidedly Of opinion that the
act Of Kentucky establishing this bank vas
unconstitutional and void as amounting 90
an authority 10 emit bills Of credit, Tor and
on behalf Of the State. within the prohib
ton Of the Constitution Of the United States.
In principle, ID was thought 70 be decided
by the case Of Craig vs.. the State Of Missou-
r." "a pet. p 4l0.) Among the majority
was the late Chief Justice Marshall, name
never 70 be pronounced without reverence
The cause has been again argued, and pre-
ciaely upon the same grounds az The former
Argument"
This cause was twice srgnea before this
sugust court. When the cause was FIRST
argued 80 majority 81 the judges who then
heard il, were deciicdly Of the opinion thai
the act Of Kentucky establishing this bank
was unconstitutional and void " Among
the majority was the late Chief Justice st5-
~ and Marshall. Story and Marshall. prr
n0biic frafrHns, both held that q State could
not do indirectly what the Constitution of
The United States prohibited q State from
doing directly Or In other words, that
State could not do BY and t1rough an agent
what IL could not 40 constitutionally in Is
oEn proper and sovereign character. But
alter the death Of Chief Justice Marshall
soaiessedly the proioundest juriat of Ameri-
ca, this opinion was Overruied aud 10 was
decided By the court that State may create
= banking corporation BY Law aud be-
come the sole stockholder IN the same
and this, understand, % be the law now
70 far az Judicial opinion can make Il 4,
it is admitted that State cannot - anv
icvics that may Be adopted, emit 6ui. n
,redit. But a state may create q co-pora-
lion By law and become the sole stoekhold-
y IN TIE same IL such corporation apv.
hing but an agent Of the sfafe, and = K
loi punciPls Of law that whatever l. done
ly an authorized ageut, is the act. for an
sgai purposes Of ne principarg such uss
De opinion Of Chief Justice Marshall and I
Judge siery, IN regard % this Bank qaes-
But upon The principles announced, in /
ne ease Of briscoe ~. The Bank Of the 4
Commonwealth Of Kentucky, bow Htauia the
natter Tn that case, IS was settled that
State might create a banking corPorat on by
aWs subscribe all The stock, and laaue nutcs
. circulate as money, without any violation
4 the Constitution ~ the United States.
But the court held, that, When q siate be-
.omss q steekhoiier in q banking eerpora
iou, it can, as a siockhoider, exercise no
.ther power than any Other holder
II stick te the same amount frhe
itats. IS q stock holder bears the
sule relation 10 the Bank e. any other stock
.older." Upon this prime PIE what becomes
& iha obligation % the State % redeem the
sues OF the Bank in the ordinary bank
1g corporation d the country, the stork
oiders are liable only 20 the ameunt Of
.eek subscribed, an.ess j. Is Otherwise AZ
rsssed in the act Of corporation. Tennes-
se bears The same relation b The STATE I