The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1874-02-05
BANKS WITHOUT CIRCULA-
TTOE.


Senator Thurman, made a terse argu-
ment the other day against the power OF
Congress to charter banks without circn-
lation. For the light which it throws
upon the "frse-banking'' talk. and for the
light which it throws upon the hlmsy
foundations ofthe assumed power OF Con-
sress to charter banks of issue, the re-
marks OF Senator Thurman are worth no.
ting: Il A.IG
"Now, sir, the power to authorize banks
of issue has always been referred to either
one of three clauses of the Constitution.
The validity of the charter Of the Bank
ofthe United States was referred some
times to one and sometimes to another OF
these three clauses of the Constitution
but mainly to the clause which l will now
read: o."
1.-THE Congress shall have power to lay
and collect taxes, duties, imposts, and ex-
cises, to pay the debts-or as 1t ought to
read, and is read by the Interpretation
placed upon it by the Supreme Court. OF
| the United States-in order to pay the
debts and provide for the common defence
and general welfare of the United States"
1t was said that a Rank of the United
States might be a convenient and proper
fundamentally to aid the Government IN
the collection Of taxes, duties, lmposts,
and excuses in order to pay the debts and
provide for the common defence and gen.
eral welfare Of the United States.
Then another clause of the Constltu-
ton was relied on, the clause which gives
to Congress the power Ito borrow money
on the credit of the United States; ? and
- ILL l-.o uvLTnk hoe haan ratfaH
upon to Justify the issue of legal-tender
notes, is the power to coin money, regu-
late the value thereof and of foreign coin,
and to fix the standard of weights and
measures If there is any other clause
in the Constitution that authorizes Con-
gress to create banks 1t has escaped my
observation. a
alt is here proposed that Congress shall
! charter banks without any power whatso-
ever to issue notes for circulation. If 50,
/ want to know what limit there is upon
the power of Congress to grant charters OF
incorporation Why may they not grant
charters of Incorporation for every coDceiv-
able purpose for which q corporate body
may be an efficient instrument, if they
have the power to grant such charters as
are provided for In this bill2
at cannot be put upon the ground that
Congress has q right to coin money. and
that you may make paper money ;; for
this purpose 3 set of institutions that shall
have any power whatsoever to issue any
paper. IL cannot be put upon the ground
of borrowing money, for these are not in
strumentahtles that can to aSy extent aid
the Government in borrowing money,
Nor can it be put upon the clause on
/ which the validity OF the bank charter
| M pnarnlu racfaH fha nOmar. to lev an5
collect taxes, duties, imposts, and excuses
in order to pay the debts and provide fol
the common defence and general welfare.
l cannot for the life of me, as at present
advised, see any power in Congress tc
/ grant any such charter, unless, indeed the
power of Congress to grant charters il
without any limitation whatsoever.
cannot, therefore, vote for this clause II
this bill, because 1 do not believe tina
Congress has power to enact it. But if j
had the power TO enact it, ! should
still be opposed To it on The ground of ex
p%ediency. -5s--
"Of what possible advantage can 1t b
to grant charters to these various insCitu
tions2 Every man in the United State
now has the natural right, unless prohlbl
ted by some law of the land, to engage il
the banking business he has the right Il
receive deposits, to buy and sell bills o
exchange, to do, in short, every act tina
appertalns to the business of banking, ex
cept the single function of issuing eircula
ting notes. Now. it is proposed tina
these rights, which belong of common
right to individuals throughout the Uni
ted States, shall be conferred as ~oorporat
powers by an act of the Congress Of tn
United States. ], for my part, can Be
no good that can result: from any sucl
legislation. al, -
I'm the first place it is to Withdraw
the capital which Is now under the con
troll Of the State Legislatures, subject t
their supervision ana to their Regulation
according to the local wants and local IN,
~terests OF the several States, and place it
protection, under the supervision, and pn
der the Control of the Congress OF, tn
United States. I do not think tina
ought TO be done, even if we have tn
power to do it. l see no good Whateye
that can result from thai at allcommensu
rate with The evil lat would be likely Z
follow from such . practice a. .rs.