Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-03-02

ditiOn by a joint committee Of the two
houses, ard such a determination on the
part of the General Assembly TO meet the
liabilities Of the State would secure the
confidence of capitalists, enhance the value
of the State securities and promote the
best interests Of our internal improvement
companies
If after the panic of 1857 the people
needed bank which would not eek
tort extraordinary prices" they GER
tainly need it now. If such an institu-
ton ''seemed almost indispensable
then, it is more so in our present con-
dition. It's profits of between three
and four hundred thousand dollars an
nually" thrown into our cash box now,
would vastly simplify the problem of
State finance and exercise the demon
of reputation. If in the face Of such
rivals as the Planters and the Union
Banks, State Bank could then have
doubled its capital, what shall we say
Of the capacities Of such an institution
now, with the field to itself and the ex-
listing dearth of circulation? Every
argument presented in the report of
Hon. Gave Johnson applies with ten
fold force to the present situation.
Why stand all the day idle, lament
ing our condition while such a means
for triple relief, in the way of revenue,
currency and interest, lies within our
grasp? Why talk of inability to pay,
or failure to meet our obligations?
Two objections are made against the
feasibility of this mode of relief.
First, our new Constitution forbids it.
In answer, we may cite the monster
petition presented to the Legislature
last week, and another, yesterday,
signed by nearly every mechanic in
Nashville and vicinity, praying that
the Constitution be amended and the
hands Of our Representatives united
in this respect as we'll as others. Such
amendment is needed for many impor-
TAFT purposes. The exemptions under
the present instrument are enormous,
and work to the benefit of the rich
rather than the poor. The present
Constitution provides an easy and
rapid mode for its own alteration or
reform, the last sentence of Article
XI, section 8, being as follows:
The Legislature shall have the right.
at any time, by law, to submit to the
people the question of calling a con-
ventiOn TO alter, reform or abolish this
Constitution, and when, upon such
submission, a majority Of all the votes
cast shall be in favor of said PROPOSE
ton, then delegates shall be chosen,
and the convention shall assemble IN
such mode and manner as shall be pre-
scribed.
Surprising this obstacle removed by
the prescribed mode, which could be
done IN sixty or ninety days, there re-
mains the section Of a Federal revenue
law which enacts chat every national
banking association, State bank or
State banking association shall pay
tax of ten per centum on
the amount of notes OF any
State Bank or State banking as
ISOLATION paid outs by them. I"
This enactment is a mere nullity,
so far as the State Banks are con-
cerned, IN either of its clauses. Its
bearing on such banks has never been
tested IN the courts, and it could not
stand a moment. 1t is at best a mere
Congressional enactment, liable TO be
repealed at the next session Of that
body. a Congressional enactment
cannot upset the United States Consti-
ton, Of which Amendment Y. declares
that powers not prohibited by that con-
stitution to the States, are reserved to
the States respectively or to the people"
The open history of seventy-fve years
proves amply that the States did re-
serve and exercise the power Of estab-
fishing State banks as a source Of reve-
nue. and circulation, Tennessee among
them. There is nothing in the post BEL
lam amendments restricting this pre-
viously unquestioned power. There
fore 1t remains in full vigor. The
power was never derived from Con-
gress, nor can it be taken away by that
body. As the Republican Jacob Col
lamer, Of Connecticut, remarked on the
floor Of the Senate In the financial dis
cussions of 1868, during the very heat
of the war, "The United States has no
more power to tax a State institution
out Of existence than a State has to tax
a United States institution. out of ex-
istence." These considerations show
that we would venture nothing in con-
testing the legality Of this Federal war
measure, passed under the pressure Of
military necessity to force irredeemable
paper into circulation.