The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1876-03-08

esi ablish q national bank, which proposition
ted the correctness of the statement,
which viii be found to be correct
Convention co In ISL the national bank APP
piled for a recharter; which was denied II oy
congress, on which occasion MI. Clay, or ken
recnarter of the bank. In his remarks ne
treats such an institution as "unconstitu-
tional, anti-American and strict y a British in
stitution." Mr. Gay, addressing himself 10
the advocates Of bank currency, said: DO they
forget that we are not In Westminster HAIR
concentration OF such a vast portion OF the cir
culating medium OF the country In the hands
OF any corporation VIII be dangerous
Mr.. Chairman, that time has now arrived
which Mr.. Clay foresaw; and 1t becomes the
duty of the representatives OF the people TO
take from the national banks the power to
make and control the currency. But lest we
may fall into a still greater evil OF returning
TO state banks of issue shall now show that
the states are directly and positively pro-
hibited from emitting q "bill of credit, and
Article j, section 10 of the federal constitution
says: No state shall coin money, emit
bills of credit. or make anything but gold and
silver coin a tender In payment OF deots.
Section g. article l, paragraph 5. Of federal co..
stitution says: Congress shall have power 10
coin money, regulate the value thsreoI, and
of foreign coin. The power to make money
or q medium Of exchange, which lis the tool
of trade" is a power incident TO sovereignty,
and, "all power inherent IN the people,,
they must be sovereign, as sovereignty Is de-
fined TO be the highest power known 10 any
government; and, as we can not have two
highest powers, sovereignty must reside in the
people, and not in any constitution or form OF
government, but in those who make them and
may at their pleasure change. alter, or
to make supreme or the highest
law, but can not delegate any part of Its sover-
eighty without losing the whole, as IT can not
reside in the people and In their representa-
lives at one and the same time Therefore,
in making constitu ions and governments IL
was proper that the people snould nave dele
gated either to congress or to the state legisia-
cures the power TO make money; and, having
shown that this power has been delegated 10
congress, ii becomes necessary TO show by
what act of congress this power Is exercised.
Ii is made by that act of congress which makes
anything a tender In payment OF debts, which
Is called legal tender act. Two things are
clearly observable in connection with this
question: FIRST, that the power 10 make le-
gal tender act Is not granted in the federal con-
stitution by any mention OF such an act; &C.
ond, that the power TO make UGH an act is con-
tanned In the power and duty TO regulate the
value OF money. Mr.. Webster on this subject
said: Collating the grant 10 congress ana the
prohibi ion TO the states, just reading OF the
provision is this: Congress shall have the
power 10 coin money, regulate the value
thereof and OF foreign coins, emit Dills
or mage anything besides gold ana silver coin
a legal tender In payment OF debts. In reply
TO those who assert that coin only can be de-
clared legal tender, IL is proper TO call atten-
lion to the fact that the powers granted to
congress are
PERMIssIvE, AND NOT OBLIGATORY:
therefore, as congress might not coin gold and
silver, the states reser red the power to make
gold and silver coin (of other countries) ten
der In payment OF debts. AS the laws OF con-
gress made In accordance with the powers
granted to 1t are supreme, had congress been
compelled to make coin a tender in the pay
ment of debts dues and demands, or the only
legal tender, es the designing advocates OF
bank currency contend, the reservation Oh
the part OF the states would not have been
made 1t would have been both useless and
absurd. One other fact must be borne in
mind in connection with this subject, that in
| must make 1t a full legal fender, as a
partial legal tender is always depre-
ciated % compared with a full legal tender, as
| is proved in the case OF silver coin, IL being a
partial legal tender is deprecated as COM
| pared with gold coin, which is the only full
| legal tender and as was proven In the case OF
| the demand notes issued in July, lS6l, and
| February, 1862. Those demand notes were
only legal ten0ers for public dues. When the
Der, 1861, they refused to take them for debts
due them, which deprecated those notes TO a
level with suspended bank paper. On March
] IL, 1861, congress made them an equal legal
tender with gold coin, at time when there
was no coin to redeem them with,
and when their redemption had been
70, 1861, VIII sn they instantly rose to an equal
| ity in value with gold coin, and continued TO
/
| compared with partial legal-tender green
backs. There are s80,u0 oil those full legal
tender notes not yet redeemed, and III there are
any OF them not yet destroyed by use, they
will now command the same premium as gold
coin because by law they are made to perform
not only the creature of a legal-tender act, but
that act also gives 1t value, whether composed
of coin or paper. When money is made a full
bears premium or higher value than a PAL
| tial legal tender rs compared with full legal
| tender. Having shown that the entire
money is in congress and by what act thai
power is exercised, and that congress can not
justly make a partial legal tender, it Is proper
| to call attention to the TACT that congress can
not demonetize coin, as the states may make
| IL legal tender In case congress fails or re-
fuses TO do so.
THE AMERICAN SYSTEM OF MONEY AND TT
SUPERIORITY OVER BANK CURRENCY.
By an examination of Jefferson's published
correspondence, the following will be found
in a letter to his son-ln-law, Colonel Eppes
chairman of the committee of ways and mean,
In congress, dated June "a, 1873 He said
In the war Of I755 our state availet 1t self o.
this fund by issuing a paper currency bot
toned on a specific tax for it's redemption
and, TO insure its credit, bearing an interest Oi
| five per cent. Within very short time not 9
lation. IL was locked up in the chests of ex
| ecutors, guardians, widows, farmers, etc. We
then Issued Dllls DOtt0med on redeen1ng TAI
but bearing no interest. These were received
| and never deprecated a single farthing
| In the revolutionary war the old con-
sress and the states issued bills without in
channels of circulation very freely until those
| channels were overlooked by an excess beyond
all the calls of circulation. But, although we
have so improvidently suffered the field OF
circulating medium to be flched from by
private individuals, yet think we may re-
cover it in part, and even n the whole IL the
states will cooperate with us. Ii treasury
| bills are emitted, on a tax appropriated fol
| their redemption In fifteen years, and Ito In.
| sure preference In the first moments Of com
| petition) bearing an interest of six per cent.
there is no one who would not take them In
preference TO bank paper now afoat, on Q
principle of patriotism, well as interest, and
they would be withdrawn from circulation in &c
private hands TO a considerable amount
Their credit once established, others might be
emitted, bottomed also on a tax, but not bear
ing interest; and IL ever their credit faltered
open public loans. on which these bills alone
should be received as specie: These, oper atinl