Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1878-08-16


identically the same secuuty-the faith OF the
Nation-as the legal-teuder note. la idiuon, it
has as pledge for It's payment the Assets of the
bauk Itself, and the personal liability of It's indl-
yIdusi stockholders, each to an amount double
that of his stock all of which would be suhi act 10
sale lor It's ultimate payment.
Ihls Oauk bill, should 1t now be prese; ted for
payment, though 1t reads on Its face pay able on
demand, the teller of the bank would prooaby give
this leg sl-tendtr note in payment. thus payment
is claimed to be made, by exchanging one piece of
paper for another of the same general appearance
and Of tue same lntiuslc value, and that VIII con
nnue TO be tue case until the legatendera are re-
deemable il coin. Inen this bank note when pre-
ented must he paid IN coin. Our money now in
use is OF three knds-two of paper and of
cOln,-but not eXcnangeable INTO each other.
When the leg al-tenders are payable in coin, then
all three will be reduced to aud the same
standard, aud each viii be convertible into the
other.
IRREpEEMABLE PAPER.
But if the Government 10 time of peace has the
constitutional power to declare It's promises legal
tender u pay dtbts, and such promis,ory notes
could be substituted loI the National bank cucnla-
ton, what Advantage would 1t be to either people
OF Governmen ut ; Could any indiv dual loan money
then at any less rate OF Interest than now ? What
greater secuuly would the bill holder have 10
changing has pledge for lis payment from y Gov
eminent bond to Government promise As
these the only two ways IN which the iudyid-
ual could be directly affected, how is il possible
tor hun TO derive any special benefit from either 7
What advantage, II any, could II be 10 the Gov-
ernmeuti Tue Government would be the gamer
to the amount of the bills lost, worn out OF de-
stToy ed III circulation, and that would be all. For
the interest il might save on bonds taken up by
the issue of notes, It would lose on the com neces
sary TO be kept on hand Tor the redemption of 1t.
notes. For unless that was done how could the
issue OF paper be doubled or trebled without be-
coming finally worthless as the assiguats of
France under Louis NNI or the ontinenal
money of our fathers : such has been he
fate OF all large issues Of lrIedeemaole paper no
matter by what nationality issued or what legal
penalties may have been enacted against those
who I, fused to receive it.
la the Transaction OF business in trade and com
merce, Is 1t wise TO disregard the wisdom OF tue
ages and the experience Of all time But even #
no disaster should follow akin to those of all past
experience what other objections can there be 10
irving this experiment? 1t would convict the
Government INTO an enormous bank OF issue, with
all its attendant expenses ami risks. For business
purposes of any kind, the Government is the poor
est OF all instrumen talltes. If the experiment
were to be attempted, and the National banks were
all destroyed, the veiy frst requisite would be to
double the issue of Treasury notes IN order to sup
ply the place of the retired circulation of the
banks, and thereafter to increase them with the
growth and development OF the county, the in-
crease to be determined by An arbitrary act OF Con-
gfess, which would be settled by majority OF
"A
more competent to settle wisely any question OF
finance or commerce tnsn any other equal number
of reasonably well-inturmed men. Ii Tue inctt ase
was not settled by Congress, then by the decision
of one man, selected by the appointing power on
account Of his merItorous political service AS Con-
tioer of the Currency, Who would thus be clothed
with almost absolute power over all the monetary
affairs of the people. The Democratic party IN Its
better DAYS won It's most signal triumph 10 war
ring against the dangers to liberty and the iDstitu
lions of the county, OF such power conferred on
nine bank directors.
All monopoly 10 furnishing circulating medium
is destroyed by the existing free banking law.
The system by its own elasticity would adapt Itself
to tue varying wants OF trade and commerce free
from the whims and caprices of schemng pohtl
clans or the ignorance and stupidity of self sutfi-
cieBt government officials II furnishes to the
people OF the whole countrya currency OF uniform
value, perfectly safe and secure against loss, and
when the Government redeems its legal-tenders,
convertible at viii into money recognized by all
commercial nations OF the same market and in
trinsic value.
A DIFFERENCE AND THE REASON FOR 1T.
How does it happen that these two pieces of
paper-the United States note and the National
bank bll-both of the same intrinsic value, and
both resting upon the same Government security
fer ultimate redemption, are not alike in all re-
spect- as MONEY! Simply because the Govern
men, in time OF war, 10 the exercise OF its
"a
It's dett paving value but not It's value for trade
and commerce. If you propose to buy my coat,
judge for myself as to the value of what you offer
10 give me IN exchange. But if you owe me for II
coat already sold. tnnst take in payment OF the
debt what the law-mak ing power declares legal
tender. 10 time Of var II can make Government
promises legdl-ten der for the same reason that
1t can seize you and me, our fathers, sons and
brothers, and place us in the cannOns mouth, take
your property without compensation and quarter
in Aua litptYa mill
sent The constitutional power to carry on war is
III the unlimited power to declare war. And Con-
gress is not only the sole judge TO the dec'ara-
ton, but also as To the measures and means for its
rigorous prosecution, to bring il 20 a speedy
and effective close. For that purpose it can IN its
discretion declare that the promises of the Gov
eminent shall for the time being have all the
of money
But in time of peace the law making power has
no constitutional authority TO make a thing of no
intrinsic value, money for the payment of debts
Such is the dictum and the argumei { of the SUI
preme Court OF the United States in its decision
declaring the egal-tender Acts of Congress con
stitutonal. But III time Of war it is the sole judge
as all means approp afe and adapted Tor It's
prosecution.
Under this ssue power the Government could
issue its bonds and other securities free from To-
cal taxa ion. But il that tue only authority
Tor n, then the exemption could only apply to
those sued in time Of war. Exemption of bonds
aud notes of the United States from State and
local taxation rests upon the inherent structure of
the Government it,elf 1t decided long
ago by the unanimous decision of the Supreme
Court Of the United States, in the of Mccall
Loeb against the State Of Maryland Chief Justice
Marshall, IN delivering the Opiuion OF the Court,
SAID "lhe State Governments have right to
tax any OF the constitutional means employed nv
the Government OF the Union to execute ils cou-
stitutiona powers. The power to tax
involves the power to destroy; the power TO
destroy may defeat and render a,eless the power