St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-11-23
FLOUR CITY ETCHINGS.
Prof. Folwelrs Paper on 1.-THE Evolution
of Paper Money" Before the
Liberal Minis ters.
The Board of Trade Wrestling With an
Old Chestnut-More Bibles Tor
the Masses.
A Servant Girl Dies in an A1leyway--
Mayor Ames TO Veto Kali
road Ordinance.
A New Building Association VIII
Erect a Handsome Building
City Sketches.


AT the meeting of the Liberal Ministers
association. Yesterday morning. Prof. ".
W FolveIl read complete and interesting
paper on THE Evolution of Paper Money
IT was. he said, Lawrence Oliphant an En-
elish traveller, who wrote In 1871 tnat the
limited States hid outgrown the constitution
of 1857. | have been investigating the SUD-
iect of psper money. In colonial times the
issues were so small that no evil lolio"eu'
save in few instances where there were al
most panics resulting from bad money. rms
state of things existed few years before the
convention of 1877. There can be no ques-
lion that the controlling minds OF tnat con-
ventiou meant to leave the control OF the cur
reucy to the national government ana 10 us
able the government from issuing paper
money nv abolishing "bills OF credit. On
+oking nm the mower of states it was OBJ
served that there was nothing in the constitu-
ton forbdding the states to issue paper
money! Eight states to two Voteo 10 lorplu
the states from using paper money In some
instances this prohibition was mace tue o.
lection i'll the state to the adoption or the
constitution The currency was to be
nstional metallic and wholly under the con-
tcol of congress. This the convention pro-
vided for.
1.-The convention forgot to forbid congress
TO issue paper money II OAH 49,
the clause TO emit bills Of credit. the hard
money men were content with what they sup
posed was in the constitution.
1.-THE hard money secretary OF the treasury
-Hamilton-had hardly taken his seat before
he urged a bill to incorporate the BANK OF the
United States and issue notes. The measure
gave rise to a spirited discussion. Inc OIL 10
ipcorDorate the bank passed. however, ana
the bank came into being. Its notes recelva-
BILE for public dues came into use. In the
very next year after its establishment over
eighty banks were opened in the states These
banks issued circulating notes. Not belng
LEGAL tender and circulating nearer home. no
one questioned their legality. When the bill
came I'D in 1881 to renew the charter OF the
limited States bank the state banks secured
its defeat and State banking became MANIA
The war of 1872 came on and bonds were Is
sued and soon after the redundancy OF paper
money
left THE COUNTRY WITHOUT MONEY.
uCongress voted to issue small treasury
bills. but they were not made legal tender
UTn 1916 the second United States bank was
authorized by congress. ana alter three years
II entered on d career of great usefulness. A
second state banking craze came on In the
last ears of the second United States bank.
At no time was there ever sucn wild. reckless
tnauciering as in the last years OF Jackson
administration. The banks all closed. Here
was another sudden emergency. treasury
notes were again iSsGe1 to the amount OF
S47. 600 600. Caleb Gushing denounced the
biis &c unconstitutional, and in 1913 COM
mittee of congress reported their emission as
unconstitutional. The tenetS OF the lore
fathers chung in this second generation.
1.-The definition of bills OF credit got into
the courts under cases brought. and gradually
an enlargement in its meaning was made. In
the Mexican war recourse was again had to
+reasury notes at small rate of interest,
which served to evade the provisions OF the
constitution forbidding the emission OF bills
of credit
ave now come to the rebellion. The treasury
WAS emDty. All the government could Dor
row was S5uO. 600 at II per cent..when $5,0O0.-
0O0 were wanted. The war debt in 1868 stood
over a thousand millions. In 1851 the New
York banks came to the rescue and took
SlOG GOO. 600 of the treasure notes on certain
conditions. Specie pa ments were sns-
Dended The Thirty second congress assem-
bIed and took up the question OF finance
Two days after the suspension of specie pay
ments Mr. Spaulding. of Buffalo, introduced
the legal tender bill. There was great ex-
element Tne bill was discussed forty days,
and on Feb. %. 1862, was passed The gov
eminent threw itself into the breach with all
its resources. The notes were issued, but
gave relief for only a brief season. Two lots
of SI5U 900 600 each followed.
AN act of congress in 1875, provided for
the redemption OF greenbacks on JAN L, 1876
for hays of metal There was wisdom
enough somewhere to stop the emission OF
LEGAL TENDERS.
The decision was made in 1870. The vote
stood yeas. Chase Clifford, Nelson, Field,
Grier: nays, Swayne. Davis, Miller.
GrIer resigned in 1870 and Strong
was appointed his successor. mo-
ton was made to open the decision
and the matter was not dec ded until 1872,
when it was held that the legal tender ennis
sicns were constitutional. justices chase,
Clifford and Field dissenting in lengthy argu-
meuts holding there could be no legal tender
in This country except gold and silver. There
ro,,oinad but on last step TO be taken and
+bat came on in another celebrated case from
New York By a majority o. 8 to the su-
nreme court voted to reatirm the former de-
cision, holding the constitutionality or the
legal-tender bill. Justice Gray dellVered the
decision 1t brought out the doctrine that
congress- can do anything that it is not for
h., den to do. Congress was allowed by the
constitution to establish national currency.
One further question remained Gould con-
Dress make those bills legal tender for pri-
vate bills The court says yes. There was
no reference in this decision to the stress of
1rar Their issuance was declared to be the
right of sovereignty. The revolution has
49, oo,nnlete Had the constitution stated
exnressly a prohibition on paper money, an
evasion would hive followed when pinch
government like ours and no combination OF
words can be made that lawyers can not get
around. 1t is now the supreme law of the
land that the United States may do all those
things becoming a sovereignty and not for
hidden in the constitution. We see by long
course of events the constitution of our fore
fathers faced about. The supreme court ha:
done simply what the logic OF the times de
manded. Each new generation will doubtless
accommodate the constitution to its owl
needs. The art of free government is still
young"
A lengthy discussion followed in wnlcr
II was maintained that no body of men hat
right to bind a country TO support docu
ment forever that might have been dlaftet
at an early period in the country's exist
ence.
THE OLD SHIP QUESTION
Again Downs the bOard of Trace.
Who viii be Delegated
U1Lo ,,puouoI huSt1inO recommended q