The times. [volume] (Richmond, Va.) 1890-1903, 1893-09-13

. court maintained the constltutionaIlty
the act OF Congress imposing tax
ten per cent. on the issue OF the Stat
banks and IL maintained 1t upon tn
| ground advanced by the Journal Of Com
merce that a power resides In Congress
TO watch over and regulate whatever !
to be used by the people as currency
| But the decision was made two OF tn
seven justices protesting against 10 j.
1869. directly after the war, during
which the Federal government had ruth
lessly set aside all the limitations OF tn
Constitution and II was made by judge
wh5 had stood by, seeing the Constitu
| ton thus violated without any protest
even IL they did not approve. We shal
| quote here every word uttered by thu
| court In support OF the doctrine.
said:
ut cannot be doubted that under the
| Constitution the power to provide cir
| culation OF coin is given TO Congress.
i And il is settled by the uniform prac-
| tict of the government and by repeated
| decisions, that Congress may Consttu-
tionally authorize bills of credit. 1t Is
not important TO decide here whether the
| quality Of legal tender In payment or
debts can be constitutiona1iy impaired 10
| these bills; IL is enough to say, that there
can be no question OF the power OF the
government to limit them; TO make them
receivable in payment Of debts TO itself;
to- tit them for use by those who see
fit to use them in all transactions OF
commerce; to provide for their redemp-
tion TO make them currency, uniform In
value and description, and useful for cir
culation. These powers until recently
were only partially and occasionally ex-
ercised. Lately, however they have been
called into full activity, and Congress
has undertaken to supply currency for
the entire country.
1.-THE methods adopted for the supply OF
this currency were briefly explained In
the first part OF this opinion. 1t now
consists Of coin, of United States notes,
and Of notes Of the National banks. Both
descriptions OF notes may be properly de-
scribed as bills Of credit, for both are
furnished by the government; both are
issued on the credit OF the government
and the government is responsible for the
redemption of both, primarily as 10 the
first description. and undeniably upon
default Of the bank. as 10 the second.
When these bills shall be made convertible
currency will perhaps. satisfy the wants
OF the community, in respect TO cir
culating medium, as perfectly as any
mixed currency that can be devised.
Having thus. In the exercise OF undis-
puted Constitutional powers, undertaken
to provide a currency for 80 whole
country, II cannot be questioned that Con-
gress may, constitutionally, secure the
benefit OF IL TO the people by appropriate
legislation. TO this end Congress has de-
MED the quality OF legal tender TO for
eign coins and has provided by law against
the imposition of counterfeit and base
coin on the community To the same end'
Congress may restrain, by suitable enact
ments, the circulation as money OF any
notes not issued under its own authority.
Without this power, indeed, it's attempts
10 secure a sound and uniform currency
for the country must be futile.
Here. then, is the whole case. IL the
power to exercise a supervision and con-
troll over notes that are issued by banks
chartered by the States rests in Congress
proof Of it is to be found in this passage.
it cannot be found there, it does not
exist.
It must be ovious 10 the most casual
and superficial reader that the court has
blended together as one subject the pow
err to coin money and the power TO
issue bills OF credit. But they can
not be blended. One depends upon one
provision of the Constitution, the other
upon another provision wholly different
I'm SIS nature and objects. The power to
emit bills of credit rests upon the provis-
ion that Congress shall have power Ito
borrow money on the credit Of the United
States" There is no hint or suggestion in
this Of a duty in Congress to set up and
regulate a paper currency for the people
IL is to enable the government TO get
monev when taxes do rot produce for 1t
eu that Il needs. Now the argument OF
the court is that as Congress Is given pow
or 10 do certain things, it must, IN the
nature of things, have power to do all
that Is necessary TO make its expressly
authorized action effective. This is
granted. SO far as coinage is concerned
its action is made effective by providing
for furnishing the Counterfeiting OF coin.
So far as its bills or credit are concerned
its action is made effective by providing
for the counterfelting Of these, and both OF
them are expressly provided for In the
Constitution. But whence comes the as
sumption that forbidding State banks. TO
issue their notes is Legislation appropri-
ate TO securing TO the people the bene-
fit" OF a provision for the government
borrowing money? Where Is the nexus-
the link-that connects the borrowing OF
money by the government to supply Its
wants with any supposed need the peo-
pie may have for paper circulation
amongst themselves? We confess to abb
solute inability to see any sort Of con-
nection between the two. The govern
ment borrows the money that 1t wants and
issues its promises to pay 1t back But
in doing this it is paying no regard what
ever to the fact that a paper circulation
amongst the people is n very desirable
thing. II is borrowing money, not cir
culating paper. II you should say that
the government could borrow much more
effectively on paper that would circulate
as money than on paper that would not,
we should feel disposed 10 dispute the as
sertion. But grant that IT is true, still
that would not make il necessary 10 pro-
hibit the circulation OF all other paper.