The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-07-31
Delegatesto the National Silver COnven
ton at Chicago Talk TO Reporters.
Populist Agitators Likely to Receive Little
Encouragement-Addre from Washburn-
Congressman Gathering at W ashiDgton.
ONE WAY OF AIDING SILVER.

ONE WAY OF AIDING SILVER.
Colorado May Adopt AN Important Feature
of the Sherman Purchase ACT.
Special to the Indianapolis Journal
DRIVER. July so. Attorney general
Engelly has rendered an opinion to the ef-
feet that it is within the power of the Leg
islaturs to enact appropriate Legislation
for the establishment of q statutory depos-
itory of silver bullion and the issuance of
certificates thereon. signabIe by delivery
and receivable By the State in payment of
State taxes In his opinion MIR. Engei-
ly says: Tho purpose of tho
inquiry. as / understand it. is TO
furnish. If possible. q msdium in
part, owing to the contraction OF the
volume of money, to botter transact busi-
ness and relieve tho financial depression
now existing In the State. The advisa-
bility or practicabilitY of the remedial
legislation by the State along the line pro-
posed. is matter shall not discuss herein.
but shall confine tho inquiry to the legal
aspects of the question. Legislation OF the
kind proposed to be effective must stand
the test Of q judicial Interpretation Of the
federal Constitution"
The Attorney general then proceeds to
quote the United States Constitution. Art.
icle TO- Section !, to the effect that no State
shall coin money. emit bills of credit or make
ything but gold and silver coin pay
mens of debts. The whole question" he
proceeds to say, "as here print ed turns upon
the precise meaning of the words. emit
bills of credit" The opinion of Ch ief
Justice Marshall in the case of Craig vs.
Missouri on the right of State to lssue
certificates of Indebtedness. receivable for
taxes, and other State dues and other
opinions OF the United States Supreme
Court cited on the subject are quoted at
length. In concluding his opinion the At
torRey general says:
From review of these decisions 1t is
evident that there Is practically no limito-
tion on the power OF the States In the char
terlng of banks. The greatest EN- barrass-
ment in the way Of State banks Is the ten.
percent. tax on their Issue. The State may
own the bank and direct that Its paper be
received for dues to the State, and may
give to the bank all franchises 1t may SEQ
ut "a long as the federal Constitution is
not infringed upon. The State may organ
Ize q State bank and authorize the issue of
money based on bullion deposited in the
vaults OF the bank and On mortgages and
good personal security. A constitutional
objection might be raeed-I do not say sue
cessfuly raised-to tho issue of money
based on deposits of bullion alone upon the
ground that such legislation would be class
legislation.
There oan be no constitutional objec-
tion TO the state establishing repositories
for the storage Of bullion and issuing cer-
tihoates representing bullion stored there
in. These certificates may be RssiRnable
by delivery. Representing, as they will, II
issued commodity that tiuctuates in val
ne. the certificates will fiuctuate accord.
ingly. Hence thoy oan In u o sense be called
tprA hoA foO Oivnn LOT hau
| will be sold in the market and these sales
| will be only token of the sale of SO many
| ounces OF bullion or bars of metal. Their
value will be controlled by the same
| value of any other personal proper
! ty. They are. in effect. nothing more
| than warebousemen's receipts. stating on
| their face that the holder will be entitled
bullion of a certain fneness on presenta-
| tion of the certificate to the proper officer
| of the government. The government
| should charge per cent. of the value OF
| the bullion when deposIted to cover the
warehouse expenses. including the salaries
| of the officers In charge of the business.
| Eight per cent may be made payable In
| current funds. These certificates may be
| issued upon aliquot parts of the specific
amounts of the bullion deposited and
| made receivable for dues to the State.
IF the national government does not re-
store silver to the status OF twenty years
ago OF does not remove the t84 Oh Sbato
| banks can see no way out of our difficult
| ties except at great and unequal loss to the
| people of the State. incnmbered as GER
| tificates of deposit would necessarily be
| by the fiuctustiOns In the market value of
| the bullion itself and the constant xpense.
| however small, of keeping 1t stored. they
| might find but feeble and uncertain cir
culation. If We establish a State bank
we must pay 10 per cent upon its
| privilege. As between the two--the issue
| of certificates by the State, and making
| them receivable by the Stste for all dues to
| the State and the establishment of a bank
| the latter NAV be the most feasible.
| Neither the certificates nor the notes of the
| debts. The State may pledge it's entire,
| revenue to protect the issue Of the bank
and see no reason why tho collaterals
held by the bank should not be az safe as
| the governments bonds deposlted by the
| national beDke
| The government both State and ma
tiOnal. are worth nothing if the property
within our borders is worth nothing. Cur
| developed and taxable property runs up TO
hundreds of millions. 1t is not within tho
scope of human intelligence to reckon the
| value of our undeveloped and as yet un-
| discovered treasure. We cen do what we
please with 1t so long as we contine our.
/ selves within the limits prescribed by the
federal Constitution. 1t con oil be made q
| protect our homes and our credit, and
backed by the energy of the people who
! dwell npon our mountains and plains 1t can
| he made a rampant behind which can
be safe from the money changers of Eu-
| rope. We must. In obedience to the para
| mount law of self preservation. proceed TO
turn aside the Hood OF ruin that is now