The times. [volume] (Richmond, Va.) 1890-1903, 1893-09-13
CAN CONGRESS LAWFULLY CONTROL
THE ISSUES or STATE BANKS

The New York Journal Of Commerce
returns to the proposition that Con-
gress may provide a code for regulating
the issues that State banks may make.
This is a matter of the very last impor-
lance. and 1t should be looked into with
candor and impartiality.
There can be no coubt about this pro-
position. that the entire authority in Con-
gress to deal with the subject at all pro-
ceeds from that provision Of the Consti-
tuition which reads thus: Congress shall
have power TO coin money, regulate the
value thereof and OF foreign COIN; or
from the provision which reads thus:
Congress shall have power TO borrow
money on the credit Of the United States"
There is no difference of opinion about
this. 1t is conceded everywhere that if
Congress cannot derive the authority from
these provisions, it is wholly wanting in
authority Until the war came on no one
was ever heard TO pretend that these pro-
visions gave Congress any ouch authority.
Messrs. Webster. Clay. Calhoun and the
other ante-bellum statesmen would nave
LAT gked anyone to scorn who undertook
to argue that this provision clothed Con-
gress with any authority TO pass an act
bearing in any way whatever on the notes
that the State banks of the day issued.
Until the war, therefore, 1t had never
been asserted anywhere that the Federal
government possessed any sort Of con-
troll or corrective power over the money
of the country except what was involved
in coming metals into money, and de-
cIaring the value OF each coin. and bor-
rowing money.
But 81 was known to every one, and
the Supreme Court has declared in cases
too numerous TO mention. that the Con-
gress Of the United States could pass no
act that interfered in any way whatever
with those subjects OF legislation re-
served by the Constitution to the States
as part of our system OF local self-gov-
eminent. The case OF the United States
VS.. Dewitt. 9th Wallace Al, was this. The
internal revenue act OF Congress for
babe any one to mix for sale naptha and
Illuminating oil, or to sell such made
from petroleum when inflammable, at a less
temperature than 10 degrees Fahrenheit.
This was supposed 10 be necessary TO
raising the governments revenues. Dew
1T was indicted for violating this provis-
ion, and his case went 10 the Supreme
Court OF the United States, which held
the act of Congress to be repugnant TO
the Constitution. The Court said:
Standing by itself Il is plainly a po-
lice regulation. AS police regu-
lation relating exclusively to the inter
nal trade OF the States, IL can only have
effect where the Legislative authority
OF Congress excludes. territorially, all
State legislation, as for example, in the
District OF Columbia Within State limits,
IL can have no constitutional operation.
This has been so frequently declared by
this court, results SO obviously from the
terms Of the Constitution, and has been
20 fully explained and supported on
former occasions. that we think
II unnecessary TO enter again upon the
discussion"
Unless. therefore. some provision OF the
Constitution expressly or by necessary
inference authorizing Congress TO regulate
the issues OF State banks can be pointed
TO- Congress clearly has no sort OF author
ity to deal with them In any manner
whatever. The provisions relating TO the
coinage and borrowing OF money are the
only ones that can be cited.
II IL undoubtedly true that the Supreme
GeU< - the United States haa held IN