Grand Rapids herald. [volume] (Grand Rapids, Mich.) 1892-1959, 1893-07-31
Certificates Can Be Issued by
Colorado on Bullion
IN The STATE REPOSITORIES
Which Can fe Paid lor An Debts to
the state ~ the Market
vatue or silver.

legislature % eaact appropriate legisia-
tinn Tor the establishment II statutory
depository q silver bullion and the is
snauce Of certificates thcreor. asa siensble
by delivery and receivable by the state
N the payment Of state taxes.
IL his opinioa Mr.. Eng!ey says: The
purpose of the inquiry il. as under
stand Il. 10 furnish il fpossible a medium.
IA part owing 90 the contraction o. tie
volume of money, 10 better transact busi.
Cess and relieve tho financial depression
ability OF praetlcabiiity Of remedial leg
islation 10y the state along the line pro
posed is a matter | shali not discuss
herein. but shal. confine the inquiry 10
the legrl aspects os the question. Legis-
lation OF the kind proposed to be effect
i've must stand the test of judicial in
terpretatlon OF the federal constitution.
The attorney general then proceeds To
quote the United States constitution.
article IL. section l. TO the effect that
mo state shall coin money,
emit bills II credit. make anything but
gold and silver coin tender in payment
Of debts -"
Il ne whole question" he proceeds to
say. AS here printed turns upon the
precise meaning Of the words, emit bills
Of credit
Can Issue Bullion Certificates.
In concluding his opinion. the attor-
ney general says: "From review Of
decisions. il Is evident that there is
practically no limitation on the power OF
the states in the chartering OF banks.
Inc greatest embarrassment IN the way
OF state banks is the 10 per cent tax on
their issue. The state may own the
bank aud direct that its paper be re-
ceiyed for dues TO the state. and may
give 10 the bank all franchises il may
see III. as long as the federal constitu-
ton is not infringed. The state may
organize state bank aud authorize the
issue OF money based on bullion depos-
tied in the vaults OF tho bank and on
mortgages and good personal security.
A constitutional objection might be
raised-l do not say successfully raised
Ito the issue OF money based on depos-
its OF bullion alone. upon the ground
that such legislation would be class leg
islation.
There can be no constitutional OBJ
lection 10 the state ablishing deposi-
tories for the storage of bullion and is-
suing certificates representing bullion
stored therein. These certificates may
be assiSnaole by delivery. Represent
ing. as they will IL issued. a commodity
that iluctuates in value. the certificates
will iiuctuatc accordingly. Hence they
can in no sense be called paper intended
10 circulate as money.
viii Fiuctuate WifkSiiver.
They will be sold in the open market
and these sales. when made. will only be
a token of the sale IL so many ounces of
bullion or bars II metal. Their value
will be csintroilej by the same rules AMI
carsos that control the value Of any
other persc aai property. They are. ia
eject. nothing uoce than warehouse
mens receipts stating on their face that
the holder siil be entitled 10 the dcliy.
cry "a him Of so many ounces OF bullion
of certain iineness on presentation IL
the certificate 10 the proper officer Of the
government
The government should charge a per
cent of the value of the bullion. when
deposited. to cover the warehouse ex-
penses. including the salaries Of the OH
GERS in charge OK the business. This per
cent may be made payable in current
funds. These certificates may be issued
A-oa alIquot parts of the specific
amounts OF bullion deposited and made
receivable FOR dues TO the state.
If the national government does not
restore silver to the status of twenty
years aeo or does not remove the tax on
state banks / Gao see no way out 81 our
difficulties except at great and unequal
loss 10 the people ~ the state. Encdm-
bered as certificates of deposit would
necessarily hc 10y the huctuatious in the
market value OK the bullion itself and
the constant expense. however small. OF
keeping Il stored. they might find but
feeble aud uncertain circulation.
VIII Prevent Runn
II We establish state bank we must
pay 10 pr cent upon It's entire issue Of
bills Tor tha privilege. As between the
two. the issue 81 certificates by the state
and making them receivable by the state
for al dues to Tie state. ard the es,tb-
lishmtni 4 ,snk. the latter may be
the uas.s feasible
~%oither the certificates nor tho notes
81 the talk caE De made a tender for
private debts The state may plssige It's
entire revenue 20 project fheiesue q the
N"firs etl4 80 10 |f.at*fU " HN AitF fft
laierais held BY the bank should not te
as safe az The govsTnmrnt's bonds DC.
psi "a by che national hanks fhsgoy
ernmrrt both state an5 national, are
woFth nofhius II the property sithin
cur borders fa N9rfh nothiug Our ~.
ve.ep~ se9 lsxatle property runs up 20
hundreds % niiliions Il - not eiihin
tho scope - baasn intelligence te rses.
on the Yeiue r ogr an, .cscioped and "a
yet undiscovered tfea-aife
we can do what ~ phrase with i az
iarg - a 2 cSEfine aars.ifrz sithin the
limits pfescf.i'ei - the federal crnsii
tuition " can al t.a made q pie'lge. a
Fi<itie apgiuls guarantee 90 rfoiecs uur
hofnts sae eaf credit AID backed by the
enefEy q the pesplr ehs dxsA pppn
ouf mountains aad sse- = faa t~
made rsiuEssft hThsad shich se msY
- sale ffum The niouey cba0gers - E.s
rop@ Unless cur pfsf~fiy % pfr~ert FL
~ th@ g4eesDuenf sbssk gar fefsfaihrfa
bad esialsi~hed shd which we have a.
CURED 81 the isi-f ans gFiratlooa 10
e44est ~ pionerr hfs Ne nsasf. IN
otedisBoe - ihe rafamgars la q seif
pr>~sssfson. gres'e~si - barn saisie the
aoaa Il fsa That = nsfs nrsn "a