The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-08-23
THE GOVERNMENT AND PAPER MONEY.

THE GOVERNMENT AND PAPER MONEY.
Among the most encouraging features
of the times are the indications of the
steady growth of public sentiment in
favor of the national bank system. Evil
dence of this is seen in many facts and
expressions, notably in the popular
favor with which the proposition is re-
ceived to allow national banks to issue
notes to the full par value of their
bonds deposited to secure circulation.
We doubt If there has been any time
within many years past that this prop
osition would have been received with
as much favor as it is at present. On
the contrary, at almost any time here
tofore it would have excited q storm of
opposition. 1t is favorably received
nOw because the common sense of the
people tells them it is just and right.
1t is another proof that the national
bank system is equal to every emer-
gency.
1t is not alone because the national
banks furnish the country with the best
paper currency it has over had and be-
tive element in our financial system that
We are pleased to observe that they are
steadily growing in popular confidence
and favor. Another and a strong rca-
son for regarding this movement with
satisfaction is that it indicates the
nrrwfh Tho Nooplo IF snpnAor
views In regard to the issuance
of paper money. 1t will be a happy day
for this country and people when they
become completely cured of the idea
that the government ought to issue
paper money. 1t will be a victorious
day for sound finance when every dollar
of paper money issued by the govern
ment shall be retired. never to he issued
again, except as bills of credit in time
OF wal or national stress. Not the least
of the evils inflicted on the country by
the war was the heritage which it left
behind of paper money issued by act of
Congress, and the idea, deeply rooted in
the popular mind, that this is d consti-
tutional function and duty of the gov
ernment. Our currency system will
never be out of danger until we have
got rid of that idea.
The trainers of the Constitution did
not intend that Congress should issue
p money. TIE Constitution de-
clares that mo State shall coin money
or emit bills of credit" and it gives
(Cnupaea nnuar RI onip vnnnnu hnf MT
to emit bills of credit. In the conyen-
ton hat framed the Constitution a
clause was offered that "the legislature
of the United States shall have power
to borrow money and emit bills of credit
on the United States" This was changed
stands. "The Congress shall have power
To borrow money On the credit of the
United States" The motion to strike
out the words land emit bills of credit"
was fully debated. and was ca rried by a
vote of 8 States against 2. Nearly fifty
tuition, IN a speech in the Senate, in 1886,
Daniel Webster said:
Most unquestIonably there is no legal
tender. and there can he no legal tender in
this country. under the authority of this
governments or any other, but gold and sill
yer. either the coinage of our own minis or
| foreign COINS at rates regulated by Con-
gress. This Is @ constitutional principle,
perfectly plain and of the highest impor-
tance. The states are expressly prohibited
from making anything but gold and silver
u legal tender in payment of debts. and
although no sneh express prohibition Is
applied 10 Congress. yet. as Congress has
no power granted to IL in this respect but
to coin money and TO regulate the value of
foreign coins. 10 clearly has no power to
substitute paper OF any thing else for ooin
rs q tender In pay of debts and In dis
charge OF contracts.
Congress never issued circulating
legal-tender notes. payable on demand,
in coin. till 1862. 1t was done then as a
war measure, with doubts as to its con-
stitutionality. 1t has been continued in
various forms since in time of peace,
with still graver doubts as to it's tinan-
cial wisdom. In fact, it is not sane
toned by the Constitution nor by sound
finance. The government ought not to
issue paper money of any kind. 1t
should coin gold and silver. but all cir
.culating notes should b eissued by banks
of issue. Therefore. the Journal is glad
to believe that the growing popularity
of national banks indicates that the leo
pie are gradually becoming wcaned
from the vicious idea that the govern
ment ought to- issue paper money.
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