Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1893-06-25
st,,os' Power 70 rssuo Currency.

We mentioned yesterday the fact that
Mr.. GrCEoE Il. DEsAUssrEE, of Georgia,
was out in letter denying 20 the several
States tho power II Issue circulating notes
without the consent OF Congress. Tho
| Constitution, which advocates the repeal OF
the law taxing S:ato-bank issues. speaks OF
the long experience OF Mr.. DzsAUssuRE IN
the banking business IN Atlanta, and says
that his financial articles have received
considerable comment from the leading
financial journals of the country. A few
days ago he received from Mr. W. S Bos-
WORTH. of st. Louis. letter asking him
what he had TO say in reply TO the conten-
ton that Federal regulation Of State-bank
| issues IA unconstitutional Mr. DEsAUs-
SURE replies that such regulation by Con-
gress go far from being unconstitutional IS
directly in accord with the letter OF tho
Constitution and the spirit of our govern
ment. He quotes Mr.. MADISON as follows f:
ali tho States do delegate TO private corpora
tious the right TO emit or issue bills OF credit or
paper money, are th0y not oy such ac;iol
usgrping power which, under the Constitution
-hoy arc prohibited from exercising They
m ut Just as well incorporate mint under
tn ,ir laws and allow Il to coin money. Tho
power prohibited 10 tho States must bc exor'
cised by Congress. tho agent CT all the Statos-'
That would seem to DO plain enough
for anybody to understand. Mr.. DEsAUs-
sURE comments as follows
"FrOm what Mr.. Madison says 70 are Led 10
believe that tho trainers OF the Constitution
intended that Congress should regulate all
issues Of paper currency. AS all laws OF Con-
gress passed in conformity 20 tho Constitution
and under an Interpretation Of same not in con-
nct with tho public safety and welfare gro tho
supreme laws Of the land. we are OF the opinion
that the states have no power to pass laws al
lowing State banks OF issue, as such laws would
make absolutely nugatory any power in tho
Federal Government to regulate paper cur
rency. Wa DO not ma IN the Constitution any
delegated power which will allow Congress 70 In
corporate banks Of deposit and discount which
shall issue paper currency The only power in
Congress- we believe, is % declare what shall
constitute the currency and declare how 1t shall
issue"
Mr.. DEsAUssURE continues a. follows:
"If tho power to declare what shall constitute
the currency Of tho country lies in Congress,
then any state wishing 70 issue tho same must
do 80 subject g. acts OF Congress. Under this in
torpreiaiioa Congress Will be exercising the
constitutional power to regulate the paper cur
rency and the stares will. In allowing thcir
banks 70 issIc currency under net Of Congress
and their own laws, be exercising the natural.
reserved, and sovereign right 10 control and
supervise tho business OF their banks ss Is best
for the people"
The intention Of the trainers OF the Constl-
tu.ion Was 10 give Congress ccarly-denned aud
full power % regulate the currency, but not to
create and regulate banks"
The reader will perceive nc once that
here IL a compromise propo'ition-namely,
that Congress shall regulate tho issues of
the currency. but not establish nor autho-
7Ize the establishment of any national
banks.
Mr.. DKstUssURr holds that the decision
OF the Supreme Court Of the United States
that tho act Of Congress making the gov
eminent Treasury notes Cor Greenbacks) a
legal-tender is direct confirmation Of his
Interpretation of the Constitution. as the
act he proposes would involve a lesser
power.
Wequote Mr.. DEsLUssURE again:
"The power TO regulate the currency IL a trust
power ind Congress should o. exercise II as TO
give it uniformity, stability, and safety. IL tho
power exercised BY tho Federal Government In
Incorporating a system OF banks in order to give
Uniform cI-.cloY IS constitutional, then We
cannot soc how It can bo held that 1t would be
unconstitutional for the same power to allow
State banks 70 issue notes under an act OF Con-
gress to DO incorporated in the laws Of each
State
There is no wildcat feature in Mr..
DEsiUssURE's schemes. He hos clear, we'll
defined opinions on the subject under con-
sideratlon-s subject which at present fills
larger space IN the public eye than any
other. We have doubts. however, as to
whether the national banks would not
rather get their currency from the national
capital than from the State capitals.