The times. [volume] (Richmond, Va.) 1890-1903, 1893-11-29
WEDNESDAY NOVEMBER 20, 1898.
SIX PAGES.
NEW PAPER CURRENCY LEGIsLA-
TON NECESSARY.

paper currency is as necessary to a
sound and healthy modern society as the
circulation Of blood in the body. The
United States is confronted with a near
approach 10 the end of the system which
II has done business with for thirty years,
and no provision has so far been made for
one to take its place. In very elaborate
review few days back Of the whole sit
uation the New York Journal of Com
merce concludes that the new system
must be a currency 10 be furnished by
State banks, but II demands that the
State banks shall conform TO certain
conditions and requirements which il
thinks an act OF Congress should pre-
same act shall provide for inspectors or
examiners to be appointed by the Presi-
dent Of the United States, who shall super
wise the State banks TO see that they
conform 20 the requirements of the act
OF Congress. 1t says: First Of all. IT
will need TO be assumed that the Federal
government has the right, in the interest
Of The convenience and the protection of
the whole people OF the United States
10 prescribe such conditions for issues of
bank paper as will insure the innocent
holders of the notes against all possibility
Of loss from default of redemption" And
II then builds it's entire case upon the
assumption that the right indicated re-
ST IN
ter of course.
When we are asked by responsible
party like the journal Of Commerce 10
assume, as matter OF course that the
Federal government has this right. it
fairly takes our breath away, so for
eign and hostile is it TO the govern
ment which our Constitution was in
tended to set up. If anything can be
certain, il is certain that the trainers of
our Constitution intended that the Fed
eral government should have no such
power as this. They intended that the Fed
eral government should have the power to
make the laws that are TO regulate GER
tain subjects named and that it should
upon any other subject. Prescribing con-
diuons for the issues Of bank papers
Is not one of those subjects that are
named. When the convention had framed
the Constitution and sent il out for
the people OF the several States to ex-
anime. and determine whether II would
accept II or not. public meeting was
held in Philadelphia. and James VIII
son. who, as member Of the conven-
ton from Pennsylvania, had borne q
foremost part in framing IT, was selected
10 explain the IN strument TO the meet
Ing. lie said; In delegating Federal
powers the congressional authority is 10
be collected not from tacit Implication
but from the positive grant expressed
In the instrument OF union Everytbino
which is not given is reserved" Tho
people adopted the Constitution unaer
the assurance that this was what il
meant and this is what all who love
our government and understand il have
endeavored 10 compel IL to restric, -
self TO. But the Constitution contains
the further and essential provision that
the Congress shall have the power n
make all such laws as are necessary
and proper FOR making effectual the ex-
press grants of power. Under the in
huence OF the necessities. the passions.
and excitements that the war caused
this provision has been so abused that
II is simply impossible to say now what
are the limits OF the Federal govern
ments powers touching money and
currency.
Inc abuse commenced with the act OF
Congress making the governments pro-
missory notes legal tender for debt. This
was done In the midst Of the civil war. II
was justified thus. Congress- it was said
was given express power 10 make war
and that carried with Il the IN.
e'oentai power to make paper money
legal tender for debt. that wnr
might be effectualiy made. The con-
s'itutonality Of this act coming before
me supreme Court Of seven judges, after
NE war was over. four held the act un.