The times. [volume] (Richmond, Va.) 1890-1903, 1893-07-12
MAJOR scoTT's LETTER TO MIR. EfEs.

MAJOR SCOTS LETTER TO Nix rH''
We have a great regard for the opih-
ION Of Major F. r. Scott, vice-presideht
~ the Merchants National Bank, OF tfls
CITY. on any question relating TO the
finances of the country. and we have or
ton listened with pleasure TO his I'M
answerable arguments In favor OF
State bank currency. When Major scott
stood 6atfooted end Internationally upon
the proposition that the whole business
~ currency issued belonged to the people
| OF the States. and not TO the Urned
States. he stood upon a position that was
as solid as the everlasting hills, and be-
yond the reach Of successful assault from
any quarter. But Major SCOTS views
have manifestly undergone a change. and
he has now abandoned that solid ground
which enabled him to defy all attack
and has taken up new ground In his
letter TO Mr.. James +. Epes, which Is
totally untenable and liable TO all the
strongest objections that can be made
to a centralized social government.
Major Scott says:
'Nhat is the remedy? 1t is very sim
pie. and would prove very effective. IL
is the enactment by Congress OF a gem
eral banking law for the whole country.
under which all banks chartered by the
States might issue currency free from the
ten per cent. tax. That currency might
be made as safe as any ever issued by
the following restrictions and limita-
| tions."
Which restrictions and limitations he
| then proceeds TO enumerate.
II Major Scott had stopped with the
statement that everything would come
right as soon as the Government Of the
United States ceased to impose its con-
fscatory and unconstitutional tax Of ten
per cent. on the issues Of State banks.
he would have covered the whole ground,
and he would have defined all that is
necessary for remedying the evils from
which the country Is suffering.
But, though he has not said so in ex
press terms, he plainly means that State
banks which will comply with certain
terms TO be exacted by an act OF Con-
gress will be allowed to issue notes with
out plying the ten per cent. tax, while
those which will not comply with those
terms will be required TO pay the tax,
which is an unconditional grant Of con-
troll Of the subject to Congress.
If any one had said to Mr.. Webster or
Mr. Calhoun, or Mr.. Clay or General
Washington or Chief Justice Marshall
that time was approaching when the
Congress of the United States would i'm
pose tax on the notes Of State banks.
not to raise a revenue for the support
OF the Government, but TO forbid an
ordinary business agency TO transact its
ordinary business, any one of those gen.
/ tlemen TO whom the remark was made
would have replied that such a thing
was impossible. He would have said that
we had established a Government here
that was to have no sort OF power to In
terfere with the citizen in the ordinary
affairs of life. That 1t was given by the
Constitution Of its existence power TO
legsate regarding certain general mat
tiers. In which all the people were con-
cerned, which matters were named In II.
but that 1t was denied all power TO legis-
late concerning any other matters what
ever. They would have been shocked al
the suggestion which imputed TO them an
Intention TO establish a socialists govern
ment where the government took care
Of The business OF the citizen, instead Of
the citizen taking care Of the govern
rnent. This was the idea OF our Govern
ment. as il was ordained and established.
and as we lived under it until the war
came on During the period Of the war,
the Government thought II necessary 10
enlarge its powers beyond those given
TO It. so as TO coerce all the resources
Of the country into its service. Money
was as necessary TO 1t as men. and It
usurped a power 10 extinguish State
bank currency as part OF its process for
monopolizing In Itself all the financial
resources of the land. There was no
authority for this in the Constitution.
but the desperate men who controlled
the Government In those days made the
provision OF the Constitution which au-
thorizes Congress to coin money and
regulate the value thereof expand so
as TO authorize Congress TO issue paper
dollars. and TO forbid all competing IS
sues OF paper money.
II is. OF course. preposterous to say
that Sower TO coin money and regu-
late the value thereof could be intended
TO authorize Congress to issue paper
money. But II afforded excuse enough
for the revolutionary men who controlled
The Government IN war times. The
whole power rests right here, and II is
no power a. all. We are done with the
war. and should be done with war meas
ures. 1t II time We were returning to
ths form pf igovsrnmsnt which was