The times. [volume] (Richmond, Va.) 1890-1903, 1894-11-27

authority. are an invasion Of the consi-
tutiyDal prohibition against Sta,S
suing sucn bills. Further, he ihedp,nine
since the exclusive power OF g. aiven
money and regulating ITS value 10 The
to Congress, because the interest," honid
nation require That the curIehSy as 10
be uniform both as 10 hihu en that
value, dOes not the reason reiI extend
the same exclusive power snou, ,ha mace
to paper money, which taxes sn,ctions
of coin i'm discharging the
Of a currency? ooort as Sec
George VI. Dallas, In me- itIfS took this
rotary Of the treasury, III Ioiy ,ionaI con-
view i'm regard to the congressI"s iorsed
troi of the currency, wnicn "aS iannes
By John G. Calhoun ana o.n" Ia ter neri-
Barbour, of Virginia, anu ,,estion OF the
al nv Webster. The queSttil, which
~, - a STATE to charter a OdhH insua
vs. owned and controlled py ~ Rriscoe
notes was decided in the S"sSf Kentucky.
Va the Commonwealth I1ann, before the
,rhis ~ $50 vas argued shorty pSlJ Is tsq5
= IIis N%9 a. chef Justice Marshall, "a 20
go tore n decision had been .etu en-
and Justice Story Afterwards ,shau he
his dissenting opinion, that 81" Ever \
i iitS Tho state had no such DIV, no.
Ie!eu -, &c of course, TO be ara" u ".
,ao,r mis- case and the right ol a roIIod
~ charter a bank owned anu |U,itb Inc
by, nrIvate individuals endo%eu S,ory
~ - of ISSUING notes and JUSTICE GU , ,
- bis dissenting opinion, foucneI dP ,'nt
.hie noint and said the opJecIiOIr to,,,a,,er
annly TO private state DAMS, 80 rigbt of
he was careful to say thd' ~. M snhiact
the state TO create theI Ho,,ress whose
''ars eytend 10 the entire reguldtioi! VI
Inc currency of the country CIV, ~, 10 10
10 Sition vas subsequently asshiheu py
the court in case WheIc eii0 '"-> 0
stare hank issue was sustained it,. %
a., p,i%ate individual has a rlSht 10
~, AiS rptes and the right OF an agSresa-
ZION of individuals, lncorPo' IT, a" IT,
hank TO do the same II IoI d Il aitCi,r.o
ar a sovereign right, Whch ldct ConSt.-
- ~ difference between state emit
tino hills of credit and a private Dahk IS
s,,iSe notes. Hence Congress, In leVylhS
a taT on State bank-note5, does not trenSh
upon the reserved sovereignty OIL the
We Of the South. especially during the
,eors Following the war, have come 10
look upon the ancroachmen, OF the ca.
eral power as something hoSthe ~
interests, and have turned TO the pro-ect-
ing aegls Of the State governmehts 40
the ark of our safety. 1here' as VIC
hive grown to regard 1t, we nave gar
nered up our hearts ana must cICuot
live or bear no lfe,' but let us remember
~ Tho state hank tax If a war tax, was
moi a violent subversion of our rlBhta'
as we are sometimes taught 10 peteNt,
and that the lessons OF history warn US
against the repeal OF that TAX, II II l'ie,''i
a return 10 the State Ddhk system do -
existed i'm the past.
Our present national banking system,
while the best ever Instituted as IesdIua
securing a uniform and stable currency
il undoubtedly defective in many par
ticulars. and the late panic has demon
strated the need Of more elasuc cur
rency, and one which, like the streams
and lakes which nature provides TOT tht
earth's refreShment nave thelr Hleles Il IN,
hounds by natural embellishments tild'
prevent their mingling in one great ocean
as under the national banking system
congestion may occur. Inc question
arises: Shall the national banking ac'
be so amended as to strip 1t OF its ODlec'
tionable features, such as those that
were solely war measures, ana OtherSi
and made 10 adapt itself to the present
needs and necessities OF the people oi
shall Congress also repeal the TAX on
State banks, leaving them free TO pursue
their own course and make what Issues
they choose? Is il not in the highest
degree desirable that this change SHAH
occur under congressional supervision,
and will not a uniform currency DE more
surely attained by this method than by
leaving each State TO enact what laws II
may see fit? If New York, with the
right 10 issue State bauk-nOtes, were 10
provide, as II did during the ddmlnlstra-
ton of Martin Van Buren,, tnal bauh
must deposit securities with the state
Treasurer in proportion TO the amount
of its issues. thereby securing them Qrom
which law Salmon Il. Chase conceived the
idea of the present no tiOnat banking actD,
what probability is there that Nebraska
and North Carolina Will do the same, or
take steps to prevent excessive issues
It has been claimed that the old State
bank system was not failure, save
in the boom" localities that existed at
that period. Admitting for argument $
sake, the truth Of this doubtful asser-
ton, does the present state or the PUBIC
m:rd in certain sections OF our coIhtF$'
.t4,l.f IN Nt4Ef
warrant us IN bestuWin9 any great amount
of confidence in the ability OF the people
10 legisldtc wisely and cOnServauVely on
these subjects Here, in the South, We
are not only confronted with the evil OF
nclrO suffrage, but Of horde Of iSno-
rant white, as well, and Furthermore a
class Of aericutural population, Wnl IN, "
7 OF ignorant is STRIVING win might anu
main 10 make buckle and tongue meet
and who are ready 10 jump at any imam
Cial piJn that holds forth promise Of
mcthlng better, 40 matter how absurd
at the bottom. Before SUch an audi
e. ce no argument H. as taking as that Of
the stump orator who declares that we
want more money and plenty Of It, ami
the candidate who denies thar proposition
ordinarily need entertain no doubt as TO
what election-day holds in store Tor MN.
There IS a story OF MISSISSIPPI steam
boat captain, curing the period or state
banks, who. at one of the Whsryes on the
river, called out 10 Iumbermdn ana
asked HIM what he would take Tor cord
wood Inc lumDermdn replied, Nv nat
sort Of money! Brandon Bank money
SAID the captain. Then / want cord for
cord" retorted the umberman.
The recent convention Of American
bankers, held at Baltimore endorsed the
proposed currency legislation presented
by the clearinghouse Association OF that
city, and winch has since come 10 be
known as the Baltimore plan. Lack of
space fOrbldS a discussion Of its details.
Inc principles upon which ii WAS fOrmu-
lated, as stated by Hon. \. G. Hepburn,
ex-Comptrolier of the Currency. and now
president of the Third National Bank Of
New NOrk. are:
H. \ currency to serve public and pri-
yate needs must be national
"2. a perfectly safe currency can be
provided without stock or bonds as Sc
curity.
30 No currency can be elastic that IS
secured by bonds, since the cost Of the
bonds exceeds the amount OF currency
that can issue.
II. The experience Of the Dominion OF
Canada, the statistical history Of the ma
tional banking system during "A period OF
thrty -One years IN this country, Slows
cOncluslyely that the first lien upon a
failed banks assets, including stOcEhOld-
ers liability, together with a moderate
| safety tuEl. affords ample protection TO
| bill holders"
Let the representatives Of the people
study and perfect SOME such plan than
which none better than the baltimore
one has been offered thus far. and the
objections urged against the present ma
uOnal banking system viii have been
overcome, and we will be in possession
OF the key To a safe and elastic currency
II state banks are to be allowed to issue
notes let us see TO IL that II is only under
the supervision Of the Federal Govern.
ment; against which plan the objections