The times. [volume] (Richmond, Va.) 1890-1903, 1894-12-02

most eminent statesmen whether cur
rency OF bank notes, issued by local IN
stitutions under State laws. Is not, In
fact. prohibited by the national Consttu-
ton. Such emissions certainly faii WITH
In the spirit, II not within the letter. or
the constitutional prohibition OF the ennis.
sion OF bills OF credit by the states, ana
OF the making by them OF anything except
gold and silver coin a legal tender IN
to understand by what method Of reason
ing IL is allowed that the states cannot
issue bills of credit, yet claimed az the
same time that they may charter all the
banks they wish with the power 10 issue
such billS-in other words, that the state
may do indirectly that which IL IL posi-
lively prohibited from doing directiy' es-
pecally when such an Interpretation re-
suits in their practically defeating the
clause of the Constitution which cUnfers
upon Congress the right to COIN money
and regulate the value thereof.
But whether the above arguments would
have furnished the proper ground 10 deny
State banks the right OF issue at all pc
RODS OF our history or not, this much Is
true: That II State bank issues are IN
high degree impolitic and dangerous
we would be un.vise In our day not 10
adopt that method OF constitutional In
depreciation sanctioned by our business
needs and necessities. Our Union OF to-
day, with its siXty-odd millions OF peo-
pie and It's vast material development,
"hIch the application or steam and other
causes, have made possible, VIII hardly
submit TO being hampered i'm It's progress
by the written formulas devised by the
representatives or a primitive and crude
country over century ago. As well
expect a strong and vigorus man to be
made 10 wear the knee pants OF his boy
hood days, no matter how much he may
have outgrown them. Constitutions are
growths. like all other wise systems or
law; and in the end will be made to con-
10 he 1at~a OF
a people. for law. In more senses than
one, Is the aftermath OF business. Strug
gle against IL Is we may natures live
grOwths will crowd out and rive dead
matter"
1t is said that mot one Virginian I'm
hundred cares a snap whether the cur
rency he uses is good In san Francisco
or not" Very probably he does not
but If he proposes to make a San Francis
can or a New Yorker accept as currency
the issues of a bank about which the lat
ter knows nothing and Of whose value
he is not easily persuaded, the latter viii
probably care a great deal; so much so,
in fact. that cur VirSinian will find need
for two sorts OF currenCy-One for home
purposes and the other for use outside
OF his State. and the inconvenience arts
ing from such system need hardly be
dWelt upon. The proposed amendments
to the national banking act. known as
the Baltimore plan, are carefully framed
with a view 70 preventing repetition or
the state of affairs which occurred dur
ing the late panic, and with the purpose
of adapting the banking facilities of the
country 10 periods of financial stringency.
II is not desirable that the Government
should go into the banking business, or
even control the operations of banks of
issue, but that ii should exercise gen.
eral supervision over them and make
them conform to certain specific regula-
tions to insure the sOundness and uni
formity OF their issues Let us have
one sort of issue. regulated by Federal
statutes, so that we may have an accu-
rate basis upon which 10 Judge of the
soundness of note. whether ii halls from
III Paso. Texas, or Portland Oregon
rather than the notes Of State banks.
which are issued under the laws Of forty
four different States. and which must OF
necessity vary accordingly.
BARTON n. WISE.