The times. [volume] (Richmond, Va.) 1890-1903, 1894-06-17
TIE JOURNAL OF COMMERCE VERY
MUCH OFF"


In recent article the New York
journal Of Commerce conceded that the
tax laid by the Government upon the
Issues # state banks was an unconstltu-
tonal one, but it claimed that the Con
sttution conferred power upon the Cen
eral Government TO suppress the issues
Of these banks in some other way. The
admission connected with the claim quite
astonished rs and we asked the journal
to point out the provision Of the Con
stitution that would authorize this. That
paper has replied to our article. II
claims that the authority must be H.
fcrred from the express grant Of power
to coin money and regulate the value
thereof" 1t says:
Tho Constitution. however did provide
very expressly for the kind OF money
that did then exist, namely com; ana
what It decreed In respect 10 thal FORM
OF money may be taken AS coI ,,tl.tf
afterwards be introduced 10 perform Ike
functions with coin.
II is TO be assumed that the making
regulating, and issuing or com WI 80
rigidly reserved TO the Federal authority
mainly because that was deemed the
s11regt means Il maintaining the inteS-
rity and uni 'ormity Of the money wien
was TO be common 20 the whole country.
These purposes were Of the supremeSt
Importance No money. the value or
which is unstable, IS fiji TO be an lhSru-
ment for settling debts. Its instability
defeats its circulation and makes. II
a falsehood and q cheat. and no civilized
community viii long tolerate It,
1t thus becomes a pre-cmlnent luHc-
ton Of the authority that regulates what
ever IS equally common to every section
and every citizen 10 determine What
conditions shall be Observed by the IS
suers of bank notes in order to give
them stability Of value certainty OF re-
demption and adaptahillty for common
circulation. There are the same reasons
for the central power exercising inns
function in respect to paper money as
led 10 it's being charged with the iegna-
ton Of metallic money II Is thoref re
n fair legal construction that Congress
and not the state legislatures should
prescribe the basis Of bank issues.
There IS nothing, Of course, which can
not be proved by this method Of reason
ing. Instead Of pointing TO some provi-
sion of the Constitution that authorizes
the Government 80 iuppress the issues
of State banks the Journal is satisfied by
saying that in its opinion II would be
highly convenient and very much To the
interest Of the people II the Government
had the authority. But opini rs Of IN
dividuals as TO what would and what
would not be for the public interests
have never yet been accepted as caus es
for constituting the Constitution. The &C.
cepted doctrine. on the contrary is thar
the Government IS TO be understood as
having no authority whatever, except
what Is conferred upon II by the ex-
nress terms Of the instrument OF what
&c necessary in order that it may efiec-
tually exercise those powers which are
expressly conferred upon 1t. and this, not
from inference. but from the express
terms Of the Constitution itself The
tenth amendment to the Constitution de-
clares:
"rhe mowers not delegated to the United
States 10y the Constitution, nor prom Dc
"a TX a 20 the states, are reserved TO
the states respectively, or 10 ire peo-
pie.
II is true the Constitution vests Con-
rress with power ITO make all laws
which shall be necessary and proper for
carrying into execution" the powers that
are expressly conferred upon Congress 50
that Congress undoubtedly has power TO
pass all such laws as may be neces-
sary 90 enable Il 20 "coin money and
regulate the value thereof"
But suppressing the issues Of state
hanks can have no possible relation to
"coining money and regulating the value
thereof" II the authority was one ito
regulate and govern all financial matters
in the United States authority to sup
press the issues of State banks might
very well be held a measure necessary
and proper" for carrying that power into
execution. But this is not the authority.
The entire grant of power in the Con-
stituton is "to coin money and regulate
the value thereof"
The Journal adds:
The Constitution could not possibly be
50 framed as TO cover by explicit stipula-
tion every future subject OF legislation,
or say what, for all time. shall be regu-
lated by Federal law and what by State
law 1t could not have been eXp. ted 10
make any stipulatlOns regulating legisla-
ton on bank issues; for at the time when
the Constitution was created. that form
of currency did not exist IN this country
The argument here is that If there had
been State banks Of issue when the Con-
stitution was adopted 1t would have given
the Government power in terms TO sup
press them. But the journal is totally
wrong here in its history. The Bank Of
North America and the Massachusetts,
Bank and number Of other State banks
OF issue were actually In existence with
notes outstanding, when the Constitution
was adopted, yet il said not one word
about them.
II is no disparagement TO the Journal
OF Commerce that IL should not be learned
in constitutional law. Few persons out
side OF trained lawyers are versed in that;
but we confess TO great surprise at an
economical doctrine which IL announces
I'm the extract quoted above. II Is plain
that the Journal Of Commerce thinks that
money can consist Of paper promises to
pay money. The war decision Of the SUI
preme Court OF the United States has
undoubtedly established that Congress can
make the Governments promises to pay
money legal tender in payment Of debt.
but we never supposed that any one so
intelligent as the editor OF the Journal