Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-10-24
state Banks.


good policy for Congress so to legis'a'e
as TO mako room for state banks having
the power TO issue circulating notes. ~
one question. and whether Congress mas
the power 10 tax the circulating NOTES
Of state banks out Of existence II
another question. All over the country
these questions are now being considered.
Even in the Northern States-nay, In
Wall street itself-there are financiai
experts who hold that the National Gov
eminent ought To leave the business vi
what they call banking" to the several
States. or 10 the people themselves.
Other persons argue that the State Leg
islatures being without the power 10
make the issues OF State banks legal
tender for debt. they ought not 10 pe en-
trusted with the power to charter banks
OF issue.
Mr. Springer. Of Illinois is. We beieNe'
classed amongst the advocates of honest
money" But see how liberal he Is IN MS
views on the currency question. lie holds
that Congress has power To levy a TAX
upon the circulating notes Of state bahkS'
II Congress has this power. that BODY WI"
be almost certain 10 exercise II. And'
though il is argued with plausibiiity--
nay with ability-that no such power can
under the Federal Constitution. he ex-
. ercised. vet so long az the persons VINO
hold the contrary opinion have the Su-
preme Court OF the United States AZ their
backs. the question of power must he
considered as having at least been passed
upon by that august tribunal. whose de-
clsions until they are reversed, are me
supreme law OF the land. Some of The
ablest constitutional lawyers In Virginia
think that the Supreme Court ought 10
reverse that decision. Major Daniel our
distinguished United States Senator. does
not hesitate to declare whenever or wher-
ever he speaks on the subject that the
present tax on the circulating notes of
State banks ought 10 bn abolished.
A. We have said. however. :he question
Of power is one thing and the question
Of it's exercise - another thing MI.
Springer. Of Illinois. whom we class
amongst me Sound-money Democrats, dis
cnssed some time ago the points we have
mentioned. He needs no introduction to
our readers. He said:
Congress has power Ia provide ma
tional currency. We ale no longer lelt
IN doubt on This subject. The Supr"inc
Court of the United States III TN" celr-
heated cas, of the Neazie Bank ~ Fenno,
l.puri.d in : Wallace, page jiS. has FOR.
eyrr lei AZ rest the power Of Congress
over the currency. The court In that
a., held that Congress has the power
- deal with This subject: and II Con-
.rrsA has'tne power 10 deal with this sub
jet. 1t seems TO me il does not require
armament 10 establish that n currency
emanating from Congress or through au-
,nvTitv Of Congress which would he ac-
:cptable in every part Of the country with
out question, and have the fewest number
possible Of bills IN circulation. so - To
make il easily understood by the people,
would be preferable 10 a variety Of bills
and a complication of systems.
The case 10 which | have referred
arose ont nf The act Of Congress imposing
a tlS % 10 per cent. upon The circulation
O. STATE banks. aud upon all other notes
used for calculations except national-bank
rutee. Tn. coui. held that tax TO be
CONSTITUTIONAL: that Congress not only had
the uower 10 suppress by taxation. OF
otherwise. State-bank notes. bat also the
power to provide II national currency.
In his speech Mr.. Springer quoted
the following extract from the opinion
Of one of the learned judges of the SUI
pI-rne Bench. who said:
TO the same end Congress may ie-
strain by suitable enactments the cllcu-
lation a. money OF any notes not issued
under It's own authority. Without inns
pnw-r indeed. its attempts 10 secure 4
sound and uniform currency FOR the 'ohn-
tgy must be futile
The need for State banks has raised up
all over thu land advocates OF thos" banks
who hold and teach that the State-bank
system is the only one that Will supply
The rural districts with ~ much currency
a. they need. But those advocates nave
"a hard road to travel.