The times. [volume] (Richmond, Va.) 1890-1903, 1895-06-06
HOW To sECrRE SOUND FINANCES
SEVENTH ARTICLE

II was bad enough when those VINO
made it's laws and administered the gov
eminent Of the United States allowed
the cxigencies OF war 10 make them pull
the government from the sound founda-
ton that 1t had been placed upon to the
extent Of issuing its notes and attempt
ing to make them actual money. Thss
was a total anomaly and an injurious
one. but IL was not so harmful as the
cognate measure with which they &C
companied It. When the war came on
every long-settled and prospecting COM
munity had its local bank. that issued
its notes to the greatest satisfaction and
convenience of the people around IT.
But the rulers of the country during the
war wanted their centralizlng national
bank system 10 prosper, and they want
ed also to make a market for the gov
ernments bonds. They therefore imposed
a tax of ten per cent. on all the issues OF
State banks. They thereby msde the bur
den Of issuing State bank notes too
heavy for any profit TO be In it. and. at
the national banks Very great. They thus
encouraged the State banks to buy the
governments bonds. and to convert them
selves into national banks, TO make those
bonds the basis Of national bank notes
10 be issued by them. The fatal injury
which the war legislation did the coun-
try was at this point. We could have
got along with the theory that green
backs could be made legal-tendor money
for the thing was an absurdity in itself.
and the processes of business would in
time have laid them aside as a useless
anomaly. But the provision for taxing
the issues of State banks was an en-
barge laid upon business. and 1t destroy
ed it at its source and therefore pre-
vented the possibilities Of evolutionary
processes that would throw 1t off by de-
grees. The mortal injury to the business
OF the country was inflicted at this
point. since 1t deprived men of the free
use OF their means and credit, aud con-
fined the inestimable advantages of free
dom in credit to those who happened to
be the favorites OF the managers OF the
national banks II took period OF revo-
luton and war TO lead the popular mind
up to a federation OF such piece of ty-
ranny. and that mind has seemed since
the war TO be gripped in q vice that dis
qualities II to appreciate and understand
the terrible wrong which this legislation
innicts upon 1t.
Those who have attended to the grad
ual unfolding OF our institutions in re-
spect TO this matter that We have made.
are no doubt perplexed 10 know how TINS
thing has ever come TO be tolerated as
part of them. We will give brief ac-
count of Il.
During the famous political discussions
OF the period when General Jackson was
conducting his constitutional war upon
the Bank of the United States. a doc
trine was asserted from time to time
that the Constitution intended to confer
upon the government of the United States
q experimenting power over all currency
issues that might be made in any part
OF the Union. There was absolutely moth
ing IN the Constitution TO found such
doctrine upon. and the entire history
and literature OF the period when the
Constitution was framed and adopted neg
affixed such an idea. and demonstrated
that the trainers OF the Constitution in
tended TO sever the United States govern
ment from any possible connection with
the money or currency OF the people.
except 10 coin the precious metals. ana
determine the ratio at which they should
be respectively rated. Though this icea
was repeatedly announced by some pub
lie men in debate. there seems 70 have
been nothing like an authoritative state
ment Of II until 1851. when Judge Story.
in delivering . dissenting opinion In
Briscos w. Bank Of Kentucky. announced
Il Deins the opinisn Of only one Judge.