The times. [volume] (Richmond, Va.) 1890-1903, 1895-12-10

4
| now?
we reply that the procedure which
produced this result Is the most reyo-
rutionary and injurious In all of our
history.
| The act of Congress attempting TO make
the Governments promise to pay dollar
| q dollar itseIf-whst the Almighty nm
self cannot do, unless lie first changes
the laws Of the uniyerse-and the ridicu-
lous decision OF the Supreme Court OF
! the United States affirming the consti-
tutionality of that law. were a small
! evil indeed compared TO the step py
which the States were deprived OF their
constitutional right TO charter their
banks that might issue the local cur
rency that the people in the neighbor-
hoods of those banks needed for the
| transaction Of their everyday affairs.
That came about in this way
During the famous political discussions
Of the period when General Jackson was
conducting his constitutional war upon
the Bank OF the United States. doctrine
was asserted from time to time that the
Constitution intended to confer upon the
! Government OF the United States super
intending power over all currency issues
! that might be made in any part Of the
Union. There was absolutely nothing
in the Constitution to found such a
doctrine upon, and the entire history and
| literature of the period when the Con-
siitution was framed and adopted mega
lived such an idea, and demonstrated
that the trainers Of the Constitution in
tended 10 sever the United States Gov
ernment from any possible connection
! with the currency or money of the peo-
pie, except 10 coin the precious metals.
| Thotigh this idea was repeatedly an
nomnced by some public men in debates
We find nothing approaching an authori-
tative statement OF 1t until 1887, when
Judge Story, in delivering dissenting
opinion in the Supreme Court OF the
United States. in Briscoe vs.. the Bank OF
Kentucky. announced 1t. Being the opin-
ion Of only one judge, it seems TO have
passed without challenge. Thereupon Con-
gress, in the midst OF the war, when the
Government was seeking to concen-
trate every power for the purposes of
war into its own hands, and 10 Kill Off
the State banks, so as TO induce the ma
tional banks TO buy the Government
bonds. as the basis of currency TO De
issued by them, enacted statute I'M
nosing a tax of 10 per cent. on all the
issues of state banks, which had an
ontion TO become national banks and
issue all the currency they wanted 10
issue without any tax Of any conse-
ouence. This tax suppressed all the
state hanks. and drove them into be-
coming national banks. When the war
was over the constitutionality of the
act imposing this tax on State banks
was called I'm question before the Su-
preme Court of the United States nut
If was a war court, bent on sustaining
all war legislation. and it maintained us
constitutionality upon the ground when
Judge Story had stated, that the Gov
ernment had a experimenting power OF
regulating all currency issues IN the
United States. The Court refers TO no
line or paragraph of the Constitution 10
warrant this conclusion, and none exists.
We undertake TO say that there IS not
in all the history of Jurisprudence such
4 case of 'judge-made law IT Is
garment made out OF the whole cioth'
and I'm order to make it, the Court had
| first TO tear up and destroy the garment
| that was there before, which was the
Garment made for the case by the people
NJ the United States when they adopted
| their Constitution.
II is thus that the natural order OF
things have been changed; it is thus that
the benehcent state banks. founded upon
| the true idea of finance, have been sup
messed And what is the result? The
national banks which the act of Con-
sress provides for, are, in their nature
suited to commercial centres only. They
| exist there only, and the great face OF
| the country has no banking facilities
| The managers of the national hanks i've
at the commercial centres, and they DO
not know the rural population. a farm
| or with a thousand acres Of bluegrass
land grazing five hundred beef cattle
goes to Richmond to borrow money
| from national bank. The managers
tell him they don't know him, and viii
| therefore grant him no accommodations
unless he deposits colaterals, which, OF
| course. ne has not got to deposit. The
result is that banking facilities are prac-
| tically confined 70 the commercial CEN
| tres. and the great mass of the people are
| without any at all. If they had right
TO have their State banks of issue, a
| state bank would spring up wherever
| there was business enough TO sustain
one it would put out its notes for the
accommodation of the people who lived
near to it,; the managers, being local
men. and knowing the resources OF the
| people. would grant every man as much
accommodation as he was entitled TO,
| and il the notes IL issued were at
| discount one hundred miles away, as
happens with the notes Of the English
| local banks, II would be so much the bet
/ ter. because they would come Fastening
back for redemption in coin, and that
would keep the managers OF the bank
| always prodded up TO the necessity OF
having their bank always In good