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

that IL was partner III the ehet''''' ~
| TO the amount OF one-ffth Of Its capital;
| that three-fourths OF its capital consist
| ed of the Governments bonds, ana that
its notes would be received by the Gov
eminent in payment OF all dues TO IL.
| This was, In effect, creating currency
| based upon the credit of the Nafionai
| Government; IL was an insidious b"t
| total negation of the declared purpose
OF the trainers Of the Constitution 20 era
forever all circulating paper that res'ed
upon Government credit, and IT was the
institution OF currency issuer totally
antagonistic TO the ideas OF the trainers
Of the Constitution, that whatever iap'r
currency we should have should ifst
upon private instead OF upon pubic
credit.
Tho Influence of Hamilton and lis
school put the plan through Congress
against the most formidable opposition
though the opposition seems 10 have az
centred upon the point that ConSicis
was given no power 10 charter a cor
poration. The evil effects upon the
monetary system OF the country that
were TO flow out OF new system or
paper currency resting upon public
credit do not seem to have occurred TO
the opponents Of the plan. The bank
was organized. and operated until the
expiration of lis charter in 1871. Soon
after that the war with Great Britain
produced terrible disaster in our finances,
and its charter was renewed in 1876 10
last until 1886, with a capital nearly
four times as great, but with all the
principa, features of the first bank. Dur
ing the next twenty years II developed
into a prodigious money monopoly that
threatened all peace and order IN the
Government. 1t was attacked by Prcsi-
dent Jackson. who rallied the whole Dem
ocrstic party TO contest with IT in its
effort TO secure a renewal OF its charter
when II should expire. in 1896, and after
one of the most memorable political con-
tests that ever occurred in the history
Of the world, its efforts to secure re-
charter were finally defeated, ana the
Government. in 1887. was at last en-
tuition. under which the only money
known 20 the people was 10 DC coin, ana
they were then to have. AS supplementary
10 il, whatever and as much currency
resting upon private credit, as each State
chose 10 authorize, but which was to De
always redeemable in coin on demand,
and in nothing else.
In its efforts TO secure recharter, this
second Bank of the United States, with
its immense resources. had corrupted
the politics Of the whole Union and
had deliberately contrived and brought
on the terrible panic of 1897. But as soon
as the country was relieved of its bane-
ful influences, and began to have That
sort of freedom which arises from the
real idea of our Constitution, that in
tends to let every individual make as
much use of his credit in his business
transactions as he is able to make, the
country began to grow and expand.
Banks sprang up all Over the land, fur
nishing the people with all the cur
rency. redeemable on demand in coin,
pered and grew from that time until
1860 as no country ever grew before;
there were no very rich men, but pros
perity was diffused amongst all the peo-
pie. and all were well-to-do. and that
may be fairly considered as the halcyon
period OF our national life.
The war came on. The Government
confronted with the necessities of toe
situation, set the Constitution aside, and
resorted to whatever measures seemed
to promise the most effectual resources
for prosecuting the war; the old and
discarded ideas cf paper money and a
paper currency based upon the public
credit were adopted anew. and We have
been ever since struggling along with
system that is founded upon false prin-
ciples. and that must bring u.s. while
We adhere to it, a never-ending sue
| cession Of disasters following upon dis
asters.
The most melancholy feature of the
whole business is the prostitution that
was made of the Supreme Court of the
United States. the guardian OF the Con-
| stitution 10 make these violations OF
| the Constitution effectual When the
war was over. the acts of Congress that
| attempted to make paper promises TO
| pay money actual money itself were
| called in question before the Supreme
Court of the United States. BY a de-
cision of four justices to three, the Court
held that Congress had no power, under
our Constitution, 10 do any such thing.
! Thereupon. the Congress then in exist
ence. which was a most revolutionary
| body, passed an act providing for two
new justices, and President Grant ap-
pointed two new justices, who Were
| known to hold opinions favorable to the
power OF Congress to do this impossible
thing, and the Court, thus packed, over
| ruled its former decision. IL placed It's
! decision upon the ground that Congress
| had the power. expressly conferred upon
1t. to make war, and a power to put out
| paper money must be held TO be a power
| necessary TO making war effectually
| But some of the notes issued by the
| Government after the war was ended
were again brought before the Court
and determined TO maintain the uncon-
| stitutional act, but cut of from the war