The times. [volume] (Richmond, Va.) 1890-1903, 1900-11-15
THURSDAY. NOVEMBER Is. 1900.
A Gf.Niai.af. HUF A Psli;NICIoU!
ERROR.

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The Washington Post, in Al editorial
article Tuesday last, commented upon
letter OF Mr.. z. L. Godkin to the New
York Herald, which dsait with the causes
Of Democratic defeat. and in the course Of
lis comments the Post said: Since the
Constitution places the creation and resu-
iatioa of the currency enti-sly in ,he
hands of Congress. &c" This sentence
contains an error, which occupies the
minds Of about ninety-nine citizens II
every hundred. yet II Is one Of the srosssst
Of all possible errors, and has been the
source Of incalculahle injury TO the poo
pie Of this country
we would ike for the Post, or any one
disc, 10 quote a provision of the Constitu-
saon that places Athe creation and resula-
ion of the currency entirely in the hands
of Congress. The oaiy provision OF the
Constitution relating to the subject is the
one that provides that Congress shall
have power to coin money and regulate
the value thereof But this is not an au-
thurity 70 create and regulate the cur
reacy. It is power 10 coin money out Of
q vast mass OF paper currency that Is not
coined money, aad Congress is given 10
power whatever n connection with that
currency.
The psrnicious confusing Of these two
p,oposTIions has caused all the Ills that
the people have suffered since thu Civil
War Because Congress Is given power to
IS given power to control all the! paper
Issues of the country Intended 20 be used
as currency, when no si5gle word justify
ing this assumption can be found IN the
Constitution. and ths history OF the coun-
sTy for The first seventy years Of the ex-
;stence OF the Constitution demonstrates
that 1: WIS never in.ended tina: Congress
should have any such power.
The theory started With speech made
y the United States Senate by DAME!
Webster, e 1885, when he argued that the
language of the Constitution that ne have
quoted intends that the money coined
should be currency. as II was 70 be coin
and nc; bullion Only. and was therefore TO
JESS by tale, and that as Congress was
given power 10 create currency. 1t must
ne an entirely effective currency, and,
therefore 1t must be assumed to have
power 10 suppress the issues of the State
banks That might fill UP eli the channels
o: circulation and crowd the Governments
currency out Of circulation This theor1
csme 10 be very generally adopted, be-
cause ii had the sanction of Mr.. Wep-
sser's great name
But II was in direct contradiction of
opinions that Mr.. Webster had previously
given Etiersnce to. 1t was adopted by
a.m under the stress of political pressure.
when the recharter Of the United States
Bank WAS The political issue Of the day.
and It's cornerstone is a palpable faliacy.
Ar. Wooster said in a speech In 1916: The
only power which the General Government
has OF restraining the issues OF the STATE
banks IS to refuse their Eotes in the re-
csipts OF the Treasury" Sd Webster's
Works, o. His argument of 1888 PROCEEDS
upon iae ldss TIA, the notes OF State banks
couid crowd our o: circulation tbs nonsy
coiaed by lie Government. Bu. the Gov
-srerneat's coia is money, and legal tender
money. while tbs notes OF State banks car
10. &c ncade legal tender. Nov a dsnre-
-oia.ea currency taat Is legal tenae. wt,l
Certainty crowd out of circulation bet
ss-esrreney That Is also legal tender. be-
cause The debtor H..ii cer;aiaiy pay in the
cheapest money. But deprecated cur
1ency 1aaf is not legal tender can never
crowd out OF circulation q better currency
thas Is legal tender. because the cressi.or
via always csi for the bsst money he
has z.isai to demand. ana win take moth.
5 ing else Mr. webeter.s theory Womb
never. Therefore. have borne exsu,ina ton.
S LIT, no one Was interested 10 examine It.
ana II got general acceptance because
ii was prppounded BY Mr.. n ehsier.
The truth is all parties conceded, up 70
the time OF the Har. that he Gorcsamen,
had no control VIVA e per over the currency
assed By the people. except to coin the pre-.
nioss r.esais ara pa: oss ITS own ,so,es
hat vsre not legal sends. The spe.eei