The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1912-03-10
Kentucky Money Tragedy
S4O0,0O0,0OO Unlawtul Banknotes Did 1t

Ali our paper money, for 123 years,
has been and still Is a bill of credit
not lawful dollar-but a mere prom
Use to pay lawful dollar at some fu-
ture time.
The distinction between a bill of
credit and money is plain-a promise
to pay dollar is not dollar.
The constitution is right. A bill Of
credit is wrong. A bill of credit is
prohibited by the constitution from
being circulated as money. It ought
to be prohibited, nevertheless it still
circulates as money.
The National Monetary commission
asks for law extending this unlaw-
full system Of paper money so years
longer-not for the benefit Of all tho
people-not for the benefit of all the
banks, but for the benefit of one bank
the National Reserve Association.
1t is time for the people to renew
their studies OF money. There Is q
reason why. The country small banks
are sleeping.
The decision in Craig vs. Missouri
a Peters 410) was positively correct.
1t. however, did nothing to enlighten
congress
Evidently the court did not under
stand money. but 1t did understand the
constitution, and that bills of credit"
were abolished, and could not be emit
ted and circulated for money.
They said money is gold and silver
only. The same delusion today re-
duces money to gold only. That is a
fatal delusion that robs taxpayers.
Our inanciers in congress today are
bills Of credit" mad. They are on the
John Law toboggan slide. The report
and proposed bill presented by tho
National Monetary Commission proves
It,
hn,zo o--rztzS ~x-L,% NEs---,,-s S7;z
when congress failed to coin money
and supply the demand for IT and
will now show what Kentucky did.
After the decision in Craig VS.. Mis-
souri,, there was a money crisis. Mis-
souri, had emitted 100000 in certif-
Gates. Kentucky chartered a bank
good for 100000 in bank notes.
The stock Of the bank shall be ex-
clusively the property Of the common
wealth of Kentucky and that no indi-
V1dual shall own any part of it"
That principle is well worth your at
tention. The bank of the common
wealth Of Kentucky was in fact as
well as in name, for the benefit of all
taxpayers In Kentucky.
Unlike the National Reserve Asso-
citation, proposed by the great National
Monetary Commission Of 1912, the
state treasury received the dividends
Of the bank, instead Of the bank re-
ceiving the dividends of the treasury.
The capital was never paid to the
bank but was kept in the treasury Of
Kentucky.
The notes issued by the bank were
in the usual form of bank notes, In
which the bank promised to pay the
bearer on demand the sum specified on
the face Of the note.
They were not money, but promises
TO pay money on dernand-they were
bills of credit, prohibited by the con-
stitution.
John Briscoe borrowed s2,o4s.3T Of
the bank notes and, as Hiram Craig
was not compelled to nay Missouri, he
refused to pay Kentucky.
The cases are Identical except Mis-
souri, issued certificates and Kentucky
organized itself into bank and is
sued bank notes.
The case OF Briscoe VS.. Bank Of
Kentucky I'll Peters ESD decided by
the supreme court of the United
States at its January term. 1887. does
not look well In history. 1t reversed
Craig VS.. Missouri. That will be
brighter as the years roll by.
The bank Of Kentucky sued Briscoe
on his note and his defense was that
the bank was authorized to issue bills
or credit on the faith of the state. IN
violation of the constitution of the
United States. That his note
was given to the bank on a loan OF its
Dill, and that the consideration being
Illegal. his note was void"
The highest court in Kentucky de-
cided that Briscoe must pay and the
supreme court OF the United States
affirmed that decision.
Since 1880 the supreme court Of the
United States had changed. Chief
Justice Marshall died and Roger B.
TQn2v taT fFFz
In 1887 the court consisted OF fancy.
Story, Thompson. Mclean. Baldwin,
Wayne and Barbour Marshall, Du-
vail and johnson had gone out and