The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1912-03-10

fancy. Wayne and Barbour had come
| in.
Justice Story dissented IN the Ken
! lucky case and his opinion covers the
bill Of credit" historically and we'll.
The balance of the new court said:
We are Of the opinion that the act
| Incorporating the bank Of the COM
else of power by the state OF Ken
| lucky; and, consequently. that the
notes issued by the bank are not bills
of credit, within the meaning of the
federal constitution. The judgment of
the court Of appeals is therefore at
irmed with interest and costs
Brtscoe had to pay his note do
not grieve over that. If Briscoe's mo-
tive was to cheat Kentucky out Of So.
048.37 and interest he cannot have my
sympathy; but II his motive was to
| destroy a bill of credit and force con-
gress to coin money for the use Of all
the people, to supply every legitimate
demand for money, then I applaud
what he did.
That congress and the courts shall
obey the constitution, the supreme law
OF the land, is OF greater importance
than 100000 or s4Oo.0oo,0oo. or any
other sum Of unlawful money.
The courts reason for their decision
is tragical. They were In a corner and
they plainly sawIt.
They said: This cause Is APP
preached under a full sense OF its
magnitude, important as have been the
great questions brought before thus
tribunal for investigation and decision,
none have exceeded. If they have
eQualed the importance of that which
arises in this case. The amount Of
the property involved In the principle,
is very large, but this amount, how
ever great, could not give the case the
deep interest which Is connected with
its political aspect.
THAT by the constitution, the cur
rency. so far as II is composed OF gold
and silver, is placed under the exclu-
sive control OF congress, is dear; and
1t is contended, from the inhibition on
the states to emit bills of credit, that
the paper medium was intended to be
made subject to the same power.
IF this argument be correct, and the
position that q state cannot do indi-
rectly what 1t is prohibited from doing
directly, be sound one. then it must
follow as a necessary consequence,
that all banks incorporated by state
are unconstitutional
This doctrine Is startling, as it
strikes a fatal blow against the state
banks, which have a capital Of near
S400, 000, 900, and which supply almost
the entire circulating medium of the
country"
The birth Of the bank note. bill Of
credit Of bank, dates from this de-
cision OF the court. They held that
only the government and the states
We're denied the power to emit bills of
credit, and that a bill OF credit or bank
note was not emitted by the state but
by the bank. A positive error. Since
then congress has wiped out the state |
bank note and the supreme court has
sustained congress in so doing.
Wherever congress has made money
or unma de 1t by law, the court has
sustained them. The money crisis Of
1887 was due to the omission of con-
gress TO coin money" and supply the
demand for money. All our money
panics so far is the result OF being
unable to pay specie II demanded.
States and state banks, nor any
bank has any right to be making any
thing to circulate as money, but some
one must do IT. Money is a necessity.
In 1887 what would the people have
done but for the unlawful interference
Of state banks?
The court in 1887 knew that the
power OF congress under the articles /
Of confederation said:
Congress shall have power to Dor
row money or emit bills on the credit
Of the United States"
The court in 1897 knew that under
the constitution ''or emit bills" was
stricken out
The court in 1887 knew that no
state shall coin money or emit bills of
credit"
The. court in 1887 assumes that ac-
tual final money could not be coined
upon paper.
The decision Of the supreme court n
the Briscoe case in 1897 was the
darkest hour Of financial error in the
history Of the nation so far as the
court is concerned.
Congress shall have power to coin
money is still the supreme law Of this