State and Federal Bills of Credit, Etc. [pp. 455-485]

482 Bills of Credit. [April,
act of the 4th May, 1841, and examine that consequence in the
light of principle and just law. If we can show that the act leads
to a violation of the Constitution, when fully adWimstered, though
only in one particular, we submit that the argument is concluded.
The two sections mentioned authorize private banking, founded on
the funded debt of the State, or, which is the same thing, on the
stock of the State, or the credit of the State, with the privilege of
exercising the rights of a private person as to Bills of Credit. This
authorization of Government, questioned through the principle of
the constitutional inhibition, in respect to Bills of Credit, may stand
the test. At all events we will not here dispute it, although it is
quite evident that every note issued by this species of Banking Corporation, over and beyond the capacity of the Bank to redeem the
same in gold and silver coin when presented at its counter, comes
within the rules we have given, by which a bill of credit within the
meaning of the Constitution is to be tested. If not redeemable in
gold and silver coin, such notes would rest entirely in the degree of
confidence reposed by the public in the securities of the State for
their current qualities. But we have heretofore treated this point;
we contend now that free Banking (as this species of Banking operation is styled) is a violation of the usury laws of the State, as well
as of that fundamental principle of impartiality and just equality
between citizens, from which the Government of Pennsylvania cannot depart, without prostrating the inherent spirit of the Constitution
and the essential genius of democratic institutions, so beautifully
upheld by the decision of the Supreme Court of the State in the
case of Parker, (6th Barr, 5o~.) It violates directly the very principle proclaimed for it by its advocates, viz -"the extension of
equal privileges to all for banking purposes." So far from sustaining
this position, it encourages and cultivates monopolies of capital in
the hands of a few; and, moreover, enables these favoured few to
reap an exorbitant per centage under the fostering care of Government over all others in the community. It enables the capitalist to
effect a double operation with a single capital. A man with a hundred thousand dollars in his pocket, may legally realize from ~he
loan of that money, secured by any form of contract, 6 per cent. per
annum, but this is all that a loan of his money will enable him to
do under the law. The act of March 2d, 1~23, against usury, and