paper currency. They are not responsible for the existing anomaly that
a Government endowed with the sovereign attribute of coining money and
regulating the value thereof should have no power to prevent others
from driving this coin out of the country and filling up the channels
of circulation with paper which does not represent gold and silver.

It is one of the highest and most responsible duties of Government to
insure to the people a sound circulating medium, the amount of which
ought to be adapted with the utmost possible wisdom and skill to the
wants of internal trade and foreign exchanges. If this be either greatly
above or greatly below the proper standard, the marketable value of
every man's property is increased or diminished in the same proportion,
and injustice to individuals as well as incalculable evils to the
community are the consequence.

Unfortunately, under the construction of the Federal Constitution
which has now prevailed too long to be changed this important and
delicate duty has been dissevered from the coining power and virtually
transferred to more than 1,400 State banks acting independently of each
other and regulating their paper issues almost exclusively by a regard
to the present interest of their stockholders. Exercising the sovereign
power of providing a paper currency instead of coin for the country,
the first duty which these banks owe to the public is to keep in
their vaults a sufficient amount of gold and silver to insure the
convertibility of their notes into coin at all times and under all
circumstances. No bank ought ever to be chartered without such
restrictions on its business as to secure this result. All other
restrictions are comparatively vain. This is the only true touchstone,
the only efficient regulator of a paper currency--the only one which
can guard the public against overissues and bank suspensions. As a