Page:The Green Bag (1889–1914), Volume 16.pdf/574

 The Old and the New Court, The memory of the experience of Conti nental paper money long kept alive a pre judice against a like currency. In the absence of any form of money, barter took its place, such as fur or tobacco. Of land there was abundance, and the traffic was largely in this. As Judge Bates said, of the early days of Missouri, it was almost the only article of export. But this prejudice died with those who personally knew of its ills. Free banking sprang into existence, through legislative enactment. Forty-six separate banks, with a total capital of $8,720.000, were created in 1818. These were soon wrecked and caused the Old Bank of Kentucky, the only solid bank in the State, to suspend specie payment. Then, in 1820, the Legislature annulled these forty-six char ters, leaving the majority of the people of the State as broken financially as the banks. Again the Legislature tried to create relief The wise few were overrun by the ruined many. It is said history repeats itself, but it does so more frequently on financial than on other lines. The Bank of the Common wealth was organized, and its unique and farreaching powers were intended to stem the tide of disaster, and revive prosperity. It had a capital stock of $2,000,000, with power to issue $3,000,000 circulating paper, which was made a legal tender for all debts, but for which the holders could not demand specie payment. Then the directors of the Bank oí Kentucky were removed by legislative enactment, and fiat money men took their place. The good credit of this bank was used to float the bills of the new bank. The result but added to the people's woes, and inaugurated a struggle unparalleled in the history of the States. Nor need criticism too severely condemn what had occurred, and what followed, on financial lines. The State was then isolated and sparsely settled. That the principle of exchange is hard of understanding, by the majority of the people of a State, is shown by

521

universal experience; barter of goods can readily be comprehended, but add to it a designated standard of exchange, and the question is too difficult for ordinary compre hension. The measure of value, assumes, in popular belief, a mysterious agency of more than human power. The value of coin, as represented by a bank note, is a problem not readily comprehended by the people. The Legislature did not declare the bank notes legal tender. But it sought to secure the same results by the duress of delay upon the creditor. The political excitement that followed was intense. The Old Court had its friends, who vehemently applauded its action. Those of opposite views denounced the decisions and the judges in unmeasured terms. The very lawyers who appeared in the cases, thereby became leaders of stormy political parties. The Chief Justice's associates on the bench were Owsley and Mills. Kentucky's ablest lawyers argued the case. On one side was James Haggin, Wm. T. Barry and John Rowan. On the other was Robert Wickliffe and Joseph C. Breckenridge. the latter father of John C. Breckenridge. The political agitation that seethed throughout the State suddenly grew into a revolutionary determination to abolish the old court, and to establish a new court, whose judges would yield to the will of the people as expressed through a newly-to-be-elected Legislature. The Legislature, first, by solemn resolu tion, denounced these decisions as subver sive of the dearest and most invaluable politi cal rights, and asserted in effect that minis terial officers of the State Government should treat them as a nullity. But the preamble to these resolutions was the remarkable part of the proceeding. It covered twenty-six pages. It informed the court that it had transcended its powers. It concluded with the following eloquent appeal to the peonle : "The members of the Legislature, while