irs of the Government. The Second Bank was, however,
opposed on constitutional grounds, as the First had been; but in 1819 in
the famous case of McCulloch vs. Maryland, the Supreme Court sustained
its constitutionality, Chief-Justice Marshall rendering the decision.
The Court held, in this notable decision, that the Federal Government
was a government of limited powers, and these powers are not to be
transcended; but wherein a power is specifically conferred Congress
might exercise a sovereign and unlimited discretion as to the means
necessary in carrying that power into operation.

The next important chapter in our financial history is the war upon the
Second United States Bank begun and conducted to a finish by President
Jackson. A bill rechartering the Bank was passed by Congress in 1832,
four years before its charter expired. Jackson vetoed this bill, chiefly
on constitutional grounds, in the face of Marshall's decision of 1819.
The political literature of Jackson's two administrations is full of
the Bank controversy, and this literature contains contributions from
Webster, Clay, Calhoun, Benton, and other of the ablest public men of
the day. No subject of public discussion in that day more completely
absorbed the attention of the people.

On these important subjects, which engaged public attention during the
first half-century of our national history, there may be found many
valuable speeches. These, however, are largely of a Constitutional
character. It has been since the opening of our civil war that
our financial discussions have assumed their greatest interest and
importance. We can attempt here only a meagre outline of the financial
history of the last thirty years,--a history which suggests an almost
continuous financial struggle and debate.

Leaving on one side the questions of taxation and banking, the financial
discussion has presented itself under two aspects,--the issue and
redemption of Government paper currency, and the Government policy
toward silver coinage. The issue, the funding, and the payment of
Government bonds have been incidentally connected with these questions.

The first "legal-tender" Act was approved February 25, 1862. Mr. Blaine
says of this Act that it was "the most momentous financial step ever
taken by Congress," and it was a step concerning which there has ever
since been the most pronounced difference of opinion. The Act provided
for the issue of $150,000,000 non-interest-bearin