The banks, the states and the federal governament

The assertion is frequently made that the federal governament has no constitutional right to interface with state banks and end the present rivalry of jurisdictions by assuming exclusive control of all banking. Contrary to this assertion, the terms of the Constitution require such an assumption; for exclusive control of the monetary functions has been bestwed upon Congress and banking is a monetary funtion. Before the Civil War, when note issue abuses by the state banks frustrated federal control of the monetary system and made a chaos of the currency, it was commonly held by authorities that state banks were unconstitutional. The same practical, economic, and constituional considerations that were involved in the question of state and federal banking control at that time, when bank liabilities were represented chiefly by circulating notes, are involved now when bank liabilities are represented chiefly by demand depositis.