Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1815-12-23

which they arc now entitled by Law to re-
ceivc that is to say 1st. To the 4yment
OF the interest on the public funded debt;
2d, To the reimbursement of the principal,
from time to time, as the same, or any por-
tion of it. shall become rcimbursable, ac-
cordlng to the terms of the contracts by
which it has been created; SILLY, After
having answered these purposes, if there
shall remain surplus at their disposal, to
the purchase OF such parts of the tIuded
public debt rs shall appear to them Co be
most for the advantage OF the United States
IN the manner prescribed BY law and at 4
| rate not exceeding the par value.
3dly. Propositions relating 10 the National
Circulating Medium.
The 6e!icacy of this subject is only
qualled by its Importance. In presenting
1t, therefore, to the consideration OF Con-
gress, there is occasion for an implicit
reliance upon the legislative indulgence.
By the constitution of the United States,
Congress is expressly vested with the pow
er to coin money, to regulate the value of
the domestic and foreign coins in circula-
ton, and Gas necessary implication from
positive provisions) to emit bills Of credit
while it is declared by the same instrument,
that g no state shall COIN money, or emit
bills of credit" Under this constitutional
<
has been established by law, consisting of
coins made with gold, silver and copper
All foreign gold and silver coins. at spcc-
fed rates, were placed, in the first instance
upon the Same footing with the CONS etthe
United States, but they ceased, (with the
exception of Spanish milIed dol ars, and
parts of such dollars,) to be a legal tender
for the payment of debts and demands in
the year 1869.
The constitutional authority to emit bills
OF credit, has also been exercised in qua
lIhed and limited manner. During the
existence Of the bank of the United States,
the bills or notes of the corporation, were
declared, by law, to be receivable in al!
payments to the United States and the
treasury notes which have been since is
sued for the services of the late war, have
been endowed with the same quality. But
Congress has never recognized by law the
notes ofany other corporation nor has it
ever authorized an issue OF bills of credit to
serve as a legal currency. The acceptance
Of the notes of banks which are not cstab-
lished by the federal authority, in payments
to the United States, has been properly left
to the vigilance and discretion of the exec
utive department while the circulation of
the treasury NOES employed either to bor-
row money or to discharge debts, depends
entirely, las it ought to depend) upon the
option of the lenders and creditors to re-
Ceive them.
The constitutional and legal foundation
of the money system of the United
States is thus distinctly seen and the
power of the federal government to insti-
tute and regulate it, whether the circula-
ting medium consists of coin or of bills of
credit, must, in its general policy, as we'll
as the terms of its investment, be deemed
an exclusive power. 1t is true, that sys-
tenn pending upon the agency of the PIE
cious metals, will be affected by the vari-
Gus circumstances which diminish their
quantity or detcriorate their quality. The
coin OF q state sometimes vanishes under
the influence of political alarms some
times in consequence of the explosion OF
mercantile Speculations, and sometimes by
the drain of an Hnfavorable course of trad.
But whenever the emergency occurs that
demands change ofsystem, it seems ne
cesSarily to follow, that the authority which
was alone competent to establish the natl
onal coin, is alone competent to create a
national substitute. 1t has happened,
however, that the Coin of the y. States hiss
ceased to be the circulating medium of
exchange and that no substitute has NTH
erto been provided by the national authori-
ty. During the last year, the principal
banks established south and west of New
England, resolved that they would no Ion
ger issue coin in payment of their notes, or
OF the drafts Of their customers, for money
received upon deposit. In this act, the
government Of the United States had no
participation and yet the Immediate eff
feet OF the act was to supercede the only
legal currency of the nation. BY this act,
although no state can constituionaiiy emfit
bills of credit, corporal erected by the
several states, have been enabled to clrcn-
late paper medium, subject 10 many Of
the practical Inconvenience of the prohib-
it'd bills Of credit.
1t is not intended, upon this OCCASION, to
condemn, generally, the suspension OF sp--
Gle payments for appearances indicated
an approaching crisis which would proba-
bly, have impos, d it as a measure of neces-
slty il It had not been adopted as mea-
sure Of precautIon. But the danger which
originally induced and perhaps justified the
conduct OF the banks, has passed away
and tic continuance Of the suspension of
specie payments must be ascribed to a new
series OF c"uscs. The public credit and
resources ere no longer impaired by the
doubts and agtations excited during the
war---by the practices of the enemy ; or
by the inroads OF an Illicit commerce yet
the resumption of specie payments is still
prevented, either BY the reduced state of
the national stock ofthe precious meta'c-
or by the apprehension Of further retuc-