Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1838-06-11


n. Treasury Note Bill.---in which the former
a,scompleely foored and n'anaeied. We nov sub
=; and after reading ii. no one will be asionish-
4 that Mr. Calhoun's organ, the II aSF'asto7
Chronicle, alter giving Mr.. CNhonn's remarks n ef-
,so was afraid 10 publishthc overwhelming reply OF
ur Preston There ccfta My was discretion, II not
Justice in lis course
NJ, C,luouS said that his colleague had made
N ob,ection against the constitutlouaIlly Vi 'hs bi
,bicj he deemed il proper TO nuiicc. II Was rule
nth him. where the Constitution is supposed 10 be
,,yoyed to bes:ow his serious consideration before
lie acted, and, If he reasons 10 doubt moi 10 give
his assent. lie had complied with the rule IN inns
case and the result was 4 clear conviction that Tue
ll was constitutional. The rgh had been eAefeis-
I'd from the commencement Of the Government
Without being before questioned; and according 10
bs conception, came within the powers expressly
granted TO Congress 10 borrow money, which meant
neither less than to RAISE supplies on the
rublc credit. Interest Was not essential to Dor
rowing; and would be ridiculous to suppose that
The trainers OF the Constitution ittended 10 authorize
the raising of supplies with interest, aud To plohhll
without it, But we are told that Treasu-
~ notes bills Of credit, aud that the Con-
stitution does not authorize Congress to issue
bills Of credit. He did not deem II necessary to 90
INTO a formal discussion either point. lie denied
that they were bills OF credit, I'D any proper sense
OF those terms. They intended 10 raise sup
Plies TO meet temporary deficit IN the Treasury,
and were, III fact, nothing more than means OF anti
cipating the revenue.
But he would not pursue the argument lie
would bring tito short aud decisive with his
colleague. His colleague is the strenuous advocate
Of the JOINT resolution oil SlG. which authorizes the
collection OF the public dues IN the notes OF specie
paying banks, and has scruples as to the right OF
collecting in the notes Of banks that do pay spe
Gle. Now, no one will deny that TO authorize the
receipt oil bank notes in the payment of the dues OF the
Governments virtually to endorse on each note that
shall be received III the public dues orthat, II the
Government had the right to do the 1t had the
rlght to do the other. Nor will II be denied that II
he Government has the lIght to write on the back
Ola bank note thai 1t will be received in the public
dues, II has an equal right to write the same on a
blank piece of paper, or which Is the same thing, To
make Il Treasury note. The ruth is, that to aulo-
re bank notes TO be received in the public dues IS
neither more nor less than to make them, to that eX-
tent Ile1sury notes, and is, pro taRio, as muclfhc
rahIng and issuing such note rs II done on sepa-
rale piece OF paper. II tie one be unconstitutional,
Tie other is clearly So Now, lie would make this
bargain with his colleague and other advocates 81
the conncXIou with the banks II they viii give up
The use Of the bank paper to the Government, he
would give UP The use Of Treasury notes; aud II
they will deny the constitulionaity oil RECEIVING
bank notes he would not INSIST the constitutional
y OF Treasury notes; and, in doing, he should
make vety good bargain Tor tie country. But lie
utterly unwilling to admit construction, which,
while denied TO the Government the use otIta c.ed
it, would give the muloFoly OF il 10 the banks.
Mr.. PREsroH. ! BEG leave to say word Two
by way Of rejoiuder to my colleagues reph 10
the constitutional objections which urged when
first spoke.
In the first place, lie states that the right to issue
Treasury notes has been rXcrc sed from HE tIuuda-
non Of the Government. So has the right 10 estab-
lnh bank S, has the reit to receive ba.
paper in public dues, the denial Of which righ,
under the Constitution, is the foundation of my col
leagues new theory Of finance.
2dly lie says IL eX res,iv granted in the power
TO borrow mo4ey, under Which tbs is include AID
yet he says that he never WILL IN peace,
borrow nonev, OF III any wise create nation
al debt But the Constitute makes Il distinction
between bills OF credit and borrowing money i1rthc
ISSUING OF the former IS prohibited TO the States.
wIIle 10 one doubts that they may borrow money.
lie says it would be tidicnlous to suppose HAT
the iianers OF the Constitution intended 10 au-
1horIze the lalsng Of supplies with interest, aud
not without II: and yet by Luther Martins report
oi the proceedings of HE Conventions II appears
that that body, after much aud walm discussion. de-
med to Congress the power issue bills Of credit,
and granted the power 10 borrow money for
very obvious ieason-the borrowing of money doe,
not make money; the issuing OF LIlIs OF credit IS
making money, IS creating a eiscu '.tion, VIII ch Is
the avowed object OF this brll. My colleague de
III that these are bills Of credit. Judge Mar
shall defines Il bill OF credit 10 be paper issue on
the faith Of the Government, Intended for clrcula
hoo' NO one can dispute Tue correctness Of tins
definition, or that these Treasury notes are eX-
liesslv within its terms My ooeagu states that
these notes are but means OF antcii. ang Tie rege-
nue. This is the sole purpose OF all bls oil credit OF
all loans, Of all national debts.
But my colleague states with an air Of triumph
that am III favor the resolution Of lolG, which
authorizes the receipt Of bank notes, aud which Is
equal to the endorsement OF such notes by the Go
Mnment, and thinks this is inconsistent with my
news IN regard to Treasury notes. Ii this be So
then my colleague, in obiecting the resolution OF
1916, acts inconsstently with his appreciation OF
these Treasury notes, which, lie SAYS, the
same thing. lis proposition against Inc is, that
should ho these Treasury notes to be constitution
al, because hold the receipt of bank bills under
The resolution of 1916 u be constitutional. Docs
he not perceive that the converse is true that he
ondetnlng the resolution OF 1876. should also &on
Tenn these Treasury notes BESIDES. su. t3at
part CT the resolution Of 1916 Smy colleagues own
proper work, upon the constilutionaty OF which he
no doubt bestowed his serious Consideration before
ae acted. Ii the two things virtually the same,
then have my colleagues authority, by his pre-
sent vote, Tor the constltutionay OF the receiving OF
pank paper lfthey be not the same, then his ar
gument has no bearing.
But there is Mr.. President, most essential DIFF
ference, both in fact and theory BY the resolu-
non oil 1916 the Government does not endorse, ac
'uaIiy OF virtually the notes OF specIe banks 1t re
ce'Ves them Itself, as long note is check for
specie butit does not guaranty them in the hands
Of the holders, if the banks tai. which is the only
conceivable meaning Of endorsement. II there
were either an actual virtual endorsement, TIE
hovernment would at tins moment be liable for all
The bank paper N the United States
he