Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1839-12-25


Sir Your obedent serv Ant
The Hon. Daniel Webster, &c.
"MEssRs. BAsINc BRorHrRs & Co
LONDON Oct. Is.
Gentlemea have received yonr letter. and lose time in
giving opinion the question which have submit
ted for consideration The assertions and suggestions to
which REFER having appeared in some Of the public
prints had not escaped my notice
Your first inquiry whether the legislature Of one Of the
states has and constitutional power to contract loans
at home and abroadY
To this answer that the legislature Of has such
powe and how sny doubt could have arisen on this pon it
difficult for me 10 conceive.
Every state is Independent sovereign political commune
ty except in far certain powers which it might other
wise have exercised have been conferred general
ment established under written constitutions and exerng
its authority the people Of all the states This general
limited government Its powers specific
and enumerated All power, not conferred upon 4 stu re-
lures, the other hand all visual and ordinary
ofgoverument subject to any Limitations which may be i'm
posed by their constitutions and with the exception
have said ofthe OPERATION these powers Of the constitution
Of the United States The powers conferred the general
state; can any state pass any law which by
the constitution Of the United States Thus state by
itself make conclude peace enter into alliances
treaties with foreign nations In these in other important
particulars the which would have otherwise belonged
to the stae be exercised only by the general
ment OF the United States Nor state
pass law which 10 prohibited by ITS constitution. But
there provision the constitution Of the United States
nor 50 far know or have understood in any state const
debts or making oan either at home abroad Every state
the Of evyng and collecting taxes direct or ndi
goods and merchandise imported that power belonging excu
svey to Congress BY the constitution That Of axaoa
exercised by every state habuay and constantly
csrdng its discretion and the exgences OF its govern
meat
This is the general theory OF that mixed system Of govern
ment which prevails in America And the constitution Of
the United States contains prohibition restraint state
legislatures in regard to max loans and c0n
tuition 90 far a. Known to contains any such
in
fI possession Of this power as an ordinary and usual power
and illegal Dasmuch the constitution Of
the United States has declared that state shall emit bills Of
does contain this 'autay prohibitions but what j. bill Of
creda It has resemblance whatever 10 bond The term
Bill Of Credit familiar in our political history and its
but by judicial interpretations and decisions from the highest
source For the purpose Of this opinion it may be sufficient
say that bills Of credit the subject Of the prohibition in the
constitution Of the United States, essentially paper
ney They paper issues circulation
receipt into the Treasury cash. and were sometimes made
tender in payment Of debts.
To pat end at and forever 10 evils c this Sort and
to dangers from this the constitution Of the United
States has declared that estate shall emit bills Of credit
make thing but gold and silver tender in payment Of
debts any law which shall impair the obligation Of
tract debts but that when contracted they pay them
cois according their spuatons The several states pos
cs.;on' Of - ~ :. Sourr. hs
to borrow in behalf OF the United the purpose Of
raising armies eq1ppng nase or performing any other Of
seffully recognizes this power the states ha author
sed the investment of large nds which held in trust for
important purposes certificates of state stocks.
The security for state loans the pghted faith Of the state
as political community. 1t rests the basis 9th
contracts with established governmens-the same basis for
example, United States under the author
y Of Congress that 10 the good faith the
making the loan. and its ability to fulfil its
These state loans known lave been csnced princi
pay for the purpose OF making rail roads canals and
some although know not how generally the income
L..
and pledged for The payment othe interest and the
redemption Of the debt. in addition 10 ths obligation of
been specifically pledged and others valuable tracts Of land
Il cannot be doubted that the general results Of hee works Of
internal improvement has BEEN and will be- to enhance the
wealth anu ability Of the states. 'EA# -.fN
has been said that tbs states be sued these bonds
the Of EsGisna in like Nor would the power
Of suing probably give the creditor any substantial additional
security The solemn obligation Of government, arising
its acknowledged bond would be enhanced by judg
rendered such bond. II il either could would
not make provision for paying the bond not probable that
could, or would make provision for satisfying the judg
msnt.
The states rid themselves Of their obligations other
NO law hs osss,;sn Of bsr
make nothing tender In discharge OF such contracts
gold snd silver They possessed all adequate power Of pro-
vdng for the b. taxes and internal Of
They cannot get round their duty evade its force Any
failure TO fulfil il, undertakings would be opinion violation
penalty may be presumsd which no state Of The
American Union would be likely to incur.
hope may be Justified by existing circumstances to close
this letter with the expression Of opinion Of general
nature Il that believe the citssns United States
lte all honest men, regard debts whether public private
and whether existing at home abroad to be Of moral we'll
legal obligations aud trust appeal to their history,
from the when those their among
the nations Of the earth 10 the time for proof that this
beliefs well fosnded and IL IL possible that any of the
states should any time entirely lose her
forget her duty violate the faith soemny pledged Cor
pecuniary engagements. believe there Is country upon
e.rt-not that Of the creditor which such
proceeding would meet with less indulgence
than IL would receive from the great Of the American
people.
1have the honor 10 be, gentlemen,
Your obedent servant.
DANIEL WEBSTER