Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1839-12-31
DOMESTIC.
MIR. WERSTER'S LETTER.

MR. WERSTER'S LETTER.
The following opinion was communicated by the &C.
LIBERATED Daniel Webster, on the 10th October last to
Messrs Barring, Brothers & Co.. in answer TO inquiries
from that firm the constitutional Legality OF the
American State loans, and the power and liability of the
various States to redeem them We sub join the cores
pondence:
(From London TtneS Of Nor. 2l.J
IoSDoS, Oct ~, 1889.
Sir-Some public prints in THIS country having queS-
toned the constitutional right OF the individual States
Of which the North American Union Is composed 10
contract loans happy TO be able to avail our
selves of your visit to this country refer the point
ION which, we never entertained doubD to you, and
TO ask your legal opinion the suhlect-an oP'nlon
which, we need hardly add, will he conclusive with
ourselves and mos; important Tor all VINO are inuEcSted
in State securities.
We beg therefore, that you will favor with your
written answer at your earliest convenience to the fol-
lowing inquiry:
Has the Legislature of one of the American States
legal and constitutional power to contract loans at home
and abroad:
We have the honor to be, with great respect, SIR,
your obedient servants,
Barring, BROTHERS & co.
The Hon. Daniel Webster, DC.
".Yessrs. Barring, BrothcrsS. Co.
LONDON, Oct 10
"Gen,lemen:-I have received your letter, and lose
no time in giving you my opinion on the question
which YOU have submitted for my consideration. The
assertions and suggestions to which you refer, as hav
ing appeared in OF the public prints, mad not cs
capped my notice.
:.Your first inquiry is "whether the Legislature OF
one the States has legal and constitutional power 10
contract loans at home and abroed:
To this answer that the Legislature Of State has
such power and how any doubt could have arisen on
this point, il is difficult for me TO conceive. Every
State is an independent sovereign, political conmu-
nty except in far certain powers, which might
otherwise have exercised, have been conferred on a
General Government, established IN written Const
Il fhnr,ty
the Sta.es This General Government is limited
Government. Its powers specific and enune.
rated. All powers not conferred upon II, sun
remain with the States and with the people. The
State Legislatures on the other band, possess all usual
and ordinary powers of Government, subject to any
limitations which may be imposed by their own Con.
stitutions and, with the exception, as have SAID, OF
the operation, those powers, of the Constitution OF
the u. s.
The powers conferred on the General Government
cannot of course be exercised by any individual Statc
nor can any State pass any law which isprohbted by
the Constitution of the United States Thus no State
can by itself make war, conclude peace or enter INTO
alliances or treaties with foreign nations. In these
and in other important particulars the powers which
would have otherwise belonged to the State can now
be exercised only by the general government or Co.
vernment the United States. Nor can State pass
q law which is prob bited by its own Constitution
But there is no provision in the Constitution OF the u
s., nor, so far | know or have understood IN any
State Constitution, prohibiting the Leg Stature OF
State from contracting debts making !oans either
at home or abroad Every State has the power levy
ing and collecting taxes direct and indirect OF al! kinds
except that no State impose duties goods and
merchandise imported that power belonging exclusive
" to Congress by the Constitution. That power OF
taxation is exercised by every State abtuay and con-
stanty according to its own discretion, and the exscn
cies of its Government.
.This is the general theory of that mixed system Of
government which prevails in America. And as the
Constitution of the United States contains no prohIbl-
ton restraint State Legislatures IN regard TO max
IN" loans and State constitution so tar as known
10 me- contains anv such prohibition, it clear that in
this respect those Legislatures are left IN the full pos
session of this power, ordinary and usual power
Of Government
al have seen suggestion that State loans must be
regarded as unconstitutional and illegal, nasmuch
the Constitution of the United States has declared
that no State shall emit bills of credit II IS certain
that the Constitution of the United States does contain
this sautary prohibition: but what s,1 bill Of credit
II has no resemblance whatever to bond or other srcu
ri:y given for the payment Of money borrowed. The
term BILL Of Credit is familiar in our political history
and its meaning well ascertaned and settled, not only
by that history, but by judicial interpretations and de-
c,sons fom the highest source For the purpose of
this opinion il may be sufficient say that bills of
dit the subject OF the prohibition in the Constitution of
the United States essentially paper money They
were paper issues intended for circulation and for re.
cept into the treasury as cash, and were sometimes
made tender in payment for debts
ITO put an end at once, and for ever to evils OF this
sort and TO dangers from this source the Constitution
of the u States has declared that "no State shall emit
bills Of credit, nor make any thing but gold or silver
tender in payment Of debts, nor pass any law which
small impair the obligation of contracts All this,
however proves that States cannot contract debts
bu, that when contracted they must pay them IN CON,
according 10 their stpulatons. The several States
poss..s The power ofborowing money for their own in
rfna occasions Of expenditure, as fully as Congress
possesses the power TO borrow in behaifof the United
stses fsr the purpose Of raising armies, equIPpns ma
tss II ssy 30 added, tbs. Congress itself fully re-
seyaa<s Ne sswss u tas ss.as, ~ aas authorized