The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1842-01-05
THE EXCHEQUER BILL.


In justification of the emission Of Treasury
notes, even without interest, we have adduced
the authority, and the arguments also OF some
Of those who, il is thought, have formed the in
,ention to stand forth in array against the Elk
cheouer scheme, on the ground that it is Ma
tona Bank--for this one reason--because il au-
,horizes such emissions. We have employed
the arguments of one great name as an accept
able substitute for any reasoning OF our own
TO prove the superiority possessed by Govern
nept issues, both in solidity and uniformity,
over every other species of currency.
The expediency of this currency being adj
mtted, its consltutionality constitutes the only
remaining difficulty. lfTreasury notes bear an
interest, and by that provision are debarred from
mngling in the currency, they are regarded as
mere bonds of debt, and none, we believe, think
them unconstitutional, though direct loan may
be deemed more advisable. Upon what primer
Me Of construction is their unconstitulionality
determined, under the condition Of their bearing
no interest? Since the publication of the Mad
ison papers, whatever might have been the
course of disqusiton pursued before, no acute
ness in the inttrpr, tation Of the context OF the
instrument seems necessary. The question IS
said TO be decided by fact stated in that newly
published work In the Convention which
framed the Constitution, the Committee OF de-
tail reported the draft OF the Constitution, and
among the articles enumeraung the powers OF
Congress, inserted clause, authorizing it to
borrow money, and emit bills on the credit of
the United States" After an interchange of
opinion between many members OF the Conven-
ton, the power to emit bills of credit was srick
On out, and the clause was passed. as it now
stands. On the strength Of the fact that the
Convention refused TO grant TO Congress the
power to emit bills of credit, the conclusion is
derived, as indisputaby correct, that Congress
has no such power.
Is the inference correctly drawn2 To an
swer the question, we must inquire for what
reason the power was withheld from Congress
to issue bills of credit, and what circumstances
influenced The decision Of striking out the por'
ton of the clause reported by the Committee
Because a vote of the Convention struck out a
pregnant form of words from clause, 1t does not
necessarily follow that it was the intention no,
10 convey the power contained in the phrase
We frequently find, in the progress of the busl
ness of Congress in our own day, that sections
Of bills are thrown out by amendment, because
what they purposed to enact is virtually com
pretended in other sections of the same law, OF
in laws antecedeny passed Knowing the fact
only of such section being thrown out, would il
be correct reasoning to infer that it was disap-
proved ? 1t might evidently have been approved
and vet with the greatest proprety have been
eliminated from the law as wholly unnecessary
What daily passes in Congress, might have
happened in the Convention Amid the many
concurring motives, which influenced the mem
bers of that body in giving the vote we have
mentioned above, we know from Mr.. Madison
some were induced by the. belief F." that striking
out the words would not disable the Govern
ment from the use of public notes, as far as they
could be safe and proper" The circumstance:
which created dread of the words bills Of ere
lit,n and preferred to grant by implication the
power of issuing them :" as far as they could be
safe and proper" were such as would naturally
have produced the caution. The country had
lust emerged from a protracted war; the ex-
penses Of which it had been driven by necessity
10 defray bya Government issue not Immediately
redeemable by funds actually on hand, but depen-
| dent on prospective redemption, renderedpossi-
bIe only by ultimate success in the struggle. Ii
had not in view the object merely 10 furnish IA
solid and uniform currency, but was inn
Upeled by its necessities 10 issue its bills not
as representatives Of specie, bit as representa-
tres of credit The exigencies of the times
compelled it, when left without any other
e>ource to increase these issues, until their re-
mndancy naturally destroyed their value. Just
uught BY sad experience, the mschiefs of a
dundant paper currency, such as had, from
tecessity, existed during the Revolutionary
Var, the members of the Convention naturally
beaded that the authority conferred on Con
ygcss to employ paper currency, might lnJurt
he credit of the States under the new Constltu
ton, when the memory Of the enormous paper
sues under the old Confederacy was still fresh
the minds Of all. Their minds, however
Ere impressed evidently with bills the repre-
natives of credit, not with bills the represen-
atves of value And that they did not intend
owithhold the power from Congress OF issuing
Ms of credit, but were Influenced in their vote
The apprehension ofinjurng the credit of the
non in its very inception, is clear from the
'ct that the authority which they would not
'afer in plain direct form of words, they con-