The Kalida venture. [volume] (Kalida, Ohio) 1841-1865, 1845-03-07

Vornment, ana OF tnOSo pTOnlDlteu 10 Tic
States. The powers inhibited to the States,
are enumerated in the tenth section of the
first article of the constitutior, and are in
these words:
"No State shall enter into any treaty,
alliance or confederation; grant letters of
marque and reprisal; coin money; emit bills
of credit; make anything but gold and sill
yer coin tender in payment of debts; pass
any bill of attander, ex post facto law, or
law impairing the obligation of contracts, or
grant any titles of nobility"
None of the several things in this section
named can be done by the States, without
violation of the constitution, and if done
would be null and void. A state cannot
4" emit bills of credit" If the paper you
propose to issue through your banks are bills
Of credit, you have no right to emit them,
and the acts will be void and of no binding
force. The question then is, what is a bill
of credit? Upon the settlement of that
question rests the constitutional power of
the States to charter banks of issue. AS
am young man, the majority would look
uponit as presumption in me to attempt to
define this term, and as have higher autho-
rty, prefer giving it This question has
been, settled by the highest judicial tribunal
in our government, by the Supreme Court
of the United States, in the case of Craig
and others against the State Of Missouri, and
will be found in the 4th voluue of Peters,
Reports pages 4Sl and 432. In delivering
the opinion of the court in that case, Chief
Justice MARSHALL covers the whole ground,
and prefer letting him speak. He says:
"The clause in the constitution which this
act is supposed 10 violate is in these words {:
'no State shalp emit bills of credit"
"WHAT is NLL OF CREDIT? What did
the constitution mean to forbid?
"In its enlarged, and perhaps literal sense,
the term 'bil of credit may comprehend
any instrument by which a State engages to
pay money at future day; thus including a
certificate given for money borrowed. But
the language of the constitution ITSELF and
the mischief to be prevented, which we
know from the history of our country, equal
ly limit the Interpretation of the terms. The
word {" emit,' is never employed in desert
bing those contracts by which State binds
herself 10 pay money at future day, for SER
vices actually received, or for money borrow
ed for present use; nor are instruments eX-
ecuted for such purposes in common Ian
guage denominated "blls of credit" TO
/" emit bills of credit" conveys to the mind
the idea of issuing paper intended to circu-
late through the community for its ordinary
purposes as money, which paper is redeema-
BILE at future day. This is the sense in
which the terms have been always under
stood.
At very early period of our colonial
history, the attempt to supply the wants Of
the precious metals, by a paper medium,
was made 10 considerable extent; and the
bills emitted for this purpose, have been
frequently denominated bills of credit
During the war Of our Revolution, we were
driven to this expedient, and necessity COM
PEELED us to use it TO a most fearful extent
The term has acquired an appropriate mean,
ing, and bills of credit" signify a paper
medium, intended to circulate between in
dividuals, and between government and indi-
viduals, for the ordinary purposes Of society
Such medium has been always liable to
considerable fuctuation. It's value is con-
tnually changing; and these changes, often
great and sudden, expose individuals to i'm
mense loss, are the sources of ruinous spe-
culations, and destroy all confidence between
man and man. TO cut up this mischief by
the roots, mischief which was felt through
the United States, and which deeply affected
the interest and property of all, the people
declared in their constitution, that no State
should ' emit bills of credit" If the prohi-
bition means anything, if the words are not
empty sounds, it must comprehend the ennis
sion of any paper medium, by State GO
vernment, for the purpose of common circu-
Iation."
| This decision meets the question fairly
and fully. 1t says the term bills of fcredH''
"has acquired an appropriate meaning" and
that they " signify A PAPER MEDIUM intended
to circulate between individuals, and between
government and individuals for the ordinary
purposes of society" The true cause of
that provision being inserted in the constitu-
ton is given, viz: the issuing of such bills
during the " early period of our colonial his
tory" and during our war of the revolu-
tion''-that their "value is continually
changing; and these changes, often great
and sudden, expose individuals to immense
loss, are the sources of ruinous speculation
and destroy all confidence between man and
man." and that " TO CUT UP THIS MIS-
CHIEF BY THE ROOTS" I" the people
declared in their constitution, that no State
should emit bills of credit"-that I" if the
prohibition means any thing, if the words
are not empty sounds, it must comprehend
the emission Of ANY PAPER MEDIUM by a
State Government, for the purpose Of common
circulation" You have not the werundar
the constitution as expounded by the high
est judicial tribunal in our government, to
issue and nut In circulation any naner me.