Portage sentinel. [volume] (Ravenna, Ohio) 1845-1854, 1850-08-19
Il EP 0 RTS
OF THE
MAJORITY AND MINORITY
OF TIE
Standing Committee on Banking and
CURRENCY, TO THE


Standing Committee on Banking and
CURRENCY, TO THE
CONSTITUTIONAL CONVENTION.
Mr.. Larwill, from the standing commit
tee on Banking and Currency, submitted
the following: @ -
The Committee on Banks and the Cur
rency, having smaturely considered the SUI
Ject submitted to them. in all the varied
forms they. have been presented, now report
by majority.
For the last twelve years the subject Of
the consti!utionalty, as well as the policy
Of system of paper money banks, has
been agitated and discussed by the people
of this state, and presented IN almost every
aspect. The majority of the committee
therefore deem it unnecessary to eater into
any detailed discussion of the subject at
this time, and content themselves with sub
mitting to the Convention proposition for
its adoption, with few brief statements of
the main grounds on which it is supported.
The constitutionality of othe paper mon
ey banking system as it now exists in Ohio,
may well be controverted. Gold and silver
coin, the constitutional currency, has been
thrown out of circulation by the paper me-
dium, and to great extent become an ar
ticle Of merchandise, SO that the currency of
this state, as a standard of the exchangea-
bic value of property, is now ruled and con-
trolled by the banking Institutions of the
state.
The constitution of the United States
vests in Congress the exclusive power "to
coin money regulate the value thereof, and
of foreign coin, and fix the standard of
weights and measures" 1t is clear that
this clause was intended to place in the
hands of the National Legislature the ex-
elusive power to regulate the currency of
the country, as the standard of the exchange
able value of property. Yet this power
has been, in effect, wrested from the hands
of Congress By the creation of paper mon
ey banks by the state legislatures.-F Fur
ther, the paper money system would seem
to be in derogation of the true intent and
meaning Of an express prohibitory clause of
the constitution, which provides that mo
State shall coin money, emit bills Of credit,
or make anything but gold and silver a
tender in payment Of debts" 1t was the
evident intent of the trainers of the consti.
tuition to inhibit the exercise Of any control
over the standard of value by the states.
Bank notes are in fact, nothing more nor
less than bills of credit; and it would seem
a gross absurdity TO say that that the states
could delegate to corporations or indivdu-
ale ,,fb he of i,h
had been by express prohibition, taken
from themselves. In other words, how can
a state delegate to others, powers which it
does not possess itself? Moreover, how
can it be said with truth that nothing other
than gold and silver coin has been made a
tender in payment of debts, when gold and
silver is chiefly drained out of circulation.
and in ninety-nine cases out of hundred
in the ordinary business of country, the
creditor is compelled to take bank paper in
satisfaction of his debt, or suffer it to go
unpaid? We are not, however, barely left
to the language of the Constitution for its
correct Interpretation. The debates of the
convention furnishes us with the under
standing and intent of the trainers of the
Constitution. The Madison papers, which
furnish the most authentic publication of
the debates of the Convention, in vol. 8,
page l442, contains the following, which
is conclusive as to the correct construction
of the Constitution: .-s
Article IL being then taken up
Mr.. Wilson and Mr.. Sherman moved to
insert after the words @coin money - the
words, "nor emit bills of credit, nor make
anything but gold and silver coin tender
in payment of debts,'' making those prohi.
bitions absolute instead of making the meas
ure allowable, as in the 18th article, aUith
the consent Of the Legislature Of the U.
4ited States. ..- =.4 $685.. .---.
Mr.. Gorham thought the purpose would
be as well secured by the provision of arti-
Gle thirteen, which makes the consent of
the General Legislature necessary, and that
in that mode no opposition would be excit-
ed; whereas, an absolute prohibition of pa
per money would rouse the most desperate
opposition from its partizans.
Mr.. Sherman thought this a favorable
crisis for crushing paper money. If the
consent Of the legislature could authorize
the emission of it, the friends of paper mon
ey would make every exertion to get into
the legislature in order to license it.
The question being divided on the first
part "nor emit Bills of credit
New Hampshire, Massachusetts,, Con-
necticut, Pennsylvania, Delaware, North
Carolina, South Carolina, Georgia, Ayes.
Virginia, Mol. Maryland, divided. The
remaining part of Messrs. Wilson and
Sherman's motion was agreed to mem con.
The policy of system of paper money
is condemned alike by sound principles Of
political economy. and by the history of pa
per money banking in every country in
which it has been in use; the currency, or
circulating medium of a country is its meas
ure or standard Of exehangeable value OF
property, and therefore should be composed
of an article not too abundant In quantity,
and within itself possessing stability, uni
formity, and intrinsic value. -.
Bank paper is nothing more than the ev-
idence of Indebtedness, and dependent upon
the solvency and good fortune of the max
ers for its safety-possessing no stability
or uniformity, and contracted or expand