Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1857-12-02
rHz cozsrrrUr1oxAL1rY OF HONEY.

THE C0EsTTTUTI9EALTTY FPAPER MONEY.
As fer as We have yet observed, the srgu-
melts. pro and con, relative to our banking
system, have had mere references to the policy
Ct that system, saying little or nothing with
regard 70 its CoastituLionaliy. Whether the
Sa-ssshavs a right, under the Constitution,
either to Issue OF authorize the issue OF what
are called bank notes, or bank bills, is a ques-
tion not set settled to the satisfaction Of the
public miad. There are a few facts that bear
upon this subject worthy Of consideration.
One Of ihsmis, that the trainers Of the Con-
sHtu1Un, in denying the States the right OF
power to coin money and regulate Is value,
intended thereby to establish a uniform eurren-
cy, which should be OF equal value in al poT-
tons Of the United States This could not be
effected merely by prohibiting the States from
coming money, for many Of them, under tie
old Co1fsisracy, had issued bills Of credit, OF
promises to pay, which were Of unequal value.
To cure this evil, the trainers Of the new Con-
sitution, IN addition to the prohibition to coin
money, incorporated another prohibition, to
the effect, OF in the words, that the States shau
nos emit bills Of crsdit.i' Are nos bank notes
bills Of credit? aud might not 2 State as well
coin money from gold and silver, as to print
pictures on paper and circulate such stud as
money! These are the questions on the Con-
stitational side Of the question.
We have before US a speech Of Hon. W. S.
GRoEsBEcK, Of Cincinnati, delivered before the
Constitutional Convention Of Ohio, in 1851,
which is lucid on this point. lie says:
This question fairly came up before The Court
and Jet ne say, thstI DO not intend to 90 into
your co1atTy courts, nor even into your Su-
prene Court Of the Ssate-but / intend to
walk straight up to this great and terrible Court
d the United States. which holds its sistings,
Is We have been often told, in accents Of hOr-
Tor, in one wing Of wha. is called the National
Capitol.
am there, and / now csll your attention TO
The first case, which brought the question be
fore them for consideration. Tie claim We
make IS, that this paper money system VIC
lstes that provision Of the Constitution, which
declares that no State shall emit bills Of
credit"
In 1921 the State Of Missouri undertook to
emit a certain class Of certificates, to eircu-
late as money. twill read a part Of the third
section Of the law under which they were is-
sued
SEC. 3. Bel farther enacted, That the Au-
ditor OF public accounts and Treasurer, under
the direction q the Governors shall, and they
are hereby required to Issue certificates. signed
hv the said auditor and treasurer 20 III amount
~ two hundred thousand dollars, Of denomi-
ra,ions not exceeding ten dollars, nor less than
ff-v cents: 20 bsar such devices as they may
deem most s sFe, 10 the following FORM &c
The law goes on to provide a way by which
fhs circulation Of these certificates shall be
promotes. and their ultimate payment secured
IN the law under which they were issued, they
were called ertifcatss-aud iEwnl be observed
that hey we're issued By the State Of Missouri,
acting through certain agents o. officers
In this case, sad upon this Issue, cor the FIRST
time. IbsHeve, the Supreme CoHtofth the Unised
states undertook TO put a construction upon the
constitutional prohibition, that "No State shsl
ts-us hills Of credit" Inow give yOuthe opia-
90, Of The Court, and 1 ask the attention of the
Convention to l.. becazss It throws great light
maj, The true construction Of this CONSTITUTIONAL
rbrass And whose opinion is il, sir? It is the
o.irion Of the majority Of the Court, delivered
bv Chief Justice Marshall himself. AID
wbat soss be say? The clause Of the Consti-
.rsi,n uhieh was said to have been violated
is in these words:
g No STATE shah emit bills Of credit"
wbat ia % bin Of credit 2s What did the
c-o,sstu+iop mean to forbd2 This is the great
inquiry we have to make, in dis discussion.
read from the decision:
. In its enlarged an3, psrhsps, its liberal
sense. he term bill of credit Enay comprehend
- Instrument By which a State e0gsges 70
nav money az 2 future day, thgs iheiu ing a
rer5fc,fe for money borrowed But the Ian
o,,ge al ne Cons tuition itself, and the mis-
Chief to BE- prevented, which We know fron the
h,sforv Of the country, equally hnlt The inter-
r-stseirn Of he terms. Tue word emit is
peve- emnloved il describing those contracts
bv uhirh 4 state binds itself 20 pay money al A
fgture dav for services actually received CT tor
money borrowed Tor present use; nor are IN
ssrnnentq executed for such purposes, N com
mon language, dsmominatea bills 4 credit,
10 8 emit bills Of credit' conveys TO the mind
the idea Of issuing paper Intended 20 circulate
through The commonly FOR its ordinary pur-
noses-a money. which paper IL redeemabie At
! future day. This is the sense IN which the
terms have always been understood.
8 ATT very early period II our eoianiai his
torv. BE attempt to supply the want Of the
pre-ious metals by 2 paper medium vas made
70 = considerable exlen.; and the bills emitted
for this purpose have been uequeatiy Gsnoini-
led hills Of credit. Daring the war OF the
Reyoietion we were driven to this expefient.
and necessity compelled rs e use = 80 a most
fsarfai extent The term hss acquired an p
proDriste meaning and bile OF ereait' sig-
ss.;.r ! naoer medium. Intended to circulate
bef,Veea Individuals and between governments
~ jadividuals. for the ordinary purposes OF
so~,ety. Snch a medium has been always Ia
bic 70 considerable haetasiion- IS =
1a-+fn.sfIv cbangiag: aai these changes, often
sTsa and sudden, expose individuals to I'M
5nesse loss. are the sources Of ruinens speeuia-
ion. and destroy ali confidence between nan
and man. To cut up this miseDiea y a.
. mischief which vas fet ul0us