Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1858-09-09

haG done this in the late suspension
of specie payments throughout this
country, instead of reading in the
newspapers that Tennessee paper
was twenty-five per cent. discount,
and Mississippi paper, fifty, sixty,
one hundred, or five hundred per
cent, and the paper Of another State,
ten per cent, we should have said,
in Tennessee. that it required one
hundred and twenty-five cents TO
make dollar; in Mississippi one, two,
three, four, or five hundred cents to
make a dollar, according to the paper
they issued. In another State, where
the paper was deprecated only ten
per cent, We should have said it re-
Iquired one hundred aud ten cents TO
make dollar; whilst, at the same
time, the only dollar known to this
Government was of uniform value
from one end Of the UnioD to The
other--that is to Say, one hundred
cents.
| know that this argument is
sometimes met by the declaration
that bank notes are not bills Of cred
lit, aid that therefore they do not
come within the prohibition Of the
Constitution of the United States.
Now, there is one position in which
believe all men concur; that is, that
no State in this Union can issue pa
per intended to circulate through the
community or to perform the func-
tons Of money. This would be a
direct violation Of the provisions of
the Constitution. But to get over
this difficulty, it is said that the
State Legislature, though i. cannot
itself, in its own sovereign capacity,
Issue this paper, yet that it can in
corporate company, and invest that
company with a power which it does
not itself possess and cannot exer-
else. To my mind. such a doctrine
is absurd. 1t is absurd to suppose,
for a moment, tina. a State can dele
gate to a creation Of its own, pow
er which it does not itself possess
Upon that point, however, ! have q
few authorities, which | desire to
read Here is one Of Chief Justice
Marshsll-a man who stood pre-smi-
nent for his legal attainment--a
man who, if / am not mistaken, is
regarded by the opponents Of this
bill as being the true exponent Of
the Constitution. Hear what be
says: ~
"What is bill Of credit? What
did the Constitution mean to forbid?
Ini.s enlarged, and perhaps its liter
4 al sense, the term bill of credit
may comprehend any instrument
by which State engages to pay
money at future day, thus including
a; certificate for money borrowed.
But the Language Of the cConstitu-
ton itself, and the mischief TO be
prevented, which We know from the
history of our country, equally lin
it the Interpretation of the terms,
The word emit is never employed
in describing those contracts by
which a State binds itself to pay
money at a future day for services
actually received, or for money
borrowed for present use; nor are
} instruments executed for such purpo-
ses, in common language, denomina-
ted bills of credit To emit bills
} of credit conveys to the mind the
idea of issuing paper intended to
+ circulate through the community for
its ordinary purposes as money,
which paper is redeemable at future
day.. This is the sense in which the
terms have been always understood
DAT veiy early period in our
colonial history, the attempt to sup.
ply the want Of the precious metals
by paper medium was made to a
considerable extent; and the bills
emitted for the purpose have been
frequently denominated bills Of credit
During the war Of our Revolution
we were driven to this expedient
+ and necessity compelled US to use il
to most fearful extent. The term
has acquired en- appropriate meaning;
and bills of credit signify a pape,
: medium, intended to circulate be.
, tween individuals, and between Gov.
, lernnient end individuals, for the or.
. binary p1rroses of soctotv Sunh q