Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1863-01-24
Are Legal rsads.. Note. st tco,na.,..a.ional! on

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The Consultation provides Cat l. sec1 x)
that no State shall coin money, emit bills Of
credit, or mako anything but gold and silver
coin tender ir payment OF debts, or pass any
Law impAiring the obligation of contracts.
In his defense Of the foregoing provisions Of
the Consultation before the adoption Of that
instrument, Mr.. MADISON says, In the 4ith
number Of the Federalist, that the loss which
Americans had sustained since the peace, from
the pestllent Effects Of paper money on the nee.
essary confidence between man and man; on
the necessary confidence In public councils; on
the industry and morale OF the people, and on
the character Of Republican government, con- |
stituted an enormous deb. against the States,
caargeable With this unsdyissd measure [the
issue Of paper money J. which must remain long
unsatis6ed; or rather an accumulation Of guilt,
which could not otherwise be expiated than BY
avoluntary sacrifice on the altar Of justice, oi
the power which had been the instrument Of il.
Mr.. MADISON adds that the power to make any
thing but gold and silver coin tender in pay
ment Of debts was Withdrawn from the States,
on the same principle With that Of issuing
paper currency. s.,
Judge SroHY in his Commentaries on the
Constitution (vol. III, page 225) says that ",he
history of paper money, without any adequate
funds to redeem 1t, and resting merely on the
pledge of the national faith, has been In all
ages aud In all nations the same Il has COZ
stsntly become more and more deprecated,
and In some instances has ceased from this cause
to have any circulation whstever, whether is
eued BY the Irresistible edct Of despot, or BY
the more ailuripg order Of Republican Con-
gress."
Ii, theG, saya correspondent of the Journal
Of Commences, the evils attendant upon the issue
Of paper money BY the States are equally ap
plioabls, V the; paper issuss Of the Union, the
question arises: Has Congress the power to is-
sue paper money and make 70 legal tender in
the payment cf debts.
This must be denied; this power is not among
the powers enumerated In The Constitution
Art. !, Sec. VIII, gives Congress power to coin
money and toregulate The vslus thereof; but IL
any one should pretend that the power to coin
money Implied the power 70 issue bills Of credit
(paper money! and 10 make them legal ten
der In The payment Of debt, this would be the
very coinage Of ,his brain. The power to coin
money reieFs ioa metallic currency only |: 70 paes
alaw declaring that contracts might be dis.
charged by the tender of any thing or things,
besidea gold and silver, would impair the obli-
cations OF contracts and would annihilste the
whole prohibition Of the Constitution upon the
snolecs OF tender laws. (Story, v. III, p. 249.)
This Was therefore expressly prohibited 10 the
States. IL was not necessary to prohibit n 10
Congress, because Congress has no power 10
interfere with contracts, except where Il is ex-
pressly given to IL. 5Congfess ID expressly In
vested with this power in regard to bankrupt
cieas sand In no other form can if impair the OBJ
legation Of o contract. 'asi,l ~ ~ y, q - ~
That this 10 che right construction of the
Consultation, 10 confirmed BY an examinatIon
Of the history Of that instrumert. From The
debates IN the Federal Convention (Suppl. 70
Eiliots Debates, vol. ", p. 5le) it appears that
the dEait Of the Consultation theh before the
Convention (Att. vii, SEQ, y gave Congress
power % borrow money adad emit bills on tke
ereda Of t.e Unitsd States. g When this proyis-
ion was discussed on the 18th AuRu5t, l7S7, ,
(EllioslocI eit; ,. 4S4), MI, Gouverneur Nor
ris moved 20 stTikeo out:
"And emit bills on the credit of the United
States"
After debate, the, question was decided BY
vote Of the States, ss all questions we're in
the Convention, ss follows: "a '''' i'''''
On the motion for striking out-Nsw Hamp-
shire, Massachusetts, Connections, Pennsyi-
vania, Delaware, Virginia, North Carolina.
South Carolina, Geosgia--syes, 8; New Jer.
sey, Msryland--nays q ',,is ssa q -