Weekly standard. [volume] (Raleigh, N.C.) 1858-1865, 1863-02-11

the desire to it increas ed and thougA Congress
should be urged to do SO, rs it was Cbsfsaerste
matter, but in the present condition Of our State
finances it was deemed unadvsable, and the motion
was lost ayes 26, nays So. The bill then passed
its third reading -.
On motion Of Mr,Shepherd, bill relating to the
spread Of small pox was made special order for 10
o'clock to morrow. !
r. For the Standard.
CONSTITUTIONAL POWER TO MAKE TREAS.
URY NOTES TEMPER
CONTINUED
Hitherto Ihave rus: ntained that ngress possesses
not the power t. regulate the valne of any paper
currency which it may issue. BY some it is insisted
that it may exc else the power, because it is not
expressly forbidden. This is not he rule by which
We discover the powers OF Congress- All the powers
possessed BY that body "deleg lted" Art l, Sec
!. And all such mot dcega ed to the Conedcr-
ate States by the Constitution, prohibited by it
to the States are reserved to tie States" Art g.
Sec 6.
So it is manifest that the not prohibiting power
to Congress does not amount t. delegation OF that
power to the Confederate State..
In the Federal Constitution there is clause pro-
hibiting the States from emitting bills of credit
that clause somittedin the Cc Moderate Constitution
so that State of the Cor fe leracy may now emit
bills of credit But it do this only because the
power is not delegated 10 ae Confederate States
For if it be delegated to the Confederacy, it is not
reserved This is the accepted Interpretation of
that instrument 1t is rega, ded a reserved power
and hei.ce the States T. and the adoption
Of the Constitution, have been emitting bills of
credit. The COnfeder ate Congress possess there
fore the same power and no more to issue treasury
notes as is possessed BY the Federal Congress How
then, it may be asked, is Congress empowered to
issue such notes similar in all respects bills of
credit? In answering this question, it will be seen
that both the Fed' raj and Confederate Congresses
have perverted the pow under which treasury notes
were issued during tho time Of the Union and it
wss predicted in the debates at the time that the
power, if assumed to make such issues, would be
perverted and lead to government bank For this
reason Gen. Jackson and some other men Of great
sagscity and distinction, thought the power highly
objectionable if not unconstitutional. The first
issue Of such notes was in 1919 the second in
1914; then not until 1887, and again in fs<i-'2ez
The power to issue them was not claimed upon
any ground Of right to emit bills Of credit" !
! crosses putting the power on that ground-but it
was based on the powe: expressly delegated to Con-
7 gress under Art !, sec. 8, 2, ITO borrow money
;. Oh tue credit Of the United States" The same
power is delegated in the same words to the Confed
eratc States, Art. |, sec s, q and the question
was between pure direct borrowing in large sums,
and an indirect borrowing by paying debts IN the
notes Of government. The argument was this: II
, the government owes $1,000 to a, and borrows OF
| B to pay him. and gives him bond, it had as we'll
give the bond to at once and if he preferred his
| security should be in ten or twenty dollar bonds,
then to make so maryland if he would better like
this mode of payment, if the bonds were transfer
able by delivery, they should be so made
Hence came Treasury notes transferable like Bank
notes. The danger Of this course was that such
notes would slide into circulation and to avoid
this. they were issued in large denominations, and
made to bear interest," whereby they were sure to
be taken by the capitalist out Of circulation Tor in
vestment or by the broker for exchange between
different parts Of the country. Such the ar.
gunents offered to shew that this issue was con-
sttutional mode Of borrowing money and invaria.
I bly,, believe, we're they issued with interest at
tached, in order that they might not slide into
/. circulation" For like reason, the early issues of
the Confederate States were in large denominations
and bore interest Hence, also, the reason why the
issue of State Treasury notes before the adoption Of
the present Constitution, were of large dcnomina.
tons, and bore interest. For the Provisional
Constitution, which was adopted on separating from
the Union, contained the clause prohibiting States
from emitting bills Of credit; and it was deemed
no evasion to borrow money by issuing largo notes
bearing interest After the present Constitution
! was adopted, which omitted the clause, the issue
was made Of small denominations and without inter.
est With great reluctance, some Of the ablest mel
gave their assent to the first ISSUE with inter.
est lest the notes should DO deemed "bills of credit
1t is true that many who supported the issue Of
such notes in l837-38. and in lS41-42 were Oh.
,, posed to attaching interest to them-and among
others, was Mr.. Calhoun, who was in the first and
indeed in every Congress which authorized their
ISSUE Upon the bill Of 1888 there was debate Of
unusual ability, in which some of the most distin
guisbed statesmen of that day participated. All
who admitted the constitutional power to issue land
} very few denied il, and these only because they
feared the notes would assume the character of a
circulating medium, and the government would be.
come great banking machine put it on the ground
that il was ON efficient means of borrowing money
none pretended that Congress had the power to de.
clare them tender in payment Of debts. Mr., Web.
ster, who advocated direct loan, said If Treasury
notes were resorted to for the purpose Of raisinr
money hs was in favor Of selling the notes for spe
Gle, for it was the only constitutional curysacv-
Mr.. Calhoun admitted it, and asserted Also that
neither Bank Treasury notes were equal 10 spe
d Gle. "There IS nothing" said he equivalent tc
gold and silver, but misunderstanding else car
legally pay debts, or release the debtor from hi.
obligation to his creditor"
Upon objection by Mr.. Preston that the notes
were bills Of credit for the issue of which no powe,
:. was delegated to Congress, Mr. Calhoun replied
e ut was rule with him, where tho constitution
J. is supposed to be involved, TO bestow his serious
consideration before he acte0 and if he saw reaso,
to doubt not to give his assent. He had compiled
with the rule in this case, and the result was clea
/ T. conviction that the bill was constitutional. Tn
right had been exercised from the commencemen
q ofthe Government without being before question
ed; and, according to his conception, came vithi
the powers expressly granted to Congress 70 borrow
+ money, which meant neither more nor less than
81 ,>l;n ia