Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1863-02-10


matter, but in the present condition OF our State
finances it was deemed unadvSahle, and the motion
was lost, ayes 26, nays 6S. 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.
House adjourned until 10 o'clock tomorrow.
For the Standard.
CONSTITUTIONAL POWER TO MAKE TREAS
URY NOTES A TENDER.
CONTINUED.
Hitherto have maintained that Congress possesses
not the power to regulate the value of any paper
currency which it may issue By some it is insisted
that it may exercise the power, because II Is not
expressly forbidden. This is not the rule by which
we discover the powers of Congress-. All the powers
possessed by that body are" delegated" Art. l.
l. And all such mot delegated to the Confeder
States by the Constitution, prohibited by it
10 the States, are reserved to the States" Art 6,
sec. 6.
So it is manifest that the not prohibiting power
to Congress does not amount to delegation of that
power to the Confederate States.
In the Federal Constitution there is clause pro-
hibiting the States from emitting bills Of credit
that clause omitted the Confederate Constitution
so that State of the Confederacy may now emit
bills Of credit But it can do this only because the
power is not delegated to the Confederate States.
For if it be delegated to the COnfederacy, it is not
reserved. This is the accepted Interpretation Of
that instrument. 1t is regarded reserved power,
and hence te States now, and since the adoption
of the Constitution, have been emitting bills Of
credit. The Confederate Congress possess, there
FORE the same power and no more to issue treasury
notes is possessed by the Federal Congress How,
then, it may be asked is Congress empowered to
issue such notes similar in all respects to bills of
credit? In answering this question: it will be
that both the Federal and Confederate Congresses
have perverted the power under which treasury notes
waSn, ISSUED during the time of the Union and it
power, if assumed to make sGtrr the time that the
perverted and lead to q government bank. For this
reason Gen jackson and some other men of great
Sagacity and distinction, thought the power highly
Questionable il not unconstitutional. The first
issue Of such notes was in 1872 the second in
1914; then not until 1887, and again in lS4l-'2.
The power TO issue them not claimed upon
any ground of right to emit bills of credit" l
have found none of all the speakers Of all the Con-
crosses putting the power on that ground-but it
based on the power expressly delegated to Con-
gress under Art l. sec. &, 2, Ito borrow money
on the credit of the United States" The same
power is delegated in the words to the Confed
crate States Art. !, sec. 5, 2, and the question
was between pure direct borrowing in large sums,
and indirect borrowing by paying debts IN the
notes of government The argument this: If
the government owes 1000 to A, and borrOws Of
to pay him, and gives him a bond, 1t had as we'll
give the OOnd 10 n at OGCe anu u ne MS
security should be in ten or twenty dollar bonds,
then to make so maryland if he would better like
this mode of payment, it the bonds were transfer
able by delivery, they should be 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
vestnent or by the broker for exchange between
different parts of the country. Such were the ar
guments offered to Shew that this issue was q con-
stitntonal mode of borrowing money and nvaria-
bly,, believe, were they issued with interest at
tached, in order that they might not slide into
circulation" For like reason the carly issues of
the Confederate States were i'll 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 denomina-
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 large notes
bearing interest After the present Constitution
was adopted which omitted the clause, the issue
made Of small denominations and without inter-
est With great reluctance some of the ablcSt men
gave their assent TO the first ISSUE with inter-
est lest the notes shoulu ueeeu bills of credit
1t is true that many who supported the issue of
such notes in 1S37-'3S. and in 1S41-'42, were op-
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.
guishcd statesmen of that day participated All
who admitted the constitutional power to issue land
very few denied it, and these only because they
feared the notes would assume the character of a
circulating medium, and the governpEent would be-
come great banking machine put it on the ground
that it an efficient means of borrowing money |;
none pretended that Congress had the power to de-
clare them q tendcrin payment of debts. Mr. Web
ster, who advocated direct loan, said if Treasury
notes were resorted to for the purpose Of raising
money h. was N favor Of selling the notes for spe
Gle for it was the only constitutional currency
Mr.. Calhoun admitted it, and asserted also that
neither Bank nor Treasury notes were equal to spe
Gle. There IS nothing" said he, equivalent to
gold and silver, but misunderstanding else can
legally pay debts, or release the debtor from his
obligation to his creditor"
Upon objection by Mr. Preston that the notes
were bills of credit for the issue Of which no power
was delegated to Congress, Mr. Calhoun replied:
at was a rule with him. where the constitution
is supposed to be involved, to bestow his serious
consideration before he acteo; and if he reason
to doubt not to give his assent. He had complied
with the rule in this case and the result clear
conviction that the bill was constitutional The
right had been exercised from the commencement
of the Government without being before question
ed; and according to his conception, came within
the powers expressly granted to Congress to borrow
money, which meant neither more nor less than to
raise supplies on the public credit. Interest was
not essential to borrowing; and it would be ridcu-
lous to suppose that the trainers Of the constitution
intended to authorize the raising of supplies with