The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1868-09-16

....ad any snch mower as this They dssircdsj
that the bills emitted by the Goycrnmsnt should
be legal tender, and they passed resolutions fha3
they ought to be 50 considered, but they never
deemed that they had the power to make -
such, or sought to exercise it.
Judge Story says - -
A0@hsr sntssi5ns wers subsequently msde. Inc
depreciation was natural, and indeed necessary
ron stsA al tho fect that there Was no iund 70
redeem them Congrcss endeavored 20 give .neM
u credit - Sselasiog thAa they onght g
be tender in payment q 81 private ana paDnc
:. M 10 81 n exdnguiStmsnt Of the debt, and
leccpxrepi6 u the States u pArssucL tendefaaws.
sTbet went even further and thought proper to
declare that whoever should refuse to receive this
paper in exchange for any property, ~ goid ana
silver, should be deemed an enemy OF the Hber-
tIes of thess United 6tates. This coarse OF no.
ehre and teYrorro far from siding the cirrulation
Of the paper led on to stll further depreciation.
New issues continued to be made, until, in Sep
tember 171e, the whole emission exceeded one
hundred and sixty-six millions Of doars."---
2 Commentaries on the Constitution, sec. 1859.
1t seems that in thossd days they INDUCED in the
same haliucinations to which some gentlemen mp
on this hoor, and many fnanciers in the country,
seem 4ysa yst sekeaahieos, that paper fseaey
system is the beet that be devised. So thought
these gentlemen Of the Continental Congress az
they were INDUCING in all the luxury Of $780,
100000 Of paper money.
"They indignantly rerelled the idea, in cir
eular address, that there could be any violation of
public faith pledged for their redemption, or that
there did not exist ample funds 10 redeem
them. They INDUCED in still more extraordinary
decisions, and ventured to recommend paper mon
cy as Of peculiar value. Let it be remembered
said they that paper money is the only kind Of
money which cannot make to itself wings and fly
away Story on Constitution, sec. 1869.
When come to examine the powers of Con-
gress, according to the principles OF Interpretation
10 which have sad adhere, look to the grants
Of the Constitution. | find grant ofthis pow.
er in direct term, or, | think, by fair mplcae
ton. 1t IL not accidental omission; it il mol
an omission through inadyertency; it was inten-
tionally left out oil tho Constitution, because il
was desigred that the power should not reside In
the Federal Constitution
He then reviewed the history Of the forma
ton Of the Constitution to prove that the
right to make anything but gold and silver q
legal tender was expressly prohibited TO Con
gress. And then he concluded his speech al
length, thus:
Ard Mr.. Webster, WHO followed closely ths
| principles of government and Of finance iaiddowr
hy Mr. Hamilton, sought occasion several times il
/ his speeches in Congress 70 express his decided
and firm convictions upon this subject. In bill
/ speech upon the renewal Of the charter Of th,
| United States Bank, male In ls32-perhaps thu
| gentleman from Kentucky Dir. crittendcnl vii
| remember it, as he was member Of the Senate a
that time-Nr Webster says.
"Congress can alone coin money Congress car
alone IL the va ue Of foreign coin. No State car
coin money. No State not even Congress itself
can make anything tender but gold and silveri il
payment Of debts, Speeches, vol. 2
page 81
And zig ain, sir, ia 1e3f, when Mr.. Webster wal
at the very height Of his intellectual power, ant
when by the financial condition Of the country h,
vas led TO apply all bis power to develop the tru
meaning Of the Constitution in this regard ant
10 devise legislation suited to the evils then exist
ing, in his speech upon the specie circular. Gays:
|. but il we understand by currency the ega
| money Of the country, and that which constitute
lawful tender for debts, and is the statute meas
| IRE Of value, then, undoubtedly, nothing is in
Guided but gold and silver. Most uuquestonabi,
/ there is legal tender in this country under tn
! authority of this Government, or any other, hu
| gold and silver, either tho coinage Of our owl
mints, or foreign Coins at rates regulatedb by Con
sress. This il constitutional principle, perfect
/ ~ plain, and Of the very highest Importance TIL
| States are expressly prohibited from making any
| thing but gold and silver a tender in payment 0
| debts; and although no sneh express prohibition
no,rat ,,re,.taa ~, ~ Ill rasnan, 49, - -,
money and to regulate the value of foreign coins
| It clearly has no power to substitute paper, o
anything else, Tor cuin, as tender in uayneu
/ af d,l,xapdin DISCHARGE of contract, inne,ras
/ has cxar4;sed ti,is ,tawer cali, 4; to,l 81 +,
/ branches. # has coined money, and still coins il
/ it has regulated the value Of foreign coins, an,
stilIre gsia their alue. The sgaltender there
fore, the constitutiona standard Of value il
| Works. vol. 4. paee 81.
| And again. in the same sneeeh. he ..rr
II am certainly Of opinion. then. that gold an
silver. Al rates fxed nv Conrress constitute IS
legal standard Of value in this country. and tba
neither Congress nor any State has anthoritv !
establish any OTHER standard or TO displace this.
i And Mr.. Calhoun. in his sneeeh nm fne lin an
thorizing the issue Of Treasury notes. in 1877 -
sttrnrs as ffisfrutfsftft that Congress- possesse
| 40 such mower. q talhn,in,s works n 1B2
i Sir 1t seems 10 me that If the lananare of n
Constitution, and the weight of AUTHORITY can set
tie any proposition. il i that Congress has ID
the powsr Is do Tint which il il proposed shah
done by the provisions of this bill
| New air Tie argument which have nats
reference 10 the constitutional power Sc c0nsre,
i does not depend in ans decree ,p9u the o,,ssifa
whether or not these noses can maintnin their i,
value in gold ard silver. Bat il ,uay live MI,
t. the ar guinent 10 show the effect ahish win
produced hy the provisions 0f he bill itself in L
respect
Ibis Bill. after provi,iin, that tbesa slao am
900 Of Treasury notes sh.fl ne nayh,e = al e,e.
itor. of The rted Sfafes AM, g. 10 lisa1ar,.o
all private debts. provide also tba, tbsv .lai1
funded in twenty wear bonds az t6a Tnits
states At six uer cent. and IN o~asr n i,a.ce y
fnuaing that when auv nersnn all .ao.,s.,,,ia
s.. 500 Of these notes he NAV reoniro that ba,,
shall be issuea in the Denomination of tbo 4.
. reney Of aforeisn country navahl. ,,r;,,o,,,al 4,
interest. in that country.
The effect Of this provision i intended - /,
that he shah there reFeiye bis irte,cst ~ .o,a :.
silver. Congress thus Gxed Tho s,tae ~ a. -
notes fxes it tod day: fixes It at The honr If ,h
, emission They shall he eouiya,ent taon -,
nuu1ser Of dollars EXPRESSED il she .wa,,,, -,
bonds pf The Tj,akas state
interest, That II thejr value fxed 81 ia ~
6xea ly the money markets ~ M cnnn.rr W.
ara thase bends worth tg-lav7 sir rss,i - :, =
New York papers that last SATURDAY tbev w.
selling at eighty-ninc cents On he dnli,r ~
quotations of last week were never higher til.
ninety cents. Yet you propose to send out the
/. notes a. legal tender, stamped as they he
to-day at value Of ninety ceuts on ne iolls
iou compel every man 70 whom 81 goo are d
TO take, In satistaetien If his claim that viii