The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-06

which is the basis OF republican government" In
| 1887 Madison wrote TO Je ners0n from Philadelphia
that "the paper money here ceased to circulate
very suddenly few days ago. Nothing but evh
springs from this imaginary money wherever IL Is
tried, and yet the appetite for 1t where mas nos
been tried continues to be ieltn
In the iorty-third number OF the Fede1atiss aiso'
/ we ind MI Madison thus defending that feature OF
| the constitution which denied TO the States the
right TO issue bills OF credit, and TO make paper
money legal TENDER
The extension OF the prohibition to bills OF credit
must give pleasure to every es 10 ,1
Springs OF public prosperity. The loss which
America has sustained since the peace rom the
pesrilent effects OF paper money on the necessary
| confidence between man and man, on the neces-
sary confidence III the public counses, on the indus
try and morals OF the people and on the character
OF republican government constitutes enor-
NOUS debt against the States chargeabie With this
! unadyised measure. which must long remain
j satisfied, rather an accumulation or guilt which
can be expiated no otherwise than by voluntary
has On 1ns the 81 o. Inc
to these persuasive considerations It may be OBJ
served hat the same reasons which show Tue
necessity OF denying to the States the power or
regulating coin prove with equal force that they
ought not to be at liberty to substitute paper me-
thing but gold and silver tender in payment OF
debts is Withdrawn from the States on che same
principle with that OF issuing paper currency.
JOHN ADAMS.
left on record many warm denunciatons OF the
paper money system, which, In colonial days,
almost ruined the business OF Massachusetts, and
at q later period nearly swampad the finances OF
the Continental Congress. Here is one speci-
mem
l cannot but lament, from my Utmost soul, that
lust Tor paper money which appears IN some parts
form rule, If there Is a sense OF justice nor any
clear credit, public or private, nor any settled
confidence In public men or measures until paper
money Is done away.
Again, in his letters on government, addressed
to John Taylor, OF Caroline IN his latter days. MIR.
Adams thus wrote:-
Here, sir. once for al, let me say that you can
write nothing too severe Tor me against paper
Wealth. You may say. II you please, as swift
says OF party, that Is the madness Of the many for
the profit OF the tew You may eau swindier a
pckpocket, q pirate a thief q robber, and VIII
not contradict you nor dispute with you. But, sir,
how Will you OBTAIN your exhibitions upon monop-
~ and Incorporation when the few are craving
and the many mad Tor the same thing; when
democrats and aristocrats all unite with perhaps
monopoies and incorporatons TO the last ex-
tremity, and when every man who opposes them
source OF aristocracy in tins country, as wen as
landed wealth. with vengeance. witness inc
immense fortunes made per sdltem by aris5ocratc
speculation, both in land and paper.
Again, on the 18th OF March. 1919, we find John
Adams commencing work which Mr.. Jefferson
had sent him by the French political economist,
Destutt Tracy
His chapter .of money! contains the sentiments
that l have entertained all my Lifetime. Will
quote only few lines. A THEFT or greater mag
nltude, and still more ruinous Is the making OF
paper money: 1t is greater. because IN this money
there is absolutely no real value; IT is more ruin
GUS because, by its gradual depreciation during
all the time OF It's existence, 1t produces the effect
which would be produced by an lndnity OF sue
cessive deterloratons oil the coins. All THESE int
qu,ties are founded on the lalse idea that money
is but a sign.
ALEXANDER HAMILTON,
the first Secretary Of the Treasury OF the United
States under the constitution, was also the most
powerful advocate OF sound currency and OF the
most scrupulous observance OF public faith. In his
celebrated report to- the House OF Representatives
upon the public credit, January g. $780, we find Mr..
Hamilton writing as foiiows-
Every breach or the public engagements,
whether from choice or necessity, is, in different
degrees hurtiul to public credit. 1t Is
highly important, when an appearance OF necessity
seems to press upon the public councils that they
should examine well It's reality, and be perfectly
assured that there is no method OF escaping from
It, before they yield TO its suggestions
wise nation Will never permit those who relieve
the wants their country, or who rely most on Its
aith, Its rmness and its resources, when either or
these is dlstrusted, to suffer by the event.
There s no sentiment which can better deserve
the serious attention OF the legislators of country
than the one expressed ID the speech OF the Presi
dent Washington, which indicates the danger to
every government from the progressive accumula-
ton OF debt. A tendency to It Is. perhaps, the
easy to conceive anything more likely than this
TO lead TO great and convuisive revolutions OF en-
pre-
GEORGE MASON.
One OF the great and influential statesmen OF Viz
GINA IN the days OF the Revolution ana the consti-
tuition was George Mason. His sentiments upon ire.
deemable currency may be seen in the following
extract from a letter written by him to General
Washington in 1856
have heard nothing from the Assembly
except vague reports or their being resolved
10 issue paper currency; upon what principle or
security OF pledging soemnly the public credit.
believe such an experiment would prove similar to
water. They may pass law to Issue 1t, but twenty
laws will not make the people receive 1t.
JAMES VII SON.
Among all the statesmen Of the constitutional
period none was more able and influential than
the eminent writer on Jurisprudence James Will
son, OF Pennsylvania. The following is his declara.
ton Of sentiment on the paper money question,
made in the Convention which framed the consti-
tuition OF the United States-
1t will have a most salutary influence on the
credit OF the United states To remove the possip-
ity Oh paper money. inns expedlent would never
as long as II can be resorted TO IG will be bar to
other resources.
OLIVER ELLSWORTH.
This eminent citizen OF Connecticut thus ex-
pressed himself in the CONSTITUTIONAL Convention
OF 1887, reported by Mr. Madison, On the subject
OF the currency
Mr.. Ellsworth thought this favorable moment
to smut and bar the door against paper money.
The miscnieis of the various experiments winch
mad been made were now fresh In the public mind,
and had excited the disgust OF all the Respectable
part OF America. But by Withholding the power
from he new government more friends OF inhu-
ence would be gained to 1t than by almost any
thing else. Paper money can in no case be neces-
sary, GIVE the government credit and other re-
sources will offer. Inc power may do harm, never
good.
THE TRAINERS OF THE CoNsTITUTIoN-PAPER MONEY
EXPRESSLY EXCLUDED.
In the Convention which framed the constitu-
tion OF the United States, in 1887, this question
formed leading topic OF discussion. In the orig
inal draft Of the constitution the clause investing
Congress with the power to coin money and reeu-