Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1878-08-06
Paper Money in the Federal Con-
VentiOn.


Aplmphlet issued by the Honest Money
League Of Chicago, contains the following
carefully prepared article, showing how
paper money was considered aud treated
at the organization of our present forlu
of government:
The question of the currency was no
secondary Que in the organization OF the
national government. Indeed. the pro.
position which ultimately led to our pres
ent constitution and union, came from a
convention called to consider the com.
merclal defects OF the conlederacy, which
were principally caused 10y the want Of a
reliable medium OF exchange and mea-
sure OF values. Daniel Webster says:
1.-The establishment Of a sound and uniform
currency was OF the greatest ends conttn-
plated in the adoption of the constitution. If we
could explore all the motives of those who framed
and those who supported the constitution, we
should hardly find a more powerful one thar
this"
And the opinions of many other emf
nent men, as well as the debates ia tn,
federal convention that framed, and 10 the
State conventions that adopted the consti-
tuition, attest the truth of Mr. Webster :
statement. Judge Story, speaking OF the
ISSUES of paper money and general iinah-
cial measures following the revolutionary
war. says;
"They entailed the most enormous evils on the
country, and introduced system of faAd chicsn.
cry aud pro1igacy which destroyed sll private
confidence, and all industry aud all enterprise"
Chief Justice Marshall, speaking for the
Supreme Court OF the United States. says
Of the same paper money experiments;
"Snch medium has always been liable to fuc-
tustion, It's value is continually changing, and
those changes, often great and sudden, expose lu-
dividusls to immense loss, are the source Of nu
merous speculations, and destroy all confidence
between man and man"
James Madison, the Father of the Con-
stitulion,' arguing tor its adoption, say,
1.-The prohibition to bills of credit must give
pleasure to every citizen in proportion to his love
Of justice and his knowledge of the true springs
of prosperity. The loss which America has sus
tanned from the pestllent effects of paper money,
on the necessary confidence between men, an d
the necessary confidence n the public councils
on the industry and morals of the people, and on
the character OF republican government consti-
tutes 40 enormous debt against the States charge
able with this unadv .ed measure which must long
remain unsatsted; OF rather it is an accumulation
of guilt which can be expated otherwise than
by a voluntary sacrifice on the altar of justice OF
the power which has been the instrument of it,"
Alexander Hamilton, IN report to Con-
gress rs first Secretary OF the United State
Treasury. says OF paper money emissions
by the government:
The emitting Of paper money by the authority
of the government, is wisely prohibited TO the IN
divdual States by the national constitution. and
The spirit Of that prohibition o'ght not 10 be dsre-
garded By the government of the United States
Though paper emissions under the general au-
thorlty might have some advantages not dppdeable
and be free from some disadvantages phich are
dDpicab{e to like emissions by the States sepal.
ately yet they are of a nature 50 liable to abuse
aud it may even be affirmed. 50 certain Of being
abused that the wisdom OF the government will be
shown in never trusting itself with the use OF SC
seducing and dangerous an expedient."
| The debates in the federal convention
| tiltb IL dlltu, anu III tilC otttt tOuNtniiOu
that adopted the constitution, are equally
explicit both as to the Importance vi the
subject and the sentiments OF the mem.
bers OF the conventions. Inc proposition
TO authorize Congress to ''eIuiL bills OF
credit" was elected III The federal con
vention. During the debate upon it, Mr..
Ellsworth said:
at is a favorable moment to shut and bar the
door against paper money. The mi.chefs of The
various experiments which have been made are
now fresh in the public mind, and have excited
the disgust Of all the respectable part of the coun.
try. BY Withholding this power from the new
| government, more friends of influence will be
gained to it than by almost any thing else. Paper
moAy can in no case be necessary. Give the
government credit and other resources will offer.
The power may do harm, never good"
Mr.. Wilson said:
at would have salutary influence on the
credit Of the United States to remove the posi-
bility of paper money. This expedient can never
succeed while its mischiels are remembered, and
as long it be resorted to, it will be bar 10
other resources"
Mr. Butler was equally positive in his
opposition to paper money, and Mr. Lang
don said he preferred to reject the whole
plan rather than retain words authoriziny
such emissions.
Mr.. Madison says;
"lIe became satisfied that striking out the words
'to emit bills of credit would not disable the gov
ernment from the use of public notes as far as
they could be safe and proper, and would cut oil
the pletext for paper currency"
In the Maryland legislature that voted
to ratiy and adopt the federal constitu-
ton, Luther Martin, IA member OF the
federal convention, said:
"a majority Of that (federa) convention, vii.
| ling to risk any political evil rather than admit
the idea of paper emission in any possible case
refused to trust this authority to government to
which they were lavshing the almost unlimited
power of taxation and TO which they were willing
blindly TO trust the liberty aud property Of the
citizens Of every State IN the Union"
These extracts show that the subjects OF
money aud currency were very seriously
considered in the organization of our GOV
ernment, and that tFredeenabie papsr wa.
regarded as an evil to be stunned 10y both
government and people.