The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1878-07-02
THE .AmEusCAN MONETARY
SYSTEM
From the Chicago Tribune.

From the Chicago Tribune.
The National Greenback party in
Indiana. Michigan, Missouri, and other
States have agreed upon a name
by which TO designate their principal
demand. They advocate the unlimited
issue by the Government OF "hat mon
ey"-that Is notes, printed on paper
and declared 10 be money.-thus: A
piece of paper bearing the legend
"United States of America, Ten Dol.
lars. A. B.. Treasurer. @. D., Regis
ter" That is ALL This scrip is not a
promise to pay; il is to be declared 10
be payment. IL is declared to be n le-
gal tender in payment OF all debts, pub.
lie and private, and, not being redeem
able, once issued is issued forever
The plan includes the payment Of the
whole public debt with this scrip. The
National party designstes this scheme
as the american Monetary System.
The name is a slanderous misnomer.
In the first place, the Fiat" scheme
has been tried in many nation OF the
world aud has failed, creating desola-
ton, bankruptcy. repudiation. and
ruin. Ii was the system in operation
10 this country previous 10 aud during
the time of the Revolution; but IL was
never in force under the Constitution.
On the contrary, one OF the strongest
motives for the adoption OF O National
Union was TO prohibit any return to
''fiat money in the future. The Con-
stitution, therefore, established a mon
etary system in which the money OF
the nation was to be gold and silver
coin Of such denominations and
weights as the Congress might estab-
lish. 1t provides:
Congress shall have power 10 coin
money, regulate the value thereof, and
OF foreign coins; to borrow money on
the credit OF the United States. No
State shall coin money, emit bills OF
credit, make anything but gold and
silver tender in payment OF debts.
There ia no power granted anywhere
recognizing any monetary system"
and to "borrow money on the credit OF
the United States. The issue OF green
backs was q loan,-s borrowing Of
money on the credit OF the nation to be
paid in money!. e., gold and silver;
the grenbacks all recite a promise TO
pay the money thus borrowed. The
power to make legal-tender was de-
rived from the direct grant of author
ity TO "provide for the common de-
fence" and 10 do whatever may be
necessary" for that purpose. Con-
gress having declared, in the presence
Of an aggressive rebellion threatening
the national existence. that this forced
loan, not otherwise obtainable, for the
common defence was necessary" the
Court, and IL only by majority OF one
vote, held such exercises of power was
constitutional. That paper money"
was excluded, and Intentionally. by
the Constitution from the American
monetary system" is shown by the ao-
ton Of those who framed the Constitu-
tion and by all those who have follow
ed them. A proposition was made 10
include in the Constitution n power 10
"emit bills of credit" The Boston
Journal groups a number OF extracts
from the debate on that question, and
from debates on the subject OF paper
money at subsequent debates, and from
these we take the following:
Mr.. Madison said: "I am satisfied
that striking out the words "smIt bills
Of credit" would not disable the Gov
ernment from the use OF public notes
as far as they can be safe and proper,
and will cut of the pretext for a paper
currency"
Mr.. Ellsworth said: ut is n favor
able moment to shut and bar the door
against paper money. The mischief OF
the various experiments which have
been made are now fresh in the public
s,1 nj hn ~
all the respectable part OF the country.
BY Withholding this power from the new
Government, more friends OF influence
will be gained to il than by almost any
thing else. Paper money can in no
case be necessary. Give the Govern
ment credit and other resources will
offer. The power may do no harm, no
good.
Mr.. Wilson said: at will have salu-
tary influence upon the credit OF the
United States TO remove the possibility
Of paper money"
subsequently. in urging the adop-
ton OF the Constitution as 1t now
reads, Mr.. Madison wrote:
"Ths prohibition Cf bills OF credit
must give pleasure to every citizen in
proportion TO his love for justice and
his knowledge Of the true springs OF
prosperity. The loss which America
has sustained from the pestilent effects
OF paper money, on the necessary con-
idencc in the public copncils, on the
industry and morals OF the people, and
on the character OF republican govern
ment, constitutes an enormous debt
against the States chargable with this
unadyised measure. which must long
remain unsatished or rather, il il an
acclamation OF guilt which can be ex-
plated not otherwise than by a Volun-
tary sacrifice on the altar of justice Of
the power which has been the instru
ment OF IL.
During the war between Gen. Jack
sou and the United States Back, some
one proposed the issue Of national
paper. fiat money. of which Mr..
Webster said
by this scheme the Government is
not 10 pay money, but 10 issue paper.
II there is TO be found, anywhere, q
more plaia aud obvious project OF pa
per money in oil its deformity, 1 don't
/ know where to look for IT, Fortunate
" scheme so wild, aud which would
| be 80 mischievous, rests upon an as
sumption for which there is not the
least foundation, either in reason or ex.
perience. II takes for granted that
when the history Of every commercial
State refutes, and our own especially,
on almost every page. 1t supposeses
that irredeemable Government paper
can circulate in the business OF society,
and be kept at par. This is impossible.
The honorable gentlemen reject con-
vertable bank notes, and adopts in
their stead Government paper with no
premise 10 pay, but promise only TO
receive for debts and taxes. He cher
ishes the imagination so often and so
long refuted, that this paper will be
kept in circulation, and will be able TO
perform the great business Of currency.
IL ~ be nncaaaarI AZ this dax 70 ralnln