Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1878-06-25

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ment of q sound and uniform currency
was one Of the great ends contemplated
in the adoption oil the present conshtu-
ton. 1t cannot well be questioned that
il was intended by that constitution to
submit the whole subject Of the currency
of the country, all that regards the actual
medium Of payment and exchange, what
ever that should DO, to the control and
legislation Of Congress Congress can
alone coin money; Congress can alone
FIX the value OF foreign coins; no State
tnor even Congress itself can make any
thing tender but gold and silver in
payment of debts no State can emit
bills of credit. The exclusive power OF
regulating the metallic currency of the
country would seem necessarily to imply
or more properly to include as part OF
itself the power to decide, how far that
currency should be exclusive, how far any
substitute should interfere with it and
what this substitute should be. The gen.
erosity and extent Of the power granted
to Congress, and the clear and well-dehned
prohibitions on the States, leave little
doubt Of an intent to rescue the whole
subject of currency from the hands OF To-
cal legislation, and to confer it upon the
general government But notwithstand-
Ing the apparent purpose in the Conshtu-
ton, the truth is, that the currency of the
country is now, To certain extent, prac-
tically and effectually under the control
of the several State governments; II 1t
be not more correct to say that it Is under
the control OF the banking institutions
created by the States for the States
seem first to have taken possession OF the
power and then to have delegated 1t.
Whether the States can constitutionally
exercise this power or delegate it to 9TH
ers is question which ! do not at present
intend either to concede or to argue"
In a second speech on the same subject
Mr. Webster said
"On what ground is it then that Con-
gress possesses the power not only to
create q bank but bank Of circulation ?
Simply as l suppose because Congress
possesses constitutional control over the
currency of the country aud has power to
provide q safe medium Of circulation, as
we'll for other purposes as for the collec-
ton of its own debts and revenue OBJ
served the other day that,in my opinion 1t
was very difficult to maintain on the face
of the Constitution itself, and independent
of long-continued practice, the doctrine
that the States could authorize the clrcu-
lation of bank paper at all They
cannot coin money; can they coin that
which becomes the actnAl and almost uni
versal substitute for money! Is not the
right Of issuing paper intended for circu-
lation, and as the representative OF metal
lie currency derived merely from the
power OF coming and regulating the metal
lie currency 1t would be a startling
proposition in any other part of the world,
that the prerogative Of coming money held
by government Was liable to be defeated,
counteracted or impeded by another pre-
rogatiye, held in other hands, Of author
ling a paper circulation
1t Is further 10 be observed that the
States cannot issue bills Of credit, not
that they cannot make them . legal ten
der but they cannot issue them at all,
Is not this 4 clear indication Of the intent
of the Constitution 10 restrain the States
rs well from establishing paper clrcula-
ton as from interfering with the metallic
circulation Banks have been created by
States with no capital whatever; their
notes being put in circulation simply on
the credit Of the State or State law
What are the issues Of such banks but
bills Of credit issued by the State ? | con-
fes., Mr.. President, that thus the more |
reflect on this subject, the more clearly
does my mind approach the conclusion
that the creation Of State banks for the
purpose and with the power Of circulating
paper, is not consistent with grants and
prohibitions of the Constitution.
GET.