Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1879-02-05


and notes payable on demand in gol,
and silver, but he expressed himself a
utterly opposed to paper emissions b,
the United States, characterizing then
as so liable to abuse and even so Ger
tain of being abused that the Govern
ment ought never to trust itself will
the use OF so seduciDg and dangerous
an element. Opposed as he was t,
paper emissions by the United States
under any circumstances, ii is past be
liei that he could ever have concurreC
in the proposition to make such emiss
ions tender in payment Of debts
either as a member of tho convention
which framed the Constitution or ~
the head of the Treasury Department
HISTORY OF TREASURY NOTES
Treasury notes, however, have beer
repeatedly authorized by Congress
.o.-- ~-.-i.-a --;.L tLs ..oe 80 oo.L ..
June, 1872, but 1t was never supposed
before the time when the several acts
in question were passed that Congress
could make such notes legal tender
in payment of debts. Such notes, il
was enacted should be received in pay.
ment for public lands sold, by the
Federal authority. Provision was also
made in most or all Of the acts that
the Secretary Of the Treasury, with
tho appreciation of the President,
might cause Treasury notes to be is.
sued, at the par value thereof, in pay
ment of services, OF supplies, or Of
debts for which the United States were
or might be answerable by law, to
such person or persons as should be
willing TO accept the same in payment ;
but it never occurred to the Legislators
OF that day that such notes could be
made a legal tender in discharge of
such Indebtedness, or that the public
creditor could be compelled to accept
them in payment of his just demands.
Financial embarrassments, second
only in their disastrous consequences
to those which preceded the adoption
Of the Constitution, arose towards the
close of the last war (l8l2) with
Great Britain, and it is q matter Of
history that those embarrassments
were too great and prevailing to be
overcome by the use OF Treasury notes
or any other paper emissions without
specie basis. Expedients of various
kinds were suggested but never oc-
Cured either to the Executive or to
Congress that remedy could be found
by making Treasury notes, and then
authorized, legal tender and tho re.
suit was that the second bank of the
United States was Incorporated. Paper
currency, il may be said, was author.
lied by that act which is undoubtedly
true and it is also true that the bills
or notes of the bank were made re.
ceivable in all payments to the United
States il the same were at the time
payable on demand, but the act pro
vided that the corporation should not
refuse under heavy penalty the pay
ment in gold and silver of any of its
notes, bills or obligations nor of any
moneys received upon deposit.in the
bank or in any Of its offices OF dis
count and deposit,
Serious attempt is made. strange to
eey, 10 fortity tho prePesis'e~ tL~s a.
acts in question are constitutional from
the fact that Congress, in providing
for the use of Treasury notes and
in granting the charters to the
respective national banks, made the
notes and bills receivable in payment
of duties and taxes, but the answer to
the suggestion is so obvious that it is
hardly necessary to pause TO suggest
its reiutation. Creditors may exact
gold and silver or they may waive the
right to require such money and ac'
cept credit currency, or commodities
other than gold and silver, and the
United States as creditors, or in the
exercises of their express power to lay
and collect taxes, duties, imports and
excises may, if they sec fit, accept the
Treasury notes or bank bills in such
payments as substitutes for the con
stitutional currency. Further discus
sion of the proposition is unnecessary
as it is plainly destitute of any merit
whatever. Resort was also had tC
Treasury notes in the revulsion o.
, 1887 snd during the war with Mexico
|. and also in the great reyulsion OF 1857
but the new theory that Congress
could make Treasury notes a lega