The Somerset press. [volume] (Somerset, Ohio) 1873-1977, 1882-05-04

en- materials counting the alloy. only two Of
which are so much as named in the Go stitu-
ton. and then in relation II the States and not
to the General Government or United States.
1 vii name them all.
l. InITn before the law creating the mint
was est blished. an I before the unit of value
and Of the money of account was adopted for
Constitut On and IN the Union, or ated paper
mon y, the first ever created by Congress un-
d ar the ConstItut on. They created "A National
INK, took one-tifth of the stock, had i've Di-
rectors in the institution, gave it the name of
II United states. AMI made its notes full gal
tender for all debts due the United States for
twenty years.
2. In l192 Congress created a mint and pro
vided for the Issue o. copper. silver and G Id
com; under this law the frs money coined
was compos ID of copper, consisting of cents
and half cents: This msteriai was not named
or hinted at in the Constitution as none
metal. yet il was the first coined by Congress
under the Cons tuition and was made by law
full legal tender. The second money coined
under the Constitution and under the law or
115- was comps d OF copper and silver. Ihis
money composed of these two metals was no
named in the Constitution. The Constitution
sp axis of silver coin but not of coin composed
OF both these metals.
The tn I'd money coined by the United States
under the VI ntage act OF 11S3, was made OF
copper and goll tn 1ugh no such in is nam ID
in the Constitution. The Constitution speaks
of gold coin and not of coin composed of cop
er and gold The fourth money coined by
Congr IS under the Constitution and accordi 9
TO law was money compose1 of G ghty-e1gnt
parts copper and twelve parts nickel. another
m atal not named in the Coast tuition, This
money was also made legal tender by law The
fiftn me n y made by Congress OF metal was
not Cns of tn Sc metals being named or re-
ferred to in the Constitution. This money was
also mad g Il tender. OF these sven mate
rails OF VIII en- Congress have mad money, to-
wit, pap er. cGpp@r, gold silver. nickel. tin an 1
zinc. only two are II tned IN the Constitution
and then are not named as coined by authority
of Congress.
1t is. therefore. sslf-evident that the Consti-
tuition provides no metal of which Congress !
to make money, but tea the whole matter is
left II the discretion of Congr -. These being
the fac-s as shown by our own legislation, 1t Is
rsel 50 to consume further time and space III
considering the op mons and decis ons OF our
courts; they are generally in favor OF the right
and power Of the United States to issue tull
legii-tender paper money. l might reler 70
| own and other nations; but, as shown, Con-
gress is at berty to make money of any ma
terfal which il chOOS A. 1t has the right TO
make It of paper, which is the least costly and
the most cOnyenl ent of any material OF which
t can be made. This every man in the United
Stat IS knows to be true. Our legaltender pa
Ter money issued by the United States hlS
demonstrated ts truth, convenience and safety.
To what / have said and in support # tue
system of finance advocated by the friends of
currency reform, and which believe s carried
out in part at least in the features of this bill,
des red to have read and 70 have printed
| with my remarks few quotat ons from Ste
phen Colweli. in his treatise: :" Ways and
Means of Payment" q stan lard work, thor.
oughly reliable and comprehensive in all Its
| details. des re to give the substance of his
| history of the Bank of Ven ce-that bank
| which stands W thout rival in the story of
| the world. on regret that i am II lable to
| print the VIII lie tw nty-two pages devoted by
Mr.. CUlw I'll in his history of this bank, but
| W II take the liberty of saying in advance that
| these extracts or quotat OnS are not garbied so
| as to serve his pu pose and do violence to the
| whole from which tn y are taken, but are in
| perfect harmony and accord W tn the facts as
/ r. laf hundred
| this bank existed and maintained its issue
without coin as a basis, or, in fact in its
| vaults. The overthrow of the Republic was
the 4struction of the bank, and Nap leon, in
conquerng Italy, carried Off no coin, no penny
| of prey.
| QUOTATIONS. ERoM CoLwELL's WAYS ANr
| MEANS OF PAYMENT.
| "The Bank of Venice gradually assumed the
| form under which it was for many ages the
adm ration of Europe, the chief instrument OF
| Vent an finance. and the chief facility OF q
| C 1mmerce not surpassed by that or any Euro
\ pean nation.
curity of the State, and regular payment of the
| interest, St ems t. have led to very rapid cir
culaHon of this loan.
1.-THE reimbursement of the loan ceased tc
be regarded as either necessary or desirable
Every crsdit1r was reimbursed when he trans
| ferred h S claim on the books of the bank.
From being convenient and valuable a:
an invcstm mt readily obtained, and a5 read
| lily disposed of, it became by ma aural proc
css a medium of payment in trans;;c ions o1
commerce That fund which was desirable
to all seeking investment, would be W llngly
in many instances. accepted in payment o
/ debts already existing, or for goods just pur
chased.
Whatever may have been tie malprac
tees which grew up in the usageS of the banE
in the first two hundred and fifty years of il
his Org, it fully vindicated in that period it
power and utility as financial agent of thu
y. q a nd II Qif n N
movements of commerce.
":rhe Republic coul well afford to maintain
liberal policy toward an institute N so impor
tant both 70 fiscal AMI commercial agent
Tn It the inhabitants of Venice were well sat
was ever made to tho bank, at last non, tha
is extaut; neither book nor sp Aech nor pam
phlet have we foun in which any merchan
or dive er in Ven ce ever put forth any con
demnat ON Of its theory or its practice. Ther
was no hesitation in carrying money to t.
bunk SO long as it was not doubted that banl
funds would pu chase spec.e without los
whenever it might be needed; and the uniform
premium of bank funds settled that point
Under such a system the regular payments o
trade would proceed with rapidity and ecoI
ony previously unknown SO far as the stor
of commerce informs Us. In this aspect it de
serves special examination -l-s. ., 81
, 1.-The facility of payment furnished by tn
. bank, which made it the admiration of Europe
honorable at It once % to the the Goyernment an IN
| 81
! pride and power of its people, consisted in sui
! shutting as a medium of payment, the del
, of the Republic Tor current coin
"Th's system of payments was SO we
! adaptsd to the exigencLes Of commerce tbs
r it was maint'ined in full yigor in the gres
, commercial ty OF Venice for almost for
2 hundred years.
t 1.-THE Bank of Venice enjoyed reputatio
! throughout the commercial world which pr
1 moted the success of Venetian trade.
ZIG
e ut was tower of financial strength to th
/ Republic in her long and expensive wars, an
= celebrity of the city, as well as to its powt
Y and wealth 4 -ra. .,+ v
i ITO comprch end this extraordinary fact
/, a credit on the boz ks of bank, with M MOI
3 ey in its vaults, and not bound to make tn;
r credit god in later times even by the pa
= WaV baving heen for III hpn3ra5s Of years si at at
@ high premium over gold an / silver. We ner
T only r:memb. that these credits were, II
: credits h I'd been convertible at will into IL
II precious metals, the agio could never hay
Q originated, much less alta ned Sd h gh po n
n for the moment the hold ,rs of credits a
Il vanced the price. specie, if q legal tende
n would have become the medium of paym N
n as the chaapar medium. Those who had Gee
Y on for gold and silver purchased with the!
d dspos t5 what was required, and, with 81 g
r exception, for more than four hundred yea
IL
g pared W tn the bank funds. the demand fl
q that which would pay bills of exchange beiI
greater than for gold or silver for any specl
4, use to which they could be applied.
r. The puJl C loan of Venice, which gay
,r origin to the bank, WAS forced, but the VINO
3, subsequent history of the bank and the pa
E. lie credit is one of entire confidence on Il
Y, part of the people. and admirable prudenc
% go d filth and forbearance on the part of II
IS Government. Venice made the public de
ID the chief currency or medium of exchange
to all the large operations of trade, and the pu
G. lie debt was wisely kept at that amount wni'
i5 not only preserved its value but furnished II
ID full quantity of currency required for ira
er with the means of increasing or diminishil
,f the amount according to the proper deman
~ This mutual confidence and pru lent manae
Sc ment are cred table alike to the financial SIX
u and Intelligence of all concerned. The Go
n, ernment enjoyed a loan free Of interest equ
ye to the whole cap tai of the bank without ha
Or ing given any special guarantee or any e.
to e1ncs of the debt, except an inscription