Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1886-02-07


specially groups them together and dele
gates to Congress the power " to coin
money, regulate the value thereof and
Of foreign coin, and fix the standard oil
weights and measures" y
Having granted these powers to Com
gress in the above comprehensive terms,
in order to leave no doubt that the
power was exclusively vested in Con-
gress, the Constitution proceeds to i'm
pose the following restrictions on the
power Of the States in section III oil the
same article: E.
mo State shall coin money, emit
bills of credit; make anything but goa
and silver coin tender in payment OF
debts"
Here we have a distinct declaration
embodied in the fundamental and SUI
preme law Of our country as to what
Shall be MONEY" having the faculty
of paying debts-viz.. "GoLD AND
SILVER COIN"
No State, unquestionably, can make
anything else than "gold and silver
coin " a legal tender in payment OF
debts. The prohibition is absolute and
unqualified.
Can Congress do so? answer en-
phatically No!
The inquiry may be made Why,
when the trainers Of the Constitution
were imposing a restriction on the pow
er Of the States to make anything but
"gold and silver coin" tender in
payment of debts, did they not impose
a similar restriction on the power OF
Congress?
The answer is plain and simple: As
to the States, the restriction was neces-
sary and proper as to the Federal
Government, it was unnecessary and
would have been improper.
1t must be remembered that each OF
the thirteen States which were repre-
scented in the Convention Of 1857, to
form the Federal Government, was an
absolutely independent, sovereign
State, which possessed every power IN
cident to sovereignty, and, among
others, the power Ito coin money,
emit bills of credit, and make gold and
silver coin, or anything else they might
think proper, tender in payment OF
debts"
As soon, therefore, as the Convention
had determined by section :, Article li.'
to delegate to Congress the power to
coin money, regulate the value thereof,
and of foreign coin, and fix the standard
of weights and measures" it became
necessary and proper to take away from
the States the right to exercise the same
powers. Hence the prohibition contained
in section IL Of the same article. In the
absence Of such a restriction two govern
ments would have possessed concurrent
jurisdiction over the same subjects,
which would doubtless have led to con-
hicting legislation, and caused infinite
confusion.
The Federal Government, on the other
hand. was not intended to be an abso-
lutely sovereign government. All Its
powers were derivatiye. 1t was to
possess none except such as were eX-
pressly granted or were necessary to
carry the granted powers into execu-
ton. 1t had no inherent powers which
it was necessary to limit by restrictions.
The grants of power to the Federal
Government were only Of such nature
and to such an extent as twas intended
it should exercise. The limitation of
power was contained in the grant itself.
| Hence there was no necessity for, or
propriety in, imposing an express pro-
hibition on it similar to that imposed
on the States. Why prohibit the exer-
else of a power which in fact did not
exist:
As has been seen from the citations
Of the Constitution above given. the
only money recognized in it is "GoLD
AND SILVER COIN" No power has
been delegated to Congress to make any
thing else tender in payment OF debts
and the power to do so has been taken
away from the States. Therefore, neither
has authority to make anything but
" gold and silver coin " lawful money.
Treasury-notes, greenbacks, bank
notes, and every other kind Of paper
currency are not money. They are
mere representatives Of or substi'
tutes for money. They are, in fact,
EVIDENCES OF DEBT \ treasury
note or greenback is an acknowledg
ment that the Government of the Uni
ted States OWES TO THE HOLDER TIKI
AMOUNT NAMED on ITS FACE, These
classes of paper are issued, not under
the clause Of the Constitution which
gives power to Congress to " coin mo
ney and regulate the value thereof,
but under clause Sd Of section 8, Ar
ticle H., which gives power to " Dor
roc money on the credit Of The Unifec
States" This clause carries with i
the power to issue notes or o6tigd
tions, in the most convenient form, fol
the payment Of the money borrowed.
And so of bank-notes. They are no
money; on the contrary, they are OBJ
legations of the bank which issues then
topGy money.
If the Government, or the banl
which issues these classes Of paper, il
undoubtedly solvent, they will b.
readily accepted IS a substitute fo
money. But such acceptance is purely
voluntary. No one can be required by
law to accept one promise TO pay in sat
isfaction OF another promise to pay. Ii
such transaction there is, in the ey'
of the law, no satisfaction or extin
guishment Of debt, but simply a sub
stitution, by consent, Of the obligation
Of one debtor for that Of another.
The Constitution having indicated
"gold and silver coin" as the only
money which can be made :" a tender il
payment Of debts" an important anC
, interesting question arises as to tn
power of either the State or Fedora
Government to make injurious discrimi
nations in favor Of one and against tn,