The midland journal. (Rising Sun, Md.) 1885-1947, 1893-12-15
QUESTIONS OF THE DAY.
A FINANCIAL HISTORY
Course and Effect of Legislation
Since 1851.
BY N. A. DUNNING.

BY N. A. DUNNING.
From The Nationa Waterman.
No. v.
Attorney General Bates declined to
give an official opinion, but consented to
write an unofficial note in favor of its
constitutionality. The following is
copy of the opinion thus obtained
MONDAY EVENING, Jan. 6, 1862.
Hon. b. G.. Spaulding, NJ. G.
At the National Hotel:
DEAR SIR Since you did me the
honor of call this afternoon, and pro-
pounded to me question arising out
of the pending bill "To authorize the
issue of Treasury notes payable on
demand" 1 have given to the subject
such attention as the very brief inter-
val afforded, and proceed at once to
answer.
In the first place, permit me to say,
that my views of the place / hold for
bid me to give your question formal
and official answer, but in proof of the
high respect which l entertain for you
and your honorable committee, l, as a
private man, and a protested constitu-
tional legist, in all frankness will give
you my opinion upon TIM point pro-
posed, and this, with all brevity and
without argument, for the time does
not allow elaborate consideration.
The bill, after providing for the
issue OF treasury notes, contains I. e.
this clause. land which treasury notes
shall be legal tender in payment of all
debts, public and private, within the
United States" and you desire my
opinion whether this clause is, or is
not, constitutional.
Certainly the Constitution contains
no direct verbal prohibition, and l
think it contains 90 inferential or
argumentive prohibition that can be
fairly drawn from its expressed terms.
The first article of the Constitution,
section eight, grants to Congress spe-
officially great mass of powers. Sec
ton nine contains divers limitations
upon Congress, upon the United States,
and upon individuals; and section ten
contains restrictions upon the several
states. This last section is the only
one that treats on tender. "No State
shall make anything but gold and silver
coin tender in payment Of debts. J"
This applies to State only, and not to
the nation; and thus it has always been
understood with regard to the next pre-.
ceding clause in the same section-no
State shall "emit bills OF credit" The
prohibition to emit bills of credit is
quite as strong as the prohibition to
make anything but gold and silver coin
legal tender yet nobody doubts
Congress does not doubt its power to
issue bills of credit. Treasury notes are
bills of credit, and l think the one is
just as much prohibited as the other
neither is forbidden to Congress.
The time is too short for argument,
and so l remain, with all respect,
1OuT ODeQlenG servant,
EDWARD BATES.
Mr.. Spaulding read this letter to the
Committee Of Ways and Means. The
discussion on the bill had continued for
several days, and when the vote was
finally taken, it appeared that the
Committee were at first equally divided
MIR. Spaulding, Mr.. Hooper, Mr..
Stevens and Mr.. Maynard voting in the
affirmative, and Mr.. Morrill,. Mr.. Hor-
ton, Mr. Corning and Mr.. Stratton in
the negative. Mr.. Stratton finally
consented to vote for the bill, so as to
allow it to be reported to the House.
The bill was thus passed through the
Committee of Ways and Means.
On the 7th of January, 1862, Mr.,
Spaulding reported the bill from the
Committee to the House. 1t was read
twice, committed to the Committee of
the whole House on the state of the
Union, and ordered to be printed.
(House Bill No. 1879
Mr.. Spaulding, from the Committee
of Ways and Means, reported the
following bill:
To authorize the issue of demand Treas.
ury notes.
at enacted By the Senate and House
of Representatives of the United States
of America an Congress assembled, That,
for temporary purposes, the Secretary
of the Treasury be, and he is hereby
authorized to issue, on the credit of the
United States, one hundred millions of
dollars of Treasury notes, not bearing
interest, payable generally, without
specifying any place or time of pay
ment, and of such denominations as he
MAJ deem expedent, not less than FIVE
dollars each and such notes, and all
other Treasury notes payable on de-
mand, not bearing interest, that have
been heretofore authorized to be issued,
shall be receivable for all debts and
demands due to the United States, and
for all salaries, dues, debts, and de-
mands owing by the United States to
Individuals, corporations, and associa-
tons within the United States; and
shall also be lawful money, aud legal