The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1894-02-07
Concerning Fiat Money.

The task of enunciating the principles
of Jeffersouian Democracy is so pleasant
that we cannot resist the temptation to
turn to it again. Jeferson's principles.
like Albemarle pippins. have so tooth
some a favor, aud leave such delicious
impression on the palate that each one
gives increased Eest for another, aud
the more one tastes. the more one
wants.
We propose this morning to give a
somewhat full history Of the attitude.
not only of Jeffersonian Democracy,
bus all craftsmanship, of whatever party,
previous to 1860, in reference to the
Populist scheme of having the general
government issue billion dollars OF
legal teuder paper money.
The secret journals of the Constitu-
.ional Convention. published by order
Of Congress, are found in the first
volume of Elliott's Debates. From
them it appears that on the 9th of
August. 1857, a select committee
reported draft Of q proposed Constitu-
ton. Article VII of this draft related
to the powers Of Congress-. Among its
sections and clauses were the following:
81, to coin money; 5. to regulate the
value Of foreign coins /; 6, to fix the
standard of weights and measures;
Z, to establish postof6ces (; 8, to borrow
money aud emit bills on the credit OF
the United State"
On the 10Th. motion to strike out
the words, ..and emit bills" was car
ried by vote of nine States to tWo.
(New Jersey and Maryland.
Article XII provided that "no State
shall coin money" To this was added,
.enor emit bills Of credit. oor make
ANYTHING but gold aud silver coin a
tender in payment Of debts
Luther Martin, delegate from Mary
laud, published letter opposing the
ratification of the Constitution. In the
following words he calls attention to the
provision regarding money:
"By our original Articles of Confed-.
GRAFTON, the Congress have power to
borrow money and emit bills Of credit
on the credit of the United States !;
agreeable to which was the report on
this system as made by the committee
of detail. When we came to this part
Of the report motion was made to
strike out the words 'to emit bills of
credit" Against the motion We urged
that it would be improper to deprive
Congress: that it would be novelty
unprecedented to establish govern
ment which should not have such
authority. Tba, it was impossible to
look forward into futurity SO far as to
decide that events might not happen
that should render the exercise of such
power absolutely necessary; and that
we doubted whether If a var should
take place it would be possible for this
country to defend itself without having
recourse to paper credit, in which case
there would be necessity of becoming
prey to our enemies, or violating
the Con stituiion of our government; ;
aud that considering the administration
Of the government would be principally
in the hands of the wealthy, there
could be little reason to fear an abuse Of
the power by an unnecessary or injur-
ious exercise Of it
..But majority of the Convention.
(nine States to two, Ed. }
being wise beyond any event. aud
being willing to risk any possible evil
rather than admit. the idea of paper
emission on any possible case, refused
to ensrust this authority to govern
ment to which they we're lavishiog the
most unlimited powers of taxation and to
the mercy of which they we're willing
bliudly to trust the liberty and property
of the citizens of every State in the
Union; and they erased that clause
from the system" (Elliott's Debates !;
|, 413.)
The fathers of Constitution, most of
whom, it will be remembered, were after
wards Federalists, we're so mindful of
the disasters that had been caused by
paper issues of the colonies and of the
Congress during the Revolution, that
they deliberately preferred as Mr.. Mar;
tin shows. to risk any possible evil
rather than .admit the idea of paper
emission on any possible case," and
when they .erased that clause from the
Constitution they gave notice to the
world that, under she Constitution,
neither the Congress nor any State
should ever emit q bill of credit, or
make anything but silver and gold q
legal tender in payment Of debt. Still
more was such an issue abhorreut to the
strict constructionists of the Jeffersonian
school, after the Constitution was
adopted.