The times. [volume] (Richmond, Va.) 1890-1903, 1895-12-08
now TO SECURE A SOUND CUR
RENCY-THfRD ARTICLE

We have now gone over the elementary
principles OF this case to a point that
calls tor an hstoricai review OF IL.
The Americans who framed the Consti-
tuition OF the United States hundred
years ago were the wisest and most
knowing body of men that ever got to-
gether for elaboration. yhey understood
the principles that we have been discuss
ing. and they entirely appreciated the
fact that business was done In the main
by transfers of credits, and yet II was
not in The nature OF things that they
should understand the subject as IL has
been reyealed to us by the history of the
nineteenth century.
Steam aud electricity had not then been
applied to the transportation OF passen-
gers. freight, and intelligence. and they
We're, of course, ignorant of the way in
which these agencies were going to af-
feet the case. Under the developments of
the century these joined on to credits,
have become the real money of the world
But though they could not, OF course,
peer into the future and see how the mat
ter was 10 be affected by steam and cleo
tricity, they knew enough OF the elemen-
tary principles of business and finance
TO appreciate the necessity for leaving
private credit entirely free. They had
learned that the greatest lesson OF all
But they had learned. another lesson,
the converse OF this, and just as i'm
portant. which was that no money is
sues which the people were TO use as and
for money should rest upon the public
credit. They had lived through the dis
astrous period of the Revolutionary war
when both the continental government
and the government of each colony had
attempted to make paper promises resting
upon government credit perform the func-
lions Of money. and they had seen the
terrific failure of each experiment, and
the ruin and disaster which each en-
pertinent brough. In it's train. The me-
Inoirs and correspondence of the day
prove that one of the chief purposes the
trainers of the Constitution had in mind
was 10 make paper currency resting upon
governmental credit an impossibility for
all times In these United States, because,
though not legal-tender II il rested upon
public credit 1t would 10y degrees come to
be considered money. Mr.. Madison has
preserved TOR us a most remarkable de-
bate in the convention that framed the
Constitution that is worth quoting here.
The eighth clause of the seventh article
OF the first chapter OF the Constitution
was as follows:
The Legislature of the United States
shall have power to borrow money and
emit bills on the credit of the United
States" The journal of the convention
for August ie. 1857. makes this record
1T was moved and seconded TO strike
out the words. and emit bills and the
motion 10 strike out these words passed
in the afiirmatiye-yeas: New Hampshire,
Massachusetts. Connecticut. Pennsylva-
mia. Delaware. Virginia. North Carolina
South Carolina, Georgia-9; nays. New
Jersey, Maryland-2."
Mr.. Madison has refuted the discussion
which took place on the motion TO strike
out these words. "and emit bills" maxi
ing this comment for himself: Striking
out the words cut of the pretext for a
paper currency, and particularly for maxi
ing bills tender either for public or pri-
yate debts" That was Mr.. Madison's
view OF the effect OF this action. MIR.
Madison was the chief author OF the new
Constitution and Luther Martin. OF Mary
land, was its chief opponent. Martin was
a delegate to the convention. and OH his
return to Maryland ne read to the Mary
,sud House OF Delegates paper In which
he gave his account OF what had been
dome His account OF the effect Of this
action agrees entirely with Madison's--
mai Is. that II was intended TO suppress
.a,rr money, the question before the
Convention being, Shall power be granted
a. the Legislature OF the United States
80. Anil hills OF credit! 0ouverneur Nor
,,s said: III the United States have
credit such bills viii DO unnecessary; II
49, nave not. WIN b. unjust and use
-" Pierce DnfisFs q scum SssonAA'