The times. [volume] (Richmond, Va.) 1890-1903, 1897-02-11
,,o host. even in our efforts for relief,

rieascs him. and. although 'hele - "N
ono true theory OF finance. there are III
fact about as many theories as there
ore votes. our correspondent has az
much right to have his as any other citi-
zen has to have his. and while he con-
fines himself TO discussion of that theory
men nay differ with him, but no one
can criticise him for holding his opinion
But where he enters upon a discussion
NJ constitution questions the whole thing
is changed. We are there in domain.
which. to a large extent. has fixed and
well-known boundaries. We are able
10 cite the landmarks there, and. unless
the traveller has made a study of these
landmarks he is liable 10 find himself very
soon in the position of q mariner at sea
without rudder or compass.
Onr correspondents argument Is, that
because the States are forbidden by the
constitution to issue bills Of credit there
fore. the United States must have peeh
left with authority to issue them but
II our correspondent will examine the
records and debates Of tho convention
that framed the constitution, he VIII ma
that the eighth clause Of the seventh ar
ticle of that instrument as originally
drafted. read thus: THE Legislature OF
the United States shall have power TO
borrow money and emit bills on the cred
IT of the United States" 1t was moved
ana seconded, that the words "and emit
|
TO a great debate in which the leading
mon OF the country declared this to be
favorable opportunity TO end paper
money in this country, and the words
were stricken out by vote OF states
to ?.
our correspondent can find fun ac-
| count of the mattT in George Ban
crofts "a plea for the Constitution. IT,
therefore. anything is certain, 1t Is that
| the francis OF the constitution thought
they were. in tho language of Oliver Els
worth. in the debate shutting and bar
ring the door against paper money -
| that is. so far as the government OF the
| United States were concerned. That was
| the theory under which the government
was administered until the war. when the
exigencies Of the government caused all
| departments of it to set the constitution
aside to clothe the government with the
arbitrary and dictatorial power thought
necessary for carrying the war 10 sue
cessful end.
our correspondent is wholly in error
also in his notions about the clause for
bidding the States to issue bills of credit
| These are the facts about that matter:
Before and during the Revolutionary
war each State issued its own paper
money. the Confederation Of States issued
its paper money also. and the issues Of
both went utterly TO the dogs and be-
came worthless. The constitutional con-
vention was held while the minds of men
were filled with disgust at the paper
money idea The convention thought it
had ended the power of the United States
government to issue any more by strik-
ing out the words quoted, and it resolved
10 put an end to ali possibility OF the
separate States putting out any more Of
I
of credit That made the country a hard
money country. except as there might be
aids to the coin from private sources.
But. @nother error our correspondent
has fallen into. at that time the States
had already begun to charter banks that
issued notes and they were actually in
operation before the eyes of the convon-
ton and affording the people the greatest
possible convenience with their notes.
There was in operation before the eyes
Of the convention the Bank Of North
America, chartered by Pennsylvania, the
Bank Of Massachusetts. chartered by Mas
/ sachusetts. and other banks. reference 10
which may be seen in the opinion of
Justice Nelson in Veazie Bank VS. Fenio
$ Wall. at page 81. Though these banks
were actually issuing their notes that IN.
people were using, yet the convention
said not one word in condemnation OF
them. The inference is irresistible
therefore. that it expected the people &c
20 on I'm the use OF them. and Alexander
Hamilton says. in his report upon a
national bank. that tho convention ex-
pected the State banks TO continue issu
ing their notes.
our correspondent should sec the diff
ference between state issuing bills o.
credit and a State bank issuing its notes
The constitution leaves each in
dividual citizen perfectly free Il
put out as many Of his note.
; as he chooses. A State bank char
tered by State is IN no sense the State
1t is simply an aggregation OF individuals
doing together. with limited liability
what each one could have done before
But if this reasoning does not satisfy
our correspondent he can get perfectly
satisfied about it by reading the opinion
Of the Supreme Court of the Unite.
States in Briscoe vs.. The Bank, II Peters
S. G. r.. In which it decided that the pco
hilticn against a State issuing bills o
credit did not forbid u State to charter
bank TO issue the banks notes.
As for our correspondents remarks
upon modern progress. II is he, not VI
that would put shackles upon It, lii
would tie men down to the limited us'
Of their credit. which the national banl
act put upon IT, we would make credit
which is the real instrument with which
I 4. 80 fro. tI,. II