Evening star., 1938-10-10
DESIRES AMENDMENT
TO PROTECT COINAGE
Change Sought by Writer Who
Deplores Imitation.
TO the Editor Of The Star:


To the Editor Of The Star:
The Constitution, Section 8, Article I,
empowers Congress ITO coin money, reg
ulate the value thereof, and Of foreign
coin >" ."
Fiat money had been one Of the worst
curses of the colonies. Inasmuch as
Congress has only such powers as are
delegated to it by the States, it was gen.
orally thought that the Congress had
not the power to issue fiat money, that
Is 1rredeemable legal tender notes. But
the Supreme Court decided otherwise,
Juillard VS.. Greenman, ITO U. S. 421;
Gold Clause Cases, 294 U. S. 240, S.;
Holyoke Water Power Co. VS.. Am. Writing
Paper Co., 300 u S. 324.
Congress has authorized the Execu-
tive to embargo and impound gold and
to prohibit its transfer. (Act March 9,
1889; to order the Treasury to issue
greenbacks, irredeemable, legal tender
notes "a. A. A., section 43 CD 90; has
delegated to the President the power to
fix the weight Of the dollar within speci-
fled limits Gb. 3d. Congress has re-
pudiated payment Of bonds and currency
by joint resolution of June S, 1888; has
conf1scated, appropriated, gold, but used
the less disgraceful word transfer" by
act of January &c. 1884.
The power to regulate coinage has af-
forded opportunity under the guise OF
silver legislation to transfer large values
from our citizens even to our Mexican
comrades.
The President deprecated the dollar
by 10 59/105 grains, January 81, 1884.
Our currency is Cd fiat, irredeemable;
(O deprecated; 90 there is no standard
unit of value, because standard must be
a constant, but our dollar is variable.
changeable at the will of the President
and as said in the Holyoke Water case
"+ the value of the dollars fiuctuate
with the variations in the weight and
flneness of the monetary standard, and
thus defeat the expectation Of the par
ties 40; (4 inflated; as said by
President Buchanan message of De-
cember 8, 185D such notes may be used
to turn all the public debt into currency.
The amount of the currency may re-
spond to the deficits rather than to the
needs of commerce. The high of reserve
note circulation of 1888 is 21656 per cent
of the high of 1929.
Senator Thomas of Oklahoma intro
duced the clauses of A. A. A. specified
above. He said in effect that such act
might transfer value to the amount of
almost $200,000000,0 900 from owners of
bank accounts, of bonds and of fixed in
vestments! But bank accounts include
savings bank accounts and fixed invest
ments include life insurance policies.
Value is transferred from such owners
because they are creditors. But workers
and farmers are creditors! Nearly every
one has had value transferred from
him by the above legislation and the de-
preston has been prolonged and will be
prolonged until such acts will have been
repealed.
I therefore propose the following as
amendments to the Constitution to pre-
vent such legislation:
Add to the fifth clause of Section 8,
Article l. Changes in the metal of coins,
in the fineness thereof and of the
weight of the units Of the coin shall be
without prejudice to contracts entered
into before the change in the coinage;
two or more standard units of value of
different monetary metals shall not have
the same name nor names sufficiently
similar to be likely to be confused;
Add to Section 9, Article L:
Nothing but gold and silver coin shall
be made a tender in payment of debt.
Notes and other obligations may not be
made tender in payment Of debt but
obligations of the United States may be
made receivable for taxes, duties. i'm
posts and excises laid by the United
States.
The power of Congress to change the
metal fineness thereof and weight of
coins shall not be delegated
Monetary metals shall not be en-
bargoed, nor impounded, nor their trans
fer forbidden.
EDWARD HENRY NEARY.