Year: 1879

the measure of exchange, foreign ana domestic,
and that the power to coin and regulate the
value of money is an essential attribute OF ma
tional sovereignty. Such qualities,
all agree, are united in much greater degree
in gold and silver than in any other known
commodity, which was as well known to the
members of the convention who framed the
Constitution as to any body of men since as
sembled and intrusted, to any extent, with the
public affairs. They not only knew that the
money of the commercial world was gold and
silver, but they also knew from bitter expert
ence that paper promises, whether issued BY
the States or United States, were utterly worth
less as standard of value for any practical
purpose.


THE OPINION OF THE FATHERS.


Evidence of the truth of these remarks of the
most convincing character is to be found In the
published proceedings of that convention
Debate upon the subject first arose when an
amendment was proposed to prohibit the
States from emitting bills of credit or making
anything but gold and silver coin tender in
pavment of debts From the character of that
debate and the vote on the amendment it be-
came apparent that paper money had but few
if any friends in the convention. Article OF
the draft of the Constitution, as reported to
the convention, contained the clause, "and
emit bills on the credit of the United States"
appended to the grant of power vested i'll Con-
gress to borrow money and it was on the mo-
tion to strike out that clause that the principal
discussion in respect to paper money took
place. Mr.. Madison inquired if it would not
be sufficient to prohibit the making of such
bills tender, as that would remove the temp
tation to emit them with unjust views. Promis-
sorry notes. he said, in that shape, that is when
not a tender, ''may in some emergencies be
best" Some were willing to acquiesce in the
modification, suggested by Mr.. Madison but
Mr.. Morris, who submitted the motion, OBJ
iected, insisting that if the motion prevailed
there would still be room left for the notes of a
responsible minister, which, as he said, would
do all the good without the mischief" De-
cided objections were advanced by Mr.. ELS
worth, who said he thought the moment fav-
orable one to fshut and bar the door against
paper money! and others expressed their op-
position to the clause. in equally decisive Ian
guage even saying that they would sooner see
the whole plan rejected than retain the three
words, "and emit bills" Suffice it to say,
without reproducing the discussion, that the
motion prevaled-nine States to two-and the
clause was stricken out and no attempt was
ever made to restore it. Paper money as legal
tender had few or no advocates in the
convention, and it nerer had more than
one open ddU0cdte throughout the period
the Constitution was under discussion,
either in the convention which framed
it or in the conventions of the States
where it was ratified Virginia voted in the
affirmative ON the motion to strike out that
clause, Mr.. Madison being satisfied that if the
motion prevailed it would not have the effect
to disable the Government from the use OF
Treasury notes, and being himself in favor of
''cutting off the pretext for paper currency,
and particularly for making the bills a legal
tender either for public or private debts"
When the draft for the Constitution was re-
ported the clause prohibiting the States from
making anything but gold and silver tender
in payment of bills contained an exception,
Sin case Congress consented" but the conven-
ton struck out the exception and made the
prohibition absolute, one of the members re-
marking that it was favorable moment to
crush out paper money, and all or nearly all
of the convention seemed to concur in the SEN
timent. Contemporaneous acts are certainly
evidence of Intention and if so it is difficult to
see what more is needed to show that the men,
bers of that convention intended to withhold
from the States and from the United States all
power to make anything but gold and silver
standard of value or tender in payment OF
debts. Equally decisive proof to the same eff
feet is found in the debates which subsequently
occurred in the conventions of the several
States, to.whieh the Constitution, as adopted,
was submitted for ratification. Mr. Martin
thought that the States ought not to be totally
deprived of the right to emit bills of credit, but
he SAYS that "the convention was so smitten
with the paper money dread that it insisted
that the prohibition should be absolute"


FEDERAL MONEY MUST BE METAL MONEY.


Currency is word much more comprehen-
sive than the word money, as it nay include
bank bills and even bills of exchange, as well
as coins of gold and silver; but the word money,
as employed in the grant of power under con-
sideration, means the coins of gold and silver,
fabricated and stamped as required by law,
which by virtue of their intrinsic value as uni
versaily acknowledged, and their official ORR
gin, become the medium Of exchange and the
standard by which all other values are ex-
pressed and discharged Support to the propo-
sition, that the word money, as employed in
that clause, was intended to be used in the
sense here supposed is also derived from the
language employed in certain numbers of the
Federalist which, as is well known, were
written and published during the period when
the question whether the States would ratify
the Constitution was pending in their several
conventions. Such men as the writers of those
essays never could have employed such Ian
guage if they had entertained the remotest
idea that Congress possessed the power to make
paper promises legal tender Like support is
also derived from the language of Mr.. Hamil-
ton in his celebrated report recommending the
incorporation Of national bank. He first
states the objection to the proposed measure
that banks tend to Danish the gold and silver
of the country, and secondly he gives the an
swer to that objection made by the advocates
of the bank that it is immaterial what serves
the purpose of money, and then says that the
answer is not entirely satisfactory, as the per-
manent increase or decrease of the precious
metals in a country can hardly ever be mat
ter of Indifference. ''As the commodity taken
in lieu of every other, it (coin) is a species OF
the most effective wealth, and as the money OF
the world it is of great concern to the State
that it possesses sutfieiency of it to face any
demands which the protection of its external
interests may create" He favored the incor-
poration of a national bank with power to is
sue bills and notes payable ON demand in gold
and silver, but he expressed himself as utterly
opposed to paper emissions by the United
States, characterizing them as so liable to
abuse and even so certain of being abused that
the Government ought never to trust itself
with the use of SO seducing and dangerous an
element. Opposed as he was to paper ennis
sions by the United States, under any circum-
stances, it is past belief that he could ever have
concurred in the proposition to make such
elnlSSlolS u teHuer III payment Oh ueDtS, eltner
as a member of the convention which framed
the Constitution or as the head of the Treasury
Department.


HISTORY OF TREASURY NOTES.


Treasury notes, however, have been repeat
edly authorized by Congress, commencing with
the act of Goth Of June, 1912, but it was never
supposed before the time when the several acts
in question were passed that Congress could
make such notes legal tender in payment OF
debts. Such notes, it was enacted, should be
received in payment of all duties and taxes
laid, and in payment for public lands sold, by
the Federal authority. Provision was also
made in most or all of the acts that the Secre-
tary of the Treasury, with the appreciation of
the President, might cause Treasury notes to be
issued, at the par value thereof, in payment
of services of supplies, or of debts for which
the United States were or might be answer
able by law, to such person or persons as should
be willing to accept the same in payment; but
it never occurred to the Legislators of that day
that such notes could be made legal tender
in discharge of such Indebtedness, or that the
public creditor could be compelled to accept
them in payment of his just demands.