Monopolies -- United States; Railroads and state -- United States
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 a tender in payment of debts, and from the character of that
debate, and the vote on the amendment, it became apparent that paper
money had but few, if any friends in the convention. Article seven 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 in congress to borrow money, and
it was on the motion 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 such bills a tender,
as that would remove the temptation to emit them with unjust views.
Promissory 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, objected, 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." Decided objections
were advanced by Mr. Ellsworth, who said he thought the moment a
favorable one "to shut and bar the door against paper money;" and others
expressed their opposition to the clause in equally decisive language,
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 prevailed--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 never had more than one open advocate 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 a paper currency, and particularly for making the bills a tender,
either for public or private debts_." When the draft for the
constitution was reported the clause prohibiting the states from making
anything but gold and silver a tender in payment of debts contained an
exception, "in case congress consented," but the convention struck out
the exception and made the prohibition absolute, one of the members
remarking that it was a favorable moment to crush out paper money, and
Public-domain text, read in full here on John Shaqi.
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