12 The Conservative *
THE SIONEV Ob' T1IK CONSTITUTION.
Various democratic , populistic and
popocrutic party platforms recently
adopted , spoik of "tho money of the
constitution. "
As those who use the expression most ,
and loudly proclaim that wo should re
turn to implying a departure from
"tho money of the constitution , " have
so far neglected to explain the phrase , it
mny not be unprofitable to consider it.
The following provisions of the consti
tution of the United States are appli
cable to the subject :
Article I , Sec. 1. All legislative
powers herein granted shall be vested in
a congress of the United States.
Article I , Sec. 8. Congress shall have
power First , * * * to pay the debts
* * * and provide for the general
welfare of the United States. Second ,
to borrow money on the credit of the
United States * * * Fifth , to coin
money , regulate the value thereof , and
of foreign coin * * *
Article I , Sec. 10. First , no state shall
coin money ; emit bills of credit ; make
anything but gold and silver coin a ten
der in payment , of debts * * *
The constitution contains no other
provisions tending to fix or indicate the
money standard , and it is certain that
the only controlling influences actually
effectual in making the money standard
have been the convenience of the com
mercial world , and the market values of
gold and silver.
Immediately after the adoption of the
constitution , the congress adopted ns the
money standard the silver dollar similar
to the Spanish milled dollar , then in
more general use in the country than
any other ono coin , and on account of its
familiarity more suitable than any other
as a standard.
The legal ratio of 15 to 1 , established
in 1792 , by overvaluing gold , caused it
to disappear from circulation , just as the
ratio of 1(5 ( to 1 , established in 1834 , by
overvaluing silver , "demonetized" it.
Since 1834 the actual "standard" has
been gold , not because afc all times so
prescribed by law , but because of the
common agreement of the business
world.
The first congress , composed largely
of the "makers of the constitution , "
frankly adopted the Spanish milled dollar
lar as the unit of value , for the reason
only that the people were used to it ,
oven though at that time most of the
commercial accounts were figured on
the basis of the English currency.
They sought to establish a ratio by
which , under free coinage , both gold
and silver could circulate , and the parity
* of gold with the standard be maintained.
It was a failure because the legal ratio
iVi
differed from the market ratio. They
well knew that any law providing for
the free and unlimited coinage of both
gold and tilver could never keep both
metals in circulation if for any con
siderable time the market and legal
ratios differed. They soon learned by
experience , an experience apparently not
availed of by some of the present gener
ation of statesmen , that "free and un
limited coinage of gold and silver" could
never bo made to work practically ,
because the legal ratio could not be
changed as often as the market ratio
fluctuated.
Let us examine the words of the con
stitution itself :
"No state shall * * * make any
thing but gold and silver coin a tender
in payment of debts. "
The words "gold and silver" occur in
no other place in the constitution of the
United States. This clause only limits
the power of the several states , and in
i.o way applies to congress ; its power
"to coin money and fix the value there
of" is in no way abridged ; if it were , the
copper and nickel coins , so familiar ,
would not exist. At the time of the
adoption of the constitution gold and
silver were chiefly used in the world as
money standards. Some nations used
ono metal , some another. Both circu
lated to some extent in all. The frauiers
of the constitution did not know which
ono the congress would adopt as the
standard , but it was practically certain
to adopt one or the other , and use both
as currency. In order to prevent the
states from usurping the national func
tion of emitting bills of credit , it was
thought proper to limit their power to
make anything legal tender not intrin
sically valuable and generally used as
currency.
To find iu this clause of the constitu
tional imitation upon or direction to con
gress , is as extravagant as would be the
discovery in the clause "no state shall
grant letters of marque and reprisal , "
an authority and direction to congress
to hoist the blaok flag on every Ameri
can ship.
The provibious of the constitution giv
ing congress the power "to pay debts ,
* * * provide for the general wel
fare , * * * borrow money on the
credit of the United States , * * *
coin money and regulate the value
thereof , " throw much more light on
this subject , though making no mention
of "gold and silver. "
A government is a vast business ; it
requires credit in proportion to its sixe
and the complexity of its relations to its
own people and other nations. The
credit of a nation must be established
as is the credit of an individual.
To "borrow money on credit" implies
not only the "power to pay debts , " but
the authority to inspire a faith that the
debts will bs paid , to establish credit
means to create confidence iu the ability
and intention to bo honest.
If we grant that governments might
rob their subjects or other governments ,
still no government can "borrow"
money unless it makes the world believe
it is going to pay it back in kind.
"To pay its debts" is to establish the
confidence enabling it to "borrow money
on its credit. " To "borrow money on
its credit" is an essential sovereign
function , and often vital in order "to
provide for the common defense an I
general welfare" of its citizens , or to
maintain its existence.
Congress is given power "to coin
money and regulate the value thereof. "
By the grant of this power an obligation
is created.
No government can maintain its
credit where there is doubt regarding
the certainty of its money standard.
Upon the weight , material and quality
of its standard coin all its debts are con
tracted. Those who have given it credit
have done so in the belief that the money
they loaned , as measured by that stand
ard coin , would be repaid. To change
the weight , material or quality of that
standard coin , without the consent of
those who have contracted , using it as a
measure of value , is to violate the law
of man , the law of nature and the ex
press command of God.
The advocates of "free silver at 10 to
1" are fond of appealing for the preser
vation of the "spirit of the constitu
tion. " The men who framed the
constitution and saw this struggling
nation born , would have been surprised
indeed to know that their successors
barely a century after , might interpret
"the spirit of the constitution" to war
rant the repudiation of one-half of the
national debt ; to warrant the deliberate
robbery of thousands , who , confiding in
the certainty of their country's money
standard , had bought life insurance for
their wives and children , put their earn
ings in savings banks and loan societies ,
and loaned their money upon the
promise of the United States itself.
To maintain the national credit is a
fundamental duty of congress. It is
accordingly by the "spirit of the consti
tution1' prohibited from making any
law which will debase the national
standard of values and the currency re
lated to it. The nation having borrowed
dollars under a law defining the stand
ard dollar to be one weighing 25.80.
grains , and to be of gold 900-1000 fine ,
must , to maintain its credit or honor ,
pay back such dollars or their equivalent
in value.
The spirit of the constitution demands
honest money. It demands legal tender
laws which can bo trusted. It demands
that the nation's ideal of honor be as
high as that of its noblest men and
purest women. But though wo mistake
its spirit , the letter of the constitution
is plain. Congress is empowered to
make laws , to pay debts , to provide for
the welfare , to borrow and coin money ,
iu express and unmistakable terms. To
exercise these powers rightly , even to
exercise them at all , imports the obliga
tion to make wise laws , to accomplish