POWER TO COIN MONEY AND FIX THE STANDARD OF WEIGHTS AND MEASURES.
§ 1111. THE next
power of congress is "to coin money, regulate the value thereof, and of
foreign coin, and fix the standard of weights and measures."
§ 1112. Under the confederation, the
continental congress had delegated to them, "the sole and exclusive right
and power of regulating the alloy and value of coin struck by their own
authority, or by that of the states," and "fixing the standard of
weights and measures throughout the United States." It is observable, that,
under the confederation, there was no power given to regulate the value of
foreign coin, an omission, which in a great measure would destroy any uniformity
in the value of the current coin, since the respective states might, by
different regulations, create a different value in each. 1
The constitution has, with great propriety, cured this defect; and, indeed, the
whole clause, as it now stands, does not seem to have attracted any discussion
in the convention. 2 It has been justly
remarked, that the power "to coin money" would, doubtless, include
that of regulating its value, had the latter power not been expressly inserted.
But the constitution abounds with pleonasms and repetitions of this nature.
§ 1113. The grounds, upon which the general
power to coin money, and regulate the value of foreign and domestic coin, is
granted to the national government, cannot require much illustration in order to
vindicate it. The object of the power is to produce uniformity of value
throughout the Union, and thus to preclude us from the embarrassments of a
perpetually fluctuating and variable currency. Money is the universal medium or
common standard, by a comparison with which the value of all merchandise may be
ascertained, or, it is a sign, which represents the respective values of all
commodities. 4 It is, therefore,
indispensable for the wants and conveniences of commerce, domestic as well as
foreign. The power to coin money is one of the ordinary prerogatives of
sovereignty, and is almost universally exercised in order to preserve a proper
circulation of good coin of a known value in the home market. In order to secure
it from debasement it is necessary, that it should be exclusively under the
control and regulation of the government; for if every individual were permitted
to make and circulate, what coin he should please, there would be an opening to
the grossest frauds and impositions upon the public, by the use of base and
false coin. And the same remark applies with equal force to foreign coin, if
allowed to circulate freely in a country without any control by the government.
Every civilized government, therefore, with a view to prevent such abuses, to
facilitate exchanges, and thereby to encourage all sorts of industry and
commerce, as well as to guard itself against the embarrassments of an undue
scarcity of currency, injurious to its own interests and credits, has found it
necessary to coin money, and affix to it a public stamp and value, and to
regulate the introduction and use of foreign coins. 5
In England, this prerogative belongs to the crown; and, in former ages, it was
greatly abused; for base coin was often coined and circulated by its authority,
at a value far above its intrinsic worth; and thus taxes of a burthensome nature
were laid indirectly upon the people. 6
There is great propriety, therefore, in confiding it to the legislature, not
only as the more immediate representatives of the public interests, but as the
more safe depositaries of the power. 7
§ 1114. The only question, which could
properly arise under our political institutions, is, whether it should be
confided to the national, or to the state government. It is manifest, that the
former could alone give it complete effect, and secure a wholesome and uniform
currency throughout the Union. The varying standards and regulations of the
different states would introduce infinite embarrassments and vexations in the
course of trade; and often subject the innocent to the grossest frauds. The
evils of this nature were so extensively felt, that the power was unhesitatingly
confided by the articles of confederation exclusively to the general government,
8 notwithstanding the extraordinary
jealousy, which pervades every clause of that instrument. But the concurrent
power thereby reserved to the states, (as well as the want of a power to
regulate the value of foreign coin,) was, under that feeble pageant of
sovereignty, soon found to destroy the whole importance of the grant. The floods
of depreciated paper money, with which most of the states of the Union, during
the last war, as well as the revolutionary war with England, were inundated, to
the dismay of the traveller and the ruin of commerce, afford a lively proof of
the mischiefs of a currency exclusively under the control of the states.
§ 1115. It will be hereafter seen, that
this is an exclusive power in congress, the states being expressly prohibited
from coining money. And it has been said by an eminent statesman,
10 that it is difficult to maintain, on
the face of the constitution itself and independent of long continued practice,
the doctrine, that the states, not being at liberty to coin money, can authorize
the circulation of bank paper, as currency, at all. His reasoning deserves grave
consideration, and is to the following effect. The states cannot coin money. Can
they, then, coin that, which becomes the actual and almost universal substitute
for money? Is not the right of issuing paper, intended for circulation in the
place, and as the representative of metallic currency, derived merely from the
power of coining and regulating the metallic currency? Could congress, if it did
not possess the power of coining money and regulating the value of foreign
coins, create a bank with the power to circulate bills? It would be difficult to
make it out. Where, then, do the states, to whom all control over the metallic
currency is altogether prohibited, obtain this power? It is true, that in other
countries, private bankers, having no legal authority over the coin, issue notes
for circulation. But this they do always with the consent of government, express
or implied; and government restrains and regulates all their operations at its
pleasure. It would be a startling proposition in any other part of the world,
that the prerogative of coining money, held by government, was liable to be
defeated, counteracted, or impeded by another prerogative, held in other hands,
of authorizing a paper circulation. It is further to be observed, that the
states cannot issue bills of credit; not that they cannot make them a legal
tender; but that they cannot issue them at all. This is a dear indication of the
intent of the constitution to restrain the states, as well from establishing a
paper circulation, as from interfering with the metallic circulation. Banks have
been created by states with no capital whatever, their notes being put in
circulation simply on the credit of the state. What are the issues of such
banks, but bills of credit issued by the state? 11
§ 1116. Whatever may be the force of this
reasoning, it is probably too late to correct the error, if error there be, in
the assumption of this power by the states, since it has an inveterate practice
in its favour through a very long period, and indeed ever since the adoption of
§ 1117. The other power, "to fix the
standard of weights and measures," was, doubtless, given from like motives
of public policy, for the sake of uniformity, and the convenience of commerce.
12 Hitherto, however, it has remained a
dormant power, from the many difficulties attendant upon the subject, although
it has been repeatedly brought to the attention of congress in most elaborate
reports. 13 Until congress shall fix a
standard, the understanding seems to be, that the states possess the power to
fix their own weights and measures; 14
or, at least, the existing standards at the adoption of the constitution remain
in full force. Under the confederation, congress possessed the like exclusive
power. 15 In England, the power to
regulate weights and measures is said by Mr. Justice Blackstone to belong to the
royal prerogative. 16 But it has been
remarked by a learned commentator on his work, that the power cannot, with
propriety, be referred to the king's prerogative; for, from Magna Charta to the
present time, there are above twenty acts of parliament to fix and establish the
standard and uniformity of weights and measures. 17
§ 1118. The next power of congress is, "to
provide for the punishment of counterfeiting the securities and current coin of
the United States." This power would naturally flow, as an incident, from
the antecedent powers to borrow money, and regulate the coinage; and, indeed,
without it those powers would be without any adequate sanction. This power would
seem to be exclusive of that of the states, since it grows out of the
constitution, as an appropriate means to carry into effect other delegated
powers, not antecedently existing in the states. 18
1. The Federalist, No. 42.
2. Journ. of Convention, 220, 257, 357.
3. Mr. Madison's Letter to Mr. Cabell,
18th Sept. 1828.
4. 1 Black. Comm. 276.
5. Smith's Wealth of Nations, B. 1, ch.
6. 1 Black. Comm. 278; Christian's note,
21; Darien's Rep. 48; 1 Hale's Pl. Cr. 192 to 196.
7. 1 Tucker's Black. Comm. App. 261.
8. Art. 9.
9. During the late war with Great
Britain, (1812 to 1814,) in consequence of the banks of the Middle, and
Southern, and Western states having suspended specie payments for their bank
notes, they depreciated as low as 95 per cent. discount from their nominal
value. The duties on imports were, however, paid and received in the local
currency; and the consequence was, that goods imported at Baltimore paid 20 per
cent. less duty, than the same goods paid, when imported into Boston. This was a
plain practical violation of the provision of the constitution, that all duties,
imports, and excises shall be uniform.
10. Mr. Webster's Speech on the Bank of
the United States, 25th and 28th of May, 1832.
11. This opinion is not peculiar to Mr.
Webster. It was maintained by the late Hon. Samuel Dexter, one of the ablest
statesmen and lawyers, who have adorned the annals of our country.
12. The Federalist, No. 49.
13. Among these. none are more elaborate
and exact, than that of Mr. Jefferson and Mr. J. Q. Adams, while they were
respectively at the head of the department of state.
14. Rawle on the Constitution, ch. 9, p.
15. Art. 9.
16. 1 Black. Comm. 276.
17. 1 Black. Comm. 276; Christian's
18. See Rawle on Constitution, ch. 9, p.
103; The Federalist, No. 49.
Next | Previous |
Contents | Text Version |