tution nowhere authorized the creation by the Government of a currency of any thing but the precious metals. It was clothed with express power "to coin money, regulate the value thereof, and of foreign coins." The process of coining referred to was then as well understood as writing and printing, and remains so to the present time. It meant preparing pieces of gold and silver of uniform sizes, and stamping them by mechanical power with known and authorized devices, indicating a legal specific measure of value. By conferring this express power, the Constitution necessarily excludes all implied or incidental powers on the subject. The more effectually to guard against any other currency, it was provided, that "no State shall . . . . coin money, emit bills of credit, or make any thing but gold and silver coin a tender in payment of debts." It is thus seen that the power of the national Government was express, but limited to coining money and declaring the value of foreign coins, and that the States were prohibited from exercising the like or similar power, or making paper a representative of coin, and declaring it a legal tender. The constitutional provisions were complete for securing a currency of gold and silver. If the Government deviates from this standard in any supposed emergency, it is without authority from the Constitution.

...

In legislating upon this subject, Congress fell into the error of undervaluing gold as compared with silver, which had the effect to drive gold out of circulation, and filling the channels with silver. Gold was sold as an article of merchandise above its stamped value. An effort was made to equalize the value of gold and silver, so that the former would be used in the larger, and the latter in smaller transactions and for change. The difficulty was, how to apportion the quantities, so as to secure actual equivalents. History and science were called in to aid, and experienced coiners and bankers gave their opinions; but doubts still existed. Mr. Campbell P. White, a member from the city of New York, reported a bill, but it did not become a law. Colonel Benton proposed to adopt the proportions so long used in Spain, and was supported by Mr. Cambreleng and some others, including the writer, and the bill became a law in January, 1837. Gold soon began to flow in the channels of

circulation, and continued to do so until the Legal Tender Act

of February 25, 1862. On the made a report to the House on

26th of March, 1836, the writer gold coinage, and introduced a

bill directing the coining of gold dollars, which was afterward authorized; and these coins were largely in circulation down to the suspension of the banks early in the late war.

Colonel Benton's agency in restoring the circulation of gold gave him the acceptable title of "Old Bullion." He was sustained in his efforts by President Jackson, who believed in and favored a currency having an intrinsic value at home and abroad. He remarked that he never knew an imitation of piety and virtue that was equal to real piety and virtue. In California and on the Pacific, gold is the standard, and is principally used; and the products of the earth and industry are at about former gold prices. East of the Rocky Mountains, the currency is paper, worth but little over half the value printed upon it. All former investments have diminished in value nearly one-half, and vibrate from day to day, according to the action of the Government and the scarcity in Wall Street. The currency used here will neither pay debts, nor pay travelling-expenses abroad, nor duties at the custom-house. Without selling it at a sacrifice, there are no legal means out of which gold and silver enough can be obtained to fill a tooth or make a thimble. Ignorant and reckless men have declared that this currency is as good as gold and silver. But they will not give either for it, nor will it buy much more than half as many of the necessaries and comforts of life. By using this depreciated currency, when gold could easily have been obtained, our public debt has been nearly doubled, owing to its depreciation, not purchasing much beyond half as much for the nominal amount, while we are left to wrangle about the currency in which this debt shall be paid. While silver and gold are the currency of the world, and of the Federal Government for nearly half its income-near $200,000,000 a year-all of which it pays out or sells, it will be difficult to make mankind believe in the legality or honesty of the Government in forcing the holders of any portion of the debt to receive at par a currency which it has voluntarily depreciated.

The Democracy demand the currency of the Constitution, and not that made outside of it. It will be of equal and uniform value to all, and injurious to no one. They desire protection in their property, preserving its value from the fluctuations incident to a vicious currency not authorized by the Constitution. As things now are, the value of their earnings may change to their ruin over night, without their having any means of preventing it. Our present currency is a perpetual see-saw. No one is safe in making contracts under it, because it does not always represent the same value. The Constitution requires a better one, and on the principle of protecting us from evils not unavoidable, the people have a right to demand a better one. The great argument, necessity-never true or valid-has gone by, and we are entitled to a currency as good as the rest of the world, and which will buy things at par the world over.

73.-DISTRIBUTION OF THE PUBLIC REVENUE.

The national Government had been in operation for nearly two generations before there was any surplus revenue which could be distributed, the old national debt not being finally discharged until 1833. The Constitution did not authorize distribution to the States, and it limited the power to collect taxes to paying national debts and providing for the common defence and general welfare of the United States. The framers of the Constitution were too wise to provide, for the collection of revenue-always attended with hazards and expenses-from the people at large and then distributing it, not to the people from whom collected, but to States, some of which may never have contributed to the fund to be distributed. Without such authority, Congress could make no distribution, nor even collect money for that purpose.

But events produced a surplus. The income of the Government, after the public debt was paid, exceeded its expenses. This surplus was deposited in the State banks selected as depositories for the public moneys. This stimulated discounts and increased importations and the sale of the public lands, which, of course, increased the surplus, which was again loaned out for the like purpose. These surpluses lighted the fires of the speculations of

1835-236, and added fuel to increase their burning. The surplus on hand became large, and the question arose, "How shall it be disposed of?" General Jackson preferred that it should be used in fortifications, in favor of which, General Cass, Secretary of War, made an able report. Some desired to improve the navigation of rivers and harbors, while not a few desired the Government to construct new harbors in aid of their speculations. But nothing definite was agreed upon.

In June, 1836, a bill establishing a system of depositing public moneys in State banks was before Congress. Sections, directing a distribution among the States, in form of deposits with the States, were proposed, under which the sovereign States apparently became the agents and money-keeping servants of the national Government. The provision covered all the moneys then on hand but five million dollars. The writer moved to except from the operation of the bill the money already appropriated, and sustained his views in a short speech. On this amendment, Mr. Hamer, from Ohio, demanded the yeas and nays, which were refused, and the proposed amendment was rejected.

The bill passed the Senate on the 18th of June, 1836, by yeas 40, and nays 6—Benton, Black, Cuthburt, Grundy, Walker, and Wright. It passed the House on the 22d of June-yeas, 155, nays 38. Fourteen of the latter were from New York, including the writer, and two from New Hampshire, including ex-President Pierce.

Undoubtedly some members believed that this was a real deposit act and that the States would consent to become deposit agents, and upon no other ground can many votes be accounted for. But that such was not the object, and that the States so understood it, cannot now be questioned. Some States refused to receive, others distributed per capita, and others applied the amount received in different ways. No interest was to be paid for the deposit, which has not to this day been called for, and no one expects it ever will be. New York added her share of this distribution to her common-school fund, applying the interest derived to the use of common schools.

It is possible that Congress thought that the then twenty-five

States comprised in the Union would constitute that number of good and obedient fiscal agents; but, were it not for the elevated character of some voting for this measure, it would be difficult to believe it. An infatuation seemed to seize upon the minds of men, completely precluding them from reasoning freely and accurately. Within a few days, many who had voted for the bill expressed their deep regrets. Those who voted against it nowhere received censure, but generally the reverse.

This act organized the State bank system of deposits, which had not been previously legalized by Congress. Land and other speculation increased with the deposits in these banks-a fatal consequence of their connection with the Government. Within less than a year they all exploded, carrying with them nearly every bank in the United States. The Government could only use the paper of specie-paying banks, and could deposit in none which did not so redeem. The Government, with nominal millions on deposit in the deposit banks, had not a dollar it could lawfully use. The deposit-bank system blew up, and was not worth repairing. The Government was financially at a stand still. Money, which a year before was so plenty as almost to burst the Treasury, had to be sent to the States to be kept, and would answer no lawful purpose under the Constitution. The situation of President Van Buren, who had just previously entered upon his duties, was extremely embarrassing. The abundant resources of the previous year had disappeared, and he was without means. But duty required action, and he was not the man to shrink from it. He issued a proclamation convening Congress, on the 4th of September, 1837, which was the earliest practicable day after the Tennessee and other Southwestern elections. An carlier day would have left some States without representation. The country was full of projected remedies. The friends of the United States Bank insisted that a recharter of that institution would remedy the evils. But Mr. Van Buren understood too well the cause of the suspension of specie payments, and the liability of frequent occurrence, to trust to that or any other banking corporations for remedy. He knew that the United States Bank was one of the causes of present difficulties by its irregular action and crippled