Madison's Notes
Observations On The Federal Convention
Thursday, August 16, 1787
In Convention of the Whole
Mr. Govr Morris moved to strike out "and emit bills on the credit of the U.
States" -- If the United States had credit such bills would be unnecessary:
if they had not unjust & useless.
Mr Butler, 2ds. the motion.
Mr. Madison, will it not be sufficient to prohibit the making them a tender?
This will remove the temptation to emit them with unjust views. And
promissory notes in that shape may in some emergencies be best.
Mr. Govr. Morris. striking out the words will leave room still for notes of
a responsible minister which will do all the good without the mischief. The
Monied interest will oppose the plan of Government, if paper emissions be
not prohibited.
Mr. Ghorum was for striking out, without inserting any prohibition. if the
words stand they may suggest and lead to the measure.
Col Mason had doubts on the subject. Congs. he thought would not have the
power unless it were expressed. Though he had a mortal hatred to paper
money, yet as he could not foresee all emergences, he was unwilling to tie
the hands of the Legislature. He observed that the late war could not have
been carried on, had such a prohibition existed.
Mr Ghorum-- The power as far as it will be necessary or safe, is involved in
that of borrowing.
Mr Mercer was a friend to paper money, though in the present state & temper
of America, he should neither propose nor approve of such a measure. He was
consequently opposed to a prohibition of it altogether. It will stamp
suspicion on the Government to deny it a discretion on this point. It was
impolitic also to excite the opposition of all those who were friends to
paper money. The people of property would be sure to be on the side of the
plan, and it was impolitic to purchase their further attachment with the
loss of the opposite class of Citizens
Mr. Elseworth thought this a favorable moment to shut and bar the door
against paper money. The mischiefs of the various experiments which had been
made, were now fresh in the public mind and had excited the disgust of all
the respectable part of America. By withholding the power from the new
Governt. more friends of influence would be gained to it than by almost any
thing else- Paper money can in no case be necessary- Give the Government
credit, and other resources will offer- The power may do harm, never good.
Mr. Randolph, nothwithstanding his antipathy to paper money, could not agree
to strike out the words, as he could not foresee all the occasions that
might arise.
Mr Wilson. It will have a most salutary influence on the credit of the U.
States to remove the possibility of paper money. This expedient can never
succeed whilst its mischiefs are remembered. And as long as it can be
resorted to, it will be a bar to other resources.
Mr. Butler. remarked that paper was a legal tender in no Country in Europe.
He was urgent for disarming the Government of such a power.
Mr Mason was still averse to tying the hands of the Legislature altogether .
If there was no example in Europe as just remarked it might be observed on
the other side, that there was none in which the Government was restrained
on this head.
Mr. Read, thought the words, if not struck out, would be as alarming as the
mark of the Beast in Revelations.
Mr. Langdon had rather reject the whole plan than retain the three words
"(and emit bills".)
On the motion for striking out
N. H. ay- Mas. ay. Ct. ay. N-J. no. Pa. ay. Del. ay. Md. no. Va. ay.8 N. C-
ay. S. C. ay. Geo. ay. Ayes -- 9; noes -- 2.]
The clause for borrowing money, agreed to nem. con.
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