to those who become subject to its provisions the benefit of the exemption laws of the States in which they respectively reside, and the fact that these differ in liberality is not to be regarded as depriving the bankrupt law of the character of uniformity.1 Indeed, this is a just and equal rule, since the bankrupt's debts are contracted on the understanding that he is entitled to the exemptions provided by the laws of his own State, and creditors cannot complain when he is allowed them.

SECTION V. - THE CURRENCY.

Coining Money and regulating its Value. Among the most important of the powers conferred upon Congress is that "to coin money and regulate the value thereof and of foreign coin.” 2 This power would seem to be made exclusive by the further provision that no State shall "coin money," or "make anything but gold and silver a tender in payment of debts." The general purpose intended to be accomplished by these provisions was, to confer upon Congress the power of general regulation of the currency of the country, with a view to uniformity.

To coin money is to stamp pieces of metal for use as a medium of exchange in commerce, according to fixed standards of value. When money is thus coined and

1 Re Smith, 2 Woods, 458; Re Affold's Estate, 16 Am. Law Reg. 624. There are other decisions on the subject, and some of them are in conflict. See Re Deckert, 10 Bank. Reg. 1; Re Shipman, 14 Bank. Reg. 570.

2 Const., Art. I. § 8, cl. 5.

3 Const., Art. I. § 10, cl. 1. Practically, the power is made exclusive, though doubtless the States might legislate on the subject of legal tender, if at any time the legislation of Congress should be found not fully to cover the subject. And possibly a State might establish standards differing from those fixed by Congress, for the discharge of contracts subsequently made within the State. But when Congress alone can coin money and regulate its value, it is difficult to understand how this can be.

valued by sovereign authority, and when by law no other standard exists, it would by force of these facts become a lawful tender; but where money is coined of two or more metals, it is usual to restrict the legal tender quality of the baser metal to small sums, as has been done with silver, copper, and nickel coins in this country.

Legal Tender Paper. - It has been decided that Congress has power to make treasury notes a legal tender in the payment of debts previously as well as subsequently contracted.1 It is not agreed from what clause or portion of the Constitution this power is derived; and as the legal tender act was passed during the existence of a civil war which put the existence of the Union in peril, some jurists have been inclined to justify the exercise of the power as they would any other act made imperative by the extreme exigencies of war. But a power whose justification rests upon necessity can never be restricted to any one period or exigency; and from the nature of the justification it must rest in the discretion of Congress, to be exercised whenever in its opinion the need is sufficiently urgent. In the law it is declared that "United States treasury notes shall be lawful money";" as though the making them with the legal tender quality was the coining of money; but there is nothing in the debates attending the making and adoption of the Constitution, or in contemporary history, which would lead to the belief that the phrase "to coin money" was understood in a broader sense than is above expressed.

Changing Values. - Under the power to regulate, the legal value may be changed at discretion. As the relative

1 Legal Tender Cases, 12 Wall. 457, overruling Hepburn v. Griswold, 8 Wall. 602.

2 Rev. Stat. U. S. (1878), § 3588. See Trebilcock v. Wilson, 12 Wall. 687, 695, per Field, J.; and more particularly the opinion of Bradley, J., in Legal Tender Cases, 12 Wall. 554.

values of the different metals change from time to time, it becomes necessary to employ this power with a view to uniformity in standards, since otherwise the coin of least intrinsic value in proportion to its legal rating would in time drive the other from circulation. Any considerable change in the legal standards for any other reason is not to be expected, and, as it would operate to change the value of all existing credits, would be tyrannical.

Dues to the States. The States, in the exercise of their own sovereignty, will determine for themselves in what currency they will collect their taxes, and the act making treasury notes a legal tender can have no application as between a State and those upon whom the State imposes pecuniary burdens for its own necessary purposes.1 And private parties in their contracts may stipulate in what currency they shall be discharged, and the courts will enforce the stipulation. And, on common-law principles, a tender in whatever passes current as money in the business transactions of the day is a sufficient tender, if not objected to by the creditor at the time the tender is made.3

2

SECTION VI.—BILLS OF CREDIT.

Prohibition. The States are also prohibited to "emit bills of credit." This inhibition was in furtherance of the same general policy which took from the States the power to coin money and restricted their power over the legal tender. Previous to the Revolution, the Colonies from time to time had issued paper obligations, promising to pay to the holders certain definite sums of money, and had put these in circulation as money among the people. These

1 Lane County v. Oregon, 7 Wall. 71.

2 Brownson v. Rodes, 7 Wall. 229; Butler v. Horwitz, 7 Wall. 258; Trebilcock v. Wilson, 12 Wall. 687.

3 Warren v. Manis, 7 Johns. (N. Y.) 476; Snow v. Perry, 9 Pick. (Mass.) 540; Wheeler v. Knaggs, 8 Ohio, 169.

were bills of credit, based on the credit of the Colony issuing them; and they had had when issued an invariable tendency to depreciation and to the dishonor of the public credit. The Constitutional Convention, and the people in adopting their work, agreed that the States should surrender the power to repeat this painful history. The prohibition, however, does not go so far as to preclude the States from chartering banks of issue; for to "emit bills of credit" the State itself must put them out on its own credit.

Definition.

By bill of credit, then, is meant a bill issued by the State, involving the faith of the State, and designed to circulate as money on the credit of the State, in the ordinary uses of business.1 And the bills of a bank chartered by the State are not bills of credit in this sense, even though the State is sole stockholder in the bank,2 or though the State has pledged its credit for their payment in case the bank shall fail to do so.8

Standards.Congress is further empowered "to fix the standard of weights and measures." 4 When this power is exercised it is exclusive, or there would be no "standard."

SECTION VIII.-COUNTERFEITING.

Congress may also "provide for the punishment of counterfeiting the securities and current coin of the United States." 5

"This power," it has been said, "would naturally flow as an incident from the antecedent powers to borrow money

1 Craig v. Missouri, 4 Pet. 410; Woodruff v. Trapnall, 10 How. 109. 2 Briscoe v. Bank of Kentucky, 11 Pet. 257.

3 Darrington v. State Bank, 13 How. 12. 4 Const., Art. I. § 8, cl. 5.

5 Const., Art. I. § 8, cl. 6.

and regulate the coinage; and, indeed, without it those powers would be without any adequate sanction." It would also naturally include the punishment of uttering and publishing the forged securities and coin, and the having them in possession for that purpose; and such has been the practical construction. Nevertheless, the States may punish these acts, as offences against themselves.2

SECTION IX. -POST-OFFICES AND POST-ROADS. The Constitution. Congress is further given power "to establish post-offices and post-roads." Every road within a State, including railroads, canals, turnpikes, and navigable waters, existing or created within a State, becomes a post-road when by law or by the action of the post-office department provision is made for the transportation of the mail upon or over it. Whether by the power to establish post-roads any more was intended than a power to designate or point out what roads shall be mail roads, and the right of way along them when so designated, has always been and is still made a question. Many statesmen and jurists have contended that the power comprehends the laying out and constructing any roads which Congress may deem proper and needful for the conveyance of the mails, and the keeping them in due repair for the purpose. This last view has been acted upon by Congress in some instances. The power to establish post-offices includes everything essential to a complete postal system under federal control and management, and the power to protect the same by providing for the punishment as crimes of such acts as would tend to embarrass or defeat

8

1 Story on Const., § 1123.

2 Fox v. Ohio, 5 How. 410, 433.

See United States v. Marigold,

9 How. 560; Moore v. Illinois, 14 How. 13.

3 See 1 Kent, 268, and note; Story on Const., §§ 1128-1150, and notes; Wheeling Bridge Case, 18 How. 421; Dickey v. Turnpike Co., 7 Dana, (Ky.) 113.