﻿THE PAST

9

revenue legislation of the Spanish-American War.
Certain issues of short-term obligations, otherwise
designated but in no manner different from cer-
tificates of indebtedness, are included in the fore-
going without however permitting this extension
to justify the inclusion of other emissions made
under these alternate terms, of essentially different
character.5 The detailed circumstances attending
these several issues are outlined in the standard
histories 6 of our national financing, and it will only
be necessary in this connection to refer to the salient
features which distinguished purpose and result.

(A)	With bitter experience in the use of co-
lonial and continental paper currencies fresh in
mind, the Federal Convention of 1789 debated long
and acrimoniously the proposal to deny both States
and Union authority “ to emit bills of credit.”7
Eventually the States were specifically prohibited,
and Congress was empowered only in the general
grant “ to borrow money on the credit of the United
States.” An express authorization was stricken
from the committee report, and the record of the
accompanying debate shows that reluctance “ to tie
the hands of the Legislature ” as to full borrowing

5	Thus the “ treasury notes of 1890,” issued under the silver
purchase clause of the Sherman Act of 1890 have not been
included.

6	Knox, “ United States Notes ” (third edition revised, New
York, 1892); Bayley, “History of the National Loans of the
United States ” (Tenth Census of the United States, vol. vii,
Washington, 1884) ; Bullock, “ Essays on the Monetary His-
tory of the United States” (New York, 1900); Dewey, “Fi-
nancial History of the United States” (New York, 1903).

7	Knox, chap. i-v.