To All Constitutionalists:

My memory may be fooling me, but I seem to recall that some reader, here, lamented the fact that the Constitution failed to mention the printing of paper money.

I have been re-reading the Federalist Papers, which, by the way, are always referenced by the Supreme Court, during debates on Constitutional questions, and found that the Federalist Paper, No.44, by James Madison, directly, refers to paper currency.

The interesting point is that it is referred to under the proviso that the "sovereign states shall not issue bills of credit," (ARTICLE 1, SECTION 10.)

The Father of the Constitution, James Madison, writes in Number 44 of the Federalist Papers:

"The extension of the prohibition to bills of credit must give pleasure to every citizen, in proportion to his love of justice and his knowledge of the true springs of public prosperity. The loss which America has sustained since the peace from the pestilent effects of paper money on the necessary confidence between man and man, on the necessary confidence in the public councils, on the industry and morals of the people and on the character of republican government, constitutes an enormous debt against the States chargeable with this unadvised measure, which must long remain unsatisfied; or rather an accumulation of guilt, which can be expiated no otherwise than by a voluntary sacrifice on the altar of justice of the power which has been the instrument of it. In addition to these persuasive considerations, it may be observed that the same reasons which show the necessity of denying to the States the power of regulating coin, prove with equal force that they ought not to be at liberty to substitute a paper medium in the place of the coin."

The inclusion of the prohibition of bills of credit, to the States, in Article 1, Sec. 10, clearly includes the foregoing justification in the Constitution. Article I, Sec. 10 states:

"No State shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit letters of credit;, make anything but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility." (Article I, Section 10, the Constitution of the United States.)

Paper money--bills of credit--may not be issued by any of the SOVEREIGN States.

Although today's Federal Reserve Notes are not, truly, bills of credit, as their redemption in coin has been eliminated, the legal interpretation of the term, "bills of credit" in the Federalist Papers, No. 44, clearly indicates that item's definition as paper currency.

If paper currency has been prohibited as a right of a SOVEREIGN State, by the Constitution, it would clearly indicate that it is prohibited as a right for a private corporation such as the Federal Reserve.

Is this why Ithaca Hours, etc., have been permitted to be circulated by the government? Would not the litigation resulting from an attempt to eliminated Ithaca Hours, expose the Constitutional prohibition of paper currency's issuance, as being a sole right of the Federal Government?

By defining our government as one "..of the people, by the people, and for the people...", this definition of bills of credit in the Federalist Papers of James Madison, clearly, dictates that paper money's issuance is a right of the people, as stated in the U.S Constitution. Is this the reason the Ithaca Hours are not attacked by the moneylenders?

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