HKB
If the consent of the Legislature could authorize emissions of it, the friends of paper money would make every exertion to get into the Legislature in order to license it.
The question being divided; on the 1^{st} part--"nor emit bills of credit" N. H. ay. Mas. ay. C^t ay. P^a ay. Del. ay. M^d div^d. V^a no. N. C. ay. S. C. ay. Geo. ay.
The remaining part of M^r Wilson's & Sherman's motion was agreed to nem: con:
M^r King moved to add, in the words used in the Ordinance of Cong^r establishing new States, a prohibition on the States to interfere in private contracts.
M^r Gov^r Morris. This would be going too far. There are a thousand laws, relating to bringing actions--limitations, of actions & which affect contracts. The Judicial power of the U. S. will be a protection in cases within their jurisdiction; and within the State itself a majority must rule, whatever may be the mischief done among themselves.
M^r Sherman. Why then prohibit bills of credit?
M^r Wilson was in favor of M^r King's motion.
M^r Madison admitted that inconveniences might arise from such a prohibition but thought on the whole it would be overbalanced by the utility of it. He conceived however that a negative on the State laws could alone secure the effect. Evasions might and would be devised by the ingenuity of the Legislatures.
Col: Mason. This is carrying the restraint too far. Cases will happen that cannot be foreseen, where some kind of interference will be proper & essential. He mentioned the case of limiting the period for bringing actions on open account--that of bonds after a certain lapse of time--asking whether it was proper to tie the hands of the States from making provision in such cases?
M^r Wilson. The answer to these objections is that retrospective interferences only are to be prohibited.
M^r Madison. Is not that already done by the prohibition of ex post facto laws, which will oblige the Judges to declare such interferences null & void.
M^r Rutlidge moved instead of M^r King's Motion to insert--"nor pass bills of attainder nor retrospective[44] laws" on which motion
N. H. ay. C^t no. N. J. ay. P^a ay. Del. ay. M^d no. Virg^a no. N. C. ay. S. C. ay. Geo. ay.
[44] In the printed Journal--ex post facto.--Madison's Note.
M^r Madison moved to insert after the word "reprisal" (art. XII) the words "nor lay embargoes." He urged that such acts by the States would be unnecessary--impolitic--and unjust.
M^r Sherman thought the States ought to retain this power in order to prevent suffering & injury to their poor.
Col: Mason thought the amendment would be not only improper but dangerous, as the Gen^l Legislature would not sit constantly and therefore could not interpose at the necessary moments. He enforced his objection by appealing to the necessity of sudden embargoes during the war, to prevent exports, particularly in the case of a blockade.
M^r Gov^r Morris considered the provision as unnecessary; the power of regulating trade between State & State already vested in the Gen^l Legislature, being sufficient.
On the question
N. H. no. Mas. ay. C^t no. N. J. no. P^a no. Del. ay. M^d no. V^a no. N. C. no. S. C. ay. Geo. no.
M^r Madison moved that the words "nor lay imposts or duties on imports" be transferred from art: XIII where the consent of the Gen^l Legislature may license the act--into art: XII which will make the prohibition of the States absolute. He observed that as the States interested in this power by which they could tax the imports of their neighbors passing thro' their markets, were a majority, they could give the consent of the Legislature, to the injury of N. Jersey, N. Carolina &c.
M^r Williamson 2^{ded} the motion.
M^r Sherman thought the power might safely be left to the Legislature of the U. States.