Note 223 — Chapter I

Ibid. 224. September 18, 1786. Upon this attempt of Rhode Island and New Jersey to pay their proportions in their own paper currency, the report of a committee declared, "That, to admit the receipt of bills of credit, issued under the authority of an individual State, in discharge of their specie proportions of a requisition, would defeat its object, as the said bills do not circulate out of the limits of the State in which they are emitted, and because a paper medium of any State, however well funded, cannot, either in the extensiveness of its circulation, or in the course of its exchange, be equally valuable with gold and silver. That if the bills of credit of the States of Rhode Island and New Jersey were to be received from those States in discharge of federal taxes, upon the principles of equal justice, bills emitted by any other States must be received from them also in payment of their proportions, and thereby, instead of the requisitions yielding a sum in actual money, nothing but paper would be brought into the federal treasury, which would be wholly inapplicable to the payment of any part of the interest or principal of the foreign debt, or the maintenance of the government of the United States."