Sparks Commentary: Giving Congress the power to coin money was a break with British precedents

“The coining of money is in all states the act of the sovereign power; for the reason just mentioned, that it's value may be known on inspection.”

– William Blackstone's “Commentaries on the Laws of England” (1765), Book 1, Chapter 7

You might expect that in the Founding Fathers' time, the British Constitution would place the power of coining money into the Parliament. If so, you'd be wrong – in their time, it was the British monarchy that had this power, and the related power to regulate “weights and measures” as well. By contrast, the Constitution of the United States said that the Congress shall have the power to “coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures” (Source: Article 1, Section 8, Paragraph 5). The Constitution thus vests these powers in the legislative branch, rather than the executive branch. This was a major break with British tradition.

To illustrate this, I will quote from a source that was used by a number of our Founding Fathers. This source is William Blackstone's “Commentaries on the Laws of England” (better known as Blackstone's “Commentaries”), which was used specifically by Alexander Hamilton in the Federalist Papers. (All quotations from Blackstone's “Commentaries” in this particular post are from Book 1, Chapter 7, so I will not note this every time.) Everything in the first volume, including this chapter, was written in 1765.

Sir William Blackstone

In the Founding Fathers' time, the king had the power to regulate “weights and measures” …

Blackstone wrote in the “Commentaries” that “With us in England, the king's prerogative, for far as it relates to mere domestic commerce, will fall principally under the following articles: First, the establishment of public marts, or places of buying and selling, such as markets and fairs, with the tolls thereunto belonging.” (Source: Blackstone's “Commentaries”) Skipping to a later paragraph, Blackstone added that “Secondly, the regulation of weights and measures. These for the advantage of the public, ought to be universally the same [to reduce] all things to the same or an equivalent value. But, as weight and measure are things in their nature arbitrary and uncertain, it is therefore expedient that they be reduced to some fixed rule or standard: which standard it is impossible to fix by any written law or oral proclamation; for no man can, by words only, give another an adequate idea of a foot-rule, or a pound-weight. It is therefore necessary to have recourse to some visible, palpable, material standard; by forming a comparison with which, all weights and measures may be reduced to one uniform size: and the prerogative of fixing this standard, our ancient law vested in the crown; as in Normandy it belonged to the duke.” (Source: Blackstone's “Commentaries”) Blackstone was wrong about it being “impossible to fix [this] by any written law or oral proclamation.” Nonetheless, he was quite correct that this power was possessed by “the crown” in his time.

Sir William Blackstone

… and the power to coin money

In another paragraph, Blackstone added that “Thirdly, as money is the medium of commerce, it is the king's prerogative, as the arbiter of domestic commerce, to give it authority or make it current. Money is an universal medium, or common standard, by comparison with which the value of all merchandize may be ascertained: or it is a sign, which represents the respective values of all commodities. Metals are well calculated for this sign, because they are durable and are capable of many subdivisions: and a precious metal is still better calculated for this purpose, because it is the most portable. A metal is also the most proper for a common measure, because it can easily be reduced to the same standard in all nations; and every particular nation fixed on it it's own impression, that the weight and standard (wherein consists the intrinsic value) may both be known by inspection only.” (Source: Blackstone's “Commentaries”) Blackstone later added that “The coining of money is in all states the act of the sovereign power; for the reason just mentioned, that it's value may be known on inspection.” (Source: Blackstone's “Commentaries”)

Statue of Sir William Blackstone

The United States Constitution instead vested these powers in the new Congress …

The Founding Fathers agreed with much of Blackstone's reasoning, because they thought that coining money was a legitimate function of government (as was regulating its weights and measures). Even the Constitution's predecessor – the “Articles of Confederation” – had actually placed the power of coining money in the federal government - and specifically, the Congress, which was the only branch of the federal government that was then existing. Specifically, the “Articles of Confederation” had said that “the United States in Congress assembled” shall never “coin money, nor regulate the value thereof … unless nine States assent to the same” (Source: Section IX, Paragraph 6) The Constitution instead said that the Congress shall have the power to “coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures” without any such limitations (Source: Article 1, Section 8, Paragraph 5).

United States coinage from 1795

… and forbade the states from coining money of their own

The Constitution actually made another break with its American predecessor, when it forbade the states from coining money of their own. Its immediate predecessor – the “Articles of Confederation” – had instead said that “The United States in Congress assembled shall also have the sole and exclusive right and power of regulating the alloy and value of coin struck by their own authority, or by that of the respective States -- fixing the standards of weights and measures throughout the United States” (Source: Section IX, Paragraph 4) By contrast, the new Constitution would say that “No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make any thing 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.” (Source: Article 1, Section 10, Paragraph 1) Thus the states were forbidden to “coin money” under the new Constitution.

Constitution of the United States

The king alone had the power to provide for the punishment of counterfeiting …

As far as counterfeiting went, the monarchy of Great Britain had the power to provide for its punishment (as well as to enforce these said punishments). Blackstone wrote in the “Commentaries” that “With regard to the materials, sir Edward Coke lays it down [footnote], that the money of England must either be of gold or silver; and none other was ever issued by the royal authority till 1672, when copper farthings and half-pence were coined by king Charles the second, and ordered by proclamation to be current in all payments, under the value of six-pence, and not otherwise. But this copper coin is not upon the same footing with the other in many respects, particularly with regard to the offence of counterfeiting it.” (Source: Blackstone's “Commentaries”)

Sir Edward Coke, whom Blackstone was citing as a source in this passage

… but the Constitution instead vested this power in the Congress

The Constitution also contained some language about the “offence of counterfeiting” (as Blackstone had called it), and the ability to provide for its punishment as well. However, it instead vested this power in the legislative branch (as they did the power of coining money); by saying that the Congress shall have the power to “provide for the punishment of counterfeiting the securities and current coin of the United States” (Source: Article 1, Section 8, Paragraph 6). This was another break with British traditions, as noted earlier.

Continental $50 note from 1778

Conclusion: The Constitution was groundbreaking in this area (at least at the national level)

Thus, this was an area in which the Constitution was groundbreaking. I do not know if prior American state constitutions had vested these powers in a legislative branch, but the Constitution was among the first to do so at the national level (if not the first). It was also significant for forbidding the states from doing so, after the Constitution would later go into effect.

Footnote to this blog post:

When George Washington was president, the Congress passed the Coinage Act of 1792, which made the United States dollar into the national currency. The dollar has been the national currency ever since, and it was signed into law by President George Washington.

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