Roger Sherman Caveat

Roger Sherman
A CAVEAT·
AGAINST
INJUSTICE
or
An Inquiry into the Evils of a
Fluctuating Medium of
Exchange
CONTEJ
I believe
Mr. Sherman would
dedicate this to the A LIVING VOICE
Mirade Workers.
-FTS Foreword by F. TuppE
'
\ A CAVEAT AGAINST I
PLATES FROM THE 01

DEFOREEST EDITIO:
SELECTED BIBLIOGRJ
, )."
Copyright 1982 by
SPENCER JUDD, PUBLISHERS
All Rights Reserved
Manufactured in the United States of America

CONTENTS
PAGE
A LIVING VOICE
Foreword by F. Tupper Saussy..... 9
A CAVEAT AGAINST INJUSTICE... 29
PLATES FROM THE ORIGINAL

DEFOREEST EDITION (1752) . . . . . 44
SELECTED BIBLIOGRAPHY. . . . . . . . 58
"By a continuing process of inflation, governments can confiscate, se- FOREWO:
cretly and unobserved, an important part of the wealth of their citizens.
There ls no subtler, no surer means of overturning the existing basis of
society than to debauch the currency. The process engages all the hidden
forces of economic law on the side of destruction, and does it in a manner A LIVING
which not one man in a million is able to diagnose."
-John Maynard Keynes,
THE ECONOMIC CONSEQUENCES OF
THE PEACE, 1920
\i
"Paper money polluted the equity of our laws, turned them into engines
of oppression, corrupted the justice of our public administration, destroyed
the fortunes of thousands who had confidence in it, enervated the trade,
husbandry, and manufactures of our country, and went far to destroy the
morality of our people."
-Peletiah Webster, 1789
"The intent of the legislators constitutes the law."

-U.S. Supreme Court
STEWARD vs. KAHN, 78 US 504
Any student of ~he

economic systE
to be familiar with United States monel
country must flow in pursuance of th•
the student should base his study of m
provisions contained in the Constitutic
It's not widely known that the Const
Indeed, most people are surprised to I
the Constitutional Convention, as desc
in a report to Congress in 1786 recom1
vention, was
to take into consideration the trade and com
What was wrong with trade and cor

They were being twisted all out of sha
an elastic currency, the very stuff th
today.
Our first constitution, the Articles c
severely deficient in the economic rigl
empowered Congress to emit a paper,
states to retain their power to make
payment of debts, that is, to compel 1
result? A warping of personal and bus
8 9
FOREWORD:
\.
L.
"A LIVING VOICE
~ '
I
I
Any student of the economic system of the United States ought

to be familiar with United States monetary law. Since all laws in this
country must flow in pursuance of the United States Constitution,
the student should base his study of monetary law on the economic
provisions contained in the Constitution.
It's not widely known that the Constitution deals with economics.
Indeed, most people are surprised to learn that the sole purpose of
the Constitutional Convention, as described by Alexander Hamilton
in a report to Congress in 1786 recommending that there be a con-
vention, was
to take into consideration the trade and commerce of the United States.
What was wrong with trade and commerce in the United States?
They were being twisted all out of shape by an inflating baUoon of
an elastic currency, the very stuff the Federal Reserve provides
today.
Our first constitution, the Articles of Confederation (1781), was
severely deficient in the economic rights department. The Articles
empowered Congress to emit a paper currency, while allowing the
states to retain their power to make this paper a legal tender in
payment of debts, that is, to compel people to use the stuff. The
result? A warping of personal and business relations in the United
9
10 A CAVEAT AGAINST INJUSTICE A CAVEAT AGAINS
States that drove George Washington (and God knows how many The power the states had reserved
other folks) to depression and nervous exhaustion. Suffering the eration, the power to make any thing
compounded agonies inflicted by a paper monetary system of un- power indeed. The power to compel
controllable value fluctuations, Washington wrote these dismal no intrinsic value in exchange for som
words to James Madison on the eve of the Convention: rob people of their property "secret]
The wheels of government are clogged, and we are descending into the put it in the 1920's, "and unobserved
vale of confusion and darkness. No day was ever more clouded than the The United States Constitution is 01
present. We are fast verging to anarchy and confusion. between people and government tha
The deliberate purpose of the 1787 Constitutional Convention was out into the open for all to see and cc
to stop the ravages of a fluctuating medium of exchange by obli- Paper, James Madison eloquently e>
gating government to maintain a reliable medium of exchange. giving up their power to compel citize
President Andrew Jackson validated this fact in his Eighth Annual paper money:
Message to Congress, December 5, 1836, just 47 years after the Con- The loss which America has sustained f
stitution was ratified by the states: money on the necessary confidence betw1
sary confidence in the public councils, or
.. .It was the purpose of the Convention to establish a currency consisting people, and on the character of republican
of the precious metals. These were adopted by a permanent rule excluding mous debt against the States chargeable wi
the use of a perishable medium of exchange, such as of certain agricultural must long remain ... an accumulation of l
commodities recognized by the statutes of some States as tender for debts, otherwise than by a voluntary sacrifice or
or the still more pernicious expedient of paper currency. which has been the instrument of it.
This "permanent rule excluding the use of the pernicious expe- The states' voluntary sacrifice hastil
dient of paper currency" is an exquisitely simple piece of legislative the vale of confusion and darkness,
machinery. In Article I Section 8, the Framers gave Congress the ernment, brightened the day, and res·
power nine months after the "permanent 1
.. , to coin Money, regulate the Value thereof, and of foreign Coin, and fix the expedient of paper currency" was rat:
Standards of Weights and Measures. ber 16, 1789 edition of The Pennsylvam
In Article I Section 10, the Framers denied the states any power to Since the federal constitution has rem<
coin and issue money. More importantly, they denied the states the paper tender, our trade is advanced fifty
trust their cash abroad, and have brought :
power to ordain ~ in the payment of debts - the use of anything
but the money Congress was empowered to coin. The substance of that And in June, 1790, a little more tl
coin is named in the denial: mvch happier George Washington w
No State shall coin Money, emit Bills of Credit, make any Thing but gold
Marquis de LaFayette that
and silver Coin a Tender in payment of Debts. Our revenues have been considerabl)
imagined they would be. I mention this to
Through the Framers, then, the People of the United States prevails.
appointed the states to be custodians of the American monetary
system. If Congress ceased coining gold and silver, causing gold
and silver coin to stop circulating, the states would be unable to
compel their citizens to pay any debts, public or private. It was the
responsibility of an ever-vigilant union of states to keep Congress
coining gold and silver, thereby preserving interstate commerce,
preserving the very Union itself.
A CAVEAT AGAINST INJUSTICE 11
The power the states had reserved under the Articles of Confed-
eration, the power to make any thing a legal tender~ is a marvelous
power indeed. The power to compel people to accept something of
no intrinsic value in exchange for something of value is the power to
rob people of theirproperty "secretly," as John Maynard Keynes
put it in the 1920's, "and unobserved."
The United States Constitution is one of the few written compacts
between people and government that actually dragged this power
out into the open for all to see and condemn. In the 44th Federalist
Paper, James Madison eloquently explained why the States were
giving up their power to compel citizens to use either federal or state
paper money:
The loss which America has sustained from the. pestilent effects of paper
money on the necessary confidence between man and man, on the neces-
sary confidence in the public councils, on the industry and morals of the
people, and on the character of republican government, constitutes an enor-
mous debt against the States chargeable with this unadvised measure, which
must long remain ... 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.
The states' voluntary sacrifice hastily rescued our forefathers from

the vale of confusion and darkness, unclogged the wheels of gov-
ernment, brightened the day, and restored peace and order. A mere
nine months after the "permanent rule excluding the pernicious
expedient of paper currency" was ratified by the states, the Decem-
ber 16, 1789 edition of The Pennsylvania Gazette was able to say
Since the federal constitution has removed all danger of our having a
paper tender, our trade is advanced fifty percent. Our monied people can
trust their cash abroad, and have brought their coin into circulation.
And in June, 1790, a little more than a year after ratification, a

much happier George Washington was able to write his friend the
Marquis de LaFayette that
Our revenues have been considerably more productive than it was
imagined they would be. I mention this to show the spirit of enterprise that
prevails.
"The writers of the constitution knew exactly what they were doing when
they wrote in Article I Section 10 paragraph 1 'No state shall. .. make any II
thing but gold and silver coin a tender in payment of debts.' People able to
barter with gold and silver coin control government and are free. Loss of the
right to trade in gold and silver coin enslaves people to the creators of
psychological'money.' "
-Merrill Jenkins, Sr.,
The Framer who perfected the design
system was a man who had spent most <
THE GREATEST HOAX ON EARTH
and publicly condemning- a fluctuatin.
"The voice of legislators is a living voice." That man was Roger Sherman (1721-1
-10 COKE 101 (England) necticut. It was he who, on August 21
states sacrifice the power to participate
When it was counter-proposed that
Congress make other things than gold
payment of debts, we're told by Jam
exclaimed, "We are making these me
favourable crisis for crushing paper me
Legislature could authorize emissions ,
money would make every exertion to .
order to license it."
The reader of Madison's Notes on the
would naturally infer that Sherman wa
money. But where is any material explai
paper money? None can be found. The
where Roger Sherman's monetary philos
It's been estimated that there are mon
print of Karl Marx's Manifesto of the Comn:
How many billions of impressions of M
have been etched into human conscious
He is celebrated as the founding father
ment and is regarded as one of the grea1
only ih the communist countries but also
and universities, where he is Required F
history, economics, and philosophy cour
of course, was a friend of paper money.
empowered to emit paper money and c
was essential to government's control of
We don't have to estimate how many
only book there are in existence. There a
500 million. In fact, there are only tw
CAVEAT AGAINST INJUSTICE left in
Five hundred million that say paper mot
paper money is evil.
12 13
II
The Framer who perfected the design of our country's monetary

system was a man who had spent most of his life struggling with-
and publicly condemning- a fluctuating medium of exchange.
That man was Roger Sherman (1721-1793), a delegate from Con-
necticut. It was he who, on August 28, 1787, proposed that the
states sacrifice the power to participate in paper money schemes.
When it was counter-proposed that the states be allowed by
Congress make other things than gold and silver coin a tender in
payment of debts, we're told by James Madison that Sherman
exclaimed, "We are making these measures absolute. This is a
favourable crisis for crushing paper money. 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 reader of Madison's Notes on the Debates of the Convention
would naturally infer that Sherman was prejudiced against paper
money. But where is any material explaining why Sherman disliked
paper money? None can be found. There's a black hole in history
where Roger Sherman's monetary philosophy should be.
It's been estimated that there are more than 500 million copies in
print of Karl Marx's Manifesto of the Communist Party and Das Kapital.
How many billions of impressions of Marx's monetary philosophy
have been etched into human consciousness nobody can calculate.
He is celebrated as the founding father of the Communist move-
ment and is regarded as one of the greatest thinkers of all time not
:1
only in the communist countries but also in most American colleges
and universities, where he is Required Reading in many socioLogy,
history, economics, and philosophy courses. Karl Marx (1818-1883),
of course, was a friend of paper money. He held that a central bank
empowered to emit paper money and compel the people to use it
was essential to government's control of individual property.
We don't have to estimate how many copies of Roger Sherman's
only book there are in existence. There are considerably fewer than
500 million. In fact, there are only two. Only two copies of A
CAVEAT AGAII':JST INJUSTICE left in the world. Think about it.
Five hundred million that say paper money is good vs two that say
paper money is evil.
13
14 A CAVEAT AGAINST INJUSTICE
A CAVEAT AGAINST I
Admitted, other people have written that paper money is evil. But
INJUSTICE, word for word, is the ve1
they weren't the Framer of the United States Constitution's mone-
governing the money and the property
tary clauses.
States. It removes the danger of judicial
·One of the two copies of A CAVEAT AGAINST INJUSTICE was
of the Constitution's monetary provisio
in the collection of the late Senator George Frisbie Hoar (1826-1904),
tive description by a Framer of the rna
lawyer, representative, and grandson of Roger Sherman. In
wished to avoid, and why; and of the syst
this copy, according to A Dictionary of Books Relating To America, From
why.
Its Discovery To The Present Time (New York: 1891), Sherman had
scratched through the psuedonym PHILOEUNOMOS (Greek for
"lover of good law") on the title page and written "By Roger
Sherman." Beneath his signature, Sherman had inscribed the book
"For Mr. Edward Wigglesworth." The only other original copy sleeps
in the Beinecke Rare Book Library at Yale, the university of which the
author served as Treasurer from 1765 to 1776.
The Spencer Judd edition of A CAVEAT AGAINST INJUSTICE is
the first known public presentation of this vital book after more than
200 years of undeserved obscurity.
Now, I'm not suggesting that A CAVEAT AGAINST INJUSTICE
might have been suppressed by those who prosper from people's
unawareness of their economic rights secured by the Constitution,
but it is strange that the only comprehensive indictment of paper money
written by the Framer of the Constitution's guarantee of individual eco-
nomic security should be allowed to dwindle down to two copies.
Two copies from oblivion! This, mind you, is the only book written
by the only man to sign all four of our most precious political docu-
ments- The Continental Association of 1774, The Declaration of
Independence, The Articles of Confederation, and The United
States Constitution. Do the Guardians of our American Heritage
think it's not worth remembering?
First published in 1752, A CAVEAT AGAINST INJUSTICE is an
economics treatise anyone can understand, in spite of its period
literary style. Considering the stature of the author, it's probably the
most important economiCs treatise ever written. For all the influence
Marx, Adam Smith, Ricardo, Bastiat, Engels, Keynes, Samuelson,
Hayek, and Friedman may exert over a student's monetary thinking,
not one of them has enjoyed the privilege of standing on the floor of
a legislative body, proposing his philosophy, and having it enacted
into law ratified by the people, in the way Roger Sherman has.
If the voice of the legislator is a living voice, and if the legislator's
intent constitutes the law, then the student of United States mone-
tary law must listen carefully to Roger Sherman's voice, and be
guided by the intentions it expresses. For A CAVEAT AGAINST
i:,1 I
I,
i
A CAVEAT AGAINST INJUSTICE 15 ,,
INJUSTICE, word for word, is the very soul of the supreme law
governing the money and the property of the people of the United
States. It removes the danger of judicial speculation as to the intent
of the Constitution's morretary provision, being the only authorita-
,,I
tive description by a Framer of the monetary system the Framers
wished to avoid, and why; and of the system they were advancing, and
why.
I
I
' ' .• -.-·~"'g';-·

"A prophet is not without honor, save in his own country, and in his own
house." III
-Jesus of Nazareth,
MATTHEW 13:53
"Mr. Sherman exhibits the oddest shaped character I ever remember to

have met with. He is awkward, un-meaning, and unaccountably strange in
his manner. But in his train of thinking there is something regular, deep,
A CAVEAT AGAINST INJUSTICE
Sherman's personal life. There is on fih
and comprehensive; yet the oddity of his address, the vulgarisms that accom- Library in Hartford an action in which Ro
pany his public speaking, and that strange new England cant which runs his brother William sued James Battle for·
through his public and private speaking make everything that is connected in New Milford, Connecticut, in deprecia
with him grotesque and laughable;- and yet he deserves infinite praise;- no Over a period of 15 months in 1750-51,
Man has a better Heart or a clearer Head. If he cannot embellish he can wares & merchandizes" amounting to 12~
furnish thoughts that are wise and. useful. He is an able politician, and mans assumed were pounds of Connecti1
extremely artful in accomplishing any particular object;- it is remarked that a stable currency whose value was we
he seldom fails." taking it out of circulation. But Battle assu
-Major William Pierce (Ga.), nated in pounds of ever-depreciating
CHARACTERS IN THE tendered same, and the Shermans took
CONVENTION, 1787.
and s'ued for recovery of loss by depreciaJ
Sherman wrote in CAVEAT:
... to impose Rhode Island Bills of Credit in
Colony when the Creditor never agreed to take
Allowance for the Depreciation, would be to t<
Ij
wrong them of their just and righteous Dues wi
The record of Sherman vs Battle states:

I And now the Defendant Comes into Court <
I
I
owes nothing to the Plaintiffs in money of th
Manner and form of the Plaintiffs in their Dec
therefore puts himself on the Country.
I And the Plaintiffs say the Plea of the Defend;
'I
I
cient in the Law.
A~d the Defendant says his plea is sufficient,
The outcome of Sherman vs Battle was ;
I
lI
because James Battle won. Why did he w
the Country," which is a way of saying til
land" or "custom." Custom, in Sherman'
common law: the way things were dont
man's position was that Battle's plea w
Common Law, big L, under which paper
debt unless specifically provided for in a c
Without thinking much about it, tht
obeyed their timeworn custom of allowi
16 17
III
A CAVEAT AGAINST INJUSTICE reflects events in Roger

Sherman's personal life. There is on file in the Connecticut State
Library in Hartford an action in which Roger, then 30 years old, and
his brother William sued James Battle for'paying a debt to their shop
in New Milford, Connecticut, in depreciated paper currency.
Over a period of 15 months in 1750-51, Battle had charged "divers
wares & merchandizes" amounting to 129 pounds of what the Sher-
mans assumed were pounds of Connecticut ·"Old Tenor" currency,
a stable currency whose value was well-preserved by taxation's
taking it out of circulation. But Battle assumed the debt was denomi-
nated in pounds of ever-depreciating Rhode Island currency,
tendered same, and the Shermans took a beating in the payment
and sued for recovery of loss by depreciation.
Sherman wrote in CAVEAT:
... to impose Rhode Island Bills of Credit in Payments for Debts in this
Colony when the Creditor never agreed to take them, and that without any
Allowance for the Depreciation, would be to take away Men's Estates and
wrong them of their just and righteous Dues without either Law m; Reason.
The record of Sherman vs Battle states:

And now the Defendant Comes into Court and pleads and Says that he
owes nothing to the Plaintiffs in money of the Colony of Connecticut in
Manner and form of the Plaintiffs in their Declaration have supposed and
therefore puts himself on the Country.
And the Plaintiffs say the Plea of the Defendant above pleaded is insuffi-
cient in the Law.
And the Defendant says his plea is sufficient, etc.
The outcome of Sherman vs Battle was a victory for paper mo~ey,

because James Battle won. Why did he win? Battle "put himself on
the Country,"which is a way of saying that he pled "the law of the
land" or "custom." Custom, in Sherman's day, meant the colonial
common law: the way things were done in early America. Sher-
man's position was that Battle's plea was insufficient in English
Common Law, big L, under which paper currency could not pay a
debt unless specifically provided for in a contract.
Without thinking much about it, the people of Connecticut
obeyed their timeworn custom of allowing the currencies of the
17
18 A CAVEAT AGAINST INJUSTICE A CAVEAT AGAINST INJ
I
various Colonies to circulate promiscuously with one another, heed- II the General Assembly of Connecticut aski
less of differences in their real purchasing power, very much as the
people of our states did in the 1960's when irredeemable Federal I of credit be forbidden from circulating wit
.. whether it would not be very much for the
Reserve notes began circulating promiscuously with redeemable
Fed notes, United States notes, Treasury notes, and Silver 1· Excise upon all Rum imported into this Colony
effectually to restrain the excessive use thereof,
Certificates.
When Federal Reserve notes were first emitted in 1914, their
I among us and is l'eading to almost all other Vice~
those two great Evils that have been mentionec
stated rate was one dollar of gold or lawful money for each dollar soon see better Times.
promised. Today, a one-dollar Federal Reserve note will purchase Twenty-four years later, Roger Sherm
less than 1/lOth of a dollar of gold or lawful money. Roger Sher- Declaration of Independence, which inge1
man's condemnation of Rhode Island bills applies with equal force tructive social consequences of man's ter
to today's Federal Reserve notes: habits:
And since the Value of the Bills of. Credit depend[s] wholly on the Rate at All experience hath shown that mankind a
which they are stated and on the Credit of the Government by whom they while evils are sufferable than to right themselvE
are emitted and that being the only Reason an<:l. Foundation upon which which they are accustomed.
they obtained their first Currency and by which the same has been upheld
ever since their first being current, and therefore when the Publick Faith and The Common Law, that great river of
Credit of such Government is violated, then the Reason upon which such the remote English past, has always held
Bills obtained their Currency ceases and there remains no Reason why they which debts can be paid is metals of intr
should be any longer current. mon Law had been shunted off course in t
In Sherman's day, a traveling man could make a fortune hopping confusion of statutes which served legisl<
across the State line, buying many cheap Rhode Island pound bills at the expense of the people in common
of credit ("or rather of no Credit," growled Sherman in A CAVEAT) · redirection. The widespread failure of <
with his few fine Connecticut pound bills, return to Connecticut and necessary the forging of a brand new cust
enjoy an enormous increase in purchasing power by paying in of an old, if you like). The habit of using rr
Rhode Island bills. (Motion is traditionally associated with cheating: gold and silver coin - must be introducE
is not Mercury, the Roman god of travel, also the god of commerce sciousness, must be secured as "law of tl
and thievery?) And all the while, the people- stuck in the habit of man wrote in CAVEAT,
dealing with paper images ~ let their value slip through their fin- .. .instead of having our Properties defende<
gers without complaint. Protection of the Government under which wE
Sherman addressed the law of the land, or custom, in A CAVEAT exposed to have them taken from us by Frat
AGAINST INJUSTICE: Governments, who have no Right of JurisdictioJ
.
If what is us'd as a Medium of Exchange is fluctuating in its Value it is no Of course, Sherman might have been s
better than unjust Weights and Measures, both which are condemn'd by the government of Rhode Island. But would
Laws of GOD and Man, and therefore the longest and most universal Cus- the assumption of jurisdiction over us
tom could never make the Use of such a Medium either lawful or reasonable. created by constitution? Recall Hou
Losing the Battle case did not quell Roger Sherman's struggle for Chairman Wright Patman's warning a <
lawful and reasonable money. Quite the contrary, it convinced him being ruled by another government:
that somehow the colonial custom of passively participating in a In the United States today we have in effect t
n:tonetary system of fluctuating value, suffering the losses without the duly constituted Government. .. Then we h<
trolled and uncoordinated government in th
complaint, drowning the pain in vice and sermons, had to be
operating the money powers which are res
altered. A CAVEAT AGAINST INJUSTICE closes with a petition to Constitution.
the General Assembly of Connecticut asking that Rhode Island bills

of credit be forbidden from circulating within the state borders and
.. whether it would not be very much for the Publick Good to lay a large
Excise upon all Rum imported into this Colony or distilled herein, thereby
effectually to restrain the excessive use thereof, which is such a growing Evil
among us and is leading to almost all other Vices. And I doubt not but that if
those two great Evils that have been mentioned were restrained we should
soon see better Times.
Twenty-four years later, Roger Sherman was to help write the

Declaration of Independence, which ingeniously described the des-
tructive social consequences of man's tendency to hang on to bad
habits:
All experience hath shown that mankind are more disposed to suffer
while evils are sufferable than to right themselves by abolishing the forms to
which they are accustomed.
The Common Law, that great river of habit flowing down from
the remote English past, has always held that the only money with
which debts can be paid is metals of intrinsic value. But the Com-
mon Law had been shunted off course in the American colonies by a
confusion of statutes which served legislators and their supporters
at the expense of the people in common. This needed correction,
redirection. The widespread failure of an elastic currency made
necessary the forging of a brand new custom (call it the resumption
of an old, if you like). The habit of using material of intrinsic value-
gold and silver coin --,- must be introduced into the American con-
sciousness, must be secured as "law of the land;" otherwise, Sher-
man wrote in CAVEAT,
.. .instead of having our Properties defended and secured to us by the
Protection of the Government under which we live, we should be always
exposed to have them taken from us by Fraud at the Pleasure of other
Governments, who have no Right of Jurisdiction over us.
Of course, Sherman might have been specifically referring to the

government of Rhode Island. But would he not have condemned
the assumption of jurisdiction over us by any government not
created by constitution? Recall House Banking Committee
Chairman Wright Patman's warning a decade ago that we were
being ruled by another government:
In the United States today we have in effect two governments ... We have
the duly constituted Government...Then we have an independent, uncon-
trolled and uncoordinated government in the Federal Reserve System,
operating the money powers which are reserved to Congress by the
Constitution.
- -------------·-- ------~~- --~-';-

20 A CAVEAT AGAINST INJUSTICE A CAVEAT AGAINST I
Doesn't Congressman Patman's testimony make it clear that the

Federal Reserve banking system is our "other Government" to
which we are "always exposed" to having our properties "taken
from us by Fraud"?
I am loyal to a duly constituted Government. But why should I
pledge loyalty to an independent, uncontrolled, and uncoordinated
government not obliged to take the Constitutional oath, a govern-
ment "who (has) no Right of Jurisdiction over us"?
When the Constitution was ratified on the first Wednesday in
March, 1789, Roger Sherman accomplished his lifetime quest for an
unalterably secure monetary system consisting of gold and silver
coin. According to the 2nd Section of Article VI of the Constitution,
This Con~titution and the laws of the United States which shall be made in
pursuance thereof; and all treaties made, or which shall be made, under the
authority of the United States, shall be the supreme law of the land; and the
judges in every State shall be bound thereby, anything in the Constitution or
laws of any State to the contrary notwithstanding.
On that first Wednesday in March 1789, the monetary system advo-

cated in A CAVEAT AGAINST INJUSTICE became a vital
organ in the Supreme Law of the Land. No one thereafter could
"put himself on the country," saying "We've always used this stuff
for money," and hope to get a state court to ordain the use of paper
money as a tender in payment of debts. Nor could a state court say
"You must pay in paper because we've always used this stuff for
money." Not even Congress could compel the states to traffic in
irredeemable notes, for Sherman in Convention had insisted that the
prohibition be "absolute, instead of ... allowable with the consent of
the Legislature of the U.S."
Our economic right to circulating gold and silver coined by Con-
gress has never been amended out of the Constitution. Our eco-
nomic right not to participate in any state business conducted in a
form of money prohibited by the Constitution has never· been
amended out of the Constitution. There are ony two ways this right
can be denied us: our voluntarily surrendering it, which is what
most of us have done up to now; or its being taken away from us by
a tyrannical force applied by our fellow countrymen, in our own
land, against us.
'·' ~-·
"If the banks create ample synthetic money, we are prosperous; if not, we
starve! We are absolutely without a permanent monetary system. When one IV
gets a complete grasp of the picture, the tragic absurdity of our hopel.ess
position is almost incredible-but there it is. It is the most important sub;ect
intelligent persons can investigate and reflect upon. It is so important that
our present civilization may collapse unless it is widely understood and the If Ratification of the Constitution was
defect remedied soon." . Sherman's career, certainly A CAVEAT
-Robert H. Hemphill, former the Overture, and both are made of th1
Credit Manager, THE quest for economic security in the Law
FEDERAL RESERVE :with Sherman at the close of the Conv~
BANK OF ATLANTA, the purpose of Article I Section 10 Para
in the Foreword to have handed you a copy of this little boc
100% MONEY, Yet, solid as they are, Sherman's idea
by Irving Fisher by many contemporaries as crankish. \
rejected by the court in New Milford. '
"If Congress won't keep its part of the Constitutional bargain and coin suggest that the states make nothing I
money of gold and silver like Article I Section 8 Clause 5 commands, there's tender in payment of debts when there ·
no way my court can require anyone to pay fines. I'm not here to protect to be had? Surely, Sherman must have •
certain people's investments, I'm here to carry out the mandate of the U.S. gold to go around, is there?" as often
and the Kansas Constitutions." gold's in Europe, what will prevent theE
-The Hon. Larry Moritz market, and getting our property for not
Municipal Judge, Spearville, Those questions were answered by his
Kansas, 1981 that after no state could make any thin~
tender in payment of debts, the United
largest depository of gold and silver whil
the most productive nation in the histor)
Roger Sherman had predicted events '
closing paragraphs of CAVEAT:
So long as we part with our most valuable 1
Credit as are no Profit; but rather a Cheat, y,
be~ome a Medium whereby we are continual!:
another in our Dealings and Commerce, and s
more foreign Goods than are necessary, and 1
Traders employed to procure and deal them ou
Things are so we shall spend great Part of our I
which will not profit us. Whereas if these Thin
sions and other Commodities which we migh
which other Governments are dependant [sic]
us Gold and Silver abundantly sufficient for a
might be as independent, flourishing and ha
British Dominions.
Compare this prediction with Presid

address to both houses of Congress on I
22 23
IV
If Ratification of the Constitution was the Grand Finale in Roger

Sherman's career, certainly A CAVEAT AGAINST INJUSTICE was
the Overture, and both are made of the same thematic material: a
quest for economic security in the Law. You could have sat down
with Sherman at the close of the Convention and asked him what
the purpose of Article I Section 10 Paragraph 1 was and he would
have handed you a copy of this little book.
Yet, solid as they are, Sherman's ideas on money were ridiculed
by many contemporaries as crankish. We've seen how they were
rejected by the court in New Milford. Who but a fool would dare
suggest that the states make nothing but gold and silver coin a
tender in payment of debts when there was so little gold and silver
to be had? Surely, Sherman must have heard "There's not enough
gold to go around, is there?" as often as he heard "Since all the
gold's in Europe, what will prevent the Europeans from flooding the
market, and getting our property for nothing?"
Those questions were answered by history: it is a matter of record
that after no state could make any thing but gold and silver coin a
tender in payment of debts, the United States became the world's
largest depository of gold and silver while simultaneously becoming
the most productive nation in the history of the world.
Roger Sherman had predicted events with perfect accuracy in the
closing paragraphs of CAVEAT:
So long as we part with our most valuable Commodities for such Bills of
Credit as are no Profit; but rather a Cheat, Vexation and Snare to us, and
become a Medium whereby we are continually cheating and wronging one
another in our Dealings and Commerce, and so long as we import so much
more foreign Goods than are necessary, and keep so many Merchants q.~d
Traders employed to procure and deal them out to us .. .I say so long as these
Things are so we shall spend great Part of our Labour and Substance for that
which will not profit us. Whereas if these Things were reformed, the Provi-
sions and other Commodities which we might have to export yearly, and
which other Governments are dependant [sic] upon us for, would procure
us Gold and Silver abundantly sufficient for a Medium of Trade. And we
might be as independent, flourishing and happy a Colony as any in the
British Dominions.
Compare this prediction with President Washington's jubilant

address to both houses of Congress on December 8, 1795, six years
23
A CAVEAT AGAINST II\
after the states had been forced onto a strict diet of gold and silver ministerial officer who participates in
coin: medium of exchange is "obliging Men t<
that which is worth nothing in it self."
Our agriculture, commerce, and manufactures prosper beyond former The pages of THE MAIN STREET JOl
example ... Every part of the Union displays indications of rapid and various
improvements, and with burdens so light as scarcely to be perceived; with thousands of Americans who have begt
resources fully adequate to our present. exigencies; with governments to their states, counties, and municipali1
founded on the genuine principles of rational liberty, and with mild and gress once again coins that which the s
wholesome laws; is it too much to say, that our country exhibits a spectacle payment of debts. Although many officic:
of national happiness never surpassed; if ever before equalled? of right, it saddens me to report that o1
Whether you're a student of monetary law or just a participant in hardship on citizens who assert econom
what Charles Riely calls "the Culture of Freedom," I pray that you'll Constitution. Why? Do these officers feel
read Roger Sherman's lost masterpiece time and time again, mark- ened? If they are merely skeptical that thE
ing it, inwardly digesting it. to crush a monetary system identical 1
I hope you'll show it to people who have to be shown things . CAVEAT AGAINST INJUSTICE.,
before they'll believe. I hope you'll use it to demonstrate to skeptical As they read, they will hear th~ convil
neighbors as well as attorneys, both official and private, that it was himself declare that a monetary system
the resolute intent ofthe Framers of the Constitution to do away medium of exchange such as ours tod<
with a fluctuating medium of exchange for the very reasons Roger countenanced, but rather to be punished
Sherman sets down in his wondrous little document. It is the living voice of the man whorr
In A CAVEAT AGAINST INJUSTICE, our forgotten Framer is "Never said a foolish thing in his life."
warning us (caveat is Latin for "warning") that the form of money
Congress (but no state legislature) has declared "legal tender," this -F
monetized debt issued and regulated by "Governments who have s
no Right of Jurisdiction over us," is evil; and let me remind you that
"evil" means "morally bad or wrong; wicked; malevolent; sinful;
causing an undesirable condition, as ruin, injury, pain; harmful,
injurious; undesirable; infamous; that which is destructive or cor-
ruptive". If the money- "that whereby other things are valued('-
is evil, how can the things it values be good? Indeed, an evil
medium of exchange colors everything evil. Just look around.
What passes for money in 1982 is as evil, as unpredictable, as
damnable as Rhode Island Bills of Credit in a 1751 Connecticut dry
goods store.
Today's official medium of exchange is "unjust weights and mea-
sures, both which are condemn'd by the Laws of GOD and Man." It
is money deliberately designed to "take away Men's Estates and
wrong them of their just and righteous Dues without either Law or
Reason." All these charges are proved every minute of every day.
The remedy is contained in the Law.
By Law, the states have no Constitutional authority whatsoever to
participate in a monetary system comprised of bills not redeemable
unit for unit in gold and silver coin. In fact, any state court, judge, or
ministerial officer who participates in a compulsory fluctuating

medium of exchange is "obliging Men to part with their Estates for
that which is worth nothing in it self."
The pages of THE MAIN STREET JOURNAL tell monthly of the
thousands of Americans who have begun withholding public dues
to their states, counties, and municipalities until such time as Con-
gress once again coins that which the states can make a tender in
payment of debts. Although many officials have respected this claim
of right, it saddens me to report that others have worked extreme
hardship on citizens who assert economic rights guaranteed by the
Constitution. Why? Do these officers feel threatened? Are they fright-
ened? If they are merely skeptical that the Constitution was designed
to crush a monetary system identical to ours today, they need A
, CAVEAT AGAINST INJUSTICE, r ·
As they read, they will hear th~ convincing voice of the Legislator
himself declare that a monetary system comprised of a fluctuating
medium of exchange such as ours today is "an Iniquity not to be
countenanced, but rather to be punished by the Judges."
It is the living voice of the man whom Thomas Jefferson declared
"Never said a foolish thing in his life."
-Frederick Tupper Saussy

SEWANEE, APRIL, 1982
Roger Sherman
·._,
A CAVEAT
AGAINST
INJUSTICE
or
An Inquiry into the Evils of a
Fluctuating Medium of
Exchange,
WHEREIN is considered, whether. the Bills of Credit on the

Neighboring Governments, are a legal Tender in Payments of
Money,
In the COLONY
of
CONNECTICUT,
FOR Debts due by Book, and otherwise, wherethe Contract

Mentions only Old-Tenor Money.
§1 Forasmuch, as therehave many Disputes arisen
of late concerning the Medium of Exchange in this Colony,
which have been occasioned chiefly by Reason of our
having such large Quantities of Paper Bills of Credit on
some of the Neighbouring Governments, passing in Pay-
ments among us, and some of those Governments hav-
ing issued much larger sums of such Bills than were
necessary to supply themselves with a competent
Medium of Exchange, and not having supplied their
Treasuries with any Fund for the maintaining the Credit
of such Bills; they have therefore been continually depre-
ciating and growing less in their Value, and have been
the principal Means of the Depreciation of the Bills of
Credit emitted by this Colony, by their passing pro-
miscuously with them; and so have been the Occasion of
Much Embarrasment and Injusticer in the Trade and
Commerce of this Colony, and many People and ~spe
cially Widows and Orphans have been great Sufferers
thereby.
§2 But our Legislature having at length taken effec-
tual Care to prevent a further Depreciation of the Bills of
this Colony, and the other Governments not ha.ving
taken the like prudent Care, their Bills of Credit are still
sinking1 in their Value, and have in Fact sunk much
below the Value of the Bills of this Colony.
§3 Yet some People among us, by long Custom, are
so far prejudiced in Favour of a sinking Medium, and
others not being really sensible of the true State of the
11
1. Sinking" bills of credit is taxing them out of circulation. The states were never able to institutb truly effective
systems of sinking paper money. 0
29
A CAVEAT AGAINST IN)US"
Case~ are inclined to think that Bills of Credit on the neigh-

§7 The Debtor says, That Bills of~
bourm~ Gov:rnments ought to be a legal Tender in Pay-
bouring Governments have f?r man~
ments m this Colony for all Debts due by Book and
miscuously with Bills of Credzt on thl
other~is.e where there is no special contract expressly
in all Payments, (except special Contra
~enhomng ~o~e other Currency, and others being of a
in general where the Contracts ly at~
different Opmwn, the Disputes have been carried on so
and do still expect, that any of the Bz
far, as to oq::asion some Expence in the Law, and may be
the Governments in New-England, t
likely to occasion much more, unless prevented by those
Currency in this Colony will answ~J
Prejudices being some way removed. And since it is a
as much as the Creditor did not gl\
Cause wherein every one is more or less interested, I
the contrary' when he bought the
have ventured to shew my Opinion, with a sincere De-
thinks that such Bills of Credit oug
~ire to have Peace and Justice maintained and promoted
Payment for the aforesaid Debt.
m the Co~ony. Not desiring any Person to approve of my
§8 · And altho' there is no part
Observations any farther than he finds them agreeable to
Colony, that such Bills of Credit sh~
the Principles of Justice and right Reason.
Payments of Money: Yet the PractH
sal for so long a Time, and the Cree
THE CASE STATED.
received and pass' d them as Monc
making Exceptions against them 'j
§4 Suppose a Man comes to a Trader's Shop in this
tracted, and for many years all De
Colony to buy Goods, and the Trader sells him a certain
have been for Old Tenor Money
Quantity of. C?oods and tells him the Price is so many
Distinction of Colonies, and Jud
Po~nds, Shlllmgs and Pence, (let it be more or less) to be
have been given thereon accordi
pmd at the Expiration of one Year, from that Time, and
aforesaid Bills of Credit have pass' 1
t~e Man receives the Goods but their [sic] is nothing said
all Judgments, so obtain'd and t
~Ither by Seller or Buyer, what Currency it is to be paid
the Debtor saith, ought to be estE
m, but the Goods are charged according to the Value of
and ought not without some sp
Bills of Credit Old Tenor on this Colony.
aside, and that in this Case there
§5 Now I Query what the Creditor has a Right to
·therefore the Vreditor ought nc
demand for a Debt so contracted; or what the Debtor can
obtain Judgment different from 1
oblige him to accept in Payment?
~6 The Creditor says, that the Debt being contracted the Colony. ·
§9 In Answer to this the Cr
m the Colony of Connecticut, he ought to have ~hat is
Bills of Credit on the neighbourin:
known by the Laws of said Colony to be Money: And
a Number of Years been pass'
that he has no Rightto demand any thing else.
ments: Yet it has been only by f
§7 The Debtor says, That Bills of Credit on the neigh-

bouring Governments have for many Years passed pro-
miscuously with Bills of Credit on this Colony as Money
in all Payments, (except special Contracts) and that People
in general where the Contracts ly at large have expected,
and do still expect, that any of the Bills of Credit on any of
the Governments in New-England, that have obtained a
Currency in this Colony will answer in Payment, and in
as much as the Creditor did not give him any Notice to
the contrary, when he bought the Goods, therefore he
thinks that such Bills of Credit ought to be accepted in
Payment for the aforesaid Debt
§8 And altho' there is no particular Statute in this
Colony, that such Bills of Credit shall be a legal Tender in
Payments of Money: Yet the Practice has been so univer-
sal for so long a Time, and the Creditor himself has both
received and pass' d them as Money constantly without
making Exceptions against them 'till this Debt was con-
tracted, and for many Years all Demands on Book Debts
have been for Old Tenor Money indifferently, without
Distinction of Colonies, and Judgments in all Courts
have been given thereon accordingly: And any of the
aforesaid Bills of Credit have pass' d in Payment to satisfy
all Judgments, so obtain' d and this universal Custom,
the Debtor saith, ought to be esteemed as common Law
and ought not without some special Reason to b~ set
.aside, and that in this Case there is nothing special; and
therefore the Vreditor ought not to make Demand or
obtain Judgment different from the common Custom of
the Colony.
§9 In Answer to this the Creditor saith, that altho'
Bills of Credit on the neighbouring Governments have for
a Number of Years been pass'd and receiv'd in Pay-
ments: Yet it has been only by the voluntary Consent of
32 A CAVEAT AGAINST INJUSTICE A CAVEAT AGAINST I
the Persons receiving them, and not because they were was equal to one Ounce of Silver.
under any Obligation to receive them; and that it is no General Assembly pass' d in Marc
Argument that a Person shall be obliged to receive any four Shillings Old-Tenor Bills eqt
Species when it won't answer his End, because in Time ver, which sunk their Value om
past he has receiv' d it when it would answer. Act in June last, (viz. 1751) they st
§10 And the Creditor further saith, that such Bills of iri their Old-Tenor Bills equal tE
Credit are of no intrinsick Value, and their Extrinsical And by another Act in August la
Value is fluctuating and very uncertain, and therefore it Direction to the Courts in that (
would be unjust that any Person should be obliged to ance to the Creditors in maki1
receive them in Payment as Money in this Colony, (since Time to Time as the Bills shall de
neither the Colony nor any of the Inhabitants thereof are which shews that they expect tll
under any Obligation either to Refund said Bills or to predate for the Future.
maintain the Credit of them) for Money ought to be §14 And since the Value of tl
something ofcertain Value, it being that whereby other wholly on the Rate at which the
Things are to be valued. 2 Credit of the Government by whc
§11 And I think it is a Principle that must be granted that being the only Reason and I
that no Government has a Right to impose on its Subjects they obtained thefr first Currency
any foreign Currency to be received in Payments as has been upheld ever since their
Money which is not of intrinsick Value; unless such Gov- therefore when the PublickFaith
ernment will assume and undertake to secure and make ernment is violated, then the RE
Good to the Possessor of such Currency the full Value Bills obtained their Currency ce.
which they oblige him to receive it for. Because in so no Reason why they should be a
doing they would oblige Men to part with their Estates §15 And this I wQuld lay de
for that which is worth nothing in it self and which they can't be denied that a Debtor ou~
don't know will ever procure him any Thing. with less Value than was conb
§12 And Rhode-Island Bills of Credit have been SQ far · Co~sent or against the Will of th
from being of certain Value and securing to the Possessor §16 And the Creditor further
the Value that they were first stated at, that they have Rhode-Island Bills of Credit when
depreciated almost four seventh Parts in nine Years last to Silver at Twenty-seven Shillin~
pass, as appears by their own Acts of Assembly. Reason that he should receive t
§13 For in the Year 1743, it appears by the Face of the when they are stated equal to Sil·
Bills then emitted that Twenty-seven Shillings Old-Tenor an Ounce, and still to receive
when they are so reduced down
2. A highly useful definition of money. is equal to but one Ounce of Sil
was equal to one Ounce of Silver. And by an Act of their

General Assembly pass' din March last, they stated Fifty-
four Shillings Old-Tenor Bills equal to one Ounce of Sil-
ver, which sunk their Value one half. And by another
Act in June last, (viz. 1751) they stated Sixty-four Shillings
in their Old-Tenor Bills equal to one Ounce of Silver.
And by another Act in August last they gave Order and
Direction to the Courts in that Colony to make Allow-
ance to the Creditors in making up Judgment from
Time to Time as the Bills shall depreciate for the Future,
which shews that they expect their Bills of Credit to de-
preciate forthe Future.
§14 And since the Value of the Bills of Credit depend
wholly on the Rate at which they are stated and on the
Credit of the Government by whom they are emitted and
that being the only Reason and Foundation upon which
they obtained their first Currency and by which the same
has been upheld ever since their first being current and
therefore when the Publick Faith and Credit of such Gov-
ernment is violated, then the Reason upon which such
Bills obtained their Currency ceases and there remains
no Reason why they should be any longer current.
§15 And this I would lay down as a Principle that
can't be denied that a Debtor ought not to pay any Debts
with less Value than was' contracted for, without the
Consent or against the Will of the ' Creditor.
§16 And the Creditor further saith, that his accepting
Rhode-Island Bills of Credit wh~n they stood stated equal
to Silver at Twenty-seven Shillings an Ounce, can be no
Reason that he should receive them at the same Value'
when they are stated equal to Silver at Fifty-four Shillings
an Ounce, and still to receive them at the same Rate
when they are so reduced down that Sixty-four Shillings
is equal to but one Ounce of Silver, and whoever does
receive them so must not\only act without, but against

Reason.·
§17 And the Debtor can't possibly plead with 3 any
Truth that he expected to pay in Rhode-Island Bills of
Credit at their present Value and under their present
Circumstances, (any Debts contracted before the
aforesaid Acts of Rhode-Island were published) because
there was no such Thing (as those Bills are under their
present Circumstances) existing at the Time of Contract,
for as was observ' d before, the Value of such Bills of
Credit depend wholly upon the Rate at which they are
stated and on the Credit of the Government by whom
th~y are emitted, and a Bill of Credit for the same Sum
that is stated equal to Silver at Twenty-seven Shillings an
Ounce, .must be of more than double the Value of one
stated equal to Silver at Sixty-four Shillings an Ounce if
the Credit of the Emitter may be depended on: But if the
Emitter's Credit can't be depended on then neither of the
Bills aforesaid are of any Value, because it is evident that
Jll) Bills of Credit have any Value in themselves, but are
given to secure something of intrinsick Value, to the Pos-
sessor.
§18 So that the Arguments drawn from Custom are
of no Force, because the Reasons upon which that Cus-
tom were grounded do now cease.
§19 I grant that if any Thing whose Value is intri~si
cal and invariable the same should obtain a Currency as a
Medium of Exchange for a great Number of Years in any
Colony, it might with some Reason be urg'd that it ought
to be accepted in Payments for Debts where there is no
special Agreement for any other Speci,es. 4
3. "Without," as used in the original, renders the sentence meani~glcss.
4. It is a rule of c'ommon Law that in the absence of a special agreement to receive bills, the right to value for
value applies.
§20 But if what is us' d as a Medium of Exchange is

fluctuating in its Value it is no better than unjust Weights
and Measures, both which are condemn' d by the Laws
of GOD and Man, and therefore the longest and most
universal Custom could never make th~ Use of such a
Meqium either lawful or reasonable.
§21 Now suppose that Gold or Silver Coines that
pass current in Payments at a certain Rate by Tale 5
should have a considerable Part of their Weight filed or
clipp' d off will any reasonable Man judge that they
ought to pass for the same Value as those of full Weight.
§22 But the State of R .... I.: .. d Bills of Credit is much
worse than that of Coins that are clipp' d, because what is
left of those Coins is of intrinsick Value: But the General
Assembly of R. ... I .... d having depreciated their Bills of
Credit have thereby violated their Promise from Time to
Time, and there is just Reason to suspect their Credit for
the Future for the small Value which they now promise
for said Bills, and they have not only violated their Prom-
ise as to the Value pretended to be secured to the Pos-
sessor by said Bills; but iilso as to the Time of calling them·
in and paying the same, they have lengthened out the
\
Time Fifteen Years. ·
§23 So that if the Possessor must be kept out of the
Use of his Money until that Term is expired (and the Bills
secure nothing to him sooner.) One Ounce of Silver paid
down now, would be worth more than Seven pounds Ten
Shillings in such Bills of Credit computing the Interest at 6
per Cent per Annum.
§24 These Things considered, can any reasonable
Man think that such Bills of Credit (or rather of no Credit)
ought to be a legal Tender in Payment of Money in this
5. "By tale" means "by count." The root of the word "teller."
Colony for Debts, for which the Debtor received Species

of much more Value than those Bills provided the Credi-
tor could get the full Value of them in Silver that they are
now stated at.
§25 For it must be remembered that according to the
State of the Case now in Question the Goods were
charged according to the Value of Old-Tenor Bills of this
Colony. Wherefore upon the whole it appears that it
would be evidently unjust to impose Rhode-Island Bills of
Credit ]in payment for ~uch a Debt, or any other in this
Colony, unless the Creditor obliged himself by a special
Agreement to receive them in Payment.
§26 And if he had agreed to receive them in Payment
for Debts contracted any Time between last March and
June it would be unjust to oblige him to take them with-
out three Sh~llings on the Pound Allowance, for the
1
General Assembly of Rhode-Island depreciated them so
much in June below both their current and stated Value
in March preceding.
§27 And to oblige People to receive them without
such Allowance in this Colony; would be, to be more
dishonest than they are in Rhode-Island Colony for they
are obliged by Lawto make Allowance for the Deprecia-
tion.
§28 But in as much as we ,are not under the Jurisdic-
tion of Rhode-Island Government and therefore can take
no Benefit by their equitable Acts, I suppose that accord-
ing to the Rules of the Law, upon a Contract made in this
Colony for the Payment of Bills of Credit on the Colony of
Rhode-Island or any of the neighbouring Governments,
§29 if the Debtor could not procure such Bills under
the same Circumstances that they were at the Time of
Contract, the Courts would assess Damages for Connecti-
cut Money, according to the Value of such Bills at the

Time of Contract.
§30 And the Reason is, because if on the one Hand
all such Bills should be called in and burnt between the
Time of Contract and the Time of Payment it would be
unreasonable to oblige the Debtor to an impossibility,
and on the other Hand if there should between the Time
of Contract and the Time of Payment be an Act pass' d
that all such Bills should be brought into the Treasurer to
be redeem'd by a certain Time or else be Outlawed and
rendered of no Value and that Time should be expired
before the Time of Payment, or if by an Act of Assembly
they should be depreciated and sunk one half or two
thirds in their Value, it would be unreasonable that the
Creditor should be thereby defrauded of his just Due
and lose so much of his Estate. 6
§31 But to impose Rhode-Island Bills of Credit in Pay-
ments for Debts in this Colony when the Creditor never
agreed to take them, and that without any Allowance for
the Depreciation, would be to take away Men's Estates
and,wrong them of their just and righteous Dues with-
out either Law or Reason. ·
§32 And instead of having our Properties defended
and secured to us by the Protection of the Government
under which we live; we should be always exposed to
have them taken from us by Fraud at the Pleasu_re of
other Governments, who have no Right of Jurisdiction
over us.
§33 And according to this Argument, if Rhode-Island
General Assembly has been pleased last June to have
stated their Old-Tenor Bills equal to Silver at Forty-eight
6. This is why the lender provision, Article I Section 10, also denies the states power to impair the obligation of
contracts.
Pounds Twelve Shillings an Ounce, instead of Sixty-four

Shillings, and to have cut off the Value of them Eighteen
Shillings on the Pound, instead of Three Shillings, all
Creditors in this Colony would thereby have been ne-
cessitated to lose Ninety Pounds out of every Hundred
Pounds of their Debts which were then out standing, for
if they could take away one Sixth Part of their Value and
reduce them so much below the Old-Tenor Bills of this
Colony and the Creditor be notwithstanding obliged to
receive them without any Allowance, by the Rule they
might have taken away three Quarters of Nine Tenths or
indeed the whole, and the Creditor have had no more
Remedy than he has now. 7
§34 And the Estates of poor Widows and Orphans
must according to this Principle in the same unjust Man-
ner be taken away from them and given to others that
have no Right to them, (for what the Creditor loses in
this way the Debtor gains because the more the Bills of
Credit depreciate the less Value the Debtor can procure
them for) and according to the Debtor's Argument the
Executive Courts in this Colony must give Judgment in
Favour of all this Fraud and Iniquity at least, 'till there is
some special Act of Assembly to order them to the
contrary; 8 but I believe that every honest Man of com-
mon Sense, upon mature Consideration of the Circum-
stances of the Case, will think that this is an Iniquity not to
be countenanced, but rather to be punished by the
Judges.
§35 But in Answer to what is said concerning De-
Z· An accurate description of today's dilemma. The federal government (debtor) borrows from the people
(creditor) to the extent the people are willing to lend. What the people will not lend, the federal government then
receives in the form of credit created by the Federal Reserve system. The credit increases the digital supply of
"money," causing a reduction of the purchasing power of the funds in the public's hands.
8. Executive courts, or courts of equity, have power to fashion a remedy where none exists in the law. In the
absence of laws defining lawful tenders, the courts consistently found in favor of bills of credit ... Roger Sherman
was to live to legislate the "Act of Assembly" that ordered them to the contrary. That Act was Article I Section 10
Paragraph 1 of the United States Constitution.
mands being made for Old-Tenor Money indifferently

and the Courts giving Judgment accordingly. The Credi-
tor saith that Phrase in all Demands made in this Colony .[
ought to be understood to be the Old-Tenor Money of
this Colony, and no other, for there never was any Law
in this Colony that Bills of Credit on the neighbouring
Governments should be a legal Tender in Payments of
Money, and I have observed before that it would be
ml.reasonable, that any such Foreign Currency should be
imposed as Money, and the same Phrase is us' din taxing
Bills of Cost in the Executive Courts, but it is understood
to be the Old-Tenor Money of this Colony only, for a
Thousand Pounds in Bills of Credit on the neighbouring
Governments would not be sufficient in the Law to sat-
isfy a Bill of Cost of Twenty Shillings Old,.Tenor.
§36 u And the General Assembly of this Colony
have sufficiently declared that they don't Estee:m such
Bills of Credit as Money, and that no Person ought to be
obliged to receive them as such. In that, they themselves
will not receive them for their Wages, neither do they
oblige any other Person whose Fees or Wages are stated
by Law to receive them, but have made Provision how
they shall be paid exclusive of such Bills.
§37 And as to the Objection that they have been re-
ceiv' d in Payment to satisfy all Judgments given as
aforesaid, the Creditor faith, that it was only by the
voluntary Consent of the Receiver, but there is not the
same Reasons that they should be received now at the
same Value as Bills of Credit on this Colony that there was
formerly because it is evident that there is now a real
Difference in their Values.
§38 For by a Law of the Province of the Massachusets-
Bay, their Bills of Old-Tenor are stated equal to Silver at
Fifty Shillings an Ounce and Seven Shillings and Six
Pence are equal to One Shilling Proclamation Money, and

the Executive Courts in this Colony reckon Eight Shill-
ings Old-Tenor Bills of this Colony equal to One Shilling
Proclamation Money which is equal to Silver at Fifty-four
Shillings Old-Tenor an Ounce.
§39 And by an Act of Rhode-Island General Assembly
Sixty four Shillings of their Old-Tenor Bills is stated equal
to one Ounce of Silver, at which Rate Nine Shillings and
Six Pence is equal to but One Shilling Proclamation
Money, whereas three Years ago the Bills of Old-Tenor
on all the three Governments aforesaid were of equal
Value.
§40 And since it appears, that there is such a Differ-
ence in the stated Value of the aforesaid Bills of Credit, no
Man can with any Propriety be said to make them all
without Distinction, a Standard to value Things by; for a
Man could afford to sell any Goods or Merchandize for a
less Sum in Old-Tenor Bills of the Massachusets-Bay, than
for the Old-Tenor Bills of this Colony and he could afford
to sell Goods for a less Sum by 15 per Cent for the Old-
Tenor Bills of this Colony, than for the Old-Tenor Bills on
Rhode-Island Colony.
§41 And to say that an Accompt9 is charged in old-
. Tenor 'Money indifferently of this and the neighbouring
Governments, is to say that 7s.-6d. and Ss. and 9s.-6.d are
one and the same Sum, or that there is no Difference
between Fifty and Fifty-four, or between Fifty four ·and
Sixty-four Q.E.D.
§42 And since it appears that it would be evidently i
a~surd to make a Demand for old-Tenor Money indif-
ferently of this and the neighbouring Governments, it
follows that all Demands made for Old-Tenor Money in
9. Account.
this Colony must be for the Money of this Colony exclu-

sive of the Old-Tenor of the neighbouring Governments,
or else for the Old-Tenor Money of some one of the other
Governments exclusive of the Old-Tenor of this and the
rest.
§43 And since nothing but a special Contract can inti-
tie any Person to demand th'e Money of any other Gov-
ernment, for a Debt contracted and demanded in this
Colony: It necessarily follows, that all Demands for
Debts due by Book, where the Contract lyes at large
must be for the Money of this Colony only.
§44 What I would be understood to mean by Old-
Tenor Money of the Colot;1-y of Connecticut is, whatsoever
is established by Law in said Colony to pass as, or in Lieu
of Money, rated according to its Value in Old-Tenor Bills
on said Colony, and I suppose that the Words (Old:.
Tenor) when us' d in Contracts are universally understood
to be intended only to assertain the Value of the Sum to
which they are affixed and they must be so understood
when the Executive Courts tax Bills of Cost in Old-Tenor
Money, for they have no Right neither do they mean to
exclude Bills of the New-Tenor, or any of those Coins
established by Law (to pass in Payment for Fees) from
being a sufficient Tender in Payment of such Costs.
§45 And now I have gone through with what I first
proposed, But perhaps some, may be ready to saY., that
we are sensible that it is of bad Consequence to have a fluctuat-
ing Medium of Exchange, but what can be done to Remedy it?
§46 I answer take away the Cause, and the Effect will
necessarily cease. 10
§47 But it may be further objected, thatjf it were not
10. Article I Section 10 Paragraph 1 took away the cause. The effect promptly ceased, exactly as Sherman said it
would.
-'
for the Bills of Credit on the neighbouring Governments,

we should have no Money to Trade with, and what
should we do for a Medium of Exchange? or how could we
live without? 11
§48 To this I answer, that if that were indeed the
Case, we had better die in a good Cause than live in a
bad one. But I apprehend that the Case in Fact is quite
the reverse, for we in this Colony are seated on a very
fruitful Soil, the Product whereof, with our Labour and
Industry and the Divine Blessing thereon, would suffi-
ciently furnish us with and pl;'Ocure us all the Necessaries
of Life and as good a Medium of Exchange as any People in
the World have or can desire.
§49 But so long as we part with our most valuable
Commodities for such Bills of Credit as are no Profit; but
rather a Cheat, Vexation and Snare to us, and become a
Medium whereby we are continually cheating and
wronging one another in our Dealings and Commerce.
§50 And so long as we import so much more foreign
Goods than are necessary, and keep so many Merchants
and Traders employed to procure and deal them out to
us: Great Part of which, we might as well make among
ourselves; and another great Part of which, we had much
better be without, especially the Spiritous Liquors of
which vast Quantities are consumed in this Colony every
Year, unnecessarily to the great Destruction of .the
Estates, Morals, Health and even the Lives of many of
the Inhabitants,
§51 I say so long as these Things are so we shall
spend great Part of our Labour and Substance for that,
which will not profit us.
§52 Whereas if these Things were reformed, the Pro-
visions and other Commodities which we might have to
11. The uninformed ask the same questions today.
export yearly, and which other Governments are depen-

dant upon us for, would procure us Gold and Silver
abundantly sufficient for a Medium of Trade. And we
might be as independent, flourishing and happy a Col-
ony as any in the British Dominions.
§53 And with Submission I would humbly beg Leave
to propose it to the wise Consideration of the Honour-
able General Assembly of this Colony; whether it would
not be conducive to the welfare of the Colony to pass
some Act to prevent the Bills last emitted by Rhode-Island
Colony from obtaining a Currency among us.
§54 And to appoint some reasonable Time (not ex-
ceeding the Term that our Bills of Credit are allowed to
pass) after the Expiration of which none of the Bills of
Credit on New-Hampshire or Rhode-Island, shall be allowed
to pass in this Colony, that so People having previous
Notice thereof may order their Affairs so as to get rid of
such Bills to the best Advantage that they canbefore the
Expiration of such Term.
§55 And whether it would not be very much for the
Publick Good to lay a large Excise upon all Rum im-
ported into this Colony or distilled herein, thereby effec-
tually to restrain the excessive use thereof, which is such
a growing Evil among us and is leading to almost all
other Vices.
§56 And I doubt not but that if those two great.Evils
that have been mentioned were restrained we should
soon see better Times.
FINIS
PLATES FROM THE ORIGINAL

DEFOREEST EDITION (1752)
A
CAVEAT Ag:Unft INJUSTICE,
Oil AN
ENQYIRY ·into the evil Confequences

of a Fluctuating
MEDIUM
OF
EXCHANGE,
WHEREIN is confidcred, l1:bethcr the Bills of Credit on
til~ Neighbouring Governments, arc a legal Tcoder iu.
Paymtnts of Money,
In the CoLoNY
OF
C 0 N N E C T I C U T,
FOR Debts due by Book, ar.d otberwi(e, where the Con:-;
trail Mentions ooly 0/J-1mDr Money.
B, PHILOEUNOMOS.
NEW.YORK.
Priot<d by H""Y De Eomjl in !fi•t·Sirttl: 175~
ORASMUCH, as there have . _ many Difpates
F arifen of late concerning the Mu!it.m of E_Krha•f,•

in this Colony, which have been oct"fioned chieftr
by Reafvn of cur ha,·irg iuch large Quar.tities of
P;!per Bi!ls if Crt,;'it en lome of d,e Neighbouring
Go\'err:ment~, pdlir·g in Payments &a.cng .ur, ar.d feme of
thofe Go\'ernments t;aving iffeed much lug<r hms of fuch
Bills than ~ere r:ecdTary to fupply da·mfr~ves wit~ a co~.
petent 1J1ulr~~tn if Excb~mgr, ar.d not h\'!Il£!: ft1ppla:d .thesr
Treafuries with ~ny Fur.d for the mair.tainir.~ the Creciit of
fuch Bills ; they ha\'e therefore been continully. c!efreciating
;md grcwing lefs in their Valor, arid have been the principal
Means of the Deprecir.t!on of the Bi/l1 if Credit emitted by
this Colcny, by their paffing promifcuoufly with them ;
and fo hal't' bern the Ocralion of Much Embarrafrnent and
lnjufiice, in the Trade and Ccmmerce of this Colony, ar,d
many Peeple and efpecially Widows and Orphans have.
bren great S~!flerers thneby. But cur Legif!~ture l:aving at
length taken dfetlual Care to prevent a far.thrr Derrrciatioa
Clf the BiliJ of this Colony, ar.d the other Govern-
ments not ha\•ing takrn the Jike prudent Care, their Bilh
t{ Cmiit are tlill linking in their Value-, and have in Fa&
(ul\k much below the Value of the Bi/Js of this Colopy.
Y rt fome People amcllg us, by long Cuflom, are fo far pre-
j~<cliced in Favour of a finking Mrdillm, ar.d others not being
really frn£bla of the! rrue State of the Cafe, are inclined ~
think tllat Bills if Cudit (JD the r.cighbouring: Goverrments
()UJ;ht to be a legal Tender in Paymentsin this Colony for all
Debts due by Book and otherwife where there is no fpecial
contratl: exprefsly mentio11ing fome. otber Currer.cy, ani!
Clthcn being Gt a differeat Opinion, the Difputes have heal
carried
( 4 )
c::ttifd or. fo f2r, as to occafion fome Exper.ce in the Law,
ar.d may be Jikt::y to occdion much more-, unlefs prevented
by tliofe Prtjudices beir.g_ fome way removed. And fince
it i~ a Caufe wherein c:very one is rr.ore or lefs interelled,
I have ventured to !hew rny upinion,, witb a fincere Ddirc
to have Peace ar.d Junice rnnir.t:tin(d and promoted in the
ColoPy. Not ddiring .any Pc1fon to approve of my Obfer-
vations any fa·thcr tl.an he. f.:1ds thc:m a~reeablc to the
Principles of Juf:i,e and ribht Reafon.
THE CASE STATED.
SUPf02E a :\:an come' to a Trader's Sllop in this Colony
. to buy Gcod~, and the Trader fells him a certain ~atl
tity of Good~ and tells him the Price is lo many Pounds,
Shil:ir.t~ ar.d l'ence, (11/ it /.Je t::ore o,.Jcfi) to be pid at the
Exfi~:tion of one Year, frc.m that Time, and the Man
rccei\·cs the Goods but 1heir is tlotbing faid either by Sel-
ler or oU)Cr, what C~;rrer.cy jt is to be paid in, but the
-Goods are d.::rged according to the Value of L'ills of
c,·,d;'t Old ·; cnor on thiL Colony.
Now l Q\..try what the Creditor has a Right to demand
for a Debt fo co:.1traB.ed ; or what the Debtar can cblige
him to accept in Payment?
The Cre..;itor f.. ys, that the Debt being contra8ed in the
Ct.lony of DnN&icut, he ought to have what is known by
the J~aws of {;,:d Colony to be Money : And that he has
no Right to demand ;:ny thing rife.
The DtLtor fays, That Bii/J of Credit on the neighbour-
ing Gnvcrnmen~s have for many Years pafred promifcuoufly
with B:/ls cf Credit on this Coluny as Money in a!l Pay-
mentE, (o:upt ff'uial c~MraOs) and that People in general
where the ContraCls ly at luge have expeCled, and do fiill
expeCt, that any of the Bills of Crulit on any of the
.Gcverr.ments in f:tw· Engla111l, that have obtained a Currency
in this Colony will anfwer in Payment, and in as much as
the Creditor did not give him any Notice to the con-
nary, when he bought the Goods. therefore he thinks
that fuch Bii/J of Credit ought to be i&Ctepted in Payment
for
.
for t12e aforefaid Dtbt. A":'.
( J &hho'
) there is
.
no~ ra-ti:::'zt
Sratu~e in this Colouy, tb: !t.:c:h Bills of Cru'iJ lh1!! b;: J
legal Tender in Payments cf :.fvile::: Yet the l'ra~;.ic:
has b~n fo univerfal for fo lo~.g a Tm:e, ~:'~ tile {c•cdi:o:
l.imfelf has bo!h rectind z::dpaf~'d them· as :.. ~~· ... e}· ·c.:m·
flantly withr>ut malting Excep::or.s· -::ga.in~l tl:c~ 'dr; l c,;s
Debt was contraCted, and tcr man; Years ail :CeC'~;.~s
on Book: Debts have· been fo-: Uld:Ter.cr Money indi!e-
rently, without Dillinttio:1 cf Co1o:iies, :t::d J::~2orr.~s i::t
all Courts have been give.:~ thereon acco~d:;;;;l; : _to,;-,<! :;.r.y ot
the aforefaid Bii!J of Cru:'i: h:n·e p:1L'd in Payment to
{a•.isfy all Judgments, fo cb·air1'd and t:,;; cr.i\•cr:al Cc:\cm.
"the Dtbtcr faith, ought to be e~lcem d ;t> ·c:Jnma!l b.w
:a~d ouzht not without fome fpe-.:i.1l R::!o:1 to be f~t
afide, and · that in thi> Cafe tr.:re is r.o:hing f,re:ial i
a:1d therefore the Creditor c:.:gnt no: ;;:; make l.J::~1~::~~d or
obtain Judgment dit!crent from th.! c::!::~::n:l:l C.:':;;;n cf
the Colony.
In Anfwer to this t~e Creditnr f:d.h, t~:l~ k':~.":· Ti!ls
~1 Crrdit on the neighbouri:1g Goverr rr.er.ts i.::·. e br a·
Nui:'lb:r of Years been p;:.f;'d and rec~1v\l in t-·a: r.1c:::s:
Yet it has b~t"n only by the· voh:n:;;ry Cor.7~::: 'C'f the
Perfon~ receiving them, and not b~c:!.·J{e th:y wtre ur.cer
:tny Cbliz:uion to recei·ve them; and tha: i: is no .~r;;u
ment th:t a 1-'erfon ihall be cbii6ed to r·.·ce!v~ an;- Sp'-d:s
wi::c:-~ i: won't :mfwer hi:; End, bec:-~u{e i!1 Time '•F.ft t.~·
has receiY'd it when it wouid .:nfwer. Ar,d the Crcdi:or
further faith, that fuch Bills d C.·t dit are of no intrinfic\c·
Value, and th::ir Extrir.fic;:l Value i; flutiuating and' \·ery
uncnrcin, and therefore it would be onjull that any Prrfon'
iliould be obliged to recc;ve them in Payment as Money
in this <.:olony, (Iince neither the Colonv nC1' any of the
1nhabita'n~s thereof are ur:der any Obli:'.:uioo either to
Refund faid Bills or to m~intain the Credit of them) for'
Money ought to be fomething of certain Value-, it being
th~t whereby other Things are to be v:!.iued. A:-~d r
think it ia a Princil?le that moll be sranted that DO Gove:-n·
· nH:nt
( 6
ment bas a Right to impofe on its SubjeCts· any lor.eign
Uurency to be ·received in Payments as Money which is
n3t of intrinhck Value ; nnlefs fuch Government will
a~b:ne and undertake to fecure and m&ke Good to the
Poifelror pf fuch C11rrency tl!e full Value which they
oblige hi an to receive it for. Becaufe in fo doing they
would oblige Men to part with their Elbtes for taat whicll
is worth nothing in it felf and which they don't know
will ever proc:ue him any Thin·g. And Rhule-!fland Bills of
Crtdit have been fo far from being of cenain Value and
fecuring to the PGffe1Tor the V alt.se that they were
firll fla~ed at, that they have depreci:ned ~ four feventh
Parts in nj11e Years Jafl: pall, as appears by their own Ach
of Auembly. For in the Year 1 7H• it appears by the
Face of the Bi'!!s then emitted that 'T<Ll.)m~o;-fe-vm Shiilings
Old- Tenor was equ!l to one Ounce of Silver. And by
an Att of their General Aifembly pafs'd in March !all,
they fta::ed Fifty~four Shillings Old- Tenor Bills equal to
or;~ Ounce of Silver, which funk their Value one half.
Ar.d by another Act in Junt l3ll:, (viz. 1 i 51) they fialed
Sixty-four Shillings in their Old- Tenor Bills equal to one
Ounce of Silver. And by another ACt in Augufl la{l they
gave Order and Direction to the Courts in that CG!ony.
to m:.ke Allowance to the Creditors in making up Judg-
ment from Time to Timt> as tke Bills £hall depreciate for
the Future, which iliell'.'S that they expett their Bills of Crtdit
to depreciate for the Future. And fince the Valneof the
Jlilis of Crrdit depend wholly on the Rate at which they are
flated ami on the L.'redit of the Government by whom they :rc
emitted and that being the only Reafon aAd Foundation upon
which they obtained their firft Currency and by which the
fame has been upheld ever fince their firll being current.
:and therefore when the Publick Faith and Credit of {uch
Government is violate1, then the Reafon upon which {uch
Bills ob~ained their Currency ceafes and there remains no
Reafon wh}' they fuould be Any longer current.
And tbis I would lay down as a Principle th:tt can't be
denied that a Debtor ought not to pay an1 Debts with
lrfs
( 1 )
lefs Value tha.n was comraBed for, withont the Cc:t{~t ct
ag;ainft the Will of the Creditor,
And the Credimr funher faith, that his accepting Rh&tk·
Jjland Bills if Cmlit when they Aood llated equal to ~ilvu
at 'T'l..vtnt_,-jMmi Shillings an Ounce, can be no R~:.fon
that he fhould receive them at the fame V aio~ wbe:-~ they.
ate fiated equal to Silver at Fijty-ftiur Sbillin~ an Ouc.ct,
~nd fiiil to receive them at the fame Rate when they arc
fo reduced down that Sixty:fiur Shillings is ~t131 to bat
one Ounce of Silver, and whoever dee' rcccire t:;cm fo-
mull not onl)· aa without, but ag:.ir.tl R~fon.
And the Debtor can't poffibly plead wi:h-":1:1y Tr::£1 tbt
he expeaed .to pay in Rbodc-ljland Eiiis cf Crcrit at t\.rir
prefent Valoc and uncler their preic:nt · Circum!l::r :cf, {arJY
Debts contraB.ed before the afore!"aid Acb of Rh~tk-ljlcr:J
we1e publilhed) bec;}ufe there w:ts no Lch Thir.l! {:15 thc,fc
:Dills are onder their prefcnt Circum:"' a;::::::~; exi:ti:!g a~ the
Time of ContraCt, for as was obfcrv'd Lcf:m~, the V .a!u~
of fuch Bills of Credit depend wbc!!y t:pnn tb~ Rlte at
which they are flated and on the Credit of rhe Govern·
ment by whom they are emit~ed, :ar.d a Bill rf Crr/it
for the f~;me Sum that ii 1\atcd eq..~al to Silv~r a: 1.-..~·~IJ·
ft'l.lm Shillings an Ounce, mufi be of more th1n doub~c
the Va!ae of one aared equal to Sih·er at [ixty flu,. Shil-
lings an Oance if the Credit of the Emitter may be de-
pended on : But if the Emitrcrr's l r:dit can't be depended
on then r.either of the Bills aforcf;:i;i are of :my V :1!ue,
becaufe it is evident that no Bi.'h of Crulit ba\'e any
Value in themfelves, but are ~iven to fccure fome:.hititi ef
intri!:lfick Value, to ·the Poffdfor.
. ·So th2.t the Arguments drawn from Cnfiom are of no
Force, becaufe the Re:a.fon~ upon which that (;uflom we:e
grounded do now ceafe.
{ grant that if any Thing whofe Value is intriaEcat a.,!
iPvaria-ble the fame R1ould ob:ain a Currency as 3 Mtdi::111
in
if E:l((hang~ for a great Number of Years any Color:;.
it might with {~ Rafon \le ur''d that it ought~.~
accep:e~:t
8 )
accepted in Payments for. Debts where there is 11~ fpecial
Agreement for any other Species. But if what is us'd as
a Mdium of Exchangt is fluCluating in its Value it is no
better than unjuft Weigbt5 and Mealures, b0rh which
are condemn'd by the Laws of Goo and Man, and
therefote the longeft and moe U!1iverfal Cuftom could
never make the Ufe of fuch a Mtdi~tm either lawful or
reafonable.
Now fupp:>fe that Gold or· Silver Coines that pafs cur-
rent in Payments at a certain Rate by Tale !hould have
a codiderable Part of their Weight filed or clipp'd off will
any rea{onable Man judge th~t they ought to pafs lor
the fa;ne Value as thofe of full \Y eight. But the State
of R·----1----d Bills rf Crtdit is much worfl! than that
of Coins that are clipp'd, becaufe what is left of thofe
Coins is of intrinfick Value : Eut tA.e Gener•l Affcmbly
of R----1----d having depreciated their Bills of Credit
have theizbv violated their Promife from Time to
Time, zoe ther~ is juft Reafon to fufpetl tl:leir Credit for
the Future fer the fm:l.ll Value which they now promile
for iaid Bills, :md they have not only violated their Pro-
rnife as lO the Value pretendd to be fecured to the
l'ofleffor by {aid BiBs; but alfo a• to the Time of C.ll!ing
them in and paying the fameJ they having lengthened out
the Time .Fif(ew Years. So that if the Po[elfor muft be
kept out of the Ufe of his Money unril that Term j~; expired
(and the Bills fecure nothing to him fooner.) 011e Ounce of
Sih·er paid down now, would be wonh more than Seven
Pounds Ten Shillings in fuch Bills of Cru!it computing the.
lntcrefl at 6 per Cent jer Annum. .
'l t.efe Thin~' confidered can, any reafonable Man tltink
that fuch Bills if Crtiit (or rather ot no Credit) ought
to be a legal Tender in fa; ment of Money in this
Colony for Debts, for which the Debtor received Species
of much more Value than thofe Bills provided the
Creditor could get the full Value of them in Silver that
&bc,y arc now ftated at. For it mqfl l>e remembred that
accoraing
( 9 )
according to the State of the Cafe now in Queftion the
Goods were ,charged according to the Value of Old- Tenor
Bills cf this Colony. Wherefore Uf'O!l the whole it" ap-
..pears that it would be evidently unjuft to impofe Rbotb.
lj!ar;d Bill; of Credit in payment for !uch a Debt. or
any othe~ ·in this Colont. unlefs the Credi:or obliged
himfdf by a fpecial Agrccmeat to receive them ill Par·
ment •
. And if be had agreed· to receive them in Payment for
Deb~ contratlcd aoy Time between la.+t M~rch aod J..t
it wo.Jid be unju;!: to oblige bim to take them without
three Shillings on the Pc:.tnd Al!owa:~ce, for the General
Aifembly ot Rh;d:-ljl.:u:J depreciated them fo mucll in
June bdow bo· h their current and ll.at.ccl Value i:a M«rcb
preceding. AnJ to oblige People to receive them with-
out fuc!l. Ailawance in this Colo;;y i would be, to be
more difhonc!t than they are ia Rb,k-ljlarJJ Co!o:1y f.x
they are obliged by La~· to m1ke Allowan::e filr the De·
prec:~tioo~ But in as much as we are not onder the
Jurifdiction of Rh;;dt-1/lanti Goverome.lt and therefore uo
t;tke no Benefit by their equit:ili!e Ads, I f~o~ppofe th:Jt
according to the Ruleg of the La•v, up?n a Contn.a made io
this Coiony for the Payment of Ei.'ls if Crc:M oa tae Colo-
ny of Rl;ode-ljland or a!ly of the ne~zhb:>ur.ing Guvemme~ts.
If the Debtor could no: procure fO!c!l B11ls nnde:. ~e
fame Circumnances that they were a: the Ti'tl~ of C3r:t-
tra£l:, the Courts wGuld affefs Damages f.:>r C-;J!a.-.'!icv
Money, accordin6 to the Value of fuch Bills at th! 'fi~
of Contract. And the Reafon is, bcaufe if on the o:1e
Hand all fuch Bills !hould b: called in and b:.~rnt ~eer.
the Time of Contract and the Time of Payment it W.:)Uld
be uoreafonable to oblige the Debtor to an impoffi.~ilit;.
and on the other Hand if there tho11!:l be:ween the Time
of ContraCt :mj the Time of Payment be an Aa p;fs'J that
all fuch Bills fhould be broug~t into the Tr~furer to be
redee:n 'd by a certain Time or clfe b~ Out!~ wed and
r::nder~ of no Value and· t!11: Time lho:lld be expire:l
before
A CA \'EAT AGAINST INJUSTICE
( IO )
before tbe Time of Payment, or if by :m Aa of AG"em-
bly they fuould be depreciated and funk one half or two
thirds in their Value, it would be unreafonable that the
Credirw fbonld be thereby defrauded of his juft Due an<l
lofe fo much of his Eftate.
But to impofe RhDd~-]/l,;md_ .Bills_ of Cr,Jit in Paymenta
for Debts in this Colony when the Creditor never agreed to
take them, and that wit hoot any Allowance for the Deprecia-
tion, would be to take away Men•s Efta:es and wrong them
of their juft 2nd righteous Dues without either Law or Reafon.
And icftcad . of having our Properties defended and fe·
.cored to us by" tlv.! ProteElion of the Government under
which we live; We lhould be alway$ expGfed to have
them tali-en from us by Fra~d at the Pleafure of othc:r
Gcvernments, who have no Right of Juri'-:liction over U!.
An:! according to thii Argument, if Rh:;tfe-lj!antl General
AUembiy had been pleafed lall Jun~ to have ftated their
Old-Tenor B•lls equal to Silver at Forty-eigbt Pcur.ds
'T<tr:d·;..•! $hillir.gs ~n Ounce, inftca:l of Sixty-four 5hiHings,
and {o bve cut off the Value of them Eightun Sl\illings
on the fotlild~ in~ead of Cfhru Sh:llings, all Creditors ia
rhi!! Co!ony would thereby ha\·e bceA neceffitated to lofe
Nill.."''__Y Pounds out of every Hundrtd Pounds of their
p.::m which w~re then out fla:-~clin~, for if they could
cle away one Sixth P:Jrt of their Value and reduce them
JCl mm:h bdow the Old-T~nor Bills of this Colony and
~e C.re.dror be notwithllanding obliged to receive them with-
out af!y AUowo:nce, by the fame Rule they might h:sve
t:lkec ;away three ~a:-ters or Nine Tenths or iQ·
~t-d the who!e. :ar.d the Crt:ditor have· had no more
Rc:nccy than _he has now. And the E!tates of poor
\Vid~ws ~ Orphans mull according to this Principle
i~ the fume nnjuR Manner be taken away frcm them ancl
Jr!VCG to other;. that have no Right to them, (for what
t~e Creditor lofes in this way the De'3tor gains becaufe
t:t~ mar-e the Bill$ ~r Crnlit depreciate the lefs Value the
Dcbtur an pro:are them for} and according to·rhe-.Oebtor's
Argument
( 11 )
Argument the Executive Conrts 1n this Colony mall
give Judgment in i<'avgur of all "this Fraud a:1d Ioiqairy at
leaft, 'till.there&isfome fpccial ACt of Aifem':>ly to order them
to the c~ntrary ·; butfl believe that every honc:!i Man of common
Senfe, ~pon ~ature Conficieration of thr :~iri=umllances of
the t:afe, · wi.ll t-hink that thi• is a:l In •. ~:..1y not to be
countenantcd, but rath~r to ·be p:mifbed by tf.e Judges.
~u.t in Anfwer to· what is faid concerni:-~g Derrunds
being made for Old-Tenor Money indifferently a!ld the
Courts giving Judgment aceordingly. The Creditor faith
~ Phrafe in all Demand5 made in this Colony ought
to be underfl;oo:i to be the Old-Tenor Money of this
Colon}', and no other, for there never wa; any Law in
this Colony that Bills if Crcdi! en the· neighbo:>urir.g
Governments filould be a let?,al Tender in Payme:m of
M~ney, and I have obfcrved b&lre that it wou!d be un-
reafonable, that any foch Foreign Currency P.loulJ be im-
pofed as Money, and the fame Phrafe is us'd in taxing
Bill~ of Colt; in the Executive Courts, but it ill undedlood
to be the Old- Tenor Mo:1ey of this l:olony only, for a
V'hrJit/a~td Pounds in BiJ/s of Credit on the neighbauring
Governments would· not be fufficient in the Law to fatisfy
a Bill of Cotl of T-weflty Shillings Old-Tenor.
& And the General Affembly of this Colony have faf-
ficiently declared that they don't Eleem fuch Bills ofCmlit as
Money, a~;~d that no I'erfon ought to be obliged to receive
them as fuch. In that, they tbemfelves will not receive them
for their Wages neither do they oblige any other Pcr!oo-
whofe Fees or Wages ;re fiated by Law to receive them.
but have made Provifion how they fuall be paid exdnfivc of
{uch Bills. And as to the ObjeCtion t!lat they hue been
receiv'd in Payment to fatisfy all Judgments given aJ afore-
faid, the Creditor faith~ that it was only by the voluntary
Confent of the Receiver, but there is not the fame Reafooa
that they fuould be received now at the fame Value as
..Bills ·tif Cntlit on this Colony that there w.n former})'.
bccaufc it is evident that there is now a real Difference in
their
{ 12 }
their VaTues. For by a Law of dtt Province of the Ma.lfa-
th:tftts-Bny, their Bills of Old- Tenor are fiated equal to
Silver at FiftJ Shillings ao Ounce ar·d Stvelz Shillings and
Six Per.ce are tqual to One l:ihilling Proclamation Money,.
and the Executive Co\lrts in tbii Coiony reckon Eight
S.hi!linE,s Old-Tenor Bills of thjs Colony equal to One Shil~
ling Proclamation Money which is equal to Silver at Fifty-
fi"' Shillings Old-Tenor an Ounce. And by an ACt of
$-bok-1/h•lld General Aff'embly Sixty four Shillings of their-
Old-Tenor Bills is llated equal to one Ounce ot S;lver, at
which Rate /l:ine Shillings and Six Pence is equal to bot
011t Shilling!. Proclamation Money, whereas three Years.
ago the Bills of O!d. Tenor on all the: three Gover.nmc:nts
a.turefaid \-;·ere of equal Value.
And !ince it appears, that there is fuch a Difference in
the C.ated Value of the atorcfaid Bi/IJ of Crtdit, no Man
c;m witll any. Propriety be faid to m<.ke them all withoat
Di~linetbn, a Stacdard to value Things by ; for a Man
could afford to feil any Go:-1ds or Merchandize for a lefs
Sum in Old-Tenor Bills of the Maffachuftts-Ba;·~ than for
the O!d- Tenor Bills of thi~ Cdony and he could afford to
fdl Goods for a lefs Sum by 1 5 ptr Cent fer the Old-
Tao. llins of this Colony, than fer the Cld- Tener Bills oo
RL"<"UI-Jjl-orul Colony.
And to lay that an Acccmpt is char£ed in Old- Ter:or
Money iodili'~Jen:ly of this a:;J rl.e 1;eighbouring Govern-
ments, is to fay that is .. 6d. and S.r, and 9r.-6.d are one
ar.d the fame Sum, or that there is no Ditruence between
Fifty, and Fifty-{fillr, cr between Fifty four anci Sixty-
fCJJT ~.B.·D.
Aod 1ince it appears tb:<t it would be evidently ablurd to
Qnke a DemiUld for Old- Tenor Money indi!ferer.tly of
this &IJd the neigbbo•Jring Governments, it follows that all
V:mands made for Old- Ter:or Money in this Colony· muft
he for lhe Mar.ey ot this Colony exclufiye of the Old-
Tenor of the nei,hbouring Government;, or elfc for the
Old·
. .l J3 )
Old· Tenor ·Money of fome one cf the other Gon:rnmmu
exclufive of the O!d. Tenor of this arid th~ rell. ·
And fince nothing but a fpecial Contraa t:l!l intitfe
any Perfon to dem~nd .the Money of a!!y o:.her Govern-
ment;, (or a D~bt cootraited and deman~d io this Colony:
It n:cdfarily follows, that all Demands tor Debts due by
.Book, where the Contratl Jyes at large mWl be fl)r the
Money of this Coiony only. . ·
What 1 would be .underftood to mean by Old-Tenor
Money of the Colony of Ccmne!Jic~tt is, whatfoever is
~llablillicd· by Law in faid Colony :o pafi as, or in Lien
·N Mor.ey, rated according to its Value in Old· Tenor
ljil!s oa faid Colony, and I fuppofe that the Words (OJd.
Tenor) when us 'd in Contra8s are univerfa.lly ~~~:Jtr/IHII
'to be intended oniv to a!f~rtain the Value of the Sam to
which they are affixed ar1d they n-uft be fo underftood
wben the Executive Courts tax Bills of Coft in Old-
. Tenor Money, for they have no Right neither do tHY
mean to exclude Bil 1s of the New- Tenor, or any of
thofe Coins eitabli!"ned by Law (to paf3 in Payment for
Fees) from being a fufficient Tender in Payment of {deb
.Cofts.
And now I have gone thrci:1~h with what I 6rft propofed.
But perhaps fome, may be ready to fay, that wt art
fennble tbat it ;, of /,ad C?n(tqut•let to btl1Jt ajlulluti"t M.-
JiZm of l!xch:.mf!;t, 6ut what ca11 he Jrmt to RtmtdJ it 1
. I anfwer take away the Caafe, and the Etfea will oec:ef-
farily ce::fe. · . 1 ::
But 'it may be further obje8ed, that if it were ~o~ for
the Bills of Credit on the neighbouring Governments, we
{hould ·have no Money to Trade wi~h, and what Oloald
we do for a Medium -of Excha11gt 1 or how coald .we
live without ?
To. this I anfwer, that if that were indeed the Cafe, ,we
had better die in a good Caufo than live in a bad oDe.
But I apprehend that the Cafe in Faa is quite tbe reverfe,
for we in r.hia Colony are fcatccl on a wcrr fruilful Soil,
'he
. ( If )
tl:e Proc!o~ whereof, with our L2bcur and lnduftry, and
tl:e Divine £Idling t.lereon, would fdnciently fumifu us
with, ar.d prccure us' all the Necdraries of Life ::r:d as
good a Muii11111 or E:rcha,ge as any People in the World
have Or C2n cdire. But {o lollg as we p.-.rt wilh c-ur
znoft nlu~ble Ccmmodities for fuch Bills or Crulit :.s
are no Projit; but rathtr a Cheat, Vexation ;;r.d Sure
to cs, J!r.d bcccme a Muliua \\hereby we are com!r.u-
ally clle2ting atld wronging one another in our Dealings
ar.d Crmmerce. Acd fo long as we imrort fo much
111ore foreir;n Goods than are necdfary, and krep fo
~nany Merchants tnd Tr.zders employed to procure and
deal tllCJn flot to us: Gu~at Part of which, we might
as well make alilollg curfelves; and another great Part of
which, we h;d much better be without; d"pecially the
Spiritoos Liquors of v•hich vafi Quantities are ccnfumed in·
this Colony ever) Year, annt'cdfarily to the great Ddlruflion
of the Eftate-s, .Moral~, Health and even the Lives of
many of the Inhbitants. .
I fay fo long as thefe Things are fo we fhall ffnld
!!ftlt Part cf otir Labour znd Subfiance for tl-.at, ._hich
will ut prrft us. Whereas if thefe T!lints were re-
formed, the Prcvifiona ai:d other 'CC'rr.mcdities w)iich we
~nighr have to export yr:zrly, and which other GQVttA·
Blentl are dependant UJlCD us for, would rrocure us Gold
ind. Silver abandrntly fufficie.nt for a Mulil4111 of Trade.
And we D!ight be. a! ir~ep~FI_dent, fl?~riflUng and happy
a Colo11y ~s any m the Bnt;_fo Domm10ns.
Al'ld with Submiffion I would humbly beg leave to
:pl'epofe it to the '":ife Cor;fideration cf the HonacrabJe
General Aff,.mbl~ of rhis Colony ; wheth~r it would llOt
t,e conducive to . the welfare of the Col01ly to _pafa
Come Aa to prevent the Bills laft emitted by Rhoti,.ljlad
Colony from obtai11injl 1 Currcmy amol'lg l:a. And to
.,roint fome reafonable 'Time (not exccedir.g the Tam
t:iaat our P;Jis Dj Credit are allowed to _pafs) after die
lxpimioa of whidl llODe of &be 1/;JJ, if vtiit on N,.,.
lJIUIJJfhif:l_ -
.( IS )
Hamp.foirt or Rbttle-lj1anJ, tball be allowed to pafs in this
Colony, that. fo People having previous Notice thereof
may order their .lffain fo as to g« rid of tuch Bills to
the beft Advantage that they can before the Expiration
of fuch Term.
And whe!,her it would not be very much for the Pub-
lick Good to lay a large Excifc upon all Rum impontd into
this Colony or difiillcd herein, thereby cffctiually to rtftraia
the accfiive ufe thereof, ·which is fuch a growing Eril
among us and is leading to almoft all other Vices. And I
doubt not but that if thofe two great Evils that bave
been mentioned were reftrained we 1hould fooD f&c bcucr
Times.
F I N I S

Roger Sherman Caveat

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Roger Sherman

PLATES FROM THE 01

Manufactured in the United States of America

A CAVEAT AGAINST INJUSTICE... 29

PLATES FROM THE ORIGINAL

"The intent of the legislators constitutes the law."

Any student of ~he

What was wrong with trade and cor

Any student of the economic system of the United States ought

The states' voluntary sacrifice hastily rescued our forefathers from

And in June, 1790, a little more than a year after ratification, a

The Framer who perfected the design of our country's monetary

' ' .• -.-·~"'g';-·

"Mr. Sherman exhibits the oddest shaped character I ever remember to

The record of Sherman vs Battle states:

A CAVEAT AGAINST INJUSTICE reflects events in Roger

The record of Sherman vs Battle states:

The outcome of Sherman vs Battle was a victory for paper mo~ey,

the General Assembly of Connecticut asking that Rhode Island bills

Twenty-four years later, Roger Sherman was to help write the

Of course, Sherman might have been specifically referring to the

- -------------·-- ------~~- --~-';-

Doesn't Congressman Patman's testimony make it clear that the

On that first Wednesday in March 1789, the monetary system advo-

Compare this prediction with Presid

If Ratification of the Constitution was the Grand Finale in Roger

Compare this prediction with President Washington's jubilant

ministerial officer who participates in a compulsory fluctuating

-Frederick Tupper Saussy

WHEREIN is considered, whether. the Bills of Credit on the

FOR Debts due by Book, and otherwise, wherethe Contract

Case~ are inclined to think that Bills of Credit on the neigh-

§7 The Debtor says, That Bills of Credit on the neigh-

was equal to one Ounce of Silver. And by an Act of their

receive them so must not\only act without, but against

§20 But if what is us' d as a Medium of Exchange is

Colony for Debts, for which the Debtor received Species

cut Money, according to the Value of such Bills at the

Pounds Twelve Shillings an Ounce, instead of Sixty-four

mands being made for Old-Tenor Money indifferently

Pence are equal to One Shilling Proclamation Money, and

this Colony must be for the Money of this Colony exclu-

for the Bills of Credit on the neighbouring Governments,

export yearly, and which other Governments are depen-

PLATES FROM THE ORIGINAL

ENQYIRY ·into the evil Confequences

ORASMUCH, as there have . _ many Difpates

F arifen of late concerning the Mu!it.m of E_Krha•f,•

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