Department of Economics

THE U.S. CONSTITUTION AND MONETARY POWERS: AN ANALYSIS OF THE 1787 CONSTITUTIONAL CONVENTION AND HOW A CONSTITUTIONAL TRANSFORMATION OF THE NATION’S MONETARY SYSTEM EMERGED

Department of Economics

University of Delaware

Working Paper #2004-08

THE U.S. CONSTITUTION AND MONETARY POWERS: AN ANALYSIS OF THE 1787 CONSTITUTIONAL CONVENTION AND HOW A CONSTITUTIONAL TRANSFORMATION OF THE NATION’S MONETARY SYSTEM EMERGED

Farley Grubb

Abstract

The monetary powers embedded in the U.S. Constitution were revolutionary and led to a watershed transformation in the nation’s monetary structure. They included determining what monies could be legal tender, who could emit fiat paper money, and who could incorporate banks. How the debate at the 1787 Constitutional Convention over these powers evolved and the path the founding fathers took that led to the specific powers adopted is presented and deconstructed. Why they took this path rather than replicate the colonial system and why they codified such powers into supreme law rather than leave them to legislative debate are addressed.

The Lerner College is home to a state-of-the-art financial trading facility, the $1.5 million student-led Blue Hen Investment Club, a student-managed restaurant and hotel, a high-technology development center of a global bank and a start-up experience for students with new business ideas.

Lerner College faculty - like Meryl Gardner, whose research on foods and moods was recently published in the Journal of Consumer Psychology - are thought leaders who command attention from influential business audiences, economists and policy makers.

All Lerner College departments offer discovery learning experiences and emphasize data-based analytics to enrich the student experience. Here, students at Vita Nova, our award-winning restaurant run through HRIM, joined professional chefs and winemakers in hosting a 2014 Mid-Atlantic Wine and Food Festival event.

The Institute for Financial Services Analytics is a collaboration between the Lerner College, UD's College of Engineering and JPMorgan Chase, and hosts events for academics and the business community designed to address consumer analytics and industry applications.

Undergraduate scholarships, made possible through the generosity of alumni and friends, enable us to support promising scholars. Here, Delaware Gov. Jack Markell and his mother, Leni Markell, join recipients of the William Markell Scholarship (center), which benefits students in Accounting and MIS.

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