The experience of the old confederation had not taught this lesson.

The colonial system was continued by the several States, and bills of credit were issued on their faith.

The continental system was a compound of the main features of this plan.

The bills were issued by the Congress, but the States were relied upon for their ultimate redemption.
The collapse of the entire fabric of finance led to the establishment of the Bank of North America, the notes of which were redeemable and redeemed at the bank counters.

The article in the Constitution of 1787, prohibiting the issue of bills of credit by the States, was evidently intended to secure a uniform currency to the people of the United States, and it has been by a strange perversion of this manifest intention that the power has been conceded to the States to charter corporations to do that which was forbidden to themselves in their sovereign capacity; namely, to issue bills of credit, which bank-notes are.