8.3.3
Enumerate the
advantages of a common market among the states as foreseen in and protected by
the Constitution's clauses on interstate commerce, common coinage, and
full-faith and credit.
The Constitution of the United States includes many clauses on aspects of money in
the country. It includes clauses on interstate commerce, common coinage,
and full-faith and credit. The fact that the Framers of the Constitution
actually bothered to include these ideas alludes that they wanted the states to
share a common market.
By definition, a common market is an economic unit, typically formed of nations,
intended to eliminate or markedly reduce trade barriers among its members.
Every country wishes for a common market for its simplicity and efficiency but
to make clauses to ensure the result must surely mean that the United States
verily cherishes the thought of a common market.
Interstate commerce is the buying and selling of products and
services across state borders. To have a common market would be a blessing
for this idea. The clause that describes this from Article I, Section 8 of
the Constitution says, The Congress shall have the Power to regulate Commerce
with foreign Nations, and among the several States, and with the Indian
Tribes. Without a common market, interstate commerce would be a
nightmare. For example, a man wanted to buy a potato from another
state. If there were no common market, then maybe there are no roads he
can take to get to the other state’s trading area. Or, he may not even be
allowed to buy the potato from another state.
The federal government solely controls common coinage or currency, where all
the states or nations share the same types and values of money, either paper
currency or coins. State governments are forbidden from this power and
with a good reason at that. From Article I, Section 8 of the Constitution,
the clause reads, To coin Money, regulate the Value thereof, and of foreign
Coin, and fix the Standard of Weights and Measures. With a common market,
this clause will work because everyone can exchange money that will not go
through a change in value for the worse (depreciation) in another state. A
common market will ensure smoother, faster exchange of money and
trade.
Full-faith and credit, a term given to an unconditional commitment
to pay interest and principal on debt, usually issued or guaranteed by the U.S.
Treasury or another government entity is also described by a clause. Full faith
and credit shall be given in each state to the public acts, records, and
judicial proceedings of every other state, reads a passage from Article VI,
Section 1 of the Constitution. A common market would be advantageous to
this clause since the currency is the same then the government will not have to
make different kinds of money to pay back debts to different people from
different states. The main reason that a common market is so enticing is
its consistency, as explained earlier. The Framers of the Constitution
were ready for this issue to come up so they passed those clauses.
More Information:
1.
http://www.investorwords.com
This is a database of words commonly used in money situations.
2.
http://www.law.cornell.edu/constitution/constitution.articleiv.html
This is a detailed, online description of the United States Constitution.
3.
http://www.gliah.uh.edu/index.cfm
This is a website about the general American history. It is very useful for most of the
standard questions.
Recommended Books:
1.
The American Journey
by Appleby, Joyce. Brinkley, Alan. McPherson, James. National Geographic Society.
2.
James Madison
by S. Banfield
3.
Democracy in America
by A. De Tocqueville
4.
The Artist in American Society: The Formative Years 1790-1860
by N. Harris
5.
The United States to 1877
by J.A. Krout
6.
The Creation of the American Republic 1776-1787
by G.S. Wood
7.
The Enlightenment
by Carole Collier Frick
8.
All Roads Lead to Philadelphia
by Camille Leonhardt