Front Page Titles (by Subject) CCCLXXV.: James Madison to C. J. Ingersoll. 1 - The Records of the Federal Convention of 1787, vol. 3
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CCCLXXV.: James Madison to C. J. Ingersoll. 1 - Max Farrand, The Records of the Federal Convention of 1787, vol. 3 
The Records of the Federal Convention of 1787, ed. Max Farrand (New Haven: Yale University Press, 1911). Vol. 3.
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James Madison to C. J. Ingersoll.1
Montpellier, February 2, 1831.
The evil which produced the prohibitory clause in the Constitution of the United States was the practice of the States in making bills of credit, and in some instances appraised property, “a legal tender.” If the notes of the State Banks, therefore, whether chartered or unchartered, be made a legal tender, they are prohibited; if not made a legal tender, they do not fall within the prohibitory clause. The No. of the “Federalist” referred to (44) was written with that view of the subject; and this, with probably other contemporary expositions, and the uninterrupted practice of the States in creating and permitting banks without making their notes a legal tender, would seem to be a bar to the question, if it were not inexpedient now to agitate it.
A virtual and incidental enforcement of the depreciated notes of the State Banks, by their crowding out a sound medium, though a great evil, was not foreseen; and if it had been apprehended, it is questionable whether the Constitution of the United States, which had many obstacles to encounter, would have ventured to guard against it by an additional obstacle.
[1 ]Letters and other Writings of James Madison, IV, 160.