[Weekly Compilation of Presidential Documents Volume 36, Number 26 (Monday, July 3, 2000)]
[Pages 1560-1562]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks on Signing the Electronic Signatures in Global and National 
Commerce Act in Philadelphia

June 30, 2000

    I would like to begin by acknowledging the presence here of 
Congressman Joe Hoeffel from Pennsylvania. He represents the district 
adjoining Philadelphia, and I thank you, Joe. And Martha Aikens, the 
superintendent of the Independence National Historic Park, where we 
are--thank you, Martha.
    To all the other Park Service employees--that's one of the few 
Federal jobs that I haven't held that I'd like to hold. [Laughter] And 
I'd also like to say a special word of appreciation to Dave Barram, the 
Administrator of the General Services Administration that manages our 
Federal buildings and has also played a critical role in putting so much 
of the Federal Government on-line. Thank

[[Page 1561]]

you, Dave. He took a modest pay cut to leave Silicon Valley to work for 
me several years ago, and I'm very grateful.
    Two hundred and thirteen years ago, about 100 feet from where we are 
now, in a summer as hot as this one, the Founding Fathers drafted the 
Constitution of the United States. In the very first article of that 
document, they wrote that Government shall make no laws, quote, 
``impairing the obligation of contracts.'' James Madison called the 
contract clause, and I quote again, ``a constitutional bulwark in favor 
of personal security and private rights.'' He and his fellow framers 
understood that the right of individuals to enter into commercial 
contracts was fundamental not just for economic growth but for the 
preservation of liberty itself.
    Just a few moments ago I had the privilege of signing into law 
legislation that carries the spirit of the Founders' wisdom into the 
information age. The Electronic Signatures in Global and National 
Commerce Act will open up new frontiers of economic opportunity while 
protecting the rights of American consumers. The new law will give fresh 
momentum to what is already the longest economic expansion in our 
history, an expansion driven largely by the phenomenal growth in 
information technologies, particularly the Internet.
    Firms across America are moving their supply and sales channels on-
line, improving customer service, and reducing costs. The resulting 
productivity gains are rippling throughout our economy, helping wages to 
rise, businesses to start, jobs to be created without causing inflation. 
And individuals are not just buying and selling on-line; they're gaining 
information that is empowering them as consumers and as citizens.
    Perhaps no invention since the railroad has had such potential to 
expand our opportunities and broaden our horizons--I would argue, more 
profound potential. But that potential is now being held back by old 
laws that were written, ironically, to protect the sanctity of 
contracts. Laws that require pen and ink signatures on paper contracts 
for them to be enforceable.
    In order to unleash the full potential of the digital economy, Vice 
President Gore and I unveiled, 3 years ago, our Framework for Global 
Electronic Commerce. In that document, we set out the principles we 
believe should shape the rules governing electronic conflicts. We said 
that the rules should be simple and nonregulatory, that they should not 
favor one technology over another, and they should give individuals and 
organizations maximum freedom to form electronic contracts as they see 
fit.
    I'm grateful that Congress has kept those principles in mind as it 
drafted the Electronic Signatures Act. Under this landmark legislation--
which I want to point out, passed by overwhelming majorities of both 
parties in both Houses, and I compliment both the Republicans and the 
Democrats for their support of this--on-line contracts will now have the 
same legal force as equivalent paper contracts. Companies will have the 
legal certainty they need to invest and expand in electronic commerce. 
They will be able not only to purchase products and services but to 
contract to do so. And they could potentially save billions of dollars 
by sending and retaining monthly statements and other records in 
electronic form.
    Eventually, vast warehouses of paper will be replaced by servers 
about the size of VCR's. Customers will soon enjoy a whole new universe 
of on-line services. With the swipe of a smart card and the click of a 
mouse, they will be able to finalize mortgages, sign insurance 
contracts, or open brokerage accounts.
    Just as importantly, the law affords consumers who contract on-line 
the very same kind of protections and records, such as financial 
disclosures, they currently receive when they sign paper contracts. 
Consumers will be able to choose whether to do business and receive 
records on paper or on-line. They will have the power to decide if they 
want to receive notice and disclosures electronically. It will be the 
company's responsibility to ensure that the data it sends to a consumer 
can be read on that consumer's computer--no more E-mail attachments with 
gibberish inside.
    Finally, Government agencies will have the authority to enforce the 
laws, protect the public interest, and carry out their missions in the 
electronic world.

[[Page 1562]]

    For 8 years now, I have worked to set forth a new vision of 
Government and politics that marries our most enduring values to the 
demands of the new information age. In many ways, the Electronic 
Signatures Act exemplifies that vision. It shows what we in Washington 
can accomplish when we put progress above partisanship, when we reach 
across party lines to work for the American people and our common 
future.
    I want to congratulate the many organizations and again, the 
lawmakers in both parties, and the members of our administration who 
worked so hard to get this bill passed, and offer a special thanks to 
Vice President Gore who long ago had the vision to understand the 
potential of this technology, and who has led our administration's 
efforts to harness that potential to benefit all Americans.
    Now, let's see if this works.

[At this point, the President electronically signed the bill.]

    Now, we have to wait a while while the act comes up and the magic 
has worked. It's amazing to think that Americans will soon be using 
cards like this one for everything from hiring a lawyer to closing a 
mortgage. Just imagine if this had existed 224 years ago, the Founding 
Fathers wouldn't have had to come all the way to Philadelphia on July 
4th for the Declaration of Independence. They could have E-mailed their 
``John Hancocks'' in.

 [The President verified the electronic signature.]

    Well, it works, and it will work for you. And all of you young 
people will someday look back on this day that you were here and marvel 
that we thought it was any big deal. [Laughter] And that will be the 
ultimate test of success. I wish you well, I hope we've done a good job 
of preparing your future.
    Happy Fourth of July weekend. Thank you very much.

 Note:  The President spoke at 10:57 a.m. at Congress Hall in the 
Independence National Historical Park. S. 761, approved June 30, was 
assigned Public Law No. 106-229.