Cincinnati daily press. [volume] (Cincinnati [Ohio]) 1860-1862, 1862-01-09
Trsnsurr notes as LegnI Tender

Treasury notes as Legal Tender.
1t has been announced that it is the iuten-
tion of Congress to pass law making United
States Treasury-notes a legal tender for
debts. The power of Congress to do this has
been questioned, 1t being contended that
nothing but gold and silver will answer the
purpose. There is IN the Constitution no
express grant of such power given to Con.
gress. The only provisions in that instru-
ment touching money and the currency are
those embraced in the enumeration of the
powers vested in Congress, which declare
that Congress may 'coin money" and "regu-
late the value thereof, and of foreign coin;"
and may also provide for the punishment
Of counterfeiting the securities and current
coin of the United States;" and the provision,
in the chapter Of inhibitions on the States,
which declares that mo State shall make
any thing but gold and silver coin tender
in payment of debts" The implications in
these provisions, and the inferences from
them, may by many be considered, or war.
rant the belief that the Constitution did
not contemplate any thing bat gold
and silver coin as legal means of dis
charging debt But the express prohi-
bition against the use of any other me-
dium is confined to the States, while there is
no prohibition upon the United States But
what is not expressly or impliedly granted
to the United States, or not prohibited to the
States, is, by the Bill of Rights. expressly
reserved to the States respectively, or to
the people," That is, no power not thus
granted exists in Congress. The power in
question is not expressly granted. The only
thing remaining to be answered is: Is it
impliedly granted? 1t can be answered only
by considering the enumeration of the grants
to Congress. In this enumeration we find
Congress vested with power ito raise and
support armies" "to provide and maintain a
navy" "to provide for calling forth the mi.
litia to execute the laws of the Union, sup.
press Instructions and repel invasions."
Besides this is the power 'to make all laws
which shall be necessary and proper for car
rying into execution" these and other emu
merated powers, and ''all other powers
vested IL the United States and in any
department or officer thereof" If Congress
can not under this general clause, declare
any thing but gold and silver legal tender,
it is incompetent to do it at all.
The st. Louis Republican discusses the
power of Congress to make these notes a
legal tender, and the propriety of sach legiste
lation at considerable length and in an able
manner. Itsays our nation has, now, in the
progress of the present disastrous civil war,
reached stage in which it has become sat-
isfed that its enormous expenditures can not
be met by the ordinary resources of taxes
and loans. That is the experience of the
Government, and is frankly confessed by it.
What remains? Simply what is now DO
ciaimed-a resort to Government issues, of
which the redemption rests on the public
faith. 1t is simple resort, and not novel
one. Treasury notes are no new things un-
der our Government. Our fathers in the
Revolutionary struggle resorted to them.
The French were compelled to their use in
the great contest they maintained with the
continental powers. Great Britain did what
was equivalent to it when it sanctioned the
suspension of specie payments by the Bank
OfEnglsnd, and made its notes legal tender.
That these Government issues should be paid
out to the public creditor excites no surprise.
1t is mode of payment to which our people
have been frequently accustomed. But our
Government not venturing SO, far as the
British Government presumed to 20, has
never yet declared these issues a legal ten
der. 1t may be argued that hitherto the
necessity for such step has never been SC
apparent as it now is. Our Government has
never before been engaged in a contest sc
deadly and exhaustive of its means and re
sources as the present war.
1t may be argued that to give these issues
value as currency at all-that is, to pre-
vent ruinOus depreciation of them which
would make them almost useless-this new
power Of serving as q legal tender must be
annexed 10 them. As these issues are the
main-almost sole-reliance Of the govern
ment for maintaining itself financially, they
must, If possible, be kept from depreciation.
Hence accrues the Necessity" of Annexing
this new power to them. And as govern.
mont has right to issue its warrants and
pay them out to creditors, any thing which
gives those warrants value as near par as
may be, in ordinary circulation, is entirely
proper" as a recourse for the government.
During Ike last war with Great Britain
a-arf ~-.ss .-Frr 60 r---s-..r 80. sa 'HHf -. H