The star of the north. [volume] (Bloomsburg, Pa.) 1849-1866, 1863-12-02
Are "Grsenbacks" a Legal Tender .

This question, which has been occupy
ing the attention of our State Courts for some
time past, we are pleased to learn is soon
to be argued before the Supreme Court of
the United States, at Washington. We
have no hesitation in saying that the decis-
ion OF the Supreme Court of the United
States as to whether sgreenbacks" are le-
gel tender in payment of debts, will com
pletely explode the paper bubble ot Secre-
tary Chase, and put an effectual stop TO the
extravagant speculations which are now
being carried on by political gamblers at
the expense of TIE national credit. The
enormous circulation of paper money is
just now beginning to be seriously fell in
every branch of trade. II has inflated the
prices OF the actual necessaries of life to an
alarming figure, and unless speedily check
ed must end in a revulsion which will
bring ruin and destruction TO every branc b
OF industrial pursuit. Indeed, IN a short
time "greenbaeks" will be OF as little value
10 The holder as the continental money is
sued during the revolutionary war The
depreciation of the continental money
arose solely from The fact that the States is
suing il, had no gold or silver 10 redeem it
when il became due, and the consequence
was that the holders of continental money
were heavy sufferers by the foolish expert
ment 10 make paper promises to pay equiv
alent TO gold aud silver. After the declara-
ton of peace and the recognition of the in-
dependence of The United States, one hun-
dred dollars in continental money would
scarcely purchase breakfast. That will
soon be the case with, "greenbacks Z"
II Secretary Chase were called upon 10
redeem his promise TO pay, he would not
be able TO furnish one dollar in gold for ev-
cry hundred he has issued in paper money.
In fact the only thing which has thus far
kept "greenbacks" in circulation has been
the law OF Congress making them a legal
tender in payment of debts, and their re-
demptiou in United States bonds upon
which the government promises 10 pay six
per cent. interest in gold. Even now they
are at discount of over fifty per cent, and
it is easy 10 see that we are rapidly ap-
preaching a financial crisis which will
soon establish the fact that no government,
or banking institution, can long sustain IFS
credit unless it is based upon a gold and
silver basis. A bank that is unable 10 re-
deem it notes in gold and silver coin, is
Justly regarded as insolvent, and is soon
compelled TO close It's doors This doctrine
holds equally good with governments. 1t
may require longer period of time than
in ordinary banking operations. but in pro-
portion to the time it may require TO bring
about such state of affairs, will be the
ruin and misery entailed upon the country.
AT the time Of the passage of The law by
Congress, it was predicted by some of the
ablest men in that body that il would pro-
duce precisely the results which we have
experienced. II is useless for the abolition
papers to cry out against spectators the
evil is in the paper bubble of Secretary
Chase, which has been swelled to such
proportions that an explosion may take
place al any moment. No government can
dispense with gold and silver coin without
sinking inso hopeless and irredeemable
bankruptcy. and il has never been attempt
ed by any Secretary of the Treasury, until
the advent of the present imbecile and ia
Datical abolilionists, who now, unfortunately
for the country, fills that office.
The only power delegated to the United
States by the Constitution on this subject, is
to be found in Article lst, Section 7th: "To
coin money. regulate the value thereof, and
of foreign eoin, and fix the standard of the
weights and measures; 10 provide for the
punishment OF counterfeiling the securities
and current coin of the United States" 1t
is very evident to every reaecting mind
that the trainers of the Constitution never
intended that anything but gold and silver
coin should be used as money BY the Uni
ted States Government.
They aloLe are recognized by the Con-
slitution as forming the ''currens coin OF the
United States," and as such, were designed
by the fathers of The Republic as circnla.
ting medium. 10 Section OF Article 1, 1t
is expressly provided that no State shall
make anything bui gold and silver coin