The weekly north Iowa times. [volume] (McGregor, Iowa) 1857-1867, 1864-11-30
Important Decision by Judge Grier, in
Reference to Legal Tender Notes.


Important Decision by Judge Grier, in
Reference to Legal Tender Notes.
From the Philadelphia Age Nov. 18th.
In the U. s. Circuit Court, Judges Grier
and Cadwalader, an opinion was delivered
yesterday in the case of the Philadelphia
and Reading Railroad Company VS.. Charles
Moulson ct. al, which was before the court
in the shape Of bill in equity, to compel
tho defendants to except in eXtir guishment
Of the principal OF certain q ound rents,
to the amount of $4,000 the legal tender
notes of the United States. The case was
argued few days ago, and the opionion
by Judge Grier is as follows:
Coined money, in modern times, formes
but very small portion Of the current
money used in commercial transactions.
Paper money representing credit, has long
been used as current and lawful money.
But no one could he compelled to accept
the promise Of bank 10 pay money, in
stead of the coin itself The notes Of the
United States, issued under the authority
OF the government, were current money,
because issued by such authority, but were
never made legal tender for the payment
Of debt. ..
A contract made in the United States
for the payment Of certain number OF
dollars would be construed as meaning,
not Prussion dollars, or Spanish mixed
dollars, but lawful coin of the United
States, The addition Of the description
'lawful money Of the United States" is
entirely superfuous and does not change
the nature Of the obligation.
The statutes Of congress always make {:
distinction between lawful or current money
and that which shall be tender for pay
ment of debts Hence, we find that when
such is, the intention, the language is,
sind shall be a legal tender" dc.
Some coins of the government are a le-
gal tender below certain amount, but not
beyond. Thus, by the act Of the 9th of
February, 1898, after the expiration of
three years, all foreign coins, except Span
ish milled dollars, shall cease to be legal
tender
BY act OF April, 1906. Foreign gold
and silver coins shall pass current as
legal tender for the payment of all debts,
ETC., at the several and respective rates
following" etc.
Again, 10y act of the 2sth of June, 1884.
"The following gold coins shall pass as cur
rent money and be receivable in all
payments by weight at the following rates."
etc. @
Hence we find that in all cases where
other money than the coinage Of the
United States ordered to be received as
current or lawful money the statute care
fully provides the rate and conditions un-
der which they are madea legal tender for
payment Of debts. 1t is clear, therefore,
that congress has always observed the
distinction between current and lawful
money, which may be received in payment
of debts, if the creditor sees fit to accept
It, and that which he may be compelled to
accept as legal tender. s.....
1t is clear also that if congress make
any other thing than their own coin legal
tender, it may be used as such. Thus in
the act authorizing the National Banks
their notes are made a legal tender for cer-
tain debts due to the government, for taxes,
&C., but not for debts due from one citizen
to another.
The treasury notes are made lawful or
uncurrent money, land legal tender for
debts" &c, as between individuals. AS
this is the first act in which the high pre-.
rogative of sovereignty has been exercised,
it should be construed strictly. 1t is
doubtful in policy and dangerous as pre-
cedent.
The only question, then, is whether this
case comes within the letter CT the statute.
Is the money which may be paid to ex-
tingush a ground-rent within the category
Of the act? .... ..... ...s.,-
Is it debt? The owner of the land is
not bound to pay it. The owner of the
rent cannot compel him to pay it. There
is no obligation as between the parties. 1t
cannot be converted into the obligation by
the election of one of the parties without
the consent Of the other A man may
execute his bond to me voluntarily, but
unless | except it he does not become my
debtor.
These ground rents, in the nature of
rent service, are somewhat peculiar to
Pennsylvania, and little known-to other
states. But the supreme court of the
state has clearly settled and determined
their nature. The cases are too well known
to the legal profession 10 ,ed quotation.
~ rent service (says the court, in Bosler
We. kuhn-S Watts & Sergeant, 1860 is
not debt, and covenant to pay it is not
covenant to pay debt The annual
payments spring into existence, and for the
first time become debts when they are
demandable."
am of opinion, therel fore, that the ten
der offered by the bill in this case is not
authorized by the state, and that the re.
spondents cannot be compelled to extln-
guish their estate in the land by such a
tender as that now made. The bill must,
therefore, be dismissed.