Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1864-11-15
THE SPECIFIC CONTRACT LAW.

The necessity of a law compelling the
performance of contracts to pay in gold,
has long been felt in this community, and
the absence of such statute has been
heavy drawback upon our prosperity.
Honor" is all very well in the social
concerns of life, but when it comes down
to regular business transactions, bitter
and shameful experience has shown that
it will not do to tie to. The advertisements
with which our papers have teemed, an
nouncing the shameless reputation OF
honest debts, under cover of the Legal
Tender Currency. has made men Of CAPT
tai cautious in giving credit; and the con-
sequence has been that a country requir.
ing more, perhaps, than any other in the
world, the use of foreign capital for tn,
development of its resources, has been
without credit. and that development, Of
course, brought to stand-still. One Of
the strongest incentives towards the adop-
ton of State Government, was the hop,
that this defect in our laws might BE-
amended. The expression of opinion
upon that point has been so unanimous,
that there is scarcely room for doub
that Specific Contract Law" will BE-
one Of the first acts of the approaching
session of our State Legislature. As i
well known. California has such law
1t works satisfactorily, and upon tn
question of Observation-Disclosures passed tn,
test of the decision Of the Supreme Cour'
of that State; the Bench being unani-
mouSly of the opinion that there was no
thing in the act repugnant to public poll
cy or the Constitution. From late article
in the Boston Commercial Bulletin. We
perceive that the California law meets
with favor in the East. That paper says:
1t will be seen by late advices from the
Pacific coast, that the constitutionality Of tn
local statute, known as the Specific CONTRACT
law has been affirmed BY the full bench
the Supreme Court OF California. The in
tent and effect OF this law is to sustain tn,
general practice, which is still adhered to,
both in the cities and mining districts o.
that region, OF transacting business upon
strictly specie basis, without regard to iuctu
atoms Of the currency. or course, there arr
some persons there, as in every community,
whose -Superiuous loyalty or excessive Gu
pidity leads to take advantage of any legal
guibble which can possibly be raised to dis
turo the existing order OF things and inter
fere with the commercial usage OF their con
temporaries. And it was for the purpose o.
keeping these innovatorS in check, and pre-.
vent them from defrauding those whom theI
had dealings by falling back upon the lega
tender &C, OF Congress, that this State law
WAS framed. The decision OF this question .
embraces three points under the statute, viz.
That State and County taxes must be paid III
gold and silver; that contracts for payment
IN gold can be enforced, and thar green
hacks are legal tender for ordinary debts and
demands.
The specific Contract law does not neces
$arily conflict with the act Of Congress re.
ierred to, though there can be no doubt that
the Latter, so far as il is construed TO sim
pair the obligation OF contracts" is in direct
conflict with an express provision Of the
Federal Contribution. Our fellow citizens o.
California, as We understand the matter,
pnIy claim their constitutional right to max,
contracts among themselves. As to the kind
Of currency which shall be received and paid
OUT in pecuniary transactions between man !
md man. which shall be respected and en-
forced by their judicial tribunals. In exer- |
ciSinZ this right theI have been sustained b. |
the highest legal authority OF the State, anu ,
it remains 20 be seen If the Federal courts !
will undertake 10 reverse that decision.
This result has given the greatest satisfac-
ion 70 honest and Just men of all classes OF
he population of the Pacific States. Il ha>
llso given a general impetus to business b,
cmoving the diStruSt and lack Of mutua
confidence which prevailed in commercia!
,ircleS, and relieved the pressure upon the .
money market by setting free an immense ,
quantity OF dormant capital, which holders, .
owing TO the liability of being subjected to !
egal swindle, were previously afraid to put !
cut.
The mining interest, which has lately been |
much depressed from the want of means IT, !
push forward operations-as well as tht
game frequently played BY sharpers OF fore. I
ing off greenbecks instead of gold in thei'
dealings with miners-is particularly juoi
liant At this decision and hereafter it will OF
hardly safe for any retailer Of ShinplasterS t.
attempt 10 prosecute his business in the mi
neral settlements OF the new territories
AGENTS, who have occasionally driven sharp
operation bv collecting debts in specie ana
then paving over 10 their principals the
amount in currency, are threatened with
summary vengeance, and those corporation
managers in San Francisco who remit legal
tender funds to be discussed to LployeeS,
are admouished not to show themselves in
the mining districts " until they become hon