Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1865-03-31
THE LEGAL TEN DEG ACT.
The effect of '',his Unjustand Most
InWise Act'-CaustIc DenuaciatiOn
OF the ACT by Republican Jour
nal.

the y. Y. Commercial (Republcau, March "a.
Under the effects OF the unjust and most IN " se
legal tender act, gold gradually rose in about
two years and half 10 2-5 or rather our cur
rency decreciated 10 50 per cent of its nominal
value, While this depreciation of the currency
was going on, the value of all wings rose cor
respondingiy. because gold still remained the
only true test Of values and the id bed classes
robbed their creditors by paying them i'll differ
ent currency from that stipulated in their con
tracts. Every supposed he growing rich
rapidly; the country wss declared 10 be more
prosperous than at any previous period, notwith
standing the destruction of life and property and
the diversion OF labor from productive to de-
structive occupations; and it was boldly asserted
that the laws Of political economy might be ap-
plcable 10 Europe, but that thev certainly were
not 70 the United States
The progress of the war at last brought
success 20 the federal arms. and the end of the
rebellion appears TO be approach ng As
our arms achieved their successes confidence
in the currency revived and gold fell gradually.
accom- panied by reactionary upward
movements, until yesterday il touched l5l ner
cent.--that Is TO say, our currency rose TO 662 p
per cent. During this appreciation of our cur
reDcy, the supposed wealth of individuals grad
udlly melted away--piices fell and trade be-
came stagnant, producing some failures among
stock operators and merchants, and fearful
GiminuiiOn In the value of the property held
by individuals, while their ndehr edness remain
ed the same 1t was now seen and felt how
illu5Ory had been the view previously taken Of
the effect of the legal tender act, and il was
proved that no amount Of intelligence and Of
capital can prevent the ultimate ruin of cou-
and industry when forced TO a depre
siated currency of uncertain value. Que dav men
are ruined by its depreciation, and the next day
other men are ruined by its appreciation, and
thus the fact is made but too apparent that q
currency subject to sudden fluctuations in value
cannot be made TO perform the proper and beue
fetal functions of money.
Now, from the experience oil the past, is it not
possible TO derive practical lesson for the iu-
turel Is it not 10 day apparent that any loss
which may be produced by the repeal OF the legal
tender sct and prompt return To specie paw
ments, will be nothing compared TO the eff
fects of attempting 20 carry on commerce and
industry for any length Of time with deprecia-
ted currency subject to violent fluctuations.
End therefore, a false measure of value! We
have now passed through the severe ordetl of
the depreciation of gold from % TO 100 II We
have been able 20 sustain ourselves through
this is there much TO be feared from the effects
of the transition from loo TO 1907 One more
blessed with sound currency. those who may
nave SecCnNlned during tue return 10 SOUND
currency will then much sooner be able 10 re
cuperate themselves than while forced to u
the present currency, and commerce and indus
try will resume their wOnted activity, without
which il is absolutely impossible tor the country
long to sustain the burden imposed on it by the
war.
But it will be said. bow eau We return to a
sound currency while the legal tender act l. in
forcei The process is very easy: Allow the
question of the constitutionaliiy Of that unwis
act 10 be brought before the supreme court Of the
United States. and. if there be the least seuti-
ment OF justice aud equity, the least knowledge
OF legal principles in the judges of
that court. they will lay aside political
views, and unanimously decide thu, the
act is unconstitutional, and a usurpston OF
power by congress We think We have conclu-
sively proven this in our recent revie~ of the de
cison Of the supreme court in the celebrated
case OF McCGllOch We the state OF N ryland
The declaration that the legal tender act is
unconstitutional. will At once lead to the funding
OF the legal tender notes. which. in their new
form OF United States bonds. will undoubtedly
be more valuable than in their present form, 10
consequence OF The rapid appreciation of the
currency cannot fail 70 produce. No harm will,
therefore. accrue TO the holders of the legal ten
der notes; while the entire community will be i'm
mensely benefited by getting I'd OF a currency
which is one OF the heaviest burdens that can be
imposed upon industrious and commercial
reOnle