The New York herald., 1866-03-16
Important Decision by the General Term
Of the Superior Court.
One Dollar in Grcenback Fully Equiya-
lent TO One Dollar in Gold.
All Debts Can be Satisfied by a Tender Of Pay
ment in United States Treasury Notes.
&c. &c. &c.
surerror court-General Term.
Before Justices Mcneil. Garvin aud Jones.


Ohers-Ths is a most important decision, made by the
General Term Of Superior Court respecting the rea
tive value Of greenbacks and gold dollars. II will be
seen that decides that dollar greenback fully
equivalent TO gold dollar and that all debts may be
satisfied by tender of payment in United States rrea
sury notes. The facts Of the as follows
The plaintiffs, of the British ship Atalanta by
their agents, George Henderson Co.. in Calcutta char
tered the ship to Gianders, Arbuthnot Co., Of Cal
cut,a
The charter party was made in Calcutta and Is dated
January 20, 1863 1t contains the following clause
sThe freight to be paid unloading and right delivery
of the cargo as follows viz II discharged in United
States America in silver and gold dollars, or by APP
proved bills London IL at port in United Kingdom,
customary" The defendants were consgnees Of tho
cargo
Upon the the vessel at the port OF New York
June 1888 the defendants rendered payment Of the
freight, amounting 10 $4,000, in United states legal
tender notes The tender wns refused aud payment
manded in silver and gold dollars as specified la the
charter party, which was refused
The action was tried by referee who found the ten
der OF the United States legal tender notes. and that at
tho time Of such tender the market value thereof
thrtyhree and oneeighth per cent less than that OF
BY an arrangement between the parties the plaintiffs
credited the defendants with the market value OF the
amount rendered leaving balance OF sI,6si 81 due
The referee found tho market value of such balance
was in the currency OF the United states $40 go Os
tis entitled to sad sum of $40 $50 0S, with
interest, and rendered Judgment ac scrdingly
The defendants appealed Mr. T.. Terry appeared for
appellants and Mr.. A. =. Smith for respondents
DECISION BY THE COURT
Mcneil 1.-THE act OF Congress passed February 25
1852 provides tina, the notes by that act authorized TO
be issued shall be "iawfu money and legal tender In
payment Of all debts public and private, within the
United States, except &c az United States statatcs at
large D. III The validity OF the act IS open for dis
casson In this state. (ietropo Bant versus Van
Dyek, y y Y. r., 400 Never versus Roosevelt. ID In
those cases the tender of Treasury notes made lawful
money by the at Of Congress held 10 satisfy dcbt
which had been contracted before tho passage Of The act
to be paid 10 the then lawful money Of the United
States The general theory OF these decisions and VI
all the decisions OF other courts UNFOLDING the po.er of
Congress 70 create other lawful money than gold silver
coln H. that by the omission In the constitution " the
United States to declare what shall shall be legal
tender, and the prohibition 90 the Stats 10 make any
thing bsdes poi ard silver a legal tender the power
by necessary implication, n conferred the general
government Hence, at different perOds, Con
sres, has deslqnaed what .hoald be legal tender
II 1892 they established mint for coming gold and
silver, which, by the act made awful money
for the payment Of all dobs Ia lvB they made cor
tain foreign coin legal tonde and trom time to time
have regulated the value of foreisn and domeatc coin
These acts have never boen qnosiiouo YET tue power
provision in the federal constitution Hence thcy
be sustained only upon an implea'on of oower Con-
| granted The Supreme Court Of The Unod States, IN
hcculloch The state Of MARYLAND, Wheaton, 40,
snd Gibson ogden. Id, lss wholly rejects any
such limitation. and the Court OF Appeals Ia the
cited (spal follows those decisions The charter Of ho
IA "a
year after the passage Of the egai tender act and tho
parties presumed to have made the contract with
ference y the existing law. tenit' " Bn.hanc, 10
Y r. 50s For purposes n consir ion AMI ascertain
log The ntcniion of parties the place of Performance
the place Of the contract II ts thcreorc e. b. mod
that fhe parties we're cOgn1fd Of TIRE nW of The United
States making paper money legal tsndor va
payment OF all debt, and wcre a-o cogni-
xant Of the Interpretation Of thsl law ~
couus 10 Was substanlialy conceded tho srgU
by the rcsponfeus counsel that II dahl c1lftod
ina ths caso could saslsned by of legal ton
der IrfT 4If IH a. loo
much a. !, b entirely clear a debt dJ east 4 charter
party l. but contract for the euuro OF principal
part Of ship ior tn conveyance of good deter
mined voyage for employment la other trade and Cou
ains covenants ny cach party In tho charter before
mutually agreed thai the freight should b. pad
unloadBg and delivery 81 the cargo The lien vim
the had for their charter ire fbt was a mere
uriy and might have been avoided bui The wnirer
would not have discharged th" contract - ay freight
tn. right collect freight bv auon has frequently been
adludg"i. In tark-on " bde+ y '"N go ! "aH held
mat The owner sht lnsl.t On M zen % ~ acupn
cOmpel payment, and IN Barker ~ HAVEN, IL john.
X "a an action 70 recover ireghi from the cousignor
vEs sustn ned after he goods lad been delivered 90 tbs
consiyuae siih0ut payment And shsFe freight o. ray
ahie delivery ~ the go,1 toe o"n-igne- ~ rcrfpt
ma the delivery Tfnfefs tir.rif unaly nnbe fur
Tue freight COOK " Taynr A. TH.f u ,'ps Tho ohign-
t"u a. Jay freight u Gebt whether ho ohssi'n arr
from M sxpres. or inaied sgf,f rent Any slfr~
inen, ny which one Iary prini.cr - pay money 20
another party A. deb, SO aiso snv ugfesm~nt which
exp,e,. eily or imldiediy imposes ~ OBLIGATION 90 lay
money debt Tho ireght due from the defer daut
cons gnOra, and for which sB acton cf4d have been
maintained sst . debt shcb they could hat" sstsnsd
by payment The defendant. cJnfsnees ~ the
gOois, the mere itctofs agent u tie cuuagnpr
tstory Ag.s % Payment ~ thcm would have dis
charged The debt - their principal ne arKnmeui Il
The r-Iyndeni counsel prDceeit ugon The sronud thai
debt existed between the sud con-guees
lie -"cnod % se sigbt OF The gf0r sgrcsment 80
pay freghs which sreenent crcsiei debil and Also
81 the duty, vel night - the ~ satIsv
such debt " tbsr 81 psi ~ rsym@ni aud The ques
ton - M ehanged hy the position ne lAfes on the
reoorf especially under the stipulation IN a." B1f
the main question II ean contiari - pay n sser or
gold i0uars D. satlsned by pay meni "a any other
Kind of money! COngrea, by the rail tender act
hAs male a paper dollar tbe equivalent u q rold
or silver d0lisr Having The pUwrf - eetah N and
regulate the value Or coo. i ba. deprecated The
value a gold filyc for p4rgusa c0gnza
b. by courts 60 the eycl ~ paper nnOnoy has de
clarrd thai 0f ups repre- oBtng M value of
hundred cents abal be- sguai 60 lod 20 silver dollar
repreeutiny the value q thn saue nnhsr " cnt The
power not confined - parcr mou'J Auy other aub
taDco might ~ made ihe ucd nm % exchange and de-
olar,d lawful money TIE an.oned md "a stamped blia
" silver Of the ancienis shFb acre uelhef out, aud
not counted aud tie wanpgfn 10 ne Indians, uerr
money Money T. ne mere rrrrr.ent't've - suppossd
representative VI definite value thr prfcioua metals
among All dyzod nations if ne usual n1cep,ei reprc
acntates Gold and standsrs uf value which
regulate, a Greater ~ y a"siee ~ p'her ValaeA
Any other standard ~ valus vp4d % The ame thing
A ton % coal sarrei ~ n1sf y msfe By law the /
standard of yine would r'sn'a'' and sflas AZ ohes
values goid A. ssi a. inef.hsgi-e 'sgld and alfe~
ai their established value az legal pgrpses 90
not change thsy are never depsssied of appreciated
II erroneous 20 say tbe market for g0d huetuafa
except when "a n tra1cked 10 a. comnodity - CON,
or medium u currency. ts Faiue ar tKed ~ law i
does not change sit6 tho mutatons ~ trnfe i
in The fluctuations 0 bunness hv companaon /
merely Cougrsss having cfratcf rsp~f money, aud Il
rendered t nonlnsiy f0f al leEsl p4rposss eqIal
soA there no longcr remains n lesli routrnp.aton,
suy dinerence befNeen them Tho prsrtod ~ ac.sl /
depreciation ~ the bfioN iha value " gusd
no produced BY any aW hut s oa-asope1 ~ he lawa
of trade Of supply and demand. and other fur Il
which the i4A u roo zorounahs lssf n cnmmefcs IN
fores c0unres goid AMI tho only aeospts
diums Of exchange, and he aus attibusDa ~ ufer
universal appreciation and currency aroug al uaions
IN domestic couu~fcs however thsy iose sofDe - their
importance BY the Substitution u yher s,andsrff %
value uhch made thcu cqIivtleDt A. an article for
traHe. goid, either t1Oon. regulated BY the
ruiee that govern other oommO1t-s Coatrzcta
for "a purchsse valid snf are regaYesd Ike
contracu for N. plrrhsse ~ fale - nsfrhAndlS
There u q wde dlffsfenre. tossfef. betwssn goid o.
silver msrchandse and money crntfsst 10
buy a~l goid csnno, b. p<yscaliy euforrsd-sn
acuon for famsges beng enttfsly sieg.at@ The rule
of damages being In och case, pf1habiy, ths
ket vslne ~ The sod Az af1s iaiing ND ans.