Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-01-10
The Contract LAW mud the LAW OF
CoaRresa.

With the commencement of the year
1866 the material interests of California
present an aspect the most encouraging to
every well-wisher of the State. The de-
velopment of the mines Is going on in q
very satisfactory manner; agriculture is
recovering from the severe blow inflicted
by the drought, and its productions prom
Use to exceed all former precedent; the
manufactures are very tiourishing, and
many important branches have been added
in the past year m has been well
rewarded, and trading interests have, as a
whole. closed a lucrative year; capital, the
great want Of the Coast, has increased in
volume. and is now lower in rent, as a
rule, than ever before. 1t has accumula-
ted from the surplus earnings Of local in
dustry, and has been attracted hither from
abroad in quantities that reflect almost a
limitless future supply, in consequence OF
the high credit earned by the people OF
this Coast, who have hitherto held their
honor untarnished. keeping their contracts
amid all difficulties, in gold and silver.
This is a proud position, holding out
promises Of abundant capital and u rapid
dCCullulaIlOlA Vi "CuAhhp va AA~ w
might well congratulate the people at
large. At this juncture. however, two
little clouds appear on the horizon, mo
bigger thar q mans hand" which threat
en- the most ~portentous consequences.
These come in the shape of two Judicial
~decisions-one in this State, to which we
recently called attention, by Judge Saw
yer, in which it was laid down, that un-
der the Contract Law a person might pay
a note drawn tor gold, or its equivalent
in legal currency" in paper, dollar for
dollar ; the other was made in Nevada on
the 30th. Judge Brosnan and Beatty filed
an opinion that the Specific Contract Act
in that State is in conflict with the act Of
Congress creating the National currency,
and therefore null aud void.
The decision created some excitement
in that State, as indeed it well might, when
it is remembered that the industrious and
enterprising people there are well nigh
destitute Of capital that almost all their
future hopes depend upon attracting CAPT
tai there for employment. 10 do so, oil
course, they must pay what will compen-
safe the owners of capital for sending it
thi,her, and make the loans reasonably
secure. This has been attained, TO some
extent, by the enactment and observance
Of the Specific Contract Law, which has
given assurance of safety to lenders. The
confidence 30 engendered has now receiv-
ed a rude shock by this legal decision,
which, however, was on u "snap judg.
ment," and without such thorough argu-
mentation as 30 grave a matter requires.
We doub, not but that the merchants.
miners and people Of Virginia understand
their own interests too well to deyiate for
a from the course hitherto pur-
sued. or do anything to tarnish the honor
able character they sustain. Nevertheless,
when the Judiciary steps forward and an
nounces that every man has a legal right
TO hefraud his creditor, mercantile con-
6dence receives a chill. The interests Of
the miners would first suffer by such q
course. Already the question, whether
levied assessments shall be paid in green
backs has taken an official shape, and is
not yet decided. a. ---.aGs
The Nevada decision, as reported, be-
trays a want Of intimate acquaintance with
the legal character Of the paper money.
Referring to the decision by the Supreme
Court of California, in the case Of Carpen-
ter vs.. Atherton, wherein the Specific
Contract Act is sustained. the Court says:
at is not from disinclination that we
fail TO approve the opinion Of that learned
Court upon so grave a question as the one
involved: but a sense Of duty and respon-
sibility to our conviction of what we be-
lieve the law really is, forces us to a con-
clusion opposite to that declared by that
able and highly respectable tribunal.
"Our opinion is that the Act Of Janu-
airy 4th, 1865. is in conflict with the law
of Congress to which we have referred,
and that it is therefore void.
1.-The judgment and the order appealed
from must be reversed so far as it demands
payment to gold coin. and the Court be-
low Is directed to enter satisfaction Of the
Judgment upon payment by the appellant
in any legal tender recognized by the laws
of the United States, the full amount OF
the Judgment and costs. -,
1.-THE costs Of the appeal will be paid
by the respondents. t,vaa.'
alt is accordingly so ordered. 90
"(Sisned.) BRosNAN, j..
"Iconcur: BEATTY, ]. .saI
al dissent: ..Ir..- LEWIS, G. ~
The official name for legal tenders is
l." United States notes" and the Act Great
ing them states. '.shall also be lawful
money, and a legal tender in payment OF
all AnhNaNe ~,aklsA = -.!sks- RAA