Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1867-02-14
TREASURY NOTES A LEGAL TENDER.

TREASURY NO1ES "A LLU|Ah 1INDIH'
Congress, on the 25th of February, 1862, passed
an Act making the Treasury Notes issued in pur:
suance of it legal tender in the payment OF debts
The Supreme Court of the United States has
just decided in favor Of the validity of this Act.
| A State, it is evident, has no power to pass
an Act of this kind. This is expressly denied tc
it by the Constitution. The tenth section of the
first article is explicit upon this point. 1t says INC
State shall coin money emit bills Of credit, make
any thing but gold and silver coin tender in pay
ment Of debts.
The grave question is, however, whether Con
gress has any such power? The eighth section
confers upon it the authority to borrow money or
the credit of the United States to coin money, tc
regulate the value thereof and to fix the standard
of weights and measures. Upon the. subject Of
whether Congress can make anything but gold Of
silver coin tender in payment Of debts the Const
it's Congress from so doing but there s at the same
time, none which confers it. 1t is not among the
enumerated powers delegated to the United States
by the Constitution, and its exercise has, there
fore, been gravey questioned by many Of the able
legal minds in the country.
Messrs F. Mandelbaum and c. Klaufer were
merchants in the Territory of Nevada In pursu
ance of the Territorial laws, Federal, Territoria
and County taxes were levied upon their goods tol
the fiscal year 1862.
The validity of the amount taxed was disputed
upon various grounds, and, among others, that a
portion of the goods had already been in previous
assessments The cause was heard before the Die
trict Court, and judgment was rendered against
them to the amount of 81 $50 and costs, "Sucl
Judgment to be collected IN gold and silrer coin o.
the United States.
An appeal was taken to the Supreme Court Of
the Territory of Nevada, where the Judgment was
affirmed.
From thence the case was carried up for error to
the Supreme Court of the United States, who on
Monday last reversed the decision on this point
The Court says 'Ae judgment Of the District
Court acas erroneous IN being rendered for gold aud
silrer coin of the United States The objection to
paying the tax, if subject Of suit, as it is stated
in this case is debt and falls within the Act Of
Congress of February 25th, 1862 making the Trea-
in payment of debts. The judgment was in direct
conflict with the Act as in requiring the payment
of con it denied the right of payment in Iegaltsed
paper currency"
1t will be observed that the debt in this case was
contracted after the passage of the Act, and this
decision, therefore, may be regarded as definite
Judgment on the part of the Supreme Court that
the Act is constitutional, and that United States
Treasury Notes are good legal tender in payment
of all debts contracted since its passage
What their decision will be in a case arising as
to contracts made before 1862, it is, Of course, i'm
possible to predict. 1t seems to us, however, that
the Act NIGH we'll be regarded as an &c post tactc
law, in its application to pre-existing contracts
Otherwise it would be made to esta blish a mode o.
payment not in contemplation at the time of the
contract, and in reference to which the contract
was not made. Before 1862 gold and silver coir
were, under the laws of the country, the alone le
gal tender. All contracts were made solely upor
this basis. For Congress- therefore, to provide
another and different mode of payment for these
would certainly impair the obligation Of contracts
and come within the inhibition Of an &c post tactc
law which, by the terms of the first article of the
Constitution, neither State or Congress can pass.
Charleston Courier.