Abbeville press. [volume] (Abbeville, S.C.) 1860-1869, 1867-05-24
Friday, May "a, 1867.
TRAsURY NOTES AS A LEGAL. TENDER
FOR DEPOSITS OF COIN.

TRASURY NOTES AS A LEGAL. IENDEh |
FOR DEPOSITS OF COIN.
The Charleston Courier contains an interest
in, abstract Of the recent case OF 'IhomEs"n
ys. Riggs, before the Supreche Coart Of the t"''
ted States, which presents various important !
questions growing out the proper c"nstr"e'''"
Of the late Legal Tender Act OF the Cnie"
st,,es Tire rover Of Congress 10 pass law
making any ihmg else than gold aud silver, ie-
gal tender in the payment Of debts, was long
doubted. 1t was clear. that State had u"
such right, being prohibited Ivy the express
words of the Constitution. The power oil
Congress, however, has been sustained ny re
heated decisions, and several OF the STAT"
Courts have sustained the validity OF the law.
evsn in reference to contracts made before ITS
its rassape. The important question Involved
in this case, is, whether Treasury notes Of the
limited States can be offered in legal payment
of contracts, where the payment was sree'h-
calv agreed TO be made in goldf From 'eie-
oranbic anuounc emen,s in our exchanges, We
sea that the Supreme Court has decided the
question in the affirmative, sustaining the J"os
ment of the Court below. We extract iron"
the Courier the following abstract OF the -'"e's
aud principles of the case:
Riggs l. c.. were bankers In the city OF
Washington. In 1861 the plaintiffs. Mes>rs.
John and William Thompson, had upon deposit
with them the sum Of $500 in coin and 81
500 10 currency. Afterwards, when the war
became fixed fact, and the character OF the
currency began 20 change, they were notified
by Riggs & Co. that if they intended to ho.d
the bnnk responsible in coin for the whole
amount of their deposit in coin, they must
also convert the currency on deposit '"'' c"i"'
This was done by the plaintiff, VII 81: elore'
in 1862 had the entire amount of $1,000 on
deposit in coin in the bank.
In February, 1862, the Congress OF the Uni
ted States passed its Act making Treasury
notes legal tender in payment of all debts.
The plaintiff brought their action against
the bank, claiming TO recover the amount o'
their deposit in coin. The defendants denied
any liability in thelaw, except for the amount
in Treasury notes, which they offered to pay
and which was refused.
The plaintiffs offered evidence to shew,
that by the custom of banks, depositors were
entitled to receive back their deposits in kind.
That where coin was deposited. they were to
receive coin in return, and that when the de-
posi-, was in the nature of paper issue, They
we're repaid in the same way.
This evidence was ruled out by the Circuit
Court and upon this ruling exceptions have
been filed.
On the main and vital question in the
case, the Presiding Judge charged the Jury al
follows:
"If The jury fud from the evidence tha
the defendants were bankers in the year 1861
and 1862, and that the coin mentioned in th'
declaration was deposited with them as bank
ers to be paid in coin, the deposit created 1
deb. from the plaintiffs rhich could 6e disch"ry
ed by a payment or offer to pay tie same 'i' lcya
tender notes; and if the jury further find tina
said tender was made, the plaintiffs are not ell
titled to recover in the action"
A verdict in accordance with these instruc
tions was found for the defendant. Upon q
appeal to the Supreme Court of the Distr ct
Columbia The ruling of the Judge and the ve'
dict of the jury was affirmed, Chief Justic
Cartier dissenting
The case has been carried up to the Suprem
Court OF the United STATES, where IL WAC III
gued within the last few days.
1t s question of great Importance To ever
commercial and banking community, and NOR
especially in relation 10 transactions before tn
war. l, will be looked TO with great interes
If it is held that special deposit in gold Q
silver can be repaid by the bunk in the sam
number of dollars in Treasury Notes, it wi
put an end at once to oil special deposits.
will be equivalent to declaring that whatev'
the private contract. the Legal Tender Act az
plies 10 it.
: From report, which we have since read,
) the above decision. we that the Supreu
!. Court has decided, 1st, that the legal tend
9 act applies to contracts made before its pa
sage,snd I'd, that i, makes valid tender
2 treasury notes in payment of special contra
for the delivery of coin as currency. Whe
the gold is treated as a commodity, we suppo
according to other decisions, the contra
would be enforced specially.