The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1868-09-24
THE CURRENCY QUESTION.
THE SUPREME CoU6T AND THE LEGAL-TENDE1
ACT.

THE SUPREME couaT AND THE LEeALTENDE1
| ACT.
from the Round Table, September 19]
It has been stated several times OF late, thai
the Supreme Court of the United States would
at its next regular term, render Q decinon ad-
verse to the constitutionality OF the act Of Con-
gress known as tbs Legal-tender act. We dc
not know upon what grounds the statement
has been made; whether it is mere inference,
based upon the expressed opinions of the
majority OF the court, or whether such de-
cision has been actually determined upon, but
its announcement postponed for prudential
reasons. It is not our intention here to
argue for or against the consatutonahty oil
ably and thoroughly handled before the
Court of Appeals of this State in the case OF
Metropolitan Bank us. Van Dyck. which is re-
ported in Vol. XVII, of the New York Reports.
a. majority of the court sustained the power of
Congress to pass such law, and in the opin-
ions of Judges Davies, Balcom, Wright and
Emott will be found the reasons why such a
result was arrived at. On the other side, the
able opinion of Judge DEMO- dissenting, prob
ably contains all the arguments that can be
urged against the power. 1t would be utterly
| impossible for us to throw any further light
upon the subject. The decision Of our court
has been very generally accepted as the proper
exposition Of the law, and under that decision
the business community have been acting ever
since it was rendered in 1853.
But while the question itself Is not for us an
open one, we may, with great propriety, call
public attention to the probable effect OF de-
cision by the Supreme Court Of the United
States reversing the ruling Of our Court of Ap-
peals, in the hope tina. prudent men will take
the matter into consideration, and 80 shape
and govern their affairs as to prevent, or at
least mitigate, the evils which may be natural.
ly expected to flow therefrom. The currency
of the country now consists OF three hundred
million dollars in national bank notes, and q
somewhat larger amount Of legal tenders. The
bank notes, although not themselves legal
tenders, are supposed to be convertible into
them on demand. Now, if the power Of Con-
gress to make paper money legal tender be
denied by the court OF last resort it follows, as
matter of course, that every man to whom
money is owing may refuse to take in payment
thereof either bank notes or greenbacks, and
may demand and recover the full amount Of his
debt in lawful money-that is, in gold coin.
The mere statement is sufficient to startle
every debtor in the country, and yet it is but
simple statement Of the inevitable result Of
such q decision.
The equity, Justice and morality of the legal
tender act were attacked when it went into ope-
ration, because its effect was to allow creditors
to pay in paper, deprecated to q small extent,
debts contracted to be paid in coin; but what
can be said of the equity, justice and morality
of forcing creditors to pay in coin, appreciated
fifty per cent, debts contracted to be paid in
paper2 1t is very clear that Of the two wrongs,
II wrongs they be, the latter is by far the more
oppressive. Indeed, it is consequence OF so
serious nature that we marvel at the apathy
OF the public in view of its possibility. Its
effect would be disastrous. The banks cannot
pay their notes in specie; the government CAN
not pay it's notes in specie; and yet private
debtors would be required to do 30. To say
that panic would be. precfpitated is to de-
The terrible catalogue Of ruined fortunes which
would follow needs no descriptive power to rem
der it appalling.
It is possible that some Of the worst features
of the case may be obyiated by the pressure Of
necessity. We have heretofore passed through
periods of illegal suspension when misfortune
was 30 universal that mutual forbearance was
exercised, and the pressure Of public opinion
was such that courts and people were restrain
ed from the rigid enforcement Of the strict let
ter of the law. It may be, and it probably
will be, that the crisis will be 80 severe that
debtors will be afraid to push their creditors to
extremes, and will be willing to take paper
because they fear they cannot get gold. 1t
4a6Xd6r Ii rhn alllao thst the oti 'HfIcn
contracts made while the legal-tender act was
considered to be law were made With the i'm
piled understanding in the minds oPboth par
ties that they were to be discharged with pa
per money. Such decision would appeal to
the public sense Of equity very strongly, and
before it could be reversed the crisis would be
over. But il the Supreme Court decides, as it
is alleged it will, the pleasing delusion that we
shall get back to specie payments without
financial panic will be dispelled. The thing
will be simply impossible. 1t will only remain
for the people to put themselves in such po-
sition as will enable them to weather the
storm with as little damage as possible.
The storm over, however, and the effect will
be most happy. or all the plans for the re-
sumption Of specie payments the plan Of the
Supreme Court will be at once the most thor
ough, the most effectual, and the most lasting.
Some diseases are of such nature thai all re-
medies are useless except actual cautery, and,
while MANY may think that the remedy in such
cases is worse than the disease, yet after the
remedy has been applied and the pain from it
is over, and they find the disease eradicated,
they will think ferently. So inveterate are the
o eiudices and 80 stolld is the Ignorance OF the
mass Of our people on the subject Of finance
that We have despsired of ever reaching safe
haven BIZ ordinarymeans. While we shall deplore
the suffering which ouch an event will cause,
and now earnestly warn the mercantile classes
to prepare for the coming tempest, we do not
think that the expected decision, lit comes,
is to be deplored. It will do In moment what
years of Legislative tinkering with the finances
have failed, and must continue to fail, to d.. 1t
will restore the business Of the country to q
sound specie basis; it will dispel the mists Of
speculation; drive to honest, productive call
lpgs bosts Of persons who now live on the huc-
tuations Of the markets; drive down to their
natural level the prices of the necessaries OF
life; rest 70 to something like their proper re-
lations c. 1ltal and labor; dispose for ever Of
the doctrines OF semi-repudiation. and force
Congress . pass proper funding laws The at-
tainment of these results will be worth the
spasm which will be the immediate result OF
the anticipated decision.