Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1868-12-16

iOdhudt " Aotu, OullGu DldlcS uotee
shall cease to be a legal tender in pay
ment of all private debts subsequently,
contracted, and that after the 1st day
of January, 1871, they shall cease t.
be legal tender on any contract, o.
for any other purpose whatever
except Government duties, for which
they are now receivable. The law
should also authorize the conversion
of these notes, at the pleasure of the
holders, into bonds, bearing such
interest as may be authorized by Con-
gress, as the debt into which the
present outstanding bonds may be
funded. The period which they
would continue to be a legal tender
would be sufficient to enable the
people and the banks to prepare for
the contemplated change, and the
privilege of this conversation would
save them from depreciation. In
addition to what has been said by the
Secretary in his previous reports as to
the pecuniary effects upon business
and the public morals of incOnveTti-
bic legal-tender notes, and what is
said in this report upon the advanta-
ges which would result from
legaliZing coin contracts, sustain this
Recommendation. 1t may not be
improper however, to suggest another
reason for divesting these notes OF
their legal tender character by legis-
lative action. Although the decisions
of the courts have been generally
favorable to the cOnstitutiOnality OF
acts by which they were authorized,
doubt is expressed by many of the
ablest lawyers of the country, as to
the correctness of this decision; and
it is to be borne in mind that they
have not, as yet, been sustained by
the Supreme Court of the United
States. The illustriOus lawyer and
statesmen, whose language on the
subject of irredeemable paper money
has been quoted, in the Senate of the
United States, on the 2lst day of De-
cember, 1886, expressed the following
opinion: "AIost unQuestionably
there is no legal-tender in this country
under the authority of this Govern
ment, or any other but gold and
silver, either the coinage of our
mints, or foreign coins, at rates
regulated by Congress. This is o
constitutional principle, perfectly
plain, and of the very highest i'm
pOrtance. The States are expressly
prohibited from making anything but
gold and silver a legal tender in
payment of debts, although no such
express stipulation is applied to Con-
gress. Yet, as Congress has no power
granted to it in this respect but to
coin money and to regulate the value
of foreign coins, it clearly has no
power to substitute paper or any thing
else for coin as a tender in payments
of debts, and in discharge of con-
tracts. Congress has exercised this
in both its branches; it
has coined money, and still coins it.
1t has regulated the value of foreign
coins, and still regulates their value
by the legal-tender. Therefore the
constitutional standard of value is es-
and can not be Overthrown.
To overthrow it would shake the
whole system. 1t is by no means
certain that the Supreme Court will
differ from Mr.. Webster on this
question, and no one can iail to per-
ceiye how important it is that the
legislation recommended should
precede a decision, from which there
can be no appeal, that United States
notes are not, under the federal
q legal tender.
"The receipts from customs for the
asst three years have been as follows:
For the fisciai year ending June 80,
1865, Si79, ,046, ,651, ,5S; ending June 80,
1861, SIG, III, ,sI0,3S ending June so,
1868, S164, ,464, ,3O0,5 While it ap-
pears from these figures that the
custom receipts since the commence
nent of the fiscal year 1865 have
Ieen, In revenue point OF view,
satisfactory, the question
lrises what do these large receipts, /
lnder a high tariff, indicates in re-
,ard to our foreign trade and to our
financial relations with foreign |
latiOns? 1t is impossible to ascertain |
With precision the amount of our |
ecurities held in Europe; nor is there
my perfectly reliable date for ascer- |
aiming even what amount has gone !
here annually since the first bonds |
we're issued for the prosecution of the |
ate war. In his report of 1866 the
secretary estimated the amount of
United States securities of different
.inds, including railroad and other
tOChSf lSAu III LdAOpCf ~ oAA AAuAANAASu
Millions. He soon after become salts
led this estimate was too low by one
hundred and fifty millions. 1t would
e safe to put the amount so held at
he present time, exclusive of stocks
t $3.50, 900, 900 of which not less than
6OO, 900, 900 are United States bonds,
early all of which have left the
Jnited States within the last six
ears. The amount is formidable. y /
tile satisfaction is derived from the
that probably not over
500, 900, 900 in gold values, have been
eceived for these $3.50, 600, 900 of debt.
or this estimate of our foreign in
railroad and other stocks
re not included, as they are nothing
ut the evidence merely of the
of property in the United
tates. Fortunately for some years
asst individual credits have been cur
liled, and our foreign and domestic
'ade in this particular has not been
unsatisfactory. In addition then to
le stocks referred to, and the indi-
idual Indebtedness, of the amount of
-hich no accurate estimate can be
lade. Europe holds not less than
$50, ,0O0,000 of American securities,
n nearly all of which interest, and
n the greater part of which interest,
l gold is being paid nor under the
resent revenue system and with a
epreciated paper currency, is the
of our foreign debts likely to
: paid. 4