The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-31

rendered and must be received In discharge OF sub
rent bank notes In the city OF Cincinnati IL contract
to pay money n the bank notes are not rendered
at the time. Wide Smith VS.. Goddard, / Ohio
(iep., 49,. nole payable in current funds Of the
| State OF Ohio is a note payable In money. Sweet
land vs. Creigts, 10 ohio Rep lls. White vs. Rich
| cognlze nothing as current funds Of the State OF
OHIO but gold and silver and bank notes issued
| by banks Incorporated Dy the State and which are
1 by law required 10 be OF equal value with gold ana
silver coin OF the same denomination. Hence note
certain. III Ohio Rep, ~ These cases settle the law
for OHIO. The two cases just cited originated In 3
state OF things IKE the present when Cincinnati h
as gold and silver coin. The effort was made TO
limit the recovery to the gold value OF the bank
paper at date Of note. The Court held that the word
dollars called for such dollars were legal tender
for debts, and there could be no deduction.
But the contracts now made are promises TO pay
so many dollars without referring to Treasury notes.
But these cases show, and they only follow the law
pay so many dollars in greenbacks would be paya-
bic only IN coin II the Legal Tender act Is unconstltu-
iional
means such "a coin as IL by the law OF the United
states declared TO be dollar. Treasury and bank
notes are promises TO pay dollars and not bank notes
or Treasury notes The States can make nothing but
the legal coin of the United States legal tender for
debts; hence II the Legal Tender act Is vCid as to Irea
sury notes then there nothing else but coin which
IL LEGAL tender and no creditor be compelled to
receive In payment OF his debt any thing but what Is
legal tender, and that Is coin and only coin. III the
Legal Tender act Is void he cannot be compelled to
Treasury notes IN payment. and there is then
nothing but gold and silver coin which he can be
compelled to receive.
IL VIII thus be seen that a decision holding the
Legal Tender act void makes every outstanding
debt payable in coin, and need not say what wide
spread rum would follow the rigid enforcement OF
sucn a decision. contract promising to deliver at
a certain day treasury notes calling sor the payment
OF so many dollars could alone avoid tue effect OF
such decision. In that case failure 10 deliver
would be a breach OF covenant for which damages
only could be recovered and the damages would be
limited TO the value OF the Treasury notes as COM
pared TO coin Oh the day they should have been de-
liyered.
cannot have any doubt as to the power OF Con-
gress to pass the Legal Tender act The state courts
have all decided III favor OF It's validity, the
rebel court Of Kentucky, believe. II the United
States Supreme Court now decide the act unconsti-
tutionai IL viii be political decision, like that In
the bred Scott case and entitled to respect,
should 1t be followed ny the State courts until the
reorganized supreme Court should have an oppor-
tunty to reconsider the question: l cannot believe
that the present court will make any such decision
though we have To some extent politicians instead
OF lawyers OH the bench.
One word ON the resumption OF specie payment
The less Congress does this session the better. The
first step however, must come from Congress; 1t
nrlst make greenbacks equ valent to coin. At pre-
sent they are not. Greenbacks Will not pay Custom
House duties. The importer must take paper for
his goods imported, and he must pay the duties In
con hence he is forced into the market TO buy coin,
and he must pay for 1t whatever the holder Of com
demands AS long as this state of the law continues
there can be no resumption, because the law makes
coin worth more than paper; hence paper would be
used not for the purposes of business, but to obtain
If Congress would simply enact tnat duties might
be paid in Treasury notes at their value IN coin, and
that interests should be paid IN the same at its value
IN com, do not believe com would be
worth any premium, because no one would
want to buy It, the same not being used
could not be used. Paper and coin would
both be equal since both could perform the same
functions The foreign demand for coin could then
alone give it value above Treasury notes. If that
demand passes certain limits, then, do what you
might specie payment would be impossible. In my
opinion, this Ii the first step to be taken. II Con-
gress would pass such law at once 1t would be then
polite to walt and see what its effect would be.
The holders OF bonds could not object, because
they would be paid IN what was the equivalent of
coin, and that Is all any one can ask. Our domestic
creditors at once convert their gold coupons into
Treasury notes, winch is now the only domestic
standard OF value we have. All values In business
transactions are measured by Treasury note dollars
ana not by com. Time must bring about the change
which ali desire; but Congress must repeal its un-
wise legslatiOn-unwise i'll its inception and equally
unwise now-before q step can be taken leading to
resumption. Yours, SIMEON NASH.