The Lancaster gazette. [volume] (Lancaster, Ohio) 1863-1886, 1868-12-31
Legal Tenders.


An important case, involving
the constitutionallty OF the Legal
Tender act is now before the Su.
preme Court of the United States,
sitting at Washington. The case
has been argued, and a decision
may be expected in tho course OF
two or three weeks. The question
is one Of great interest to the coun-
try. Should be Legal Tender act
be declared unconstitutional, and
the prevailing opinion is that it
will be, it will have the effect to
make gold the medium Of contracts
and business, and greenbacks
would be quoted at their value in
gold, as they now are in London
and California.
e'The Cincinnati Gazette, good
authority in financial matters, in
view of q decision declaring the
act unconstitutional remarks as
follows:
What would be the effect ola dc
cision that the paper tender act is
illegal? We do not suppose that
the decision will disturb contracts
made on the basis OF the legal ton
der. We do not suppose that the
legal decision will make men pay
more that they contracted 10 pay.
The decision would make tho act
illegal as to contracts previously
made, and would abolish the pa
per legal tender for future pay
ments, and leave them to bc paid
in coin; but the courts would not
render judgement for moro than
the coin valuo of the consideration
Of such contracts at the time they
were made. We conclude that this
will be the operation, because both
parties to q contract upon the pa
per tender basis understand and
agree that the consideration which
is expressed in dollars means u
measure which is from thirty to
forty cents less than dollar. A
legal decision that would make
the debtor pay moro than he
agreed to pay, and more than the
creditors bond called for, would
bo q monstrosity.
Therefore We do not expect that
any great disturbance would be
made in existing debts if the ten.
der act were declared illegal. OK.
cept in those that dato back of the
tender act. 1t would make o rat
Ting among the dry bones of these,
but would do no injustice.
Then the question is, how would
the decision affect tho currency OF
these notes in trade? We do not
suppose it would disturb them at
all. Tho receivabihty of the notes
for public dues, thcir ultimate SO.
curity, their availability in settling
all debts that were created on their
basis, and THO necessity of using
u currency which now fills all the
channels of circulation, would keep
thom at the rate which the opera.
ton oftho present trado conditions
has givcn them. There would be
two kinds of currency recognized
by all, MS the government has all
the while recognized them; and
trade would bo transacted in eth.
or according to tho agreement.
Thus save as to debts contracted
boioro Feb. 20, l8G2-thc date, OF
the first paper tonder act-tho do
cision that the act is illegal would
have little moro effect than tho en-
actment Of the measures now pro
posed, TO logalizc contracts for gold
OF course il such n decision could
make the Legal Tender net inval,
id, and thereby compel tho pay.
mont of all existing debts in coin,
1t would cause general ruin. But
we do not suppose this can be
done, and in this opinion we have
the support Of Mr.. Clarkson N,
Potter, tho leading counsel in the
case against tho legality of the act,
who argued that such n decision
would not change tho value OF the
of contracts made
under tho act.