Gallipolis journal. [volume] (Gallipolis, Ohio) 1837-1919, 1868-12-24
Legal Tenders.

An important case, involving the
constitutionality of the Legal Tender
act, is now before the Supreme Court
of the United States, sitting at Wash
ington The case has been argued,
and decision may be expected in the
course of two or three weeks. The
question is one of great interest to the
country. Should the 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 Lon
don and California.
The Cincinnati Gazette, good author
ity in financial matters, in view Of de-
cision declaring the act unconstitution-
al, remarks as follows:
What would be the effect of deci-
sion that the paper tender act is Illegal?
We do not suppose that the decision
will disturb contracts made on the ba-
sis of the legal tender. We do not sup
pose that legal decision will make
men pay more than they contracted to
pay. The decision would make the
act illegal as to contracts previously
made, and would abolish the paper le-
gal tender for future payments, and
leave them to be paid in coin; but the
courts would not render judgment for
more than the coin value of the consid-
Grafton of such contracts at the time
they were made. We conclude that
this will be the operation, because both
parties to contract upon the paper
tender basis understand and agree that
the consideration which is expressed in
dollars means measure which is from
thirty to forty cents less than dollar
A legal decision that would make the
debtor pay more than he agreed to pay,
and more than the creditors bond call
ed for, would be montrosity.
Therefore we do not expect that any
great disturbance would be made in ex-
isting debts if the tender act were de-
Charged illegal, except in those that date
back of the tender act. Itwould make
a rafting among the dry bones ofthese,
but would do no injustice.
Then the question is, how would the
decision affect the currency of these
notes in trade? We do not suppose it
would disturb them at all. The receiv-
ibility of the notes for public dues, their
ultimate security, their availability in
settling all debts that were created on
their basis, and the necessity of using
currency which now fills all the chan
nels of circulation, would keep them at
the rate which the operation of the
present trade conditions has given them.
There would be two kinds Of currency
recognized by all, as the government
has all the while recognized them; and
trade would be transacted OF either ac-
cording to the agreement.
Thus, save as to debts contracted be-
fore Feb. 95, 1862--the date of the first
paper tender act-the decision that the
act is illegal would have little more eff
feet than the enactment of the measure
now proposed, to legalize contracts for
gold. Of course, if such decision
could make the Legal Tender act inval-
i'd, and thereby compel the payment of
allexistipg debts in coin. it 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, the leading counsel in the
case against the legality of the act, who
argued that such decision would not
change the value of the consideration
of contracts made under the act.