The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-02-19
UNITED STATES sUF7.n,rp couRr

m.-s.. 1900. ~<acts Under the Legal
800. ss,.,,.,r >.ftufiOnaIily Of State Legis-
80 E.r.-c - that Act-Thc Rendition
-. !, >snaeut Of Judgments Tor the Pay
rso C4su-Powcr of the Judiciary.
mas c Butler us. Benjamin Horuftz.-In err
, sor 70 the Court OF Common Pleas OF the State Of
Maryland. 1t appears that in February, I7sl, one
Daniel Bowlcy leased certain property the city OF
Baltimore Tor the term OF ninety mine years, the
lessee covenanting to pay the yearly rent or sum OF
niteen pounds, current money Of Maryland, payable
in English gold guineas, weighing i've pennyweghts
and six grains, o. thirty-nve shings each, and
other gold and silver at their established weight and
rate, according TO the act or Assembly, On the Ist
OF January, 1868, when the annual rent was due
payment was rendered III currency, as usual since
the passage OF the Legal Tender act, and
IL was refused, although up to that time
sn nS payment had been promptly accepted
anu acknowledged as sufficient. 1t was held
IN the court below that as gold and silve.
were the legal tender at the time OF the enacment
ana as the act did not affect them as such, they
SUI remain legal tender, the act only providing an
additional currency and declaring It also a legal
tender. The right or the federal government 10
issue Treasury notes Ii undlsputed, the constitu-
lional question In the case being only to the
power VI Congress to make them q tender In pay
ment OF private debts. The right or power tc make
them tender in payment Of public debts Is very
amount OF duties and also the right to determine
III what such duties shall De payable After discus
sing the authority OF Congress 10 provdea currency
at some length, the court coming to The conclusion
that the right to "coin money! means the right 10
make money out OF something that must be coiucd
IS aid:-Agan it Is well worthy Of Observation
IN this connection TO notice that the States are
expressly prohibited from making anything but
gold and silver tender in payment OF
debts. Should the State OF Maryland, therefore,
enact law adopting the Treasury notes as a legal
tender the law would be unconstitutional AMI vou.
The States it would seem, therefore. were regu-
late the law OF telder subject to this restriction, and
tender in payment or debts. Did me constitution,
then, intend TO authorize Congress to make any
thing else tender III payment OF debts than what it
authorized the states TO designate or establish by
law tender for that purpose? construction that it
did not so intend would secure uniform currency,
which Is the manifest object Of this restriction on the
States. different Interpretation leads to the unona-
lous position that while the States only provide
BY law that gold and silver shall be a legal tender
Tor the payment OF debts, Congress can pass q law
providing substitute for coin, which, II the States
declared should be received the action OF the Legs-
lature would be repugnant the constitution. The
c0nstitutionay Of the Legal Tender act is conceded
but 10 must not be held 10 apply only public debts,
and In this spirit should be interpreted and applied
IN this casc TX these views II Is PLAN
the court that the act OF Congress should not
affect any case in such manner as to Inn
pair the faith Of q bona Hde contract for the
payment OF gold and silver; although the courE niay
be embarrassed In securing The ends OF justice under
such construction, this is the result OF the pro-
viuing more than one currency as legal tender III
payment OF debts. The act itself OF the cit-
zen payment OF imports In gold, and by Implication,
therefore, must be said to sustain contract by which
god and silver may be obtained. BY the act OF Ieo
subsequently repealed, Congress declared that All
contracts FOR the purchase sale OF gold ana silver
coin or bullion, to be performed after period ex-
ceedng three days, shall be in writing and sgned by
the partles &c So long therefore Congress reccs-
nlzes by law the existence OF two distinct kinds OF
currency, the courts should recognize the validity OF
acontiact which expressly provides for the payment
oil a debt in either or them. The point was made III
the case that the court must render its Judgment for
30 many dollars and cents, without reference To the
currency in which the judgment II to be paid; and
the of gold it would be incompetent tor rs
court 60 add the premium gold ana render Illan-
ment accordingly. To this the court say:-A contract
Tor the payment or debt III gold and silver unue3
tonably legal contract, and 70 estimate the dam
ages ia case or BREACH in another currency q
paper currency and place it on level with gold ana
silver, when the inflexlbe laws OF trade make
fundamental distinction between tnem Is to accom-
pish legal fraud. The power VI the court ii NOT
concluded py the judgment under "a given stale Of
be entered anu satisfied on the payment with Inte-
rest VI the specified according to the terms OF
the contracts IN gold and silver; anu II may In IKE
manner, order II 70 be entered satisfied tile pay
In the judgment. In conclusion, il is said Ina.
the act or Congress may well apply where the
payment ~ not expressly reserved in gold ana
silver; but contracts for the payment Of gold and
silver com are sun valid and binding anu 1t is she
duty OF the court to maintain them invioate ana 70
render Judgment upon them; TO enforce them
Ia good faitli. From Judgment entered for The
lessor in pursuance OF this opinion, appeal Is taken
TO this court and, together with the argument on
the merits motion argued to III mis- ne aupeal
give this court jurisdiction and for lniormallly ia
the record