Iowa voter. [volume] (Knoxville, Iowa) 1867-1874, 1869-12-09
From the Hcrley.
The Supreme Court and Legal
Tender.

The Supre me Court and Legal
Tender.
For some months the Supreme
Court has had under consideration q
case involving the constitutionality
of the Legal Tender act; and it has
been given out from time to time
that the decision when it comes will
declare that act unconstitutional.
The New York Tribune, which has
always been crazy on the subject of a
return to specie payments, now calls
upon the Court to make haste with
its decision, hoping that it will be
adverse to greenbacksand precipitate
resumption. The New York Post
asks, Suppose the Supreme Court
does declare the Legal-Tender act
unconstitutional, what will the deci-
sion mean?n--and answers as follows:
3 ]. 1t will not deny the power OF
the Government to issue notes or
promises to pay money; but only its
power or constitutional right to force
such notes upon the people.
II. 1t will not, therefore, abolish
or violently put out Of use green.
backs, but simply make their use
optional.
III. The Court will not force con-
tracts made i'm greenbacks to be set.
tied in coin, because it cannot impair
the obligation of contracts; therefore
debts contracted in greenbacks will
be paid i'm greenbacks, or in their
equivalent in gold.
Nv. Is it not probable that when
the compulsory acceptance Of green
backs ceases, their credit will i'm
prove? If A is forced to take BIS
note for debt, he is dissatisfied; il
he has the option to take BIS note or
something else, he is likely to look
into BIS condition. If he finds that
b is sound, that his income largely
exceeds his expenses, that his bust
ness is managed economically, and
that he has no lawsuits on hand, A is
likely to think much better Of BIS
credit than he did before.
V. IF the Supreme Courts decision
leaves the use of greenbacks optional,
they will continue in use just SO far
and so long as they serve the conve-
niencc of the people; and at precisely
the rate which represents the conf
dence of the people in the Govern
ment.
VI. But as they will be Of uncer-
tain value, it is likely that business
transactions, especially those which
involve time, will gradually come to
be done OH a gold foundation. So
far as this goes, the decision Of the
Court would act as a permission,
merely, to use gold. But it seems
clear that, as rapidly as the public
convenience would allow, and no
more so, gold would be adopted as
the standard for all transactions.
VII. No debtor can be oppressed,
on the prctext that a decision en-
forces payment in gold Of a debt
contracted ingreenbacks. The Courts,
in their equity Jurisprudence, have
full power to enforce such contracts
according to their terms, and Will
not help a creditor toexact more.
VIII. So far as we have gone,
everything seems to show that a
decision against the Legal-Tenderact
would make no immediate change
or revolution in the trade of the
country. The decision would force
no change or violent substitution OF
gold for paper. IT would only break
down and drag aside barrier, and
give the people an opportunity to
make the change. That they would
not be over quick to make 1t, seems
probable, from the fact that a decision
Of the Court several months age
made gold contracts legal, and ye
but very few persons have awaited
themselves Of that permission u
substitute gold for greenbacks.