The New York herald., 1869-02-27
IMPORTANT LEGAL DEClsIOY.
The Effect Of the Legal Tender Act ON q Coin
and Currency Contract.

The Effect Of the Legal Tender Act ON q Coin
and Currency Contract.
Acase involving the application OF the Legal Tender
act OF 1862 to coin and currency contract has just
been decided at the Washington County IN. VI CIR.
cult Court at Sandy Hi by Z. II. Rosecrans OF Glens
Falls, who holds the Circuit. The case arose on Q
written contract made In August 1854 wherein
Emerson L. Davis, OF Whitehall, agreed to deliver to
Tracy Cowen also OF Whitehall ten thousand dol
lars In current funds OF the United States ut fifteen
cents on dollar ten months from that time This
contract was subsequently assigned to Mr.. A. p.
Cooke also Of Whitehall who, at the end OF the ten
months rendered MIR. Davis $1,000 IN gold and de-
manded $4,000 IN greenbacks. The demand was
refused whereupon Mr. Cooke brought suit At the
trial The contract was offered In evidence and was
objected 70 by Air. Davis counsel on the following
grounds:-
was and void on Z, face being
dolar meaning simply under the currency Of
backs legal TENDER 80 .la. va. aal simply an
agreement on tho part OF Mr. Davis present Mr. Coen
gnThat void grounds Of public policy, as IL
mean 50 much ia con would be the object Davis 70
no Inore than neen cents on dollar ia coin.
m,hmfnat h, y was gambling contract being nothing
wcnli no: be worth mo than heen cents on
vourne reports where tie contract was 70 dc.
liver certain numoer OF shares OF larem Railroad
Of the contract 'Ao'' 'u'Hs AZ 'ae 's
II was replied the part OF the plaintiff that the
pIactical effect OF the Legal Tenuer 10 create
Two currencies Of different valaes--viz, com and
gieeneaIks; that the language Of the contract was
SIMPLY the common form expressing the yaluc OF
breenDacSs III CON- ciIin In illustration, tue quota
uons OF ~ eenoacAS on lne san Francisco Stock Ex.
Change and those OF unlted states securities in
ioreisn cites; that tue recent decision OF the Eron-
son mortgage case by tue United States Supreme
Court established the validity Of coin contracts and
that the coati act LII suit being ior the payment In
com was witlll that decision, and was, therefore,
petlecty valid one aud capa0se OF enforcement.
Justice hcsecrals an deciding the matter he'd that
tne contract was not gambling one within the
meaning o. tue law, that ~ was not VOID against
pubic p0cy, and that under the decision Ia the
Bronson mortgage Case contracts whose consldcra-
ton was In specie couid be enforced. lie, however,
iIrtDer head nnt by the Currency act OF 1862 green
backs were male legal tender, and therefore the
pnfise "nitcen Genus on dOiar' must be construed
10 mean gfeeapaek5. IN wncA case the contract was
clearly Nnhou. consideration aid Invalid.
Plaintns counsel then offered prove that II was
the UNDERSTANDING oi the parties ~ the contract that
the phrase ''niteen cents On uollarr meant fifteen
cents on dollar Ia CON- but oyerruled by tie
cours aAi Judgment OF noilsuIt ordered.
Tue Case Is 10 be lakel 10 the general Term and
probably 10 the Court Oi Appeals Inls case mas at
fac;cd considerable attention not oniy on account
or It's Character but ol the array Of counsel retained
IN u. There appeared Tor tue painlin Judge Joseph
Potter, Of Whitelall, and IA. w. Cooke. or koch-
ester; Tor the defendant, u. Il. DAVIS, OF White-
haii; W. A. Beach, VI Troy, and ]. ii. Reynolds, OF
Albany.