The Montana post., 1869-03-26
LEGALIzATION OF GOLD CON
TRACTS.

LEGsALIAAElON OF GOLD CON
TRACTS.
The recent decision of the Supreme
Court touching on the validity OF gold
contracts, is of importance to business
men. We give the following review OF
the issue and the points ot the decision
srom the PittsbuTg Chronicle. the most
concise article on the subject we have
seen: .f fE
We have now the full text of the de-
cision rendred by the Supreme Court OF
the United States in the case of Frede-
rick Bronson, executor of Arthur Bron-
SON, deceased, against Peter Rodes The
case came before the Court on a writ oi
error from the New York Court of Ap-
peals, and the facts are thus stated: In
December, 1851, one Christian Metz
having borrowed of Frederick Bronson,
executor of Arthur Bronson, 81 400, exc
cuted his bond for the payment to Bron-
son of the principal sum, borrowed on
the first day of January, 1867, in gold
and silver coin, lawful money of the
United States, interest also in coin until
such repayment at the yearly rate of
seven per cent. To secure these pay~
ments according TO the bond at such
place as Bronson might appoint, and in
default of such appointment, at the Mer-
chants Bank in New York, Metz execu-
ted a mortgage upon certain real prop
erty which was afterwards conveyed TO
Rodes, who assumed to pay the mort-
gage due, and did. in fact, pay the inter
est until and including the first day of
January, 1864. Subsequently, in 1866,
there having been no demand of pay
ment, nor any appointment of place of
payment by Bronson, Rodes rendered TO
him United States notes for the amount
of 81 ,507, a sum nominally equal TO the
principal and interest due upon the
bond and mortgage. At that
time one dollar in coin was equiv.
alent in market value to
S22j of United States notes. This
tender was refused, whereupon Rodes
deposited the United States notes in the
Merchants Bank TO the credit of Bron-
son. and filed his bill in equity, praying
that the mortgaged premises might be
relieved from the lien of the mortgage,
and that Bronson might be compelled
to execute and deliver to him an ac-
Acknowledgement OF the full satisfaction
and discharge of the mortgage debt.
The bill was dismissed by the Supreme
Court in Erie county, but on appeal to
the Supreme Court in general term, the
decree of dismissal was reversed, and
decree was entered adjudging that the
mortgage had been satisfied by the
tender, and directing Bronson to satisfy
the same of record, and this decree was
affirmed by the Court of Appeals. %
The question before the United States
Supreme Court was whether Bronson
was bound by law TO accept from Rodes
United States notes equal in nominal
amount to the sum due him as full sat-
isfaction of an obligation which still
stipulated for the payment of that sum
in gold and silver coin, lawful money of
the United States. Ii is worthy of notice
in this case that Chief Justice Chase did
not pass directly upon the question
of the constitutionaIity of the legal
tender act, but maintained that contracts
to pay in gold or paper were equally
sanctioned by law, and that every con-
tract must be enforced accordi ng to il
terms. He therefore held that the ten
der of United States notes in payment
of an obligation made. payable in coin,
was not sufficient, and that when two
descriptions Of money are sanctioned by
law, both expressed in dollars, and both
current in payment, it is necessary, in
order to prevent ambiguity and to pre-
vent a failure of Justice. 10 regard this
regulation as applicable alike to both.
when, therefore, contracts made payable
in coin are sued upon, Judgment may
be rendered for coined dollars and parts
of q dollar, and when contracts have
been made payable in dollars generally,
without specifying in what description
of currency payment is TO be made,
Judgment may be entered accordingly,
without such description, .-- ~, I'd
The result of This case therefore, Is,
that there is no necessity for Congres-
sional legislation TO give validity to
gold contracts entered into before the
passage of the Legal Tender act, but
possibly leaving still open the question
as to whether parties can enforce con-
tracts to pay in coin made since the pas
sage of that act. Mr.. Justice Davis took
particular care to announce that this
a question had not been affected by the
decision of the Court. -.-.t8 .r.u
The Legislature of Illinois, which re-
Gently, by way of q Joke. = ceded CHS
caro TO Indiana. has passed bill vest
ing all political, civil and sociai power
in the State In 1.-THE female portion OF
the population above the age OF sixteen
wears liz is made unlawful for any
male over twelve years old to- be out
after dark. unless protected by q woman
q uualified TO vote. This. 1t is supposed,
is another Legislative joke.