Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1869-12-22
For the Chronicle
tut the chronicle.
Wa the issue Of Greenbaeks u~ncOnsti-
tutiOnal, and will the Supreme Court
So dePide9

1OA AAA1
Wa the issue Of GreenbaekS u~ncOnsti-
t%utiOnal, and will the Supreme Court
so decide!
These important questions have been
discussed, with great interest, all over
this country and Europe for the last few
months, each side with warmth and
spirit. The subjoined article 1 find in
the Independent of New York, and is so
sensible, strong and ~pertinently just and
correct, that in my judgment the readers
Of the CHRONICLE should see it.
Wont you please copy and oblige.
Dec. 20, 1869. NJ.
Decentralization OF Us. NOTES.
The notes % the United States, issued by
the authority Of Congress, on their face con-
tain stipulation TO pay the bearer "A given
sum OF money, without interest, n with
out naming any specific time OF payment (.
and hence they have the character of debts
against the United States, not se~lf-paying in
their own kind, but payable in coin in the
honest discretion OF the Government as to
the question of time. These same notes on
their back contain q stipulation, made by
the Government to the receiver or holder,
that they shall be a legal tender in payment
OF all debts. public or private, with the ex-
ceptton oft interest on the public debtand
duties on imports. These stipulations give
TO these notes the double character OF debt
owned by the Government, and a legal ten
deTcurrency circulatingamong the people as
money, and receivable for the payment OF all
debts with certain specified exceptions
Under such stipulations, and with such
pledges, the Government entered upon the
process of distributing these notes among
the people, offering them as money in the
markets of the country, and receiving their
equivalent in services rendered or cOmmO-
dfties sold. The result is that some SSJ0,OOO,-
600 Of these monetary notes have been put
into circulation, and are now IN the nands
of the people, with the exception OF those
held by the Government. Tn Government
has used them as money and received them
as money; and as such the people hOldthem,
and Ia hithertoused them The elements
of their value to the holder consists in the
amount stipulated to be paid, the solvency
of the drawer, and the fact that they are
made a legal tender. The last item is a part
OF their value as really as the other two; and
for this value the Government has already
received an equivalent in their services or
commodities.
In view of these plain facts, we should like
10 know in what way, whether by legislative
or judicial action, the Government can now
these notes to the level of mere debts, with
out a gross and p3lpable violation OF the
public faith. These notes are complex units
IN their legal and moral structure Thelegal
tender part as much belongs to them as does
the debt part. They are made up OF both,
and in consideration of both I'VE been ac-
and used by the people. The theory
Of demonetiZing these notes by destroying
their character as legal tenders, and vet
them among the people unpaid and
unredeemed, is simply ~thetheory Of Tepudid-
Ion. The Government has no more right TO
this than il would ave the right TO steal
them or ignore the whole obligation. HAY
ing become a debtor, it is bound tothe credi-
tor by the stipulation under which the debt
contracted; and the legal-tender char
acter Of these notes is certainly a vital part
this stipulation. The Government may
pay them 10 the bearer at its pleasure; but,
while the bearer holds them, it must not
their nature and convert them into
another thing. We have been not a little
at much Of the loose talking
Ind loose writing about the legal-tender
question, as If II were now in the discretion 1
1f the Government to erase or not at its
option that clause Of the UnitedS States notes
which expressly makes them a legal tender.
y may, fit chooses, offer other notes without
his feature; but, in respect to those already
IL has no discretion in the premises
Without assuming the character Of a ~Tepudtd-
or OF Its own obligations. The contract is
the notes have been issued, their
equivalent has been received and hencet their
must be fulfilled. This is the
olan demanded Of simple honesty. Govern
mental roguery is no better than private
Even II the Supreme Court should hold,
Is We do not believe il will, that Congress
lad no right to issue such notes; still, the
totes, having been issued by authority Of
and virtually forced pom the accept
Ince of the people, and the public faith be-
ng pledged, the Our will not and cannot
lecide that the legal-tsnder claus is Of no
fleet in respect TO these notes, or respect
o contracts based upon them. Practically
will n must sustain their past charac-
er in respect to all transactions found
d upon them. 1t will not at a single
low, by a technical decision, demonetize
learly all the money in use in the land, and
uddenly p~recipttate the whole country
TO the specie basis. We nave no idea
the Supreme Court will be guilty of
ny such folly or injustice. The act would
,e a stain upon the honor n fair dealing
( the nation. The only righteous disposal
these notes that can be made is legally 10
Il them alone, paying them as soon and as
asst as practicable, or exchanging them at
he option OF the holder for Government