The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1869-11-05
GOkHBBClAL AND FISAsCIAL.
The Coming Legal Tonder Decision
and It's Effect.
Tom Me ". Z. Conme1eial Advtrtiser.


From Lhe ". Y. Commercial AdvertiIcr,
The impression gains ground every
day, In Wall street, that at a compara~
lively early day, the Supreme Court
Will declare the Legal Tender Act to
be unconstitutional. We find 1t difi-
cult to Judge how far the expectation Ia
based upon adequate authority; and
discover little to countenauce 1t beyond
well authenticated statement that a
gentleman very closely connected with
Mr. Chase, In the original framing Of
the act, has declared hts belief that
such decision will ultimately be ren.
dRred. As. however, the impression has
so far taken hold Of the mind Of Wall
street as to have become really serI.
GUS element In calculations extending
into the future, II seems desirable to
inquire into some OF the bearings Of
such adeclsIon.
We take It for granted that, In view
OF the important relation OF such de.
cision to the public finances, the Court,
before announcing lts conclusions,
would acquaInt the Government with
lts purpose. so as 10 afford due oppor-
tunlty for the Secretary of the Treasu-
ry making suitable recommendation
10 Congress. Aud under such an exi-
gency, II seems inevitable that Congress
should authorize tho experiment OF re-
sumiuR specie payments; for otherwise,
Congress would drive the treasury and
the country to the use OF a CURRENCY
not only deprecated, but also, accord-
Ing 10 the hIghest tribunal OF the land,
unauthorized. Whatever mIsgivings,
therefore might be entertained, by
some, as 10 the success OF the expert.
ment, the trial would seem to be una.
voldable.
What would be the prospect Of sue.
cess, in the event OF the Government
declaring Its readiness 10 make pay
ments in specie or It's equivalent upon
all obligations, greenbHcks included I?
Much would depend upon the action OF
the banks. They would then be re.
quired 10 conduct their business upon
u specie basis, all their debts being
payable iu coin or Its representatives,
and all obligations due TO Them being
payable in the same form. The banks
would be holding say go, 100000 Of
United States notes. which they could
present at the SUBJ Treasury for instant
payment. Were they TO take that
course, the general public would follow
their example, and greenbackB would
come rushing in from all quarters Tor
redemption, causing general alarm,
and possibly. going on to the extent OF
draining the Treasury OF gold. Tho
banks, by thls means, might succeed
In securing q large amount OF gold as
the basis OF their operations; but II
would be at the risk Of compelling the
Government 10 suspend upon Its de-
mand obligations, aud thereby render
Ing Kreenbacks unavailable as cur
rency. But, on the other hand, the
Government would have 1t Ia It's power
TO take back and hoard the gold thus
taken out Of It's vaults, through the
medium OF Its customs recsipts-A fact
which would make the banks rs much
dependent upon the consideration OF
the Government rs the Government
would be dependent upon the iOrbear-
Ance and co operation Of the banks,
Would the banks be disposed to take
course 80 inimical 10 the return 10 u
sound monetary baais, To the good
credit OF the Government and To tho
satisfy ot their own basis of operations?
We think not. On the contrary, there
In tue strongest probability that, alike
upon grounds OF patriotism and Of
sound financial policy, the banks would
unanimously resolve, upon the Gov
eminent rGsuming gold payments, To
send In no greenbacks for redemption;
but rather to hold them, first as repre.
senting 80 much gold Ia the Treasury
at their instant command, and next as
far more convenient for handling than
coin, Intending, perhaps, subsequently
IN no IN n mi sVRlA
Ia the event OF the banks taking this
course, the general public would take
confidence, and The demand upon the
Treasury for the redemption OF green
backs would be confined to few small
holders more tlmorous than sagacious,
who. finding that their gold was worth
no more than greenbacks, and much
less convenient, would soon become
ashamed ofhavinR done the little with
In their power 10 drive the Government
Into perpetual suspension.
We anticipate, then, that In the event
OF the Government resuming specie
payments, as the sequel OF such de-
ctsion of the Supreme Court as rumor
predicts, the banks would continue to
bank upon United States Notes, tax.
Ing them into the Treasury for redemp
lion when they specially needed gold
and holding them when they did not:
that they would accept them In pay
ments and tender them In payments,
accommodating captious ohjectors to
such a tender with gold. Under such
a course OF affairs resumption need be
attended with no banking derunge-
menta.
In some quarters there is loud out>
cry against the injury that would re.
ault 70 the debtor Glass; who, It ls
said, would have to pay In gold, or Its
equivalent, debts contracted In u de.
preciated currency. There Ia, unques-
tionably, an injustice In this; the In
evitable counterpart OF that incurred
upon suspensions; and one which can.
not be avoided. But 1t must be
remembered that as q rule, banks,
bankers, merchants, traders, and
Indeed ell classes, have obliga>
lions owing 10 them TO about the
same extent as they are owing 10 others,
so that their receipts In gold currency
would provide iorthelr payments In a
currency, That there could be no ex-
lenslve injury TO the exceptional few
who owe more than they have due 10
them Is to be inferred from the fact
A. - a L. 49,.