The sun., 1870-02-08
LEGAL TENDERS INVALID.
CoSfRAofs ANrE-DATTv0 THE ACT
MUST me- PAID IN GOLD.
Important Decision by tho rnited States
supreme Court, Affirming the Kentucky
Courts Decision that the Lean' Tender
Act does not Affect Contracts made before

was delivered in the United States Supreme Court
to-day, by Chief Justice Chase:
Susan p. Hepburn and Henry A. Hepburn aet.
Henry A. Griswold IN error to the Court Of Appeals
OF the State OF Kentucky. The question presented
for our determination By the record In this case' Is
whether or not the payce or assignee OF note made
before the 25th Of February, is62 Is obliged by law
to accept in payment United States notes equal IN
nominal amount to the sum due, according to its
ttrms, when rendered by the maker or other party
bound to pay H.. And this requires, in the first
place. construction OF that clause of the first section
of the act Of Congress passed on that day. which
declares the United states notes, tho Issue Of which
was authorized by the statute, 20 be legal tender
in payment OF debts. The entire clause is In these
words:
All such notes herein authorized shall be receivable IN
GensSds Of svesS Erd due 10 the United stnie s1cept
duties op imno,p, and demonds against the United
upon the bonds and notes. SSicS sbs bs paid in com
Of ,H al Cf eb pu6e SnSy S 1af p ss% w e
Aforesaid. u2th U. s. Statues. Sl5J
This clause has already received much eonsldera-
tion here, and this Court has held that noon sound
construction neither taxes imposed BY state legisla
uon nor demands upon contracts which supulato In
terms for the Asment or delivery Of coin or bullion
are included by legislative intention under the de-
scription Of debts. public and private. We are now
to determine whether this dcscrpion embraces debts
contracted before az well aiter the date OF the
act. 1t is an established rule for tho construction
OF statutes that the terms employed by the Legs
lA'urc arc not 10 receive nm Interpretation which
conflicts with acknowledged principles Of justice
and equity, II another sense consouant with these
principles can be given To them But this rule can
not prevail where the intent Is clear, except In the
scarcely supposablo case where statute sets at
naueht the plainest prceepts Of morality and social
obligation. Courts must give effect to the clearly
sscetaincd legislative intent. II mot repugnant TO
the fundamental Law ordained in the Constitution
Applying tie rule just stated to tie act under con
sideration there appears he strong for
STRUNG tile word debts" as having reference only
to debts contracted
SUBSEQUENT TO THE ENACTMENT
OF tie law, for one win ques non that the United
States notes which the act makes legal tender In
payment are essentially unlike In nature, and being
irfedcemabe IN coin are necessarily unlike In value
to the lawful money intendtd by parties TO con.
tracts for the payment OF money made before It's pas
rage. The lawful money then in use and made a
legal tender in payment consisted of gold and silver
coin. The currency In use under the act ard de-
clarcd by Its terms TO be lawful money and legal
tender, consists OF notes OF promises to pay I'm.
pressed upon paper prepared In convenient form for
circulation and protected against counterfciting BY
suitable devices and penalties. The former possess
intrinsic value determine ed BY the weight and One
OF the metal; the latter have intripslc value,
but purchasing vsiue determined by the quantity
In circulation, by general consent 10 its currency In
payments, and by opinion a. to tile probability OF
redemption In coin. BoIh derive in different de-
grees a certain additional value from their a1npts-
ton to circulation 10y tbs form and impress given to
them under national authority, and from the acts
making them respectively legal tender. Coutraets
Tor the pa, ment Of money made before the act Of
lS.2 had reference 10
coiSEp MONEY,
and could not he DISCHARGED by consent othor-
vice than by the tender Of ue sum due In coin.
Every such contract Therefore was, legal import
a contract for the payment OF coin. There II n
lses g. pay. unless made convenient or pTompt-
" convertible into con at the vii. Of the hold.
er, can never, except unde. unusual and abnormal
conditions, be AZ par in Circulation with con. d il
equally wckrown fact that depreciation OF notes
must uciease with the increase Of the quantity put
| in circulation aud diminutun Of confidence IN The
ability or disposition TO redeem, Tier appreeir-
ton ios rs the rcycrsal ofthcse conditions No ac
| making i"u' legal tender can chang. ui,,crally
srikinry cGcmulhep IN the history OF the u. notes
No conf nctlou which attributes such pr,ctic.i
operation to act Of Congress is 20 he favored or
indeed, 20 be ttnitted, II any other can be recon
| ced vita tie mi niiest intent o. the LEGISLATURE
What, tlen, Is that manifest intontt Are We at
liberty, upon tar and hOcral construction OF tn
act TO saw HAT Congress meant that the word
debt, used 40 the act, should not include debts
| contracted prior TO its passagct The exception o
interest on loans and duties inportA from the ef
ieet of tue legaltendsr clause affords rressuOls
implication that no description Of debs, whgnevci
contracted, can be Withdrawn from the effect Of toe
act.
NOT NcIuDID WITHIN rnR TRIMS
on the reasonable iutent OF the exception And 4, n
worthy Of observation IN this connection that In al
the debates to which the act gave occasion IN Con
Eress, no suggestion was ever made that the lexa
tender cause did not nprly as fully TO contract
made before TO contracts made ai,er It's passage
These considerations seem TO Us conclusive. We d,
no, think ourselves at liberty therefore, 10 say tha
L M ake fhaF
| Esd by II illegal tender IN payment OF debts con
tIscted before sthe passage OF the act. We arr
gress has power TO MAKE notes i.sSe,
under ils authority legal tender in payment 0
and silver coin No department Of the Govern en-
has any other powers than those delegated to 1t b,
the people All the legislative granted by tn,
Constitution belongs 70 Congress, but it has n,
| legislative power which is not thus granted Anf
tile same observation ls equally true In It's appii :,
respectively 10 the President ard lie Courts
| All these powers diner In kind, but not IL
source or IN limitations, They oil arise iron
the Constitution, and are limited by It's terms
Not every ac Of Congress is 10 be regarded As tn,
supreme law OF the land; nor IL Il By every act o
| Congress that the Judges are bound THIS cl ar
| acter and this force belong 70 sucl acts AS ar,
| made IN pursuance OF the Cunsttut on" When
ereiore, a case arses for judicial determination
cnc, " legislative provision WITH the undan gnta
law, tvs tie plain duty oi the Conr, TO compare Ia,
act with the Consultation, and II the former cannot
upon fair construction, te 4, ,cconciled VITA 10,
latter, 10 give eject to the Cons tuton rather taI
tho Statute. The case before ls is one OF
PRIVATE RIGHTS.
The plaintiff In tie court below sought TO recover
| OF the defendants certain sum oppressed on tll
face OF promissory note. Tue defendants insistc,
on the right, under the act of February % 1864 4
Acqnit themselves Of their Obligation by tond,rlng 1,
| payment sun nomlnaly tqlsl In Cnted State
notes, but the note had been executed before IN,
passage oi the act aud the plauun insisted on nj,
| right, under the constit uuon, to be Illd N,
amount In gold and SILVER. and II Ia
not been, and cannot be denied that the plaintiff wa
entlt Ell TO JUDGMENT according to hls claim une-i
bound by stutfOnal law to accept the notes "A,
com. Thus two questions were directly presented
Were the Gciendhuts relieved By the act from tine oh
lgntion assumed in the contricty Chould the PLAIN
| uh DC compelled by Jndrm cnt OF the Court TO re
| coive In payment currency ot different natur
| hnd value from that which was In the Contemplate
Of the parties when the contract WIS madet Tn,
| Court OF Appeals resolves both out stions in th,
| negative, ana the defendants seek the reversal o
| That Judgment by writ Of error II becom,s oul
duty, thereiose 10 determine whether the act of Feb
2osd2, 30 lar as II makes Uultcd states notes lega
| tendor IN payment OF deots contracted PRIOR to ~
| passage, Is constitutional aud valid or otherwise.
THE DESIGN oT tbs CONSTITUTION
was to establish govei nment competent TO tax,
direction ana administration OF the al urs OF grea
| nation and az the same time TO mark by sufncientl
| definite lines tile sphere OF ita operations TO mi
| end II was needinl only to make express grinis o
general powers coupled with further grant OF sucl
Incidental anu aux lary powers rs might be require,