The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1870-02-18
LEGAL TENDER DECISION.


CnIcAao, Feb. s.-The opinion of
the Supreme Court on the legal tender
question is a very long and able view
OF the case. Justice Chase SAYS no.
body questions the constitutionality
and not many question the expediency
OF the net by which currency notes
have been authorized IN recent years.
Doubt exists as to the power of Con-
gress TO declare these notes legal ten
der in payment of pre-existing debts.
The only ground upon which this pow
or is asserted is not that the issue of
notes was appropriate and plainly
adopted as the means for carrying on
the war, for that is admitted, but that
the making of mhem legal tender to
the extent mentioned was such means.
Justice Chase proceeds to argue the
question whether making the notes le-
gal tenders really added anything to
their credit or usefulness. He says
the history of legislation shows that
the reliance for their circulation was
originally placed in the receivability
and not IN the quality OF the legal ten
der notes, because the receivability
clause appears in the original draft of
the bill, while the legal tender clause
was introduced at q later stage of its
progress. He thinks it by no means
certain that the depreciation of the
notes would be less IL the Government
pledged the holder its power to COM
pei his creditors to receive them at
par in payment. II the quantity to
be issned be uncertain and their re-
demption fixed at remote period,
great depreciation would take place,
but if the quantity only equalled the
demands of business, and confidence
in their redemption be strong, the
notes will circulate freely, whether
made legal tender or not. If it is adj
mitted that some increase of available
/ ity is derived from making the notes q
legal tender under new contracts, il
does not follow that any appreciable
advantage is gained by compelling
!, creditors to receive them in satisfac-
ton of pre-existing debt The opin.
ion points out the evils of an irredeem-
liable paper currency. He thinks max.
ling them legal tender widens their ex-
tent protracts their continuance, and
he cannot allow, therefore, that such
lexpedient is the appropriate and plain.
Ily adapted means for the execution o.
'lpower to carry on the war. But there
lis another view, by which it appears
nothing prohibited by or inconsistent
with the spirit of the Constitution car
be regarded as appropriate, plainly
Iadapted OF really calculated means tx
'lany such end. After careful inqui
Try he arrives at the conclusion tha-
making bills of credit legal tender
Applicable to pre-existing contracts, i
inconsistent with the spirit and letter
of the Constitution, which forbids leg
.lislation impairing the obligation O
contracts, and prohibits the taking o
priyate property for public use withou
compensation. It also declares tina
no person shall be deprived of life
!, liberty or property without due pro
cess of law. An act which compel
! creditors who hold contracts for pay
ment in specie to accept currency o
inferior value in payment thereof, de
priyes such persons of property with
out due process of law. It is Difficult
/ to perceive what act would take prop
Aerty without due process Of law