, 1870-02-15
TUESDAY, FEBRUARY Is, 1870.
THE LEGALTEFUEE ACT

THE LEGAL~rEFuER ACT.
The recent decision Of the Supreme Goa,
that tbs Legal. Tender act is null as to 60,
tracts msds Prior to its enactment. III
very guarded manner in which tha Con,
limits its opinion to the case before Il. .n
yet the use made By the Court OF a,9u
meDts which bear as strongly against Ii
validity OF the act in reference to subse
qnene contracts ns prior, have combined
prpduee some apprehension thst the entir
heel.tender clause will be held unconkti
tntoral- A1r. Chase, while Secretary a
tne treasury, Contrary to the current I'M
p1es1op, was opposed to the lesal-tende
clause IN the earlf stage Of its intfodpctio,
tneo Congress. He desired cQuaucv u
United States notes, but WAS 50 ze,uc.ant +,
make them legal tenders that Messn,
spalding aud Stevens, the authors Of N
ieeal1ender act, complained of b;a bo.,ii.
hes'sat1onr modified them, aud fariutatat
tre passage Of the act by writioe tvo lat
sefs, conceding the 4tnectss,ty" Of ths AIT
but SAT ing nothing about its oonst;tn,;o,
ai'sy- lie Is sssailing no pet project Of r;s
o"n, therefore, in annulline tho 1eca,.
tendex clause, as be would Be in sott;,o
aside tie National Banking system.
II the Court should hereaffe, annr1 .ho
lega1-teades clause, iswoula 1oaks al ,on.
ttacts entered into during the legal tender
en Pa!aa1e in 80 much gold aa the amount
OF currency they call for would be worth
Ihs courts could only thereafter recognize
gold US the legal tender or lawful money Of
TIE country, and all paper currency would
BE- counted at its actual value in urirate
TIA. sacsiops. The same principle would
prevail Which was laid down By the Chief
Justice in the recent case from Alabama on
Confederate notes, viz, that CONTRACT made
when q adepreci.ted currency was in use
would be regarded is calling for SO much
gold as the currency due on the contract
eas worth
Should this be the effect Of the decision.
1t would bring us to specie payments
by very short and not very nrdu-
ors road. Everybody who now owes debts
would continue to ows tho same actual
rAs1e but It would be counted in a costlies
standard. which would therefore reduce the
nominal Fun, but not the rcal burden, A
debt Of 5000 would be payable in gold,
but not for the sum of g., 1000 in gold Il
would be payable in SO much gold Us 81, GOO
in currency WIS worth, either ut the time
the contract wns made or at The tine OF
its payment. With gold at le5 this would
be 81, 900. But there is in this no real
gain or loss TO either party, aince the debtor
could to-day pay his debt as easily with
$4,000 in gold Is with 5000 in currency,
ty purchasing one with ths other.
Standards would change, but values would
remain the same. And even the change in
the standard is only an appareut one, as
gold must be as ali times the actual stand
ard Of value bs which the paper currency
is measured.
Such decision would, probably, hssten
The retirement Of ali forms Of depsec;atsd
currency, and the issue by the banks Of q
wholly new paper currency, which, being
Issued Tor gold values, would be maintained
1t Eese values. It would probably end nil
efossa to enhance the gold values of the
cuf1enciea and debts now existing, 30 IS to
make them ali wu1th -ths Ha1ue nominal
saa so@ aes u'~ ara
~ -. u s<ns' ~ eno aas smsh'
:. oa5.o,5a n ~ a'asy esonoa.sts
80: - .......as ~ nosl!ess' -na an oppressive
so1uen u eoe n1.ones industry.
Liners seem 70 bs but tTo roads to "pecie
Payments 1he ane Is 70 make CTR present
currency .v"Fth par "ath gold 5r come pro-
oe@ *n'en aaau eananee aes aeeoa raid
~ ue i1ona o. oents par dollar % ioo cents-
- 1e-Ns. a4o w =, 9eo. currency
ra.. .s"... 80. w' - N4oN IL 70 Do N
an,au.t ~ r.a1s :, -, 80 -, W. n os .no
...NN, -, - neAes7 nAs
~ tsee 80 eAsoS :" ennase .te Sataa o.
.Ao s1ene oaeseocS o5 coas1aet'ons ihe1e
'oeosS IN inc mands Of come tnas gold
Will gsadnaiiT setle down to par ~ the
mere progress Of the national industry and
he payment ct the interest bearing debt
tneors ~h1ch oshezs w'tS great positive
neas denf' and which We think IS tallacloos.
aa~nae eas Country seems TO 90 adslft,
N.Anous any nnancsni nessn. Tue pollcy
f" "one n'1n'oe resulting purely and
"nooy lsotn nor knowing what TO do Con-
&Fs@4 NAs%T- ~A~x 1sA<lA ~At~AsA1 ~ s-.At,aza