The New York herald., 1870-02-08

the ordinary business Of the country. A
Of business seemed inevitable in whic6 fa,ts IN ihs
ability Of the government would have been de-
sroyed , tue rebellion na would have trlumphea ths
impoverished. The national government wond
have persned and with IT the constitution which We
are called upon To construe with such nice and
critical accuracy. That the Legal Tender act pre-.
vented these disastrous results, and that the legal
means Of paying tine SOLDIERS in the ield
quarIermaster. 1t furnished medium tor the pay.
ment or private as well as public debts at TINA
when gold was being rapidly waa om e
wortnless II furnished the means to the Capitalist
OF buying the bonds OF the government; u stinu-
lated trade, revived the dropping energies oi tns
country and restored confidence to the puDlc mind
The results which followed the adoption OF shis
measure are beyond dispute NO other ADEQUATE
has assigned for the revival OF gov.
ernraent credll, the renewed activity or trade and
the facility WIN whlch the government borrowed m
two or three years at reasonable rates OF interest
mainly from ts own citizens ,S douee cnnntra ,1s
including coin, bank notes and the notes Issued
under the legal tender acts. IL Is now SAID, now
ever. as the calm retrospect OF those events, that
Treasury f0tes suitable for circulation as money
bearing on tner lace the pledge OF the United states
Tor their ultimate payment IN coin, would If noi
the occasion without being made legal tender
for debts. But what was needed waa
nns naa scsa TO its 'hS
tension, and clearly no longer sufficient In ING
simple FORM OF borrowing money, Is there any rea.
son TO believe that the mere change III the form OF
the security given would nave revived TINS sinking
credta on The contrary, all experience shows That
q currency not redeemabe promptly In CON- but
dependent on the credit OF q promlssor whose re-
sources were rapidly diminishing, whiie ths ns
dead level Of worthless paper. AS no
man would have been compelled TO take
1t in payment Of debts as It bore nc interest as ts
period Of redemption would nave been remote and
uncertain. this must have been the inevitable fate
OF any extensive issue OF such notes; but when by
t,au o.n .lt nn 1nn
paying debts they had perpetual credit or Vaiuo
equal TO tue amount OF oil the debts, paDlic or
redeemed las they never have neenl they
SILL paid debts at their par value ana Tor thls pur-
pose were s III thea ana m nave awas
OF legal tender was not necessary 10 their usefulness
seems TO me unsupportei by any sound view OF Inc
situation; nor can any just Inference OF thas propo,
ston arise from a comparison of the legal
tender notes with the bonds issued by the
government about the same tme These
bonds had q liked period for their payment
the Secretary OF the Treasury declared Inat tney
were payable in gold. They bore interest which was
payable semi.annually In gold by express terms on
their face; ana the customs duties, winch by law
could be paid IN nothing but gold were secretly
pledged TO the payment OF THIS interest.
Ihey can AFFORD no means of determining which
would have been the fate OF the Treasury
bore no 1xed time OF redemption ana by law could
pay debts and had no fund pledged for their re-
dempton.
The legal tender clauses or the statutes under con-
sideration were placed emphatically by those who
enacted them upon their necessity to the further
borrowing OF money and maintaining the army and
navy II was done reluctantly and with hesitation,
and only after the necessity had been demonstrated
ana a trapas N schools oor Wncs
looked upon such legislation with something
more than distrusL The debates OF the two houses
Congress show that on this necessity alone could
OF the bill nave been carried, and they
also prove as think very clearly the existence Of
| not to be readily forgotten by the lover OF his
country, ana win forever remain the full clear and
ny Of as s' is results g
demonstrated the sagacity Of those VINO
originated and carried through the measure.
bring beer upon the subject that this law was
necessity in the most stringent sense in which that
ton OF Chief Justice Marshall and the full cours
over which he preslded-a construction which
| questioned in this court-now can we
avoid this concluson9 Can 1t be sad that this pro-
vision dd not conduce towards t1e purpose OF Dor
suppressng insurrecton; or that 1t was not calcn-
lated to effect these obects or tnat 1t was not useful
was not among the choice means, NOS
the only means, which were left TO Congress-
Lets us compare, the present with other cases do
cided In this court. II we can say indirectly tnat TO
Fisher that the debt waich bankrupt owes the gov
ernmen shall have priority OF payment over oil other
debls, Is necessary and proper law to enable tho
government to pay its own debts, now can we say
that the legal tender clause was not necessary ana
| proper to enable the government TO bor-
creation cnm ''a Of the Unite United states Bank. and
especially the power granted to II to issue notes Tor
without constitutional authority; but lhis Court
held that bank of issue necessary in the sense
OF that word, as used In the constitution TO enable
the government 10 collect to transfer and to pay out
| its revenues. 1t was never Claimed that
the government could find no other means
! to do this. 1t could not then be denied, nor
| has 1t ever been, that other means more clearly
within the competency OF Congress existed nor thas
WITHOUT % circulation. But because that was the
| most lifting useful and efficient mode or doing
| what Congress was authorized to do, 1t was
held to bo necessary by this Court The necessity
| IN that case Is much less apparent to
me than In the adoption OF tue Legal Tender
clause. In the Veazil Bank Vs. Fenno decided at
the present tern the court hed after full c0nsidera
ton that it was tue privilege OF Congress to furnish
to the country the currency to be used by 1T in the
transaction OF business, whether this was done by
means OF coin, of the notes OF the United States or
OF making this power OF Congress efectua that body
| could make this currency exclusive by taxing out
OF existence any currency authorized by the STATE
1t said that having III the exercise OF undoubted
| constitutional power, undertaken to provide cur
rency for the whole country 1t cannot be questioned
mt OF 1t to the people by appropriate means. Which
is the more appropriate aud enectIal means OF
ne @ sDy by @ tsss
currency out OF existence, or giving to that
furnished by the government the quality OF lawful
conducive to the end to be obtained-a means which
attains the end moro promptly and more perfectly
| than any other means can do. The former Is re-
mote and uncertain means in its effect, and is
| liable to the serious objection that IL inter
| feres with State legislation. II Congress can,
| however, under its implied power, protect
| and foster this currency by snch means az
| destructive taxation on State Dank circulation 1t
seems strange indeed II 1t cannot adopt the more
appropriate and the effective means OF declaring
these notes OF It's own lssus, for the redemption OF
which its faith is pledged, lawful tender IN pay
fct with the spirit II not the letter OF
several PROVISIONS OF the constitution. Un-
| doubtedy 1t is law impalring the 0bl!ga-
| ton OF contracts made before It's passage bus
while the constitution forbds the States to pass such
laws, 1t does nog forbid Congress- on the contrary,
Congress is expressly authorized to establish uni
| form system OF bankruptcy, the essence OF which
Is to discharge debtors from the obligation OF their
| contracts. And In pursuance OF this power Con-
gress mas three times passed such law, which in
instance operated on contracts MADE before