The Placer herald., 1870-02-12
THE LEGAL TENDER ACT.


The long looked for decision Of The Su-
prsme Court Of the United States on the
Cons,i,u,ioualily Of the grsenback or Legal
Tender Act of Congress has been rendered,
and the telegraph gives long and mud
died attempted synopsis, from which We So
lect the following:
WASHINGTON, February 7,h.
The case of Hepburn VS.. Griswold, brought
from the Court of Appeals Of Kentucky, involv-
ing the Legal Tender law, was decided in the
United States Supreme Court to-day. Chief JUS
tice Chase delivered the opinion in Court The
opinion sustains the Court below, holding that
contract ma de before the Legal Tender law was
passed, coul Id not be discharged In United States
notes 10 Va 4tsf ns-
The opinion is very long, and discusses at
great length the power of Congress. 1t holds
that Congress had no right to make Government
notes legal tenders for pre-cxsting private debts
1t docs not touch upon contracts made since the
law was passed. This opinion was concurrcd in
by Justice Nelson, Justice Clifford and Justice
Field.
Justices Miller, Swayne aud Dallas dissent
from the decision.
II will be seen that the Court holds that
this Legal Tender Act was and is uuconsti-
tutioual and void. so far As the discharge Of
pre.existing contracts were involved. Or
in other words, Congress bad no power, un--
der the Constitution, TO make greeubacks
legal tender for the payment Of debts con-
tracted prior to the issuance Of the green
backs, tr The passage Of the law under
which they were issued The Court holds
that every debt contracted. and then unpaid,
prior to July lltb 1862, must and should
have been paid 10 gold and silver coin, the
only kind Of money then legal tender. At
the above date there was hundreds, perhaps
thousands OF millions of dollars owing by
individuals, corporations, associations, towns,
cities, counties and State governments, every
dollar Of which was payable only in gold
and silver coin, and yet, hundreds Of mil
lions Of these debts have been paid and dis
charged in deprecated greeubacks and
these payments are all illegal and void to
the extent Of the difference 10 value between
legal tenders and gold. The creditors OF
States, cities and corporations that have been
thus defrauded and swindled under this Act
Of Congress, will now ask and insist upon
being repaid, or at least paid the difference
between greenbacks and gold on the date
that the fraudulent paymen! was made, and
interest on the amount from that day to
this. States that took advantage Of this un-
constitutional act, and paid 10 gresnbacks
instead Of gold must become open repudia-
tors in the face Of this decision, or pass laws
to meet the amount they have swindled
their creditors out Of. If they pay this diff
ference, then, in justice and equity, they mus.
pass laws compelling individuals, corpora
tions and associations 10 do the same thing.
The same reasoning by which the Court
arrived at this decision will make every debt
contracted after the ll.h day of Jaly, 1862,
except where there was a special contract,
payable in greepbacks, or their equivalent,
if paid 10 coin. This would be just and
equitable TO all parties, and such must be
The decision OF the Court when it is called
upon to decide the question. In the case Of
the Government boudholder, bis debt grew
out Of a special contract, and be must take
bis pay in legal tenders, no matter wba,
may be the future decisions of the Supreme
Court. He bought his bonds with legal
tenders, aud on the back Of each legal tender
is printed this special contract:
This note is legal tender for all debts, public
and private except duties on imports and inter-
est on the public debt and is receivable in pay
ment Of all loans made to the United States"
The vastness of the interests affected by
this decision is scarcely within the grasp Of
the mind of man, and seems 10 have stagger
ed the Court itself, as il declined to decide
whether contracts made since the passage Of
the legal tender Act we're payable in green
backs or coin. The decision is just one,
but the Court should, if possible under The
pleadings, have decided the whole green
back question, covering contracts made
since the passage Of the legal tender Act as
we'll as those prior.
HURRY Up.-There are but some six
weeks time left before this Legislature must
adjourn, under the Constitutional provision,
and many important measures are dragging.
the Great Registry Law should have been
an accomplished fact at this time. The
Democratic party as unit demand the re.