New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-02-08


Now then let 1t be considered what has actuy Dell ,
done In the provision OF national currency he issne
OF tG0.o0000o In United States notes payaDse o.o
demand was authorized III Statutes a's: Sis Ss,;
declared legal tender until March. 1882 GA u g. sts:
utcs. 800. when the amount In circulation " ss, nd
1865 az u 4 statutes 3i 49, 7O. the Issue OF
in United States notes payable not on denaa. p
effect at the convenience Of the Government WIZ
lied. subject certain restrictions As 70 ~ tbs
these notes made receivable Tor inc oo' 1pd
national loans for all debts due to from the uhu
Statcs except duties ON imports and interest on tns pub
lie debt and also decareda legal tender ~ ar, a.;
1889 n9 IT, Staues II the issue OF notes LOT parts VI
dollar was authorized 10 an amount not exceeding
s5OO0OOOO These notes were not declared rs,i
hut were made redeenable under reguiaaioms 70
be prescribed nv the Secretary OF the nn y;
February, 1863 "a u statutes oo. ns Nationoi
Banking Associations was authorized IheS i' ode So,
made receivable to the same extent Us ,hn'r re5n"'
tou but they not made legal tender
several descriptions OF notes Have su n common
rency OF the United States The notes when weie no.
declared legal tender have circuaea Win .,1
IL may he added part Of the history thai othe issues
bearing interest various rates we're autnorheu' a
made a lec, tender except In redemption oI Dank NOTES
for face amounts exclusive OF interest Such we're the
and two years five per cent noes, na t Sis o,s
These notes never entered largely or permanently .nto
the circulation, and there is no reason 70 hk ,S M
utility was Increased diminished by the act which de-
cared them legal tender for the lace amount iney
need not further considered here They serve ony
,ad the s,hect Of paper money to increase the vol
une of rredee mabe ssuesand to extend Indefinitely tne
application " the quality Cf legal tenders Iha u was
corred no further during the present civil war aud has
been carried further since, Is due TO
the consideration OF which does not poiohR W '' ~
CUSTOM - ..,., ,,,,rs
We recur them to the question under confederation NO
one questions the general constitutionaty ana not
very many perhaps. the general expedency OF the eg
aton by which note currency has been authorized In
ia as tp ne
particular class OF these notes TO he legal tender In pay
ent Of pfrtNIsng debts. The only GROUND upon Wich
This power asserted not that The issue OF notes was an
appropriate aud plainly adapted means Tor on l1
war; for that is admitted but the making of thcm eg
tender to the extent mentioned was such means Now
have that OF all the n0ies Issued thoSe NOT de
clarrd legal tender at all constituted very large pro
portog and that they circulated freely and without DIS
count " may he said that their equality IN circulation ana
credit due 10 the provision made ny law ior lne re-
denpnon 1i 'ns lpsfr, m mi. resnec was OF triaing
importance compared With that which made theih re
ccvahe for Government dncs. All modern history tes
ihes that IN iiinr Oh war ',p' ilily Mhon
nced large loans negotiated ANA heaYy disbursements
Government aud made receivable for dues to
the Government, always oman AT ntst rchuy
circulation, and when not redeeinable IN coin on
demand are LITTLE aud usually less subject 10 dcpreca
tnn thar any other description of notes Tor the ftueDp
tory Of the legislation under consideration Is that IL was
upOn the quality of receivabllify, ana not upon the
quality Of legal tender that reliance OF circulation was
originally placed for the rceraDty clause appears 70
have been In the original dfait OF inc Dil WINE Tue
u
later stage o its progress These acts certainly are not
without weight evidence that all the useful purposes
OF the notes would have been Iny nnnwered W'ncus
denied indeed by eminent writer's that The quality OF
legal tender adds at all to the credit or Useful
of Government notes. they insist, on the contrary
that IL mpars both However this may be, II must TO
that t rs means to an end To he obtained
by the action Of the Government.
HOW DOEs LEGAL TENDER HELP THE GOVERNMENT.
Tpat the implied pove Of making notes legal tender
in all payments claimed under the Constitution, now
how far is the Government helped by this meansf Ger
tainy it cannot obtain supplies. or services at
cheaner rate for will take the notes Tor more than
they are worth AT the time OF the new contract Tho
prre will rise in the ratio of the depreciation. and this
all could happen II the notes were not maze legal
less 10 him no takes from the Government II the
Government win pledge To- HIM ito power to compel his
rdttnrs Ia recc I'VE them al par in pay meats This is
we have seen. by means certain. III the quantity
Issued be excessive. aud redein'iO ION uncertain ana
remote great depreciation VIII take place. IL.
adequate the demands of business, and con
hdeuco IN early redemption Is strong. The notes
Will circulate freely. whethsg made legal tender not
hut II IL he admitted tha some increase OF availability Ii
derived from making the Notes legal tender under new
contracts. Thy means follows that any appreciable
advantage = gained by comprilng crfitor. to receive
abundant evidence that whatever eneat is possible FROM
tit com - I ont by the losses VI Rf6
ertv the arrangement 81 business the tuctnatons OF
currency and values, ana ths Increase OF pIets .o
upr aud the Government, and tho long tr1h oi cNils
which flow from the ui au rrt'remtple ph"r m"HS'
evils not Ia De attributed
gether to making II regal lender, Dnt 'hia % 49,
these evils IL certainly Wdrhs ther extent ana pro-
tracts their continuance. We are uhnpe 10 PIT
suade ougsclTcH thai an eXptdtht Oh inns sort
Is an appropriate aud plainly Adopted means ior
execution of the power o declare ahh carry ON ar
IL II adds nothing 10 Tue uty % lnc uo'es ~ ~,
upheld To the ond IN furtherace Ol winch Tue
issued nor can II. ~ our Judgment oe npnHu
such II, Wlie facilitating III come dcBIIo uo cucu'n
ton Of the notes u dcbdseS a injuries the currency III
Its proper to much greater dcgree Ana these con-
sderations see to us equally applcaDic 70 ne PoWer
10 regulate and 10 borrow money. BON pow
necessarily involve the use OF money by me
by the Government, but heiher as We think chres wiz
It, AZ I'm appropriate and plainly adapted means 20 lts
exercrse the power o making circulating notes legal
tender ia pay nient OF prcoxisting debts
EARLY LAWS AND OPINIONS.
Rut there n another view which To decisive
4 whatever express power the implied power in quos-
ton may DE referred In the rule stated by ChefJustee
Marshall words appropriate. plainly adapted. really
cac at are qualified by the Limitation that the means
mnst not be prohf,Red bnt consistent with the letter
ard spirit Of the Constitution. Nothing prohibited or
inconsistent be regarded as appropriate, or plainly
adapted. or really calculated To end Let US
uouire when first, whether making bills or credit legal
tender TO the extent indicated il consistent with the
spirit of the Constitution Among the great cardinal
uurpOres that instrument, Is moro conspicuous
venerable than the establishment VI justice Ana
what intended by the establishment OF Justice In inc
minds the people who ordained IT, In happily not
Of dsutatipn. IL IL not left To Inference or con
lecture especially in its relations TO Contracts when the
ConsttutiOu undergoing discussion the Conyen
tiO the Congress Oi the Confederation was engaged IN
the consideration OF the ordinance for the government oil
the territory northwest OF the Ohio-the only Terri
tory subject at that time 10 its regulation and CONTROL
BY this Ordiuauc certain fundamental articles OF com
pact were established between the original states and
the people and States OF the territory for tho purpose TO
use it, own language, "ot extending the fundamental
principles OF civil and re gi0us liberty whereon these
republics" Uhe States united under the coniederatonl
their laws aud Constitutions, are erected. Among
these Fundamental principles this: And III the just
Of rights and property II ~ Understood ana
declared that law ought ever To be maze or nave
force In the said territory that shall In any manner what
ever with affect private contracts OF engage
monts bona fde aud without fraud previously iotgied
The princ pile found condensed expression ia
that mast valuable provision OF the Constitution ~
the United States, ever recognized AS AN en-
cient safeguard against intrigue, that no STATE
shall pass any law hnpairiDg the obligation
contracts IL IL true that this prohibition Is not APP
Piled in to tine Government OF the united states
Congress has express power to enact bankrupt laws and
we say that law made III the execution OF any