The New York herald., 1870-02-08

not Do luTtner COnSiuereQ mere. Iey serve only TO
illustrate the tendency remarked BY all who have
investigated the subject Of paper money, to increase
the volume OF rredeemable issues and to extend IN
definitely the application OF the quality OF legal
tenders That IL was carried no further during tho
present civil war, and has been carried no iurther
since Is due TO circumstances tine consideration OF
which does not belong TO this discussion.
We recur, then, to the question und0r c0nsidcra-
tion. No one questions the general CONSTITUTIONAL
ity, and not very many perhaps the general ex-
pedency, OF the legislation by which note cur.
rency has been authorized in recent years. The
doubt is as to the power to declare par
tIcular class OF these notes to DO a legal tender
In payment OF pre-existing debts. The only ground
upon which this point Is asserted is not tnat the
issue OF notes was an appropriate and plainly
that IS admitted, but the making Of them o legal
tender to the extent mentioned was such means
NOW we have seen tnat OF all The notes issued those
not declared legal tender at all con-
stituted verg large proportion, and that
they circulated freely and without discount. It
may be SAID That their equality In circulation and
credit was due TO the provision made by law for the
redemption OF this paper IN legal tender notes; but
this PROVISION If ut ali useful in this respect was OF
trlftng importance compared with that which made
them receivable for government dues. AL modern
history teSthes that III time Of war, especially when
heavy disbursements made, notes issued by the au-
thority OF the government and made receivable for
dues to the government always obtain at first
ready circulation and, even when not re,cenabla IN
coin demand are as little and usually less su oject
to depreciation than any other description OF notes
for the redemption OF which no better provision ID
sderaton Is that 1t was upon this quality Of recelva
bAity, and not upon the quality OF legal tender
that reliance OF circulation was originally placed
for the receivabty clause appears to have been In
the original draft OF the bill while the legal tender
clause seems to have been introduced at later stage
Of progress. These facts certainly are not with
out weight a. evidence that all the useful purposes
or the notes would have been fully answered,
without making them legal tender for Dre-existng
debts IL Ia denied, indeed, by eminent writers tina
the quality OF legal tender adds anything at all to
the credit or usefulness Of government notes. Tney
insist, the contrary that 1t impairs both. How
ever this may be, II must be remembered that 1t 49,
as y means to an end to be obtained by the action
OF tho government that the implied power OF
making notes q legal tender In all payments
is claimed under the constitution Now how
FAR Is the government helped Dy this meansg
Certainly 1t cannot obtain new supplies or
services at cheaper rate, for no one viii take the
notes Tor more than they are worth at the time Of
the new contract. The price wlrise In the ratio OF
the depreciation and this Is all that could happen
II the notes wero not made legal tender. But It
may be said that the depreciation Will be less to
him who taxes them from the government II the
governments wtl pledge to him its power 70 COMPEL