The New York herald., 1871-05-05
The Legal Tender Decision and the
National Bank Ring.
An Unpublished Letter from
Secretary Chase.
The Payment Of United States Bonds in Coin
Matter Of Usage and Not Of Obligation
Effect Of the Recent Decision Upon
National Bank Notes.

! the final decision OF the Supreme Court that the
Legal Tender act is clearly constitutional. The last
decision must be final, because it was made by
full bench, while the previous was not; besides,
it will be approved by majority Of both political
parties
The people know that the greenback currency is
the best we have ever had, and Will not sustain any
political party that favors, for one instant, the
scheme for driving ont OF existence and substtut.
ing irredeemabe national bank notes.
This most excellent and just decision makes
greenbacks and coin the currency OF the country
botn equal In value for oil practical purposes Both
In fact equal, except for the purpose Of paying
duties on imports and interest on the public debt.
An act Of Congress Is only needed to make them
both one ana the same for all purposes.
The frst greenbacks ssued-known as demand
notes-were received in payment OF duties on i'm
ports, and remained on par with gold during the
entire period they were in circulation. Add this
feature to the legal tenders and they at once appre
ciate to the value Of coin.
The last decision is clearly right just ana in the
interest OF the great mass OF the people. It is
deathblOw to oil schemes for driving our greenback
true national currency out OF existence and substI-
tutlng the rredeemable currency Of the so-called
As matters now stand creenbacks are head and
shoulders above national bank notes. Greenback5
| are legal tender; national bank notes are not.
Greenbacks are issued by and endorsed BY the gov
notes are issued by corporations. Defaced,
| worn and ragged greenbacks are redeemed In all
surers and depositaries are directed by Treasurer
Spinner 10 exchange perfect greenbacks for green.
backs which are UNIT for circulation when the
same shall be presented for redemption or ex-
change.
On the other hand, defaced, worn and mutilated
national bank notes are redeemable by law only at
the bank where issued. and practically, re.
deemed at ALL The banks are Interested in keeping
them In circulation until millions and millions OF
dollars are worn out and destroyed. Every dollar
thus disposed Of Is just one dollar gain to the bank
that issued It, and IL is not likely the corporations
will ever take any steps to keep their circulation in
good condition. 1t Is getting worse and worse every
day. and the national bank ring has defeated every
| effort in Congress to have 1t Improved. The only
""' REFUSE NATIONAL BANK NOTES.
| and insist as q right that all payments must be
made in legal tenders. This is the first step toward
driving national bank notes out Of existence and
substituting the greenback currency Of the United
Congress and the present administration have
Effort to appreciate the interest bearing bonds of
the nation Let them now direct their attention to
bringing the greenSack obligations Of the govern.
the right direction. All honor tLen TO the United
| States Supreme Court
Those who find most fault with yesterdays de-
csion are fond Of ringing all sorts Of changes upon
They are pleased TO ignore the fact that Mr.. Chase
| while Secretary Of the Treasury, when In the ful
vigor of manhood In full possession Of all his facul-
tes went aS far as any one IN favor OF the green
back currency. In his letter Of February 1852 to
Hon. E. G. spaulding, Chairman Of the Ways and
Means subcommittee on Currency, Secretary 8. p.
Chase wrote as fOllOws:-
Seward said 70 me on ys:erd.y tbs. observed
my U n anu 20 ns :or y.
Tor my anxious wish 70 support yoa 10 all respects
legal tender clause necessity, but came decidedly
| and support II earnestly.
Secretary Chase, In his letter OF May Is, 1894 to
Mr.. Ira Holmes, O! Chicago. states distinctly
the government are payable in lawful money!
(greenbacKs but that according To the usage of the
| government the coupon and registered bonds were
payable In coin. He apparently took care to state
| that the payment OF bonds In coin was matter OF
usage and not at all Of obligation.
The inference that many drew from that letter at
| the time II was written was that 1t remained en-.
urely optional with the government to pay its
bonds, of all descrptons In grecnbacks or gold, as,
indeed, 1t was But here Is the letter in fu IL has
never before been n published: a,nl ed,
gard TO which The ~ens ys.. ,s
10 be redeemed has received ''' ~ ~
of y r. The
ma, ss0 seS 81 the ,o limited
treasury notes and other obligations forming par. OF
money in United states notes anal after
doubtless Sc redeemed equivalent notes '' "''
vs s,a ssns R:'sss % .wsss
70 the funded Or r ,s and also
thirty notes convertible These bonds therefore, 40
cordng usage the government payable in coin
The three years Treasury notes part the
temporary loan, and will be paid n United States notes.
| fully, g. =. CIiASK
| IEA HOLMES, Cashier First National Bank, Chicago nj
II Is not unjust, unfair, or even unklnd, to the
Chief Justice TO say that these letters ought to have
more weight thousand times than his present opin-
Ion. Surely very little weight should attach the
| dissenting opinion Of the Chief Justice, whatever
| may be thought OF those who coincide with him.
The main point Is forever settled The Legal
Tender act Is constitutional. There Is no rubbing
tnat out Should even yesterdays full bench de.
In relation to contracts made previous 10 the
passage OF the Legal Tender law be reversed, the
fact that the Jaw IL constitutional that green
backs legal tender fer the payment OF ali debts
contracted since It's passage is conceded by every
| one. That Is forever settled.
| GRERNBACKS AND COIN
| constitute now and hereafter the legitimate cur
rency OF the United States. The next step is to re-
tire the national bank notes, issue greenpacKs m
| stead, and pay OF the inerestb bearing bonds now
| deposited in the Treasury by the national banks.
This would be reduction OF our burden OF taxation
full $2o 900 per annum, without injustice to any
legitimate interest.
rxAN