The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1871-05-02
Scope Of the New Decision on the
...r.. Note Tender. lrs afr 81. /

From the Cincinnati Gazette.
The same oct which authorized the is.
sue Of legal tender notes authorized the
issue of the fve.twenties. The legal ten.
der clause succeeding this isas follows:
"And such notes herein authorized
shall be receivable in payment Of oil taxes,
internal duties, excuses, debts and dc.
mands of every kind due to the United
States, except duties on imports, and of
all claims and demands against the United
States OF every kind whatever, except for
interest On bonds and notes, which shall
DO paid In coin; and shall also 10 lawful
money and legal tender in payment Of
oil debts, public and private, within the
United States, except duties on. Imports
and interest as aforesaid"
The words of the legaltender clauseare
very comprehensive, both in their specif.
cations and through tho specific limita-
tions. Nothing but the duties on imports
and the interest that was TO be paid in
coin were excepted, and al debts, public
and private, were specified. 1t Is not un-
ayoidably implied blythe act that the legal
tender clause applied to previous con-
tracts, andthe rational Interpretation Is
that In the absence Of any declaration 1t
did not mean TO impair the validity oicon-
tracts, Butunder the pressure Of the time
the State courts Interpreted 1t TO apply to
previous contacts. Whom the question
came TO the United States Supreme Court,
It decided that it'did not apply 10 previous
contracts, OF that II 1t did apply 1t was
unconstitutional. BY reconstruction Of
the court almajority W. made which has
NOW decided that It does apply to pre-
viOus contracts, and that Congress, by an
act, can make stamped paper yeritable
money, and q good payment Of agree.
ments 10 pay gold and silver. f ~ f'at
The decision was chiefly sought for by
the railroad corporations, who had bonds
outstanding for money borrowed when
coin was tho legal tender, These sought
a judicial decision TO countenabco them In
repudiating q part Of their bonds Under
cover OF the custom most Of the States
and municipal corporations have been
paying their coin obligations Ia the tender
notes. But as by q very general concur
renee the people OF these States and towns
have agreed that It does not become the
honor Of the national government to pay
lis bonds in notes, even though they were
issued aGter tho notes were made legal
tender, and were specifically declared
payable for all public debts, 1t may be
presumed that ere long the same sense of
public faith will lead them to resume pay.
ment in coin Of the Coin obligations of
the States and lesser municipal corpora
tons. What they have done In the mat.
ter Of the public faith in the national
affairs seems to condemn what they are
doing In the matter Of public faith in
State and town affairs. ID 4 b.
. Our public financiers Thought We could
make more BY waving the condition Of
note tender payment OF the bonds, and
agreeing 10 pay in coin. The superstition
was that Il we should voluntarily increase
the amount we agreed 70 pay. it would
raise our credit 50 that we might be abe
to reduce the interest on the raised
amount. A large opposition party has
insisted on holding to the legal right to
pay in currency; and this decision will
probably give new lie to this demand.
This party has now nearly one hundred
membersln the House, who seem ready
to unite In any policyto strike at the gov
eminent credit or revenues. 1t is not
unlikely that this reversal Of the decision
willtbe The means Of giving n blow to the
public credit, both ut home and abroad
The question whether payment shall be
made in coin or greenbacks has by many
been thought to be disappearing by the
approach Of coin and currency 10 an
equality, But as the equalization OF coin
and currency Is impossible without actual
specie redemption; andas specie redemp.
ton Is impossible without the withdrawal
of q large part Of the currency, and as no
party dare, propose such u contraction,
but on the contrary both have joined in
an increase Of paper money, II Is evident
that the conditions which keep alive this
question will long continue, and may be
such as to cause Tito grow to much great
or dimensions. '...... ~ .a