New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1875-09-25
LEGALIZED PAPER MONEY,

| Letter From Thomas j. Durant.
We find in the Indianapolis Sun letter
on an impoI tant subject, which we impute
to the pen of our former well known citizen
Thomas j. Durant, ESQ, now living in
Washington. Although we find nothing in
the letter which is new, yet an old subject
clear and nnnvincing manner and .hinb
it we'll orth reproducing:
THE POWER OF CONGRESS AS TO COMING
| MONEY.
| WASHINGTON, d. c., August 80, 1875.
| To the Editor of the Indianapolis Sun:
| One of the most learned and respec cted
lawyers of the country has, in a recently
| published letter, announced his conclu-
sion that Congress has no power by the
constitution to issue a legal tender cur.
| rency. His language is, That it is not the
purpose OF the constitution TO authorize
Congress to issue an irredeemable currency
is in my Judgment perfectly plain. The re.
| ceived doctrine then, and for years after
the adoption of the constitution was that
the general government 20 .sessed no powers
except such as were delegated in express
| terms, or by necessary implication"
1t must be remarked Il that the words ''ir-
redeemable currency" are used here in the
sense of legal tender notes.
| 1t is true Congress possesses none but the
powers delegated, and such others as are
necessary and proper to carry them into
effect
No express authorityb given to Congress
to incorporate bank, but when it was de-
clared by law that a bank was necessary
| for the financial purposes OF the govern
ment, the power Of Congress to incoIpo
it was held to be clear. And the argument
is equally sound with regard to legal tenders
| Nl,., r;,
order to execute its expressly delegated
powers, unless legal tenders are expressly
| prohibited by some clause of tine cunstltu
tlon, or by necessary inference from some
clause. Is there any such prohibition ex-
| press or implied
| At the time of the adoption of the consti-
tuition two species of money were in exist.
ence in the world, and two are referred to
| by tia. Instrument.
''The Congress" says the constitution,
''shall have power
so To borrow money on the credits of
| the United States"
-. To coin money, regulate the value
| thereof, and OF foreign coin, and fix the
| standard of weights and measures"
Here, it is very manifest, the word money
has two different Specifications. The word
| can not be taken to mean metallic money
| exclusively, tor in that case it would be un-
constitutional for Congress to borrow any
surd and impossible. No sums commen-
surate with the wants of the government
could be borrowed in metallic money. The
Bank OF England would not allow our Sec
retaly OF the Treasury TO withdraw from
London even the moderate amount of
S15,000,000 in gold.
The distinction pointed out here was re-
cognized by the learned and respected
counsel who argued the legal tender cases
in the United States Supreme Court-Mr.
Potter, of New York-see II Wallace, page
46i He said:, Money is used il the con
sstitution in two senses. In the second sub
division of the section relating to the power
OF Congress, the constitution speaks of the
power to borrow money, and there the
word must be used in the larger sense of
the specie money or of anything received
instead" And not only is 1t certain that
these two kinds of money are referred to
IN the constitution, bat II is generally GER
tain that the Congress had the power pro-
vided by law for the issue of both.
1t has been held by the United States Su-
preme Court-See Wallace, page 6l6-
that the Congress under the constitution
possesses, as incident to other powers, the
same power as the old Congress to emit
bills or notes.
The Congress then has both the power to |
issue metallic money and to issue paper
money. No limitation is place uI on Con |
gress as to the kind of metal to be EN- |
ployed. They are not directed to coin gold |
or silver, but allowed to coin money-any |
metal may be used. 1t is error, therefore, |
to say that gold and silver coin can be |
made legal tender. If Congress has the
power to make auy coined money legal |
tender, then it has power to make all ceined |
money such. 'Ihe power to declare what |
shall be legal tender in payment of debts
if one of the highest acts Of sovereignty.
1t is nowhere in the constitution express
c III tIa |
which is exercised by the general govern
ment OF declaring hat coins and what sum
OF such shall be legal tender, rests en-. |
tlrely upon implications; il rests altogether |
on the opinion of Congress as to tue crea.
tion OF such tender being necessary and
pl oper Tor the execution of lowers ex-
pressly granted, but is not granted itself.
And as Congress has undoubtedly the
power to issue paper currency as we'll as
metallic, why has it not the power to
make one legal tender as we'll as the
other. Where does the power of Congress
To issue paper currency come from, since,
as has just been said, its power to do SO is
unqutstionedl mo one questions the gem
erai constitutionality, and not very many
perhaps the general expedi, " of the legis-
latlOn by which a note currency has been
authorized In recent years" 8 Wallace,
page Gig. And this power can be fairly
traced to the clause for cpining money.
Srong in his "Commentares on the Coa-
volume 3, page 10, section Ill5,
says: rs not tue right of issuing paper
Intended for the circulation in the place
and as the representative of metallic cur.
rency derived merely from the power of
coming and regulating the metallic cur
reIcy2 Could Congress, If il did not pos
sess the power of coming money and regu-
lating the value OF foreisn coins, create a
bank with the power to circulate biLs2 1t
would bs difficult to make it out" These |
opinions of Daniel Webster are quoted with
entire appreciation by Story.
Now, the power to issue notes and the
power to issue coin being based on the same
article of the constitution, it is not possible
TO say that Congress has not as much right |
to make the one legal tender as the other,
the power of making Q legal tender at ali
not being expressly delegated.
Congress having thus the power to issue
'wo kinds OF money-paper and metal-has
ust as clearly the right of selection, and