Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1876-06-12
Contracts In the Confederate States
During the War.

The following decision has been rendered 10
the Supreme Court of the United States:
1.-THE Wilmington and Weldon Railroad
Company plaintiff 10 error, Vs. Henry King,
executor of Hardy King, deoeased-Iu error to
the Supreme Court of the State of North Car
olius. The contract between the defendant
and the plaintiffs testatrix, upon which the
present action was brought, was made IN North
Carolina during the war. By its terms wood
purchased by the railroad company was to be
paid for in Confederate currency. The Treas
ury notes of the Confederate government, at
an early period in the war, 10 great measure
superseded coin within the insurgent States,
and, though not made legal tender, constl-
tuted the principal currency 10 which the opee-
rstions Of business were there conducted.
Great injustice would. therefore, have followed
any other decision invalidsting transactions
otherwise free from objection because of the
reference OF the parties to those notes as meas,
ures of value. But as those notes were issued
in large quantities to meet the increasing de-
mands Of the Confederacy, and as the proba-
bi!ity of their ultimate redemption became COD
stautly less IS the war progressed, they neces-
ssrily deprecated 10 value from month to
month, until in some portions of the Confed-
eraoy, during the year 1864, the purchasing
power Of from $2l to upward Of $40 OF the
notes only rqualled that OF 81 10 lawful money
of the United States When the war ended
| the notes OF course became worthless and ceased
to be current, but contracts made upon their
purchasable quality existed IN large numbers
| throughout tho insurgent States. 1t was there
fore manifest that if these contracts we're to be
enforced with anything like justice to the
ho m
value of the notes ut the time and IN the
| loo Atty where tho contracts were made; and 10
the principal case cited such evidence was held
admissible Indeed, in 20 other modo could
the contracts Is made by the parties be enforc-
ed. To have allowed any different rule in estl-
| mating the value OF the contracts and ascertain
ing damages for their breach would have been
| to sanction plain departure from the stlpula'
| tions of the parties and to make for them DOW
| and different contracts The State Court 10.
| structed there might be recovery OF tho value
of the wood without reference to the value OF
| the currency. The decision here was in sub,
stance as follows Contracts made during the
war 10 one of the Confederate States, payable
10 Confederate currency, but not designed IN
their origin to aid the insurroctonary govern.
ment, are not, because thus payable, Invalid
| between the parties. In actions upon such
contracts the evidence as to tho value of that
currency at that time and in the locality whore
the contracts were msdo is admissible A
statute of North Carolina. Of March, 1866,
enacting that in all civil actions for debts
contracted during the late War, in which the
nature of the obligation is not set forth, mol
the value Of the property for which such debts
we're created is stated, it shall be advisable
for either party to show on the trial. by aft
davit or otherwise, what was tho considers
ton of the contract, and that the jury, IL
making up their verdict, shall take the same
into consideration and determine tho value Of
said contract 10 present currency 10 the par
ticular locality in which it is to be perform.
ed, and render their verdict accordingly.
| To 80 far as the same authorises the jury il
such actions upon the evidence thus before
Thorn to place their own estimate upon the
value Of the contracts, instead of taking the
value stipulated by the parties, impsirs the
obligation of such contracts, and is, therefore,
within the inhibition upon the State of the
Federal constitution Accordingly, in an 40.
ton upon contract for wood sold in that State
during the war, ut price payable in Confede'
rate currency, an instruction Of the court to the
Jury that the plaintiff was entitled to recove,
| the value of the wood without reference to the
value Of the currency stipulated was erroneous.