The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1878-10-08

hmo in the failure cease to exist, th,
country must. when that time comes
take care OF tho interests and the eur
reunk-aia the people. THIS can scarcel,
happen during the next quarter OF /
century, and it is therefore premature
TO discuss il now For myself, how
ever, have no hesitation in saying
that l believe it would be for the bes
interests of the government and thu
people to keep outstanding a sufficient
! quantity Of four per cent. bonds TO fur
nish the basis of our national bank
currency. know of no other system
OF currency so staple, so safe, and SO
reliable. III better system eau be dc
vised when the time comes to pay of
the bonds we can adopt it, but certain
~ the plan proposed by our opponents
is not such a one. And this brings me
to consider, briefly, the objections 10
their plan.
OBJECTIONS To THE GRRRSBACK PLAN.
l. As already suggested the financial
plan proposed by our opponents leaves
the amount of currency uncertain, and
therefore OF necessity leaves its value
uncertain, for nothing is surer than
that the value of a currency depends
upon the certainty as to redemption,
and this depends upon the quantity TO
be redeemed. The all.important thing
in any system OF finance is stability. -
You must have an assurance that dol
lar to-day will be exactly the same dol
lar tomorrow and next year.
III the volume of the currency ~ TO
be regulated by congressional enact
ment from time 10 time, how can any
man predict how many greenbacks the
next Congress will authorize? Who
can tell what quantities may be issued
10 put an end to "hard times, or stave
of panic, or otherwise a clamorous
constituency. Such system would
necessarily destroy all confidence and
prove in the end the worst possible. III
carried on for a long period IL could
end in nothing short of both public
and private bankruptcy and ruin.
2. Another objection TO the attempt
30 issue by act OF Congress in time Of
peace. notes of the government TO be
legal teAder and circulate as money,
is the grave doubt which exists as 10 its
const;tutionality.
Before entering upon the policy of
this character we should be we'll assur-
ed that il will stand the test of the
Constitution. for If we should abolish
the banks and issue national cufren-
cy in lien OF the bank bills, only to find
in the end that the new money cannot
be made legal tender. dire confusion
and disaster would result. The ques-
ton is, has Congress in time Of peace,
the power 90 authorize the issue OF
Government notes to circulate as mon
ey, and TO make them legal tender?-
The Constitution empowers Congress
"to coin money" but il is not pretend
ed that this is TO print money, or 10 is
she paper money at all. The power to
issue greenbacks and TO make them a
legal tender has been asserted as an
implied power, and il has been held by
a bare majority of the Supreme Court
Of the United States, after n long con-
trovery, and that the Legal Ter der Act
OF 1862 was valid. But this decision
rests mainly, IL not wholly, upon the
ground that the issue Of legal tender
notes was necessary as a war measure,
and therefore n power implied as nee
essary part OF the power TO declare and
carry on war. The first decision Of the
Supreme Court was the other way, but
with n full bench and n reargument,
the final result above stated was reach
ed by a vote Of Eve judges to four. No
one can read the opinions OF the ina
jority without being impressed with
the importance given TO the fact that
the legal tender act was a war measure.
Thus Mr.. Justice Miller said: The
power to declare war, 10 suppress In
surrection, 90 raise and support armies
20 provide and maintain a navy, TO bor-
row money on the credit of the United
States, % pay the debts OF the Union,
and 10 provide for the common defense
and general welfare, are each and all
distinctly and specifically granted IN
seperate clauses OF the Constitution
We are in the midst of a war which
called all these powers into exercise
and taxed them severely" And again
speaking of the necessity which COM
PEELED the passage OF some such act, he
said: "The coin in the country, II it
could all have been placed within the
control Of the Secretary Of the Treas
ury, would not have made circulation
to answer army purchases and army
TO say nothing OF the ordi-
nary business Of the country. A gen.
eral collapse Of credit, OF payments and
of business seemed inevitable, in which
faith in the ability of the government
would have been destroyed, the rebel
lion would have triumphed, the States
l..... IL Ia.~s1.1 as.A sha
people impoverished. The National
Government would have perished, and
with it, the Constitution which we are
now called upon 20 construe with such
nice and critical accuracy. That the
legal tender act prevented these disas-
trous results, and that the tender
clause was necessary 20 prevent them,
/ entertain doubt. (S Wall, GS3.) Mr..
Justice Strong, who delivered the final
opinion II the majority, presented for
cibly the same view, and among other
things said: Plainly TO this inquiry
a consideration OF the time when and
the circumstances in which the Govern.
ment then stood. are important. IL is
not 30 be denied that acts may be adj
spted TO the exercise OF lawful power
and appropriate to 1t in seasons Of exi-
gency, which would be inappropriate
at other times" O2 Wall, p. 80 y
And Mr.. Justice Bradley declares that
"the power ia question Is n power not
10 he resOrted To except on extraordi-
nary and pressing occasions, such as
war or otLer public exigencies, Of great
gravity and Importance. tl2 Wall,
jG7.1
40 - entirely clear that the legal ten
der cases settle nothing except that
Congress had the power TO issue legal
tender notes in the midst Of the war
aud wncn the life Of the nation was TO
be saved thereby, and even this was de-
cided by only bare majority OF the
court. Who will be bold enough to
say that an act OF Congress, passed in
time OF peace, justified by no exigency
or emergency, making the National
Government the banker for the people
aud providing for indefinite issues Of
paper currency 10 circulate as money
and az a legal tender would be sus-
taiued? AT all events, such an expert.
mont would be exceeding dangerous,
aud should not be adoped, even though
It's success might promise 10 be bless
ing, much less than success would be
a disaster scarcely less ruinous than
failure.
3. To adopt this policy would be a
shameful aud disgraceful Reputation
OF an express promise made by the na.
tion 10 its creditors. The promise i
refer 10 embodied in the act Of Con.
gress Of June 80, 1854, entitled An