Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-07-12


1t will be remembered by readers of the
GLOBE that about eight months ago an
agreed case was submitted to the supreme
court of the United States by Gen. Butler
and Mr.. Chittendon to test the legality of
the issue of legal tender notes by the govern
ment since the close of the war. The su-
preme court, it will be remembered, has de-
cided that the issue of paper currency by
the government during the war was con-
stitutional, basing its decision upon the
ground that any expedient was proper in
times of great emergency. The greenbaok
has therefore ever since been regarded as
proper currency under that decision,
which practically pronounced it war
measure. To settle the question of the
right of the government to issue
proper currency in time of peace,
however, this case was made up and submit
ted. Thus far no decision has been rendered,
and rumors are current that the suit will be
withdrawn. At first sight such q course
seems inexplicable, for it would seem as if
question of such grave Importance ought
to be passed upon by the highest judicial
tribunal in the land. 1t is accounted for how
ever, on very queer grounds fear that,
whichever way the court decides, Gen. Butler
will get the best of it.
1t is we'll known that Gen. Butler is q
friend of the greenback. He believes-or
processes to believe, though we doubt if he
has any settled oonvictions-in the right of
the government to issue money in whatever
form it may select. If the su-
preme court should support this
view he would gain an undoubted
victory. But if the court should decide that,
except as war measure, the government
had no constitutional right to issue circulat-
Ing notes, he would be furnished with q
strong leverage against the national banks,
which he would not be slow to use. The
national bank notes, it will be understood,
are redeemable only in greenbacks, and if
| the greenbacks are unlawful currency, the
national bank issues must be dorbly so, for
| they are not based or redeemable in any
legal security whatever. The possibility of
such decision and its consequences has, it
| seems, seriously alarmed the national banks,
and strong pressure has been brought to
bear both on Mr.. Chittenden and Gen. But
Ter to consent to a withdrawal of the
| suit. Mr.. Chittenden's original
motive in making up the case was
to assist the national banks by a judicial
declaration that the government had no au-
thority to emit currency, and as natural
consequence he thought the job of issuing
currency would devolve on the pr ivate cor
porations. 1t seems that the possible con-
sequences of a decision in his favor men
toned above never entered his mind. It
has dawned upon him now, however, and he
is only too anxious to have the suit with
drawn, for he sees that whichever way the
verdict is rendered it will be an injury to his
clients. He therefore desires the question
to remain undecided.
There is, we opine, little doubt but the
government has the power to emit currency
as it may sec fit. A judicial decision to that
effect, however, would lend an impetus to the
movement now on foot for the abolition of
the national banks; hence their anxiety to
avoid decision.