The silver state. [volume] (Unionville, Nev.) 1870-1903, 1879-01-03
GREENBACKs AND GOLD.

the law authorizing their issue and
making them legal tender was passed
in 1862, sold in New York City for
about one-tblrd of their face value in
gold, are to-day redeem able at their
face valns.in coin at the Sub Treasury
of the United States in New YORK City.
Their value for years fuctuated almost
as much as railroad and mining stocks.
and, though uominally legal tender
tor all debts. public and private. except
duties on imports and interest on the
public debt. they were as much a mer-
chantable commodity, compared with
gold and silver. as silk or calico. In
1869 the constitutionality of the Act
making paper legal tender was
doubted aud the question was submit
ted TO the Supreme Court of the United
States. The constitutional poiuts in
volved were argued before full bench
of Judges. majority of whom, includ
ing Salmon P. Chase. Chief Justice,
decided that the Act was unconstl
tutional. Chief Justice Chase, who
was Secretary of the Treasury under
Lincoln at the time greenbicks were
first issued, aud who recommended the
passage OF the Act under which they
were issued. proved his honesty rs q
man aud lncorruptlbility as Judge by
this decision. winch virtually rendered
greenbacks valueiess. The nation was
morally bound to redeem them, but
there Was no law to compel it. At this
luncture Congress with the aid of Presi
Gent Grant devised a method to get the
Supreme Court to bemean itself by re
versing its own decision. The number
OF Judges Of the Supreme Court was
increased. and one of the majority who
decided the law Unconstitutional placed
on the retired list. Joseph P Bradley.
who has since acquired considerable
notoriety as the fifteenth member of
the Electoral Commission, lived in
New Jersey. aud as Judge of local
court had decided the greenback law
constitutional. William Strong resided
In Philadelphia, where, like Bradley.
he had as Judge of local court passed
spon the law. These men were ap-
pointed Justices of the Supreme Court
by Grant, for the reason that they had
decided the greenback Act constitu
honal. The question, in made up
ase, was again submitted to the re
ormed Court, and a majority of that
Gibonal reversed the former decision
Ut the Court. and declared, as it was
expected they would. the Act making
paper legal tender constitutional.
According to the statement of the
Treasury Department there was out.
standing at the close of the year 1868,
zoo, 5o4 IN legal teoders of all denomi-
nations and issues. including fractional
surreucy. To. redeem this amount
there is about $500. 00O, 900 in gold and
silver in the Treasury If all the
greenbacks were presented for re-
demption forthwith, of course, specie
payment would have to be suspended.
and the attempt ut resumption would
prove failure. That this will be done
- hardly possible aud not at all proba-
Bile. For all practical purposes greco.
Backs are as good as gold, ADD for con-
venlence IN handling preferable to coin.
Human nature is much the same the
world over. and holders of geeeubacks
are content to keep them as long as
they are satisfied they Gao get coin for
shem on demani. Like the d-po,itor,
VINO, during run on bauk, forced
his wav to the counter and demanded
his money. but refused to take it when
he ascertalned that he could get it. re
marking that "if they hal it he did not
want 1t, but if tiey did not have Il he
was determined to get it," the people
are content with greenbacks as long as
shey are payable in gold on demand
and the paper which the highest court
sn the land niue years ago decided was
not money, Is to day worth its face In
gold.