New-York tribune., 1879-03-14
GOLD CONTRACTS.

| NECESSITY OF MAKING ALL CONTRACTS PAYABLE
| IN GOLD OF THE PRESENT STANDARD OF WEIGHT
| AND FINFYEss.
To the Editor Of The Tribune.
SIR: England has had upon her statute book
since 1S16-when she established tho single gold
standard-a positive and distinct legislative pledge
that the fineness of gold at that time made legal
| tender IN her then established gold coins of a
designated weight, should be maintained in all
other gold coins thereafter mnted. of whatever de-
| nomination and that those coins thereafter made
should be legal tender only according to their
DroportIonate weight.
| This provision of English law gives pledge of
stab lity to all English contracts but. unfortu-
nately, orr Congress has never given a similar
formal pledge or obligation. In this country, there
fore. lawful money at the time Of payment is an
uncertain thing and an unknown quantity Of
that uncertain thing. The United States Supreme
| Court, in " Legal Tender Cases " az Wallace, 54S
said But the Obligation of q contract to pay
money (money generally, and not q specified kind
of money! is to pay that which the law shall recog
nize as money when the payment is to
be made. If there is anything settled, it
| Is this and we do not understand it to
be controverted. No one ever doubted that debt
Of 81 900. contracted before 1884, could be paid by
100 eagles coined after that year, though they
tained no more gold than ninety-four eagles such
were coined when the contract was made. aud this
not because Of the intrinsic value of the coin, but
because of its legal vaue." The Court in tho same
cases ~ Wallace, D. 5i9l further said: Contracts
for the delivery of specified articles belong excu-
svely to the domain Of State legislation" A cor
tract payable in gold of designated weight and
fneness is not contract to pay money generally,
or lawful dollars but is contract to pay desig-
mated coined dollar as a commodity, and no legal
tender laws will have any more application to such
| contract than to contract payable in
designated class Of potatoes. The United States
| Supreme Court has definitely acted on this ques
tion, and decided that contracts payable in gold
coin. or other coined metal, of stipulated weight
and fneness. not subject to legal-tender laws,
and will be enforced strictly according to the con-
ditons of the contracts. "Such contract is not
distingushable In principle from contract to de-
liver an equal weight of bullion of equal fneness."
| bronson agt. Rodes, Wallace, 229; Butler agt
| Howitz, wallace, p. 2JS and Dcwing agt. Sears,
| IL Wallace 370.)
The Silver bill also provided that silver dollars
shall not be legatender, when there is anything IN
the contract TO the contrary. Therefore the legal
Ity and constitutionality of contracts payable in
gold coin of defined standard Of weight and fine
ness cannot be cOntrOyerted
All long contracts payable in money generally. or
lawful money. have been made by legal-tender acts
of Congress. and by judicial decisions, to partake
of the character of gambling contracts. and are
rendered uncertain and changeable. according to
the whims and caprices of members of Congress, at
the time of payment. But every individual has it
in his power byvirue of the decisions ofthe United
| States Supreme Court which have been above
cited, to become at least "retired gambler" He
| can make his future contracts payable in United
States gold coin Of the present (dato Of contract
| standard of weight and fineness." Prudent law
vers now recommend this form of contract trus-
tees who wish to be safe to any question OF neg
ect of duty, aud also wish carefully to protect
trust funds, adopt it; and those who have dis
position to gamble, and especially clergymen, are
disposed TO favor it and all city, State and rail
road bonds which contain this condition are re-
ceived with decided favor by the general public.
Gamblers chips which are sOlyabe in tho results
of gaming are not of more uncertain value than
the lawful money lin which long obligations may
he made payable may become by legal
tender aws-whch are mere arbitrary edicts,
inherited rom the dark ages. 1t is absurdIty to
treat as contract any instrument which is subject
to be altered amended. or abrogated by govern
ment.
Legal-tender laws are not necessary, as many peo-
pie have been educated to believe. to the trausac
ton OF business the settlement OF obligations.
If the decisions of the courts or the laws OF the
country simply require that obligations shall be
paid in the kind Of coin and of tue standard OF
weight and fneness at the time when the contracts
are made, exact justice will be meted out to both
debtor and creditor This is the rule under the
English law and i'll China for centuries, there hayo
been no legal-tender enactmSnts. In fact. legal
tender laws aro nothing but the arbitrary creation
of . fat" money, when applied to antocedcnt obli-
thnty NOT
legal-teader laws aud have force as such, be-
cause the law defines and enters into the new con-
tract but as applied to old debts they are IN form
and degree nothing less than reputation.
Shall we now in this country make contracts
solvabe in the gamblers money, or the fiat money
of the dark ages; or III the money that is fixed
commodity and a known and reliable mer-
ciandise of the commercial world ! We can
settle these questions by individual action, and
without assistance of the Government. Ihe arDl-
trary acton of Congress in making new issue
of silver dollars, and in giving them regal value
not based on their market or bullion value;
the reissue of legal-tender notes after they have
been redeemed in com the fact that the gold dol
lar has once been dobased more than per cent,
and the fact that gold is now the consideration OF
contracts and the further fact that hat money al
HJitam is demanded, admonish us that it Is honest,
constitutional, legal ana safe 10 Hahe lutule coh-
tracts payable in United States gold coin OF
specific standard of wei ght and fneness. The past
IS not secure, but the future can be made so; and
auy person can make himself master OF the situa-
ton as 10 future contracts.
How small of all that human hearts endure,
Tba, par. which laws or kings can cause or cure"
David A. WELLS.
Norcich, Conn., March 13, 1879.
snEDIDaU pRJNT UORKS
H.. p.,.,. NJ. March 10 Thomas +