The Portland daily press., 1884-03-05
LEGAL TENDERS.
Constitutionality OF the Law De.
termined.
ImpOrtsns Decision Of the United States
supreme Ceurt-visws Of the Majority

WASHINGTON, March 3-Ths Supreme Cour
OF the United States met today for the tirst
time after the regular February recess, and
rendered decisions In a largs number OF cases
Among the most important OF them was the
long pending legal tender case of Augustus D
Juilliard against Thomas s. Greenmau, ,br rouR hi
here by writ of error to the Circuit Court Of
the United States for the southern district ol
New York. The question presented by this
case, as 1t is stated by the court In an elaborate
| opinion by Mr.. Justice Gray is: "whether
notes Of the United States, issued in time OF
war, under acts Of Congress declaring them to
be legal tender 10 payment of private debts
and afterwards, In time OF peace, redeemed
and paid In gold coin at the treasury, and
then re-issued Dder the act OF 1878. can, mn
der the Constitution III Sa- lifted States, be a
legal tender in the payment of such debrs.
Tha court Is unanimously Of opinion that the
present Case cannot be distinguished iu princi-
| pie from the cases heretofore decided and re-
| ported under the names legal tender cases, (12
Wallace, 457). Dooley va Smith (l3 Wallace,
64l, Railroad Company vs. johnson (ib Wall
1867 aud Maryland va. Railroad Company (22
Wall, 105), aud all the Justices. except Justice
| Field, who adheres to the views expressed In
his dissenting opinions Ia these cases, are Of
| opinion that they rightly decided. After re-
ferring briefly to the scope aud extent OF the
implied powers OF Congress under the Consti-
tuition, and after calling attention to the fact
that that instrument is not to be interpre ted
with the strictness of q private contract, Mr.
Justice Gray qlotes those clauses OF the federal
Constitution which gives Congress power TO
lay and collect taxes, duties, imports and ex-
cises TO pay the debts and provide for the CON-
mon defence and general welfare of the
United States:
70 borrow money on the credit Of the United
states 70 coin money, regulate the value thereof,
shall be necessary aud proper for carrying into
ecuton the foregoing powers.
By the settled constitutional, and the only
reasonable Interpretation of the last clause,
Justice Gray says the words necessary and
proper" are not limited to such measures as
are absolutely and indispensably necessary,
without which the powers granted must fail OF
execution, but they include all appropriate
means which are conducive or adapted to the
end to bs accomplished, and which, in the
Judgment of Congress, will most advantage
ously accomplish it :. The rule OF inter-
pretaiion thus laid down has been constaEtls
adhered 10 and acted on by this court. and was
accepted as expressing the true test by all the
judges who took part in the former discussion
OF The power OF Congress TO make the treasury
notes Of the United States legal tender 10
payment OF private debts." Justice Gray
then reviews the authority given to Congress
to borrow money and emit bills by the articles
Of confederation OF 177T and the history of the
foundation of the federal Constitut ion and It's
amendments, and Gays:
The words ito borrow money!" as used In the
Constiiutt n to designate power veste In the
tonal government for the saf ty welfare Of the
wh le psopl. are not to receive that limited and
restricted interpI citation and meauing which they
would have In penal statute. Ia authority
ferred by law o. by coasct upon trustees or agents
for private purposes.
L. is we'll settled he says, that the power to
borrow mouey on the credit OF the United
States is the power to raise money for the pub
lie use, on q pledge OF the public crsdtt, and
includes the power to issue in return for the
money borrowed, the obligations OF the United
States. in a form adapted TO circulation iu the
ordinary transaction OF commerce and busi-.
ness. II Is equally well settled that Congress
has the power to incorporate national banks
wi h the capacity of issuing bills which, under
Ordinary cirGumstances pass from hand TO hand
as money at tneir nominal value, and which
when so current the Law has always recognized
as good tender in payment Of money debts,
unless specially objacted to at the tins OF tbs
tender The authority of Congress to provide
a currency for the whole country Is also firmly
established. BY the Constitution of the Unit
ed States the several States are prohibited
from coming money. emitting bills OF credit.
or making ans ing but gold an d silver ten
der 10 payment of debts, Dat no intention can
be Inferred from this 20 deny to Congress ei-
ther of those powers. Congress and the States
equally are expressly prohibited from passing
auy bill OF attsiner or e1 post Jdcto law, grant
iLg any title of nobility. The States are for
hidden, but Congress Is expressly authorized 10
coin money The States prohibited bills
OF credit, but Congress, which is neither ex-
pressly authorized nor expressly forbidden to
de so, has, as We have already seen, held to
have the power OF emitting bills
of credit, and of making every
provision for their circulation as currency,
short OF giving them the quality OF legal ten
der for private debts, even by those who have
denied its authority to give them this quality.
II appears to us to follow, as q logical asd me-
cesssry consequence, Congress has the power
u issue the obligations of the United States 10
such form, and to impress upon them such
qualities as currency for the purchase OF mer-
chandise and the payment Of debts as accord
with the usage OF sovereign governments. The
power, as incident TO the power Of borrowing
money and issuing bills and notes OF the gov.
eminent for money borrowed, of impressDg
upon those bills or notes the quality Of being
legal tender for the payment of private debts,
was power universally understood to belong
to sovereignty In Europe and America at the
time of the framing and adoption of the Con
sttuton of the United States. This power Of
making the notes of the United Stases legal
tender in payment OF private debts being in
cluded, the power to borrow money and to
provide national currency, is not de-
ic8tcu Ut EeBtIlGk6u py tD0 IaCt tlhL
its exercise may affect the valae OF
private contracts. Il, upon q Just
and fair Interpretation OF the whole Constitu-
tioD, particular power or authority appears
TO DO vested in Congress, 1t is no constitutional
objection to its existence or to its exercise,
that the property or the contracts of individuals
may be incidentally affected. Congress"
the court says, in conclusion, "as the legisla-
ture OF the sovereign nation, being expressly
empowered by the Constitution to lay and
collect taxes to pay the debts and provide for
the common defence and general welfare of
the Usited States,' and to borrow money on
the credit of the United States and TO coin
money and regulate the value thereof, and of
foreign coiD,' and being clearly authorized, az
incidental to the exercise OF those great powers
to emit bills OK credit, to charter national
banks and to provide q national currency for
the whole people, In the form of coin, treasury
notes and national-bank bills and the power
to make the notes OF the government legal
tender in the payment OF private debts being
one of the powers belonging to sovereignty to
other civilized nations, and not expressly with
held from Congress by the Constitution, we
are irresisti6ly impelled to the conclusion that
the lmpressing upon the treasury notes OF the
United States the quality OF being legal ten-
der in pay ment of private debts, is an appro-
pirate means, conducive and plainly adapted
to the executive of the undoubted powers of
Congress, consistent with the letter and spirit
OF the Constitution, and, therefore. within the
meaning of that instrument, necessary and
proper tor carrying into execution the powers
vested by the Constitution la the government
OF the United States. Such being
our conclusion in the matter,
OF law, the question whether at any particular
time in war or In peace, the exgeDcy is such
by reason OF unusual and pressing demands on
the resources OF the government, or of the In
adequacy OF the supply of gold and silver coin
to furnish the currency needed for the uses of
the government and of the people, that il IL as
a Of fart. visa and IN
10 this means, Is political question to be de-
termined by Congress when the question Of
sxigency arises, not judicial question TO be
afterward passed upon by the courts. 1t fol-
lows that the act of May 81, 1873. is constitu-
tional and valid, aud that the Circuit Court
rightly held that the tender in circulation nm
der that act was tender OF lawf money in
payment of the defendants debt to the plaia.
tiH