National Republican., 1884-03-04
THE LEGAL TENDER ACT.
Decision Of the United States Supreme Court
That it is Constitutional.
Treasury Notes Decided TO bo Good and
Legal Tender in Payment OF all Debts.

A decision was rendered by tho supreme
court Of the United States yesterday in che
long pending legal tender case Of Augustus
d. Juilliard VS.. Thomas S. Greenman, brought
hero by writ Of error to tho circuit court Of
tho United States for the southern district of
New York. The question presented by this
case, as it is stated by the court is whether
notes Of the United States, issued in time of
war; under acts of congress declaring them to
bo a legal tender in payment of private debts,
and afterward in time of peace redeemed and
paid in gold coin at the treasury, and then
re-issued under tho act of 1873, can, under
the constitution of the United States, be
legal tender in payment of such debts"
The court is unanimously of opinion that
the present case cannot be distinguished in
principle from the cases heretofore decided,
and reported under the names Legal tender
cases" (12 Wall, 457), "Dooley vs. Smith" (13
Wall, 604), RAILROAD company VS.. johnson"
(15 Wall, 1861, and Maryland VS.. Railroad
company" ZEE Wall, 105l, and oil the justices,
except Mr.. Justice Field, who adheres to tho
views expressed in his dissenting opinions in
those cases, arc Of opinion that they were
rightly decided
The court holds therefore, that congress
has the power to issue the obligations of the
United States in such form, and to impress
npon them such qualities as currency for the
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 government for money bor-
rowed, of impressing upon those bills or notes
the quality of being legal tender for the
payment Of private debts, was q power uni
versally understood to belong TO sovereignty
in Europe and America at the time of the
framing and adoption of the constitution of
tho United States.
This power of making the notes of the
United States q legal tender in payment of
private debts being included in the power to
borrow money and to provide national cur
rency, is not defeated nor restricted by tho
fact that its exercise may affect the value of
private contracts. IT, upon a just and fair
Interpretation of the whole constitution, a
particular power or authority appears to be
vested in congress, it is no constitutional
objection to its existence or to its exercise
that the property or the contracts of individ-
uals may be incidentally affected.
Congress-" tho court says, in conclusion,
"as the legislature of a sovereign nation,
being expressly empowered by the constitu-
tion to lay and collect taxes to pay the debts
and provide for the common defense and gem
eral welfare Of the United States and to
borrow money on tho credit of the United
States and to coin money and regulate the
value thereof and Of foreign coin.' and being
clearly authorized rs incidental to the exer-
else of those great powers to omit bills OF
credit, to charter national banks, and to pro-
vide national currency for tho whole peo-
pie, in the form of coin treasury notes, and
national bank bills, and the power to make
the notes of the government q legal tender in
payment of private debts being one of the
powers belonging to sovereignty in other
civilized nations and not expressly withheld
from congress by tho constitution, we are
irresistibly impelled to the conclusion that
the impressing upon the treasury notes of the
United States the quality OF being legal
tender in the payment of private debts is an
appropriate means, conducive and plainly
adapted to the execution 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 for carrying into ex
ecution the powers vested by this constitution
in the government of tho United States
Such being our conclusion in the matter oi
iw, the question whether at any particular
& me, in war or in peace, the exigency IL
Iuch, by reason of unusual and pressing de-
nands on the resources of the government, oil
of the inadequacy of the supply of gold and
silver coin to furnish the currency needed
for tho uses of tho government and of thu
people, that it is, as matter of fact, wise and
expedient to resort to this means, ia poll
cal question, to be determined by congress
when the question Of exigency arises, and no
n judicial question to be afterward passed
upon by the courts.
1t follows that the act of May 81, 1873, i:
constitutional and valid, and that the circui
court rightly held that the tender in treasur,
notes reissued and kept in circulation unde
that act was o tender OF lawful money IL
payment of tho defendants debt to the plain.
tiff.
The judgment of the circuit court is af
frmed. Opinion by Justice Gray. justice
Field dissenting.