The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-03-07
THE LEGAL-TENDER DECISION.
Prediction of Bad Effects on Our Commercial
ReatiOns-Its Political Aspects
Washington Letter in New York Herald.

Washington Letter in New York Herald.
The decision of the Supreme Court in the
legal tender case caused a great surprise here
and was much discussed in conversation among
representatives and senator's. Some think it d
great and far-reaching calamity, opening the
| door to endless attempts to make an exclusively
! greenback currency and TO initiate that
a representative said to your correspondent:
II am amazed to see how little attention this
totally unexpected decision has got so far. 1t
tears up the foundations of business. It seems
TO me an enormous immortality 1t opens the
way to all manner of visionary and dishonest
schemes and strikes blow at the reputation of
the country and the rectitude of the people
A Western senator said; in the light of this
| Supreme Court decision may yet be happy
that we have the silver dollar to fall back on,
and, in my judgment it Strengthens the move
ment for the unlimited coinage of silver When
you have silver dollar in your pocket you have
at any rate, something of real value; something
which it required labor to get out of the earth,
and smelt, and refine and the labor in which
represents something near dollar. but with
! legal-tender note in your pocket, redeemable in
coin only so long as it is convenient for the gov
eminent TO do so, what have you got! Certainly
nothing to leave to your children or to put away
for yourself"
1--WE have still to hear what they say in Europe
| about the amazing decision of the Supreme
| Court said cautious financier fortunately,
| we do not owe much to Europe. If we did,
there can be no doubt should lose our gold
very rapidly AS it is, a tendency may set in to
hoard gold. and Il disposition to make it an OBJ
ject of speculation. | suspect the decision will
put an end to all attempts to stop the coinage Of
| silver. because prudent men will want to make
sure of some sort of basis for greenbacks, But,
| | imagine it will revive the Greenback party,
and, with the Supreme Court their side, they
may make formidable Roadway We ought to
| have got rid of the greenbacks long agO-as soon
as possible after the war-and the Republicans
have a heavy responsibility to bear for their
refusal, during many years of power,
to give the country a sound currency,
| and for their persistent adherence to the
legal tender curse. Two Republican Supreme
Courts have now declared the legal tender clause
| constitutional-the first with reserve but now
without limit OF the present Supreme Court
! all the members except Mr.. Justice Field are
Republicans, and he is the only one who OPP
poses legal tender 1t is not usual know to
fer co the political affiliations of the Supreme
judges, but in this matter one must look facts in
the face and this is one of the important facts
in this case"
what do you think will be the effect of the
decision" your correspondent asked another
| gentleman.
The effects may not show themselves at
| once, he replied yet if you look at the gen
oral situation there undenably unpleasant
| over bill reducing duties, and that bill will
probably be defeated by the combined action of
| the Republicans and some Democrats who hold
! that nothing ought to be done by this
| Congress to change the duties or
| taxes Now, if they succeed in this the
| government will continue to draw from the PEG
pie a very great sum in OF the need of the
| government This surplus revenue. which will
| amount to more than $780, 600 900 in the current
| year and to a like greater amount for the
| coming year 1856, for which Congress is legis-
| lating, must be used to redeem bonds These
bonds are now the basis of national banking.
| The withdrawal of bank notes will cause con
traction. Then there will be cry for the issue
| of more greenbacks to maintain the circulation;
and as these greenbacks will be- according to the
| Supreme Court decision. legal tender, they will
| | think, be popular But the next move will be
| to make them receivable for customs dues. Why
nots If they are money as the court says then
! they ought to go as money, and 1t is impossible
| to argue that what the government may pay out
| as money in time of profound peace, remember,
it ought not also to receive back That of course
| strikes at the governments source of gold.
! But, in my belief before such action shall
| be taken we shall already be substantially a
silver country The drift is now that way If
the tariff bill is defeated the surplus will GER
| tainiy continue but | must say that have never
satisfied myself that the Morrison bill will not
| increase instead of diminishing the revenue.
and, of course the surplus. Almost the whole
free list has been surrendered If it was from
that that dinlinution of revenue was to be
.ticipated the general 20 per cent. reduction may
stimulate importations, and thus not only in
crease the revenue, but help to drain away our
| gold"
IF were a Jealous protectionist" this gen
tleman continued, Il ~onfess should rejoice
over this Supreme Court decision.
'How does it bear on that subiectW your cor
respondent asked
tiIn this way he replied. 1.-THE object of
protection is isolation Its aim is to create
| barrier to commercial intercourse-to the
exchange of products between this and other
countries. Now radical difference in curren-
cies is of the strongest and highest barriers.
| If we should become a silver country could
still trade at par with other silver countries, and
| most of those lying south of US are silver cOun-
| tries. But if we become greenback country
! that will hamper all commerce. We have never
! yet had that experience. The government has
always required gold for customs duties and paid
gold for interest. Suppose. what is the logical
outcome of the courts decision, Congress does
| next year what prominent men of both parties
have repeatedly and recently asked to be done
make the duties payable in legal-tender notes,
what then! You smile but | believe nothing
impossible in the face of this decision. Then our
commercial isolation will be toleraby complete
| We shall have own money, a so-caled legal
tender here, but nowhere else, useful on some
terms in the home market, but acceptable
where else"
But you do not suppose the government
would pay its interest in legal tenderl"
''It need not. 1t can like the old woman in
the story borrow enough money to pay all it's
debts. In what do you suppose the interest will
be paid when good deal Of gold is drained away9
I myself do not pretend to know but it will re
quire a courageous Secretary to buy gold when
he has silver in the vaults which silver is made
by Congress also legal tender. All can say
is this, that in my opinion the unfortunate de
cision of the Supreme Court seems to me to au
thorize us to do all manner of dishonest acts
Whether we shall do them, that no one can fore
tell but it certainly gives great advantage to
the Butler kind of demagogues As our politics
go it exposes us to constant attacks upon the
currency in Congress: and then what do you