Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1893-02-19
Gold Contracts.

Judge HUaHEs has been subjected to
criticism because he holds that no good
constitutional lawyer would contend that
Congress hasn't powe, to provide by law
against the making OF contracts to pay
in gold. His language, as We have here
tofore repeatedly quoted it, is as follows
"Idonot suppose that any lawyer conyersant
with constitutional principles will contend Tor the
validity Of gold contracts made in CONFIRMATION
or circumyention OF express laws OF Congress
making it legal tender"
The grant of power TO Congress on
this subject is in the words following
"Tne Congress shall have power"
"to coin money, regulate the value thereof, and
OF foreign coin"
Judge HudHEs thus declared in adj
vance of legislation on the subject, and
in anticipation of the ground to which
the monometallists will finally retreat,
that valid contracts to pay in gold can
not be made in contravention or circum-
vention of Federal statute making sill
yer full legal tender. Judge HUGHES
uses strong language but 1t seems to
be none too strong for the occasion.
What does the grant Of power above
quoted from the Constitution OF the
United States mean by the words "regu-
late the value thereof y? Regulate
the value Of what? What do the words
Congress shall have power to com
money and regulate the value thereof "
mean? The meaning OF them Is just
what the meaning would be if the words
were
congress shall have power TO coin money
and regulate the value Of the coins, whether
silver or gold"
We repeat, it does notmatter whether
the coins be gold coins or silver coins.
1t would seem to he n difficult matter
for Congress to pass law "in contra
vention or circumvention of this plain
provision OF the United States Consti-
tuition. But it has been argued with
much plausibility that although Con-
gress may forbid the making Of valid
contracts to pay in gold dollars, yet if
the contract be to pay so many grains OF
gold, nine tenths fine, the courts will
uphold the contract. That is to say, the
courts will allow the plain letter
and object OF the law to be evadcd
or circumvented il the contract
be to pay % $40 grains Of gold and not
to pay gold dollar. The gold dollar
consists of 25 $40 grains OF gold, nine
tentbs fine. and if man contracts to
pay dollar in gold his contract is to pay
Just that number Of grains. And it is as
sumed that the courts will permit an act
Of Congress to be thus set at nsught.
But Mr.. Justice BRADLEY foresaw that
an attempt would be made to circumyent
the constitutional provision above
quoted. and declared in a dissenting
opinion in the second OF the egal-tender
cases, as follows:
alt makes no difference In the principle Of the
thing that the contract Of the debtor is specific
engagement IN terms 10 pay gold or silver
money or TO pay IN specie. II the contract Is for
the delivery Of q chattel or a specific commodity
or substance the law does not apply.
But II terms Which natural import such contract
are used by ray Of srasion, and money only is in
tended, the lac reaches the edse.'
We are induced to think that the SUI
preme Court OF the United States might
adopt Mr.. Justice BRADLEY's view of the
matter il a case should so up to that
court involving the power Of Congress
to forbid gold contracts and provide for
silver contracts.