The herald., 1896-08-23
The LEGAL TENDER FUNCTION

The right to coin money, to regulate
its value, to establish its fineness,t is the
highest attribute of sovereignty. This
attribute of sovereignty was too valua-
BILE to be entrusted with any state. but
was made the very cornerstone Of our
constitution. In defining the power and
duties of congress the right is given Ito
coin money. regulate the value thereof
and of foreign coin, and fix the standard
of weights and measures"
This is the extent Of the power Of
congress over the whole subject of max
ing money. Congress has the right Ito
coin money" and regulate the value
thereof" Neither the right to "coin
money" nor the right to regulate the
value thereof" has been or can be DEL
egated to- any individual or corporation.
1t would naturally have been thought by
the trainers of our constitution better
to have given the states this right than
to have left II to individuals or corpora
tions; yet 1t was reserved from all cor
porations, states and individuals. 1t is
plain, therefore that congress alone can
coin money. and 1t is just as plain that
commerce cannot regulate the value Of
money for this great function is lodged
in congress alone, and this power is not
simply one of the incidental powers of
congress, because 1t is imbedded in the
constitution itself, and neither the sub
tlety of philosophy nor the grasp of av-
arice can drive congress from this
act of sovereignty or turn over this duty
to commerce or trade.
This was cardinal doctrine of the
Jeffersonian Democracy, and 1t was a
revolt against the wildcat" and ire
deemable paper then flooding the land
which caused Andrew Jackson to rise
In his might and with herculean arm
strike down the United States bank.
/ Congress has kept this sacred trust
so far as coming money" is concerned,
as no state has ever attempted to coin
money out of metal; yet she has vio-
| lated it In spirit by authorizing the issu-
ance of paper money by the millions.
| 1t has not only authorized the issu-
ance of paper money, but has assumed
the power to strike from our coinage
one of our principal metals, the one Sc
lected as our unit of value.
Daniel Webster said in a speech de-
livered December 81, 1895: II am clearly
the ratio fixed by congress, constitute
the legal standard of value in this coun-
try, and that neither congress nor any
| state has any authority to establish any
| other standard, or to displace this stand
| ard" This is the opinion Of the greatest
| eXpounder of the constitution ever
known in the United States senate. If
| the legality of the act of 1873 should ever
be brought before the supreme court of
the United States, there is a strong prop
| ability that it would be pronounced ille-
gal
| It should be remembered that the
power given by the constitution to con-
| gress to "coin money" Is not simply
permissive power but one of the "shalls"
of the constitution. Congress has no
power to regulate the commercial value
| of any two metals, but to regulate the
value of the coins.
BY a careful reading Of the repeal
clause of the act of November l, 1899,
congress does not propose to keep up
the parity" of value of the two metals,
but the party of value of the two
coins" Congress has no interest in keep
ing up the parity of value of gold and
silver or bullion, any more than it has
the parity between corn and wheat.
Bullion is not a legal tender, and cannot
be forced upon any one as payment
of debt; but after it has been coined
by authority of the constitution and
invested with the power of paying all
debts, both public and private, then it
is the duty of congress to keep the coins
at parity with each other.
From the report of the mint for 1873
it will be seen that the bullion in dollar
cost s1004; in 1883, 1858, and in 1898, 604
Then, according to the theory Of the
goldbugs, some of these dollars would
be worth $1.004, some So cents, others
co cents. Now it was never the duty
of congress to keep up parity between
gold bullion and the silver bullion, but
the government guarantees the parity
of the coins. If congress has the power
to Danish silver from our mints. it has
the same power to Danish gold.
Greenbacks. though based at first on