The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-08-06
LKeAL TENDER.

points upon WHICH q government estso-
slshed monetary system by setting -
standard OF measurement from which al
other things could be compared As it
deosared that twelve inches should be
grains OF gold shosId be called q dollar
In order 70 avoid cheating or any mis-
Undertaking, me law went further and
provided that an offer to pay any debt to
the creditor xssh these dollars 70 the
amount OF any deo. should Do legal
tender. ~
This Ga not make the metal more waltz
able. Il merely gave definition which
must be accepted By debtor and creditor
alike unless some other understanding WIS
explicttiy arrived at A parallel case Is
that OF lAw establishing what 10 called
a legal rare OF interest That law does not
affect the right OF contract; II steps in
for the profession OF creditor and debtor
alike. and says that unless express agree
Tuent is otherwise had, the rate OF In
terest shall be a certain amount IL no
more prevents a debtor and creditor agree
ing 10 pay less or more interest thar the
legal rate. than IL presends TO prevent
buyer and seller agreeing to pay for goods
or llqulda1 deb, IN any other commod-
isy than money. The Law OF usury u
founded on another basis like the law
against contracts based upon immortality.
We pointed ogt that money had three
qualities, namely. as a medium Of ex-
change. as q measure OF vsius. and as
standard OF value for deferred payments.
IN his last. and PROBABLY most important
OF It's functions. 10 Is called legal tender"
As the object Is to enable two parties 10
contract TO avoid any difference OF un-
sers.aniing al to the measure OF valns
In walch an obligation Is to be discharged
In the future. only the standard coinage
can possess the necessary property.
In order In a practical way TO explain
tho necessity for such legal definition.
va may cite the operations on the stock
exchange. Suppose thar A. today. while
wheat was 80 cents per bushel agreed TO
pay b. thirty days from now. debt OF
a thousand bushels OF wheat, he would
have 70 pay the thousand bushels. even II
Il cost him or was selling at 60 cents a
bushel. and ne would have 10 furnish no
more than one thousand bushels II wheat
was worth only 20 cents a bushel. But
wheat iuctuates according TO the pro-
fusion or scarcity of every crop. which
contingency depends upon the accident of
weather or the accident OF blight and
other natural causes. Such uncertainty
has given rise to what Is known as stock
exchange operations. and possesses so
many OF the elements OF chance as TO
make II a species OF gambling. This IN
certainty would be fatal TO most future
payments OF all known articles. gold has !
been found to vary least In value. and has
therefore come TO be most generally ac-
copied as a standard by which 20 gauge
other values Gold has been the rock by
which the tide AZ all times Is measured:
az high tide the rock looks low. at low
tide II looks hlgh-but the depth. or the
height. OF the rock Is the same.
The United States statute which de-
clares what a legal tender shall be in
payment OF all debts. public and private.
makes certain exceptions. legal tender
acts. however. do not apply 10 voluntary
contributions In tho nature OF taxes or
assessments exacted under state laws. but
only TO debts In the strict sense OF the
term. namely obligations for the pay
meni OF money" Thus. notwithstanding
hs. al
legal tender. "a state law requiring state
TAX 10 be paid In gold and silver coin Is
constitutional and not in conflict with the
legal tender act
The subject OF legal tender II dealt with
in the case o. Bronson vs. Rodes, deiiv-
cred some time In the year 1858 by the
supreme court OF the United States. This
was before the year 1873. OF course. and
the view Of the court as interpreting the
law prior 10 the demonstration OF silver
aud the relation OF the ratio possesses an
exceptional interest. The court reviews the
of the changes In the sire and weight OF
coins between T5c9 and 1851. Il says that
the changes were made partly with a
view 10 the better adjustment OF the gold
and silver circuiations to each other, and
rarity for the convenience OF commerce"
The court says that the design OF al this
nainuteness and strictness IN che regnls-
ton 81 coinage l. easily seen. Il in6i-
cafes she intention Of the legislature 10
give a sure guarantees 10 the people that
the coins made current In payments eon-
tain sao precise weight ef geld or silver
~ the precise degree OF purity declared
- statute.
IL recognizes the fact. accepted BY all
raen throaxhoGt the world says Chies
ysssiee Chase. who wrote the epinioa. and
wha had been secretary es the treasury.
that value Is inherent 20 TIE precious
metals; that gold and silver are 30 them
selves values. ard being sash. ard being
IN other respects best adapted 70 the pur-
esss. ars the only proper measures .,
value. thar these values are determined
hv xeixht anG purity: and that form ard
lrsprexs are sinply certificates or valae.
N-sriav az absolute rc,s&nce only because
- tas knawa integrity an& COED faiiA Q!
tAe government nhleh gives tAsn."
We airress a moment % cal attention
10 the fact thas no reliance soas9 b placed
upon The .satsvrltv ans coed faith' q
government which continued 20 say -
sAw aaat ssx.eea ounces q silver was eaa&'
IN vAlas 70 enc oanee q soc ~hen every
soty kasw tass sais Vas aot the sEaih.