The Prince George's enquirer and southern Maryland advertiser. (Upper Marlborough, Md.) 1882-1925, 1896-09-11
THE ILLEG Atty OF GOLD
CONTRACTS.


The circulars issued by savings
banks and insurance companies threat
ening to pay in deprecated money in
case Mr.. Bryan is elected and promis
ing to pay in good money in the event
of Mr.. Mckinley's success. are a mere
election trick. Some of these compan-
les will never pay at all, for their as
sets consist largely of loans on depre-
ciated property, from which, under the
| president bad monetary system, the
equity is oozing out day by day.
Those whose solvency may remain be-
yound question will pay in the cur
rent money of the day and at the place
of payment, whatever money that may
be, whether gold or silver coins or pa
per notes. This is what the law ena-
bles them to do: and it is the merest
folly to believe that they will pay any
better money than they are obliged to
pay. They have never done so vet,
and it is safe to assume that they never
will do so. The contracts which these
banks and companies entered into be-
fore the war were payable in either
| gold or silver coins nevertheless. such
as were ever paid at all were pSid in
greenbacks. The deposits and pre-
miums which had been paid in gold
were sold for greenbacks at high
premium, which premium was pocket
ed by tee companies. The payments
to depositors and policy holders was
made in greenbacks.
Although certain acts of the United
States and the State of New York APP
pear to render it feasible to make con-
tracts specifically payable in gold
coins, such acts are unconstitutional
| and such contracts ultra yires. The
| banks and insurance companies need
Il, information on this subject, and it
is safe to assume that they have no in
tention to pay in gold coins, or even
in silver coins, should either of th,m
command Il premium in paper money.
The unconstitutionality of special
contract loans flows from the princi-
| Il 81 h,f Il,
rs laid down in the celebrated case of
! the "MiNt Moneys, of which Il very
full summary appears in the seventh
chapter of the "Science of Money"
second edition. Here the Privy Coun-
ell decided. by reference to authorities
who covered the entire field of jurispu-
| dence, from the time of Augustus to
that of James l. of England, that all
contracts for money are payable in the
current money of the day and place of
payment.
The Code Napoleon, book ill.,, Tit.
", art. 1895, says: "Debts are payable
III the denominations of money men
toned in the contract. Whether there
has been an increase or diminutiOn of
money previous to the time of payment
(of loan), the debtor must return the
numerical sum lent, but is only bound
to return such sum in the money cur
rent at the time of payment" The
Italian Code says the same The re-
cent decision of the United States Su-
preme Court in the case of the Mssis-
sippi Levee bonds is to the same effect.
The bonds, though conched in gold
coins. are payable in current money.
When the principles of law which gov
erned Rome and still govern England.
France, Italy and the United States,
are overthrow it may be practicable
to enforce domestic contracts in special
moneys. But that day will never
come. The control Of money is a re-
galian prerogative; it belongs to the
sovereign State; it is essential to its
autonomy; it is necessary to civil lib
erty; and he is traitor to his country
who would seek to undermine it with
special contracts or any other device