St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1896-10-09

that congress had no power to compel
creditor 10 accept cheaper money in
payment of debt, and that only coin
could be made a legal tender.
The first case was argued before the
court on December 20, 1869, and decided
in February, 1870 The court then con-
sisted Of seven members four oil whom
decided that the so-cal'ed Legal Tender
act' was unconstitutional. The four
men were Chief Justice Chase and Justices
Green, Nelson and Clifford. Three judges
dissented, viz, Justices Miller, Swayne
and Davis.
There was a great CONSERVATION in
moncyed circles. Gold and silver were
then, and up to 1879, at premium; so
it would cost debtors a premium to pay
in sound money. The talk was general
that there must be something done to
overturn this decision. Accordingly,
Congress passed an act to increase the
number ofjudges to nine and ]. William
Strong of Pennsylvania and Joseph p.
Bradley Of New Jersey, staIwarts Of their
party who were known to favor the
'greenback'- were appointed associate
justices Of our highest court. New cases
were argued in Feb and April, 1871, and
decided May 1, 1871. The former decis-
ion was overruled, five to four, Judges
Strong and Bradley joining the three dis
scnting iudges-thus declaring the act
constitutional, even as to all debts,
whether contracted before or after the
passage OF the act.
The opinion of Chief Justice Chase is
remarkable for its learning and force.
The popullsts and democrats have been
justly criticised for the panks in their
platform Tor 1896, relating to the over
turning OF the decision as to the income
tax. But the course of congress in
1870, touching the Legal Tender act"
is equally culpable and will always form
sad chapter in American legislation.
No one can understand why each state
should be prohibited rom making any
thing but gold and silver a legal tender
tor debt, and congress be allowed to
make bare promise OF the nation such
legal tender when such promise fluctu-
ates in value from 33 per cent to par.
SILVER CERTIFICATES.
These were issued under the Bland act
of 1878, by which the coinage of silver
dollars was resumed. Ii you will read
your paper money you will see they
they read, payable not in gold, not cur
rency, but "silver dollars. These, at
first, could not be less than $40, but al-
forwards were reduced TO 81, SO, and So |
notes. The largest note is for $1,000. |
OF these there are at present about $3.50
100000.
corn rEpTIgIC ATES
These are seldom seen in circulation.
If a person deposits gold in the treasury
or its branches he will receive a gold GER
tificate therefor. These notes are yellow
and are never smaller than 500, and are
as large as $4,000 in amount. II you
see one you will find it reads, payable in
gold coin" The aggregate amount of
these notes varies from 500, 100000 to
$90,000,000. These are the only notes
of the nation which are by their terms
payable in gold and the only ones with
out legal tender quality, unless we
except the currency certificate"
CURRENCY CERTIFICATES.
By act of 1872 such certificates were
allowed in denominations of $4,000 and |
$40 900 each. These are issued by the
treasury and it's branches to the banks
and others depositing large sums. The
amount varies from 100000 to
$59,000,000. These are never seen
except in banks and are payable in
current funds.
TREASURY NOTES OF 1890.
The Sherman act of July, 1890, per-
mitted the Treasury to issue notes pay
able in coin" in payment for any silver
purchased by it under the terms OF the
law. That law had various provisions
as to the price to be paid for bullion and
what amount shall be coined.
Under the terms of the law these notes
could be paid either in gold or silver;
although there was provision in the
law that they shall keep gold and silver
at parity.
Before this law was repealed there had
been issued almost $156, 900 900 OF these
notes. A part have been redeemed in
silver dollars and there are now out
standing about $145, 100000 Of these
notes.
These are in denomination from 81 to
$1,000 and are a egatender for all debts
except when otherwise expressly stipu-
lated.