The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1923-10-27
BY LOWELL MELLETT

TIN February, 1870, the United
/ States Supreme Court held the
IL Legal Tender Act was Incon-
stitutional.
In December, 1870, the United States
Supreme Court held this same act
was constitutional.
h This amazing change Is held by
some writers to mark the point at
which the banking interests ceased
to be the dominating influence in the
court and the railroad interests sue
ceeded to that role.
/ Congress in 1862, the Civil War
being in progress. passed arr act au-
thorizing the issuance of s50.O00,o 900
of Treasury notes which should be
legal tender for all debts, public and
private. except duties on imports and
interest on bonds and notes.
The exception as to interest pay
ments was an amendment resulting
from the pressure of the banks. The
banks held all the gold. The Gov
eminent had to borrow gold from the
banks and, as a result of the amend
ment. had TO pay ruinous premiums
to get 1t.
- Insist on Gold
Despite the outcry that money good
enough for the men fighting at the
front should be good enough for the
bankers, Congress was compelled by
the banks In 1853 to go further and
provide that not only the interest on
notes and bonds but the principal as
we'll should be paid in gold. The
banks threatened otherwise not to
market the securities issued by the
Government and so to paralyze the
Governments power to carry on the
war. The banks profited enormously
by the distinction made in their favor.
In 1859 the effort was made to have
the use OF legal tender money still
farther restricted. A decision of the
court was sought to declare this Gov
eminent money was not acceptable in
payments on contracts made prior to
the passage OF the laws of 1852 and
1883 Opponents OF the banks declared
1t was part Of a plan to destroy the
Governments power to issue money,
giving that privilege entirely to the
banks.
Resignation Demanded
While the court was considering the
case an interesting episode occurred.
Justice Grier, one of the justices who
had been in correspondence with
President Buchanan concerning the
bred Scott decision. displayed such
changeability of opinion-first on one
side. then on the other-that other
members of the court were disguised
They united In demanding he resign.
He did So
The decision was written by Chief
Justice Chase. who had been secre-
tary OF the treasury when TIE legal
tender acts were passed and who was
then known to consider those acts
thoroughly constitutional. Prior to
becoming secretary OF the treasury,
Chase's professional and personal as
sociations had been chiefly with the
banking interests. While chief justice
he was ACKNOWLEDGEMENTS said scan
dalously-ambitious to become Presi-
dent
Decision Caused Howl
The howl that resulted from the
courts decision came not alone from
the plain people. The railroads de-
manded to know why the money they
received in fares and freight charges
was not good enough for the payment
OF their contracts.
Justice Grder's resignation made
two vacancies on the ST.. oreme bench.
President Grant appointed two rail-
road lawyers. William Strong and Jo-
seph P. Bradley. TO Ill the vacancies.
The attorney general then moved for
rehearing OF the case. The decision,
promptly forthcoming, by 8 TO q
vote, reversed the courts first opin-
ion and declared the legal tender act
to be constitutional.