Year: 1878




That is historical and the limitation OF the power o
tho States over the subject matter of tender in no
dNcsts them of their original jurisdiction bit
IN effect says To them that they may exercise tlaS
jurisdiction, thcy had done from lTT6 70 l's Win
she exception that nothing but gold and silver coin
shall hc such tender


1t is then, apparent that when the States were pro-
hibited from making paper promises to pay ianas,
tender III pay nent ~ debts, II equivalent 10 dc
caring that other authority could do that Yhich
the States were forbidden to do bo'ausc the states
alone had jurisdiction over The entire matter oi con
tracts and tender. This j. conclusive argument
against the exercise Of the power Of Congress.


After citing q number 81 authorities to enforce his
position that Congress has authority to make paper
issues legal tender he writes:


IN fat might accumillats authority upon author
ity only from thc decisions of the courts tState
and NATIONAL well as the opinions of the accepted
commentators upon the constitution and OF the puo
l'c ol all parties for nearly three
quarters of century. in condemnation OF
the dogma that paper promises y pay can be made
legal te.der IN payment of debts between individuals.
1t l'art the history the Southcrn Coniedcr
ary that proposition made III the Confederate
Congress to nake Confederate notes legal tender.
but IL received no conntcnance either from the
senate or from the House


urtSIoS rHr SUPREME COURT


In the last session of congress, it will be remem-
bcrel. tho bill remonetizing the silver dollar was
amended in the senate to authorize tho ssue OF
silver certificates ana one had teme.ity pro-
pose tina, these certificates should he made legal
tender. Nor does this function attach to the ccrtif
Gates authorized 10 be issued gold deposited in
the Treasury. thus showing from the action OF Con-
grcss that both republicans and democrats. while
they willing to acqesce in the Judgment of the
majority OF the supreme Court to the. issue OF
Treasury notes during the war, it has no
authority and is entitled 10 no respect
as an exposition Of the constitution when
these notes are proposed to bc issued in
time of peace: for surely il it be constitutional to
make the promise Of the government to pay dollars
legal tender. reason he urged why it's certih
Gates for much coin deposited 10 redeem this certi
icae should not also be made a legal tender. On
the supposition that the opinion of the majority
q nlip,. d
Treasury notes in peace as we'll as in war. and not
exclusively to seasons of exigcncy,'' il has been
urged that the strngcncy OF the times and the uni
versal depression Of the industrial interests Of the
country would present like cxigency to Justify All
emission OF legal tenders l not ~ those
who believe that either the wants of the government
the depression of business measures of the
powers Of the government But aside from TINS;
tender gives the promissory notes of the gov
crnrnent value which they would not
otherwise have. This appears to me
an error. and one which our
history has demonstrated beyond cayil. The
legal tender, when first issued stood at the value
and higher OF the notes Of the solvent suspended
banks Of the States. At time have they been
more valuable tnsn the notes Of the national
In truth, circulation that is forced upon the
ple without their consent amounts TO proclamation
of bankruptcy ON the part Of the government Be-
ing debt from the government 10 the people it is
confession tia. the credit of the government has
reached point when i cannot borrow money at
take it from the people without their consent with
out interest. Ii the entire field OF circulation is
pied by the Treasury note to the exclusion OF State
and national bank paper, and the volume of paper
circulation Is not in of tho legit-
mate demands Of business no necessity eau
exist for cndowing these notes with legal tender
quality nor need there be an apprehension that the
currency, which will discharge all dues to the gen.
ern government. will be refused by the States and
corporations in payment of local taxation by in
diyfduals in payments ot debts.


Aside from this obvious want OF constitutional
warrant the legal tender theory has served the bad
pnrpose "f giylng coinsensnce to the pernico,,s
proposition that 1t the stamp Of the government
that alone makes money. for IT needs no argument
show that if Congress has the power to
invest the promissory note of the govern
Ment with the attribute Of money, it is a power
without any limitation. and it may well fabricate
money out Of the paper which the note is engraved
or ont Of any other material however yalneless. In
abandoning the firm and safe ground Of the cousttu
tion necessarily rush into the quicksands OF abso
lutte money, Reputation and national aud individual
bankruptcy.


NATIONAL BANKS.


will be remembered that at the Last session Mr..
Buckner introduced bill intended to substitute
Treasury notes. not legal tender for national bank
notes. and IL is generally believed that he is among
those who desire to revive the old State bank system
and that his bill had this for its object. There
viii undoubtedly be attempt made at this session
10 destroy tho national banks. and it is said that
Senator Thurman means 10 open the bail with bill
legissting them ont of existence. such a measure
will have the support of large and less in
fuental lobby Of specuiaors. who TO ostab
lish State banks based real estate and other fragile
securities with the promise OF period OF high old
times, such as Wild cat and red dog money has
before produced in the West. number
Of Southern will join in any movement. to de-
stroy the national banks well Western men, but
it is not probable that they will succeed. Among the
more conservative there is disposition to
amend the Bank act and proposition to issue the
banks dollar for dollar for the bonds they deposit to
relieve them from all federal taxes and to denv
them any interest OF their bonds, meets with
favor. There is doubt that the whole subject
will get full discussion. but it is more than
likely that agree ment will 0e reached The repub.
leans propose not TO defend the banks but wait
upon the course OF the democrats. and tsko adyan-
tago OF any blnder that they may make.


Meantime. If Mr. Buckncr will introduce bill re-
peans the legal tender clause he win do great deal
to smooth the for permanent settlement OF the
currency and there is doubt that be viii propose
such Heasurc 20 his committee. Grecnbacks can
do no harm If they no longer legal tender.


THE QUESTION.


On the silver question IL is said the message NAV
recon mend that Congress shall put q dollars worth
Of silver into dollar The Secretary Of the Treasury
NAV recommend that the silver small change shall be
made rcdeemable at the treasury III gold or green
hacks in sums of 800 and that the trade dollar shall
tre either abolished also made redeem.
able Among Congressmen there appears to be
surprising agreement in opinion that il would be
wise to make the dollar worth a dollar: and IL ia
argued in some quarters that silver, though IL has
fallen greatly in value. does not nov fuctuatc niuch
aud tina. il would be safe 20 determine upon some
weight OF silver upon the average of the last years
nrlces and giving the dollar its face value then 20
make It's coinage free unlimited that
of gold. IL would not be strange IL some
measure of this kind should become slaw. Both
parties being apparently disinclned 10 attack silver
or dem monetizs s. Il is said that Secretary sherman
viii ask Congress TO allow him TO receive small
ings various post Offices, issuing in exchange for
all sums OF $40 multplcs Of that certificates
bearing 1866 per cent interest to be converted at the
end Of year or presentation OF 500. into four