Year: 1878

We wish to direct the attention of mer-
chants bankers and lawyers to a question
Of very great Importance, which is dis
cussed in private constantly, but which
ought to have the public attention, in order
that preparations may be made to have it
promptly decided when it shall come up.


On the 1st Of next January the Secretary
of the Treasury will, under an existing
law, begin the resumption Of specie pay
ments. That is to say, he will redeem in
coin all United States notes presented TO
him for that purpose at the Treasury An
act of the last Congress requires that other
Treasury notes shall be issued to an equal
amount with the notes so redeemed it de-
clares that the total issue of United States
notes shall not be less than the amount out
when the act was passed-about three hun
dred and forty-six millions The question,
one Of vital importance and which ought in
the general interest to be decided as soon as
possible after resumption begins, is this =
Will the United States notes SO issued in
tenders For example, suppose he is called
on in the first month to redeem fifty mill
ions of United States notes. Under the act of
Congress he will presently issue an equiva-
lent amount of new notes, paying them
out as he can for current expenses or to buy
more coin for redemption purposes Ques-
tion Have these new issues the quality
of legal tender? On this question sound
and able lawyers to our own knowledge diff
fer, some holding that the new notes cannot
have the legal tender quality, others assert
ing that they will have.


But this is not matter for private
opinion ; it is q matter of extreme and
general importance, which can be settled
only by an appeal to the Supreme Court of
the United States, and to prevent many
and grave business complications it ought
to be decided as soon as possible after it
can be called in question. The Supreme
Court decided in famous case that Con-
gress has the constitutional power to make
Treasury notes legal tender; but this does
not cover the point now raised, for in the
present case the Treasury will have re-
deemed the notes to which undoubtedly
Congress did give the legal tender quality !;
and, having so redeemed these according
to the command of the Resumption act, the
Treasury then issues in their place, by
command Of Congress, new series of
notes. If these new notes are also legal
tenders, then, say some very sound lawyers,
it is the Treasury and not Congress which
will give them that character, for Congress
did not declare that the new notes should
be legal tenders. 1t only commanded that
the total amount of United States notes
in circulation should not be decreased.


When we say that it is necessary to have
the decision of the Supreme Court on this
question we mean just this:-When the
Treasury resumes Treasury notes will pass
current everywhere in this country at their
par in coin; they will be liked and even
preferred to coin, because of their greater
convenience. But business men, making
written engagements, must know beyond the
shadow of doubt in what kind Of money
they are to pay and to receive payment,
and the utility Of the Treasury notes will be
greatly checked and limited until il is es-
tablished what character they bear. We
will add our belief that if the Supreme
Court should declare them not legal tender
this would greatly increase their favor with
the people, for they would then become the
representatives of coin to the holders of
them, whereas legal tender notes represent
only forced loan and u broken promise to
pay coin.