Monopolies -- United States; Railroads and state -- United States
The question was fully argued in 1869 before a full bench, then composed
of a chief justice and seven associates, five of whom concurred in
deciding that the act of congress making anything but gold and silver a
legal tender was unconstitutional. Before the decision was announced
Justice Grier resigned, leaving but six associates on the bench when the
opinion was delivered. Chief Justice Chase delivered the opinion, and,
in speaking of the powers of congress, says: "No department of the
government has any other powers than those delegated to it by the
people. All the legislative power granted by the constitution belongs
to congress; but it has no legislative power which is not thus
granted. * * Not every act of congress, then, is to be regarded as the
supreme law of the land, nor is it by every act of congress the judges
are bound. This character, and this force, belongs only to such acts as
are made in pursuance of the constitution." The court then decides that
there is in the constitution no grant of legislative power to make any
description of credit currency a legal tender in payment of debts, and
that it does not exist as incidental to any of the granted powers. That
the power does exist in congress to issue bills of credit or treasury
notes, but not to make them legal tender for debts. The opinion
concludes as follows: "We are obliged to conclude that an act making
mere promises to pay dollars a legal tender to pay debts previously
contracted, is not a means appropriate, plainly adapted, really
calculated to carry into effect any express power vested in congress;
that such an act is inconsistent with the spirit of the constitution,
and that it is prohibited by the constitution." This decision was not
acceptable to corporations and railroad managers. It would compel them
to live up to the contracts they had made, and destroy their power of
controlling, in connection with the Wall street stock jobbers and gold
brokers, the entire financial interests of the country. We have already
shown how this combination of corporate interests secured an increase in
the number of judges, and that Messrs. Strong and Bradley were appointed
because of their opposition to the legal tender decision. None of the
judges who had concurred in the decision of Judge Chase had changed
their opinions; these were then dissenting members of the court. The two
new appointees uniting with three dissenting judges, a majority of the
court could overrule the long settled decisions of the court, and
sustain the act of congress making depreciated paper a legal tender. The
law of the land, recognized since the organization of the government,
approved by all the eminent jurists and statesmen who have lived in the
last century, could be overturned; values could be unsettled; the
financial and commercial interests of the country could be made subject
to this great corporate power which had obtained such complete control
of the different departments of the government.
Public-domain text, read in full here on John Shaqi.
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