Monopolies -- United States; Railroads and state -- United States
We have no hesitation, therefor, in declaring our conviction that the
making of these notes a legal tender was not a necessary or proper means
to the carrying on war or to the exercise of any express power of the
government.
But the absence of necessity is not our only, or our weightiest
objection to this legal tender clause. We still think, notwithstanding
the argument adduced to the contrary, that it does violate an express
provision of the constitution, and the spirit, if not the letter, of the
whole instrument. It cannot be maintained that legislation justly
obnoxious to such objections can be maintained as the exercise of an
implied power. There can be no implication against the constitution.
Legislation to be warranted as the exercise of implied powers must not
be "prohibited, but consistent with the letter and spirit of the
constitution."
The fifth amendment provides that no person shall be deprived of life,
liberty, or property without compensation or due process of law. The
opinion of the former minority says that the argument against the
validity of the legal tender clause, founded on this constitutional
provision, is "too vague for their perception." It says that a
"declaration of war would be thus unconstitutional," because it might
depreciate the value of property; and "the abolition of tariff on sugar,
or iron," because it might destroy the capital employed in those
manufactures; and "the successive issues of government bonds," because
they might make those already in private hands less valuable. But it
seems to have escaped the attention of the then minority that to declare
war, to lay and repeal taxes, and to borrow money, are all express
powers, and that the then majority were opposing the prohibition of the
constitution to the claim of an implied power. Besides, what resemblance
is there between the effect of the exercise of these express powers and
the operation of the legal tender clause upon pre-existing debts? The
former are indirect effects of the exercise of undisputed powers. The
latter acts directly upon the relations of debtor and creditor. It
violates that fundamental principle of all just legislation that the
legislature shall not take the property of A and give it to B. It says
that B, who has purchased a farm of A for a certain price, may keep the
farm without paying for it, if he will only tender certain notes which
may bear some proportion to the price, or be even worthless. It seems to
us that this is a manifest violation of this clause of the constitution.
Public-domain text, read in full here on John Shaqi.
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