Seventeen Talks on the Banking Question: Between Uncle Sam and Mr. Farmer, Mr. Banker, Mr. Lawyer, Mr. Laboringman, Mr. Merchant, Mr. ManufacturerFowler, Charles N. (Charles Newell)
History
Seventeen Talks on the Banking Question: Between Uncle Sam and Mr. Farmer, Mr. Banker, Mr. Lawyer, Mr. Laboringman, Mr. Merchant, Mr. Manufacturer
Fowler, Charles N. (Charles Newell)
Banks and banking -- United States; Currency question -- United States
Chase also held that the clause in the Acts of 1862 and 1863, which
makes United States Notes legal tender in payment of all debts, public
and private, so far as it applies to debts contracted before the
passage of these Acts, is unwarranted by the Constitution: "The legal
tender quality," Chase said, "was valuable only for the purpose of
dishonesty, every honest purpose was answered as well without it."
Just one year afterward, in December, 1870, the question of the legal
tender of the United States Notes was again before the United States
Supreme Court, which now consisted of nine members. In a decision of
five against four, the above decision was reversed; one judge had
died, and a new judge had been created, and these two joined the three
formerly in favor of the Act.
MR. MANUFACTURER: That looks a little as though General Grant wanted
that kind of a decision, and had picked out the right kind of men to
get it. Possibly it was more this decision than pressure of business
that called for the creation of an additional member of the Court--was
it not?
MR. LAWYER: A great many have thought so, and that makes it look as
though the Supreme Court does some legislating occasionally on its
own account. However, the same question came up again in the case of
Juillard vs. Greenman, and was decided the same way in March, 1884.
It was then held that Congress has the constitutional power to make
Treasury Notes of the United States a legal tender in payment of
private debts in time of peace, as well as in time of war.
Justice Gray uses this language: "The power is incident to the power of
borrowing money, and issuing Bills or Notes of the Government for money
borrowed, of impressing upon those bills or notes, the quality of being
a legal tender for the payment of private debts was a power universally
understood to belong to sovereignty in Europe and America at the time
of the framing and adoption of the Constitution of the United States."
It appears that he based his decision upon this fact, but George
Bancroft, the historian, reviewed this opinion in both its legal and
historical aspects. And referring to the statement quoted above, this
great historian declared it to be a stupendous error, and further
affirmed that no such power was understood to belong to sovereignty in
Europe at the time of the adoption of the Constitution, that is, in
1788.
Public-domain text, read in full here on John Shaqi.
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