Another question arose of a more serious character upon the right of the
state to emit “Bills of Credit.” This the Federal constitution
prohibited. A test case was made upon one of the state orders and taken
to the United States Supreme Court. The decision of that tribunal was
rendered by a divided court, a majority being of opinion that they could
not be regarded as coming within the prohibition of the constitution
referred to. These orders, the court held, were not designed to
circulate as money, because they were directed to a private association
of individuals designated as the Co-opolitan Association, and simply
directed such association to deliver goods to the bearer. It was not a
promise on the part of the state to pay money, nor to deliver goods. It
was to be honored on demand, and when received by the Association in
question was forthwith canceled. Evidence was offered by the parties
seeking to void the orders that as a matter of fact they did circulate
as money. This was held to be immaterial, for the reason that the fact,
if shown, would not tend to prove that such was the intention of the
state. The truth was that very few of the state orders so circulated.
They were usually presented to the Co-opolitan store at any county seat
without intermediate transfer, and a labor-credit check or industrial
orders were issued instead.
It is true that such industrial orders so circulated and were treated as
money by the people of Idaho, but the practice was not encouraged by
Co-operators, because it was an incident of individualism and not of
co-operation. Their circulation could not be prevented so long as the
co-operative plan embraced the purchase of all property owned or
produced by individualists in the state, and payment on goods or
property as represented by these orders. In 1904 more than one-half of
the people of the state were members of the Co-opolitan Association, and
great numbers of those who were not members were daily becoming so. It
was believed that in time our industrial orders would cease to circulate
and perhaps be entirely superseded by the labor-credit check. It should
be borne in mind that the labor-credit check, not being transferable,
never passed out of the hands of its owner.
Public-domain text, read in full here on John Shaqi.
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