Imágenes de páginas
PDF
EPUB

[422]

in the absence of any pretext of a justifying | exigency.

As an exigency created the power, so it limited the duration of the power. To attempt its exercise long after the exigency had ended, after the war which called it into being had ceased to exist, save in history and recollection, and after all the extraordinary and exigent methods of government, civil and military, which marked its dark and blood-stained days had been succeeded by the calm and order of established peace, is, we humbly submit, in excess of any power reposed by the Constitution in Congress.

er.

As the Constitution was framed; as it stands; as it has been construed, it grants no such powWe venture to affirm that if ever engrafted on the organic law, it must be by way of amendment, through the suffrages of the Nation, and not by a concession extorted from its Supreme Court.

Messrs. Thomas H. Talbot, James McKeen and B. F. Butler, for defendant in

error.

Mr. Justice Gray delivered the opinion of the court:

Julliard, a citizen of New York, brought an action against Greenman, a citizen of Connecticut, in the Circuit Court of the United States for the Southern District of New York, alleging that the plaintiff sold and delivered to the defendant, at his special instance and request, one hundred bales of cotton, of the value and for the agreed price of $5122.90; and that the defendant agreed to pay that sum in cash on the delivery of the cotton, and had not paid the same or any part thereof, except that he had paid the sum of $22.90 on account, and was now justly indebted to the plaintiff therefor in the sum of $5,100; and demanding judgment for this sum with interest and costs.

The defendant in his answer admitted the citizenship of the parties, the purchase and delivery of the cotton, and the agreement to pay therefor, as alleged; and averred that, after the delivery of the cotton, he offered and tendered to the plaintiff, in full payment, $22.50 in gold coin of the United States, forty cents in silver coin of the United States, and two United States notes, one of the denomination of $5,000, and the other of the denomination of $100, of the description known as United States legal tender notes, purporting by recital thereon to be legal tender, at their respective face values, for all debts, public and private, except duties on imports and interest on the public debt, and which, after having been presented for payment, and redeemed and paid in gold coin, since January 1, 1879, at the United States sub-treasury in New York, had been re-issued and kept in circulation under and in pursuance of the Act of Congress of May 31, 1878, ch. 146; that at the time of offering and tendering these notes and coin to the plaintiff, the sum of $5122.90 was the entire amount due and owing in payment for the cotton, but the plaintiff declined to receive the notes in payment of $5,100 thereof; and that the defendant had ever since remained and still was ready and willing to pay to the plaintiff the sum of $5,100 in these notes, and brought these notes into court, ready to be paid to the plaintiff, if he would accept them.

The plaintiff demurred to the answer, upon the grounds that the defense, consisting of new matter, was insufficient in law upon its face, and that the facts stated in the answer did not constitute any defense to the cause of action alleged.

The Circuit Court overruled the demurrer and gave judgment for the defendant, and the plaintiff sued out this writ of error.

The amount which the plaintiff seeks to recover and which, if the tender pleaded is insufficient in law, he is entitled to recover is $5,100. There can, therefore, be no doubt of the jurisdiction of this court to revise the judg ment of the Circuit Court. Act of February 18, 1875, ch. 77, sec. 8; 18 Stat. at L., 315.

The notes of the United States, tendered in payment of the defendant's debt to the plaintiff, were originally issued under the Acts of Congress of February 25, 1862, ch. 83, July 11, 1862, ch. 142, and March 3, 1863, ch. 73, passed during the war of the rebellion, and enacting that these notes should "be lawful money and a legal tender in payment of all debts, public and private, within the United States", except for duties on imports and interest on the public debt. 12 Stat. at L., 845, 532, 709.

The provisions of the earlier Acts of Congress, so far as it is necessary, for the understanding of the recent statutes, to quote them, are re-enacted in the following provisions of the Revised Statutes:

"Sec. 8579. When any United States notes are returned to the Treasury, they may be reissued, from time to time, as the exigencies of the public interest may require.

Sec. 3580. When any United States notes re turned to the Treasury are so mutilated or oth erwise injured as to be unfit for use, the Secre tary of the Treasury is authorized to replace the same with others of the same character and amounts.

Sec. 3581. Mutilated United States notes, when replaced according to law, and all other notes which by law are required to be taken up and not re-issued, when taken up shall be destroyed in such manner and under such regulations as the Secretary of the Treasury may prescribe.

Sec. 3582. The authority given to the Secretary of the Treasury to make any reduction of the currency, by retiring and canceling United States notes, is suspended."

"Sec. 3588. United States notes shall be lawful money and a legal tender in payment of all debts, public and private, within the United States, except for duties on imports and interest on the public debt."

The Act of January 14, 1875, ch. 15, "To provide for the resumption of specie payments, enacted that on and after January 1, 1879, "The Secretary of the Treasury shall redeem in coin the United States legal tender notes then outstanding, on their presentation for redemption at the office of the Assistant Treasurer of the United States in the City of New York, in sums of not less than $50," and authorized him to use for that purpose any surplus revenues in the Treasury and the proceeds of the sales of certain bonds of the United States. 18 Stat. at L., 296.

The Act of May 31, 1878, ch. which the notes in question were

146, under re-issued, is

[43

(43

38]

entitled "An Act to Forbid the Further Retire-, tution established a National Government, with
ment of the United States Legal Tender Notes,"
and enacts as follows:

"From and after the passage of this Act it shall not be lawful for the Secretary of the Treasury or other officer under him to cancel or retire any more of the United States legal tender notes. And when any of said notes may be redeemed or be received into the Treasury under any law from any source whatever and shall belong to the United States, they shall not be retired, canceled or destroyed, but they shall be re-issued and paid out again and kept in cir culation; Provided, That nothing herein shall prohibit the cancellation and destruction of mutilated notes and the issue of other notes of like denomination in their stead, as now provided by law. All Acts and parts of Acts in conflict herewith are hereby repealed." 20 Stat. at L., 87.

The manifest intention of this Act is that the notes which it directs, after having been redeemed, to be re-issued and kept in circulation, shall retain their original quality of being a legal tender.

The single question, therefore, to be considered, and upon the answer to which the judgment to be rendered between these parties depends, is whether notes of the United States, issued in time of war, under Acts of Congress declaring them to be a legal tender in payment of private debts, and afterwards in time of peace redeemed and paid in gold coin at the Treasury, and then re-issued under the Act of 1878, can, under the Constitution of the United States, be a legal tender in payment of such debts.

Upon full consideration of the case, the court is unanimously of opinion that it cannot be distinguished in principle from the cases heretofore determined, reported under the names of the Legal Tender Cases, 12 Wall., 457 [79 U. S., XX., 287]; Dooley v. Smith, 13 Wall., 604 [80 U. S., XX., 547]; R. R. Co. v. Johnson, 15 Wall., 195 (82 U. S., XXI., 178]; and Md. v. R. R. Co., 22 Wall., 105 [89 U. S., XXII., 718]; and all the Judges, except Mr. Justice Field, who adheres to the views expressed in his dissenting opinions in those cases, are of opinion that they were rightly decided.

The elaborate printed briefs submitted by counsel in this case, and the opinions delivered in the Legal Tender Cases, and in the earlier case of Hepburn v. Griswold, 8 Wall., 603 [75 U. S., XIX., 513], which those cases overruled, forcibly present the arguments on either side of the question of the power of Congress to make the notes of the United States a legal tender in payment of private debts. Without undertaking to deal with all those arguments, the court has thought it fit that the grounds of its judgment in the case at bar should be fully stated.

[ocr errors]

sovereign powers, legislative, executive and judicial. "The government of the Union," said Chief Justice Marshall, "though limited in its powers, is supreme within its sphere of action;" and its laws, when made in pursuance of the Constitution, form the supreme law of the land." Among the enumerated powers of government, we find the great powers to lay and collect taxes; to borrow money; to regulate commerce; to declare and conduct a war; and to raise and support armies and navies. The sword and the purse, all the external relations, and no inconsiderable portion of the industry of the Nation, are intrusted to its government." 4 Wheat., 405, 406, 407.

A constitution, establishing a frame of government, declaring fundamental principles and creating a national sovereignty and intended to endure for ages and to be adapted to the various crises of human affairs, is not to be interpreted with the strictness of a private contract. The Constitution of the United States, by apt words of designation or general description, marks the outlines of the powers granted to the National Legislature; but it does not undertake, with the precision and detail of a code of laws, to enumerate the subdivisions of those powers, or to specify all the means by which they may be carried into execution. Chief Justice Marshall, after dwelling upon this view, as required by the very nature of the Constitution, by the language in which it is framed, by the limitations upon the general powers of Congress introduced in the 9th section of the 1st article, and by the omission to use any restrictive term which might prevent its receiving a fair and just interpretation, added these emphatic words:

In considering this question, then, we must never forget that it is a constitution we are expounding." 4 Wheat., 407. See, also, page 415.

The breadth and comprehensiveness of the words of the Constitution are nowhere more strikingly exhibited than in regard to the pow. ers over the subjects of revenue, finance and currency, of which there is no other express grant than may be found in these few brief clauses:

"The Congress shall have power:

To lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts and excises shall be uniform throughout the United States;

To borrow money on the credit of the United States;

To regulate commerce with foreign Nations and among the several States, and with the Indian Tribes;

To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures."

[439)

No question of the scope and extent of the implied powers of Congress under the Constitution can be satisfactorily discussed without The section which contains the grant of these repeating much of the reasoning of Chief Jus- and other principal legislative powers concludes [440} tice Marshall in the great judgment in McCul- by declaring that the Congress shall have power: loch v. Md., 4 Wheat., 316, by which the power "To make all laws which shall be necessary of Congress to incorporate a bank was demon- and proper for carrying into execution the forestrated and affirmed, notwithstanding the Con-going powers, and all other powers vested by stitution does not enumerate, among the pow- this Constitution in the Government of the ers granted, that of establishing a bank or creat- United States, or in any department or officer ing a corporation. thereof."

The People of the United States by the Consti

By the settled construction and the only rea

make the treasury notes of the United States a legal tender in payment of private debts.

sonable interpretation of this clause, the words "necessary and proper" are not limited to such measures as are absolutely and indispensably necessary, without which the powers granted must fail of execution; but they include all appropriate means which are conducive or adapted to the end to be accomplished, and which in the judgment of Congress will most advan-thorized to borrow money or emit bills on the tageously effect it.

That clause of the Constitution which declares that "The Congress shall have power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States," either embodies a grant of power to pay the debts of the United States, or presupposes and assumes that power as inherent in the United States as a sovereign government. But, in whichever aspect it be considered, neither this nor any other clause of the Constitution makes any mention of priority or preference of the United States as a creditor over other creditors of an individual debtor. Yet this court, in the early case of U. S. v. Fisher, 2 Cranch, 358, held that, under the power to pay the debts of the United States, Congress had the power to enact that debts due to the United States should have that priority of payment out of the estate of an insolvent debtor, which the law of England gave to debts due to the Crown.

In delivering judgment in that case, Chief Justice Marshall expounded the clause giving Congress power to make all necessary and proper laws, as follows: "In construing this clause, it would be incorrect, and would produce endless difficulties, if the opinion should be maintained that no law was authorized which was not indispensably necessary to give effect to a [441] specified power. Where various systems might be adopted for that purpose, it might be said with respect to each, that it was not necessary, because the end might be obtained by other means. Congress must possess the choice of means, and must be empowered to use any means which are in fact conducive to the exercise of a power granted by the Constitution. The government is to pay the debt of the Union, and must be authorized to use the means which appear to itself the most eligible to effect that object.' 2 Cranch, 396.

"

In McCulloch v. Md., he more fully developed the same view, concluding thus: "We admit, as all must admit, that the powers of the government are limited and that its limits are not to be transcended. But we think the sound construction of the Constitution must allow to the National Legislature that discretion, with respect to the means by which the powers it confers are to be carried into execution, which will enable that body to perform the high duties assigned to it, in the manner most beneficial to the people. Let the end be legitimate, let it be within the scope of the Constitution, and all means which are appropriate, which are plainly adapted to that end, which are not prohibited, but consist with the letter and spirit of the Constitution, are constitutional." 4 Wheat., 421.

The rule of interpretation thus laid down has been constantly adhered to and acted on by this court, and was accepted as expressing the true test by all the Judges who took part in the former discussions of the power of Congress to

The other judgments delivered by Chief Justice Marshall contain nothing adverse to the power of Congress to issue legal tender notes. By the Articles of Confederation of 1777, the United States in Congress assembled were aucredit of the United States; but it was declared that "Each State retains its sovereignty, freedom and independence, and every power, jurisdiction and right which is not by this confederation expressly delegated to the United States in Congress assembled." Art. 2; art. 9, section 5; 1 Stat. at L., 4, 7. Yet, upon the question whether, under those articles, Congress, by virtue of the power to emit bills on the credit of the United States, had the power to make bills so emitted a legal tender, Chief Justice Marshall spoke very guardedly, saying: "Congress emitted bills of credit to a large amount, and did not, perhaps could not, make them a legal tender. This power resided in the States. Craig v. Mo., 4 Pet., 410, 435. But in the Constitution, as he had before observed in McCulloch v. Md., "There is no phrase which, like the Articles of Confederation, excludes incidental or implied powers; and which requires that everything granted shall be expressly and minutely described. Even the 10th Amendment, which was framed for the purpose of quieting the excessive jealousies which had been excited, omits the word 'expressly,' and declares only that the powers 'not delegated to the United States, nor prohibited to the States, are reserved to the States or to the people;' thus leaving the question, whether the particular power which may become the subject of contest has been delegated to the one government or prohibited to the other, to depend on a fair construction of the whole instrument. The men who drew and adopted this Amendment had experienced the embarrassments resulting from the insertion of this word in the Articles of Confederation, and probably omitted it to avoid those embarrassments.' 4 Wheat.,406, 407,

The sentence sometimes quoted from his opinion in Sturges v. Crowninshield had exclusive relation to the restrictions imposed by the Constitution on the powers of the States, and especial reference to the effect of the clause prohibiting the States from passing laws impairing the obligation of contracts, as will clearly appear by quoting the whole paragraph: "Was this general prohibition intended to prevent paper money? We are not allowed to say so, because it is expressly provided that no State shall emit bills of credit; neither could these words be intended to restrain the States from enabling debtors to discharge their debts by the tender of property of no real value to the creditor, because for that subject also particular provision is made. Nothing but gold and silver coin can be made a tender in payment of debts." 4 Wheat., 122, 204.

Such reports as have come down to us of the debates in the Convention that framed the Constitution afford no proof of any general concurrence of opinion upon the subject before us. The adoption of the motion to strike out the words "and emit bills" from the clause “to borrow money and emit bills on the credit of the

[4

[

ent or anticipated expenses and liabilities of the
government. It includes the power to issue, in
return for the money borrowed, the obligations
of the United States in any appropriate form,
of stock, bonds, bills or notes; and in whatever
form they are issued, being instruments of the
National Government, they are exempt from tax-
ation by the governments of the several States.
Weston v. Charleston,2 Pet.,449; Banks v. May-
or,7 Wall., 16 [74 U. S., XIX.,57]; Bank v. Su-
gress has authority to issue these obligations in
a form adapted to circulation from hand to hand
in the ordinary transactions of commerce and
business. In order to promote and facilitate
such circulation, to adapt them to use as cur-
rency and to make them more current in the
market, it may provide for their redemption in
coin or bonds, and may make them receivable
in payment of debts to the government. So
much is settled beyond doubt, and was asserted
or distinctly admitted by the Judges who dis-
sented from the decision in the Legal Tender
Cases, as well as by those who concurred in that
decision. Veazie Bk. v. Fenno and Hepburn v.
Griswold, 8 Wall., 533, 548, 616, 636 [75 U. S.,
XIX., 482, 487, 524, 530]; Legal Tender Cases, 12
Wall., 543, 544, 560, 582, 610, 613, 637 [79 U.
S., XX., 310, 315, 322, 331, 332, 340].

United States" is quite inconclusive. The philip-| credit, and may be exercised to meet either pres-
pic delivered before the Assembly of Maryland
by Mr. Martin, one of the delegates from that
State, who voted against the motion, and who
declined to sign the Constitution, can hardly
be accepted as satisfactory evidence of the rea-
sons or the motives of the majority of the Con-
vention. See, 1 Elliot's Debates, 345, 370, 376.
Some of the members of the Convention, in-
deed, as appears by Mr. Madison's minutes of
the debates, expressed the strongest opposition
to paper money. And Mr. Madison has dis-pervisors, 7 Wall., 26 [74 U. S.XIX.,60]. Con-
closed the grounds of his own action, by record-
ing that "This vote in the affirmative by Vir-
ginia was occasioned by the acquiescence of Mr.
Madison, who became satisfied that striking out
the words would not disable the government
from the use of public notes, so far as they
could be safe and proper; and would only cut
off the pretext for a paper currency, and par-
ticularly for making the bills a tender, either
for public or private debts." But he has not
explained why he thought that striking out the
words "and emit bills" would leave the power
to emit bills, and deny the power to make them
a tender in payment of debts. And it cannot
be known how many of the other delegates, by
whose vote the motion was adopted, intended
neither to proclaim nor to deny the power to
emit paper money, and were influenced by the
argument of Mr. Gorham, who "was for strik- It is equally well settled that Congress has
ing out, without inserting any prohibition," and the power to incorporate national banks, with
who said: If the words stand, they may sug- the capacity, for their own profit as well as for
gest and lead to the emission." The power, the use of the government in its money transac-
so far as it will be necessary or safe, will be in- tions, of issuing bills which under ordinary cir-
volved in that of borrowing.' 5 Elliot's De- cumstances pass from hand to hand as money at
bates, 434, 435, and note. And after the first their nominal value, and which, when so cur-
clause of the 10th section of the 1st article had rent, the law has always recognized as a good
been reported in the form in which it now tender in payment of money debts, unless spe-
stands, forbidding the States to make anything cifically objected to at the time of the tender.
but gold or silver coin a tender in payment of U. S. Bank v. Bank of Ga.,10 Wheat., 333, 347;
debts, or to pass any law impairing the obliga- Ward v. Smith, 7 Wall., 447, 451 [74 U. S.,
tion of contracts, when Mr. Gerry, as reported XIX., 207, 209]. The power of Congress to
by Mr. Madison, "Entered into observations in- charter a bank was maintained in McCulloch v.
culcating the importance of public faith, and Md., 4 Wheat.,316, and in Osborn v. U. S. Bank,
the propriety of the restraint put on the States 9 Wheat., 738, chiefly upon the ground that
from impairing the obligation of contracts, al- it was an appropriate means for carrying on
leging that Congress ought to be laid under the the money transactions of the government.
like prohibitions," and made a motion to that But Chief Justice Marshall said: "The curren-
effect, he was not seconded. lb., 546. As an cy which it circulates, by means of its trade
illustration of the danger of giving too much with individuals, is believed to make it a more
weight, upon such a question, to the debates and fit instrument for the purposes of government
the votes in the Convention, it may also be ob- than it could otherwise be; and if this be true,
served that propositions to authorize Congress the capacity to carry on this trade is a faculty
to grant charters of incorporation for national indispensable to the character and objects of the
objects were strongly opposed, especially as re-institution." 9 Wheat., 864. And Mr. Justice
garded banks, and defeated. Ib., 440, 543, 544.
The power of Congress to emit bills of credit,
as well as to incorporate national banks, is now
clearly established by decisions to which we
shall presently refer.

1444) debt

[ocr errors]

66

The words to "borrow money," as used in the Constitution, to designate a power vested in the National Government, for the safety and welfare of the whole people, are not to receive that limited and restricted interpretation and meaning which they would have in a penal statute, or in an authority conferred, by law or by contract, upon trustees or agents for private purposes.

The power" to borrow money on the credit of the United States" is the power to raise money for the public use on a pledge of the public

Johnson, who concurred with the rest of the
court in upholding the power to incorporate a
bank, gave the further reason that it tended to
give effect to that power over the currency of
the country, which the framers of the Constitu-
tion evidently intended to give to Congress
alone. Ib., 873.

The constitutional authority of Congress to
provide a currency for the whole country is
now firmly established. In Veazie Bk. v. Fenno
[supra], Chief Justice Chase, in delivering the
opinion of the court, said: "It cannot be doubt-
ed that under the Constitution the power to pro-
vide a circulation of coin is given to Congress.
And it is settled, by the uniform practice of the
government and by repeated decisions, that
Congress may constitutionally authorize the

[445]

[446]

[447]

emission of bills of credit." Congress, having
undertaken to supply a national currency, con-
sisting of coin, of treasury notes of the United
States and of the bills of national banks, is au-
thorized to impose on all state banks, or nation-
al banks or private bankers, paying out the
notes of individuals or of state banks, a tax of
ten per cent upon the amount of such notes so
paid out. Veazie Bk. v. Fenno, above cited;
Nat. Bank v. U. S., 101 U. S., 1 [XXV., 979].
The reason for this conclusion was stated by
Chief Justice Chase, and repeated by the pres-
ent Chief Justice, in these words: "Having thus,
in the exercise of undisputed constitutional
powers, undertaken to provide a currency for
the whole country, it cannot be questioned that
Congress may, constitutionally, secure the ben-
efit of it to the people by appropriate legislation.
To this end, Congress has denied the quality of
legal tender to foreign coins, and has provided
by law against the imposition of counterfeit and
base coin on the community. To the same end,
Congress may restrain, by suitable enactments,
the circulation as money of any notes not issued
under its own authority. Without this power,
indeed, its attempts to secure a sound and uni-
form currency for the country must be futile."
Bank v. Fenno supra]; Bank v. U. S.

ing money and issuing bills or notes of the gov ernment 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. The governments of Europe, acting through the monarch or the Legislature, according to the distribution of powers under their respective constitutions, had and have as sovereign a power of issuing paper money as of stamping coin. This power has been distinctly recognized in an important modern case, ably argued and fully considered, in which the Emperor of Austria, as King of Hungary, obtained from the English Court of Chancery an injunction against the issue in England, without his license, of notes purporting to be public paper money of Hungary. Austria v. Day, 2 Giff., 628, and 3 De G. F. & J.,217. The power of issuing bills of credit and making them, at the discretion of the Legislature, a tender in payment of private debts, had long been exercised in this country by the several Colonies and States; and during the Revolutionary War the States, upon the recommendation of the Congress of the Confederation, had By the Constitution of the United States, the made the bills issued by Congress a legal tendseveral States are prohibited from coining er. See, Craig v. Mo., 4 Pet., 435, 453; Brismoney, emitting bills of credit, or making any-coe v. Bank of Ky., 11 Pet., 257, 313, 334-336; thing but gold and silver coin a tender in pay. Legal Tender Cases, 12 Wall., 557, 558, 622 [79 ment of debts. But no intention can be inferred U. S., XX., 314, 335]; Phillips, American Pafrom this to deny to Congress either of these per Currency, passim. The exercise of this powers. Most of the powers granted to Con- power not being prohibited to Congress by the gress are described in the 8th section of the first Constitution, it is included in the power expressarticle; the limitations intended to be set to its ly granted to borrow money on the credit of the powers, so as to exclude certain things which United States. might otherwise be taken to be included in the general grant, are defined in the 9th section; the 10th section is addressed to the States only. This section prohibits the States from doing some things which the United States are expressly prohibited from doing, as well as from doing some things which the United States are expressly authorized to do, and from doing some things which are neither expressly granted nor expressly denied to the United States. Con gress and the States equally are expressly prohibited from passing any bill of attainder or ex post facto law, or granting any title of nobility. The States are forbidden, while the President and Senate are expressly authorized, to make treaties. The States are forbidden, but Congress is expressly authorized to coin money. The States are prohibited from emitting bills of credit; but Congress, which is neither expressly authorized nor expressly forbidden to do so, has, as we have already seen, been held to have the power of emitting bills of credit and of making every provision for their circulation as currency, short of giving them the quality of legal tender for private debts-even by those who have denied its authority to give them this quality.

It appears to us to follow, as a logical and necessary consequence, that Congress has the power to issue the obligations of the United States in such form, and to impress upon them such qualities as currency for the purchase of merchandise and the payment of debts, as accord with the usage of sovereign governments. The power, as incident to the power of borrow

This position is fortified by the fact that Congress is vested with the exclusive exercise of the analogous power of coining money and regulating the value of domestic and foreign coin, and also with the paramount power of regulating foreign and interstate commerce. Under the power to borrow money on the credit of the United States, and to issue circulating notes for the money borrowed, its power to define the quality and force of those notes as currency is as broad as the like power over a metallic currency under the power to coin money and to regulate the value thereof. Under the two powers, taken together, Congress is authorized to establish a national currency, either in coin or in paper and to make that currency lawful money for all purposes, as regards the National Government or private individuals.

The power of making the notes of the United States a legal tender in payment of private debts, being included in the power to borrow money and to provide a national currency, is not defeated or restricted by the fact that its exercise may affect the value of private contracts. If, upon a just and fair interpretation of the whole Constitution, a particular power or authority appears to be vested in Congress, it is no constitutional objection to its existence or to its exercise, that the property or the contracts of individuals may be incidentally affected. The decisions of this court, already cited, afford sev eral examples of this.

Upon the issue of stock, bonds, bills or notes of the United States, the States are deprived of their power of taxation to the extent of the prop

[4

« AnteriorContinuar »