Hepburn v. Griswold

Hepburn Dec. 603 v.

Syllabus. an which lies is of our beyond inquiry sphere and If an action of covenant or duties. had ejectment and it had been held that the constitution of Mis brought, affected the souri would recovery, question right per a different But no such haps aspect. ease presented we have had us, and not occasion before to consider the a The of State retroactive subject. right legislature pass no where there is inhibition in the laws, constitution of the dq not State, they con provided impair obligation and are not ex in their tract, post is too well character, facto settled to admit of doubt.* We find no error in the record which we can take cognizance. Judgment affirmed.

Hepburn v. Griswold. plain import of term's and the 1. Construed their manifest intent of 1863, the statutes of legislature, 1862and make United States debts, payment-of public notes a private, apply to debts contracted before well as to debts Contracted after enactment. County Oregon, Bodes, v. 2. cases Lane Bronson v. and Butler v. Hor- 229, 71, that, witz (7 258), Wallace which it was held upon a statutes, sound construction of those taxes imposed by neither State legislation nor dues contracts for the or delivery of coin included, intent, by legislative or bullion'are under the description of “ debts, public private,” approved and reaffirmed. determination, judicial arises for a ease 3. When and the decision depends alleged provision on the inconsistency legislative with the Consti- tution, duty it is Supreme plain Court to comparo the act law, with the if cannot, fundamental the former upon a fair con- struction, latter, he reconciled with the to give effect to the Constitution than rather the statute. is in There Constitution no express grant legislative 4. power to make description credit currency legal tender in payment of debts. “ ” 5. The all proper words laws for carrying into execution have, powers expressly granted or vested a sense * ; Leland, Peters, Mercer, v. 2 88; Williamson 627 Watson v. 8 Id. Howard, Peters, 494; 15 Kearney Taylor, Mathewson, 380; v. Sattelee v. 2 Pawlet, 480; Nesbit, 4 v. Railroad v. Society Howard, 401; 10 Id. Albee v. Blackford, Paine, 74; Russell, May, 2 Andrews 475. '

Statement of the case. indeed, equivalent laws, absolutely necessary t'o that of the words adapted ends, but appropriate, plainly legitimate to constitutional and prohibited, which are not but consistent spirit letter Constitution; objects really laws calculated effect intrusted government. Among 6. means appropriate, plainly adapted, not .inconsistent with the Constitution, terms, spirit of the prohibited by nor legislature the choice; has unrestricted but no can be by derived implication from any laws as express power carrying enact means it into execution unless laws come this description. such within making of legal 7. The of notes or bills credit a tender payment in of pre- is not existing appropriate, debts a means plainly adapted, or really cal- carry into express power culated effect in Congress, vested in- spirit Constitution, consistent with the prohibited and.is Constitution. of 8. The clause in the acts and 1863 which makes United States notes debts, in all legal payment public private, a tender of is, so far as it applies to passage acts, debts contracted before the of those unwarranted by the Constitution. 1862, February, 9. Prior to the 2Sth of all contracts for the payment of money, not expressly otherwise, were, stipulating legal in effect .and and,' understanding, coin, for the payment contracts of universal under parties to such contracts respectively entitled due, demand'and to pay bound accoi’ding sums to their terms, in coin, notwithstanding act, the clause in the subsequent of acts tenor, like make which United States notes a payment in of such debts. to the Court of of Appeals case Kentucky, Error this: being 1860,

On the 20th of June, Mrs. certain Hepburn'made which she note, promissory promised, pay Henry Griswold on the of .1862, 20th eleven February, thousand “ two hundred and dollars.” fifty made,

At the time when the note was as also at the time due, when it fell was, there no confessedly, lawful money United States, which could money be ten- lawfully dered in debts, but private and silver gold coin.

Five after the when the days note its- day terms fell due, is to on the 25th say, 1862, in an February, exi- in crisis which the gent nation, en- government was in down an armed rebellion vast putting gaged magnitude, an act the issue of Congress passed authorizing $150,000,000 Dec, Hepburn case.

Statement in and enacted' notes,* them, of its own one regard section act, clause first follows: “ authorized, notes, herein And such shall- receivable pay- excises,debts, demands taxes, duties, every all internal ment and of all duties on States, except imports, due to kind the United kind States of United and demands against claims evpry notes, bonds and for interest whatsoever, except coin; also and shall shall be paid lawful debts, all within the United public- private, tender payment of and interest as aforesaid.” duties imports States, except Mrs. at matu- note paid being given by in March, it. And suit 1864, accrued on interest having rity, note in on the the Louisville Chancery Court, been brought notes issued under in-United States the act tendered she the amount of note $12,720, mentioned, principal tender, accrued to date and some costs, the interest The tender the claim. was re- in satisfaction of plaintiff’s court; then tendered into fused. The notes were paid all doubts in- favor of the chancellor, the “resolving the tender the declared adjudged debt, good Congress,” satisfied to be interest and costs accordingly. taken Griswold the was then Court of by

The case the reversed Errors of chancellor’s Kentucky, judg- with case instructions and remanded enter a ment, contrary judgment.- of the Court of Errors

From judgment Kentucky, Mrs. was here. Hepburn case by brought at the Term of was first December, cause argued 1867, The Mr. briefs submitted Preston for the by printed plain- upon, and Mr. Griswold contra. error, tiff in Subsequently, upon then of Mr. as to Stanbery, Attorney-General, the suggestion of the the court question, ordered importance public the great causes other involving, incidentally, cause same. Term, December stand for 1868, over reargu- question, to be heard. leave Accord- ment, term the at that in constitutionality provision ingly, * notes, Wallace, form general see 7 26. For the court. the act the notes above-described making tender, (counsel Mr. B. R. elaborately by Curtis argued plain for in error, in v. Willard and by Mr. Tayloe), Evarts, Attorney- tiff General, in States, the United support provision,and by for Mr. ClarksonN. Potter counsel tlie in (of error in defendant theprovision. against case), And the had constitutionality provision argued at different other in five times, counsel, other cases, which it was their counsel supposed by it, but might depend Tour of which were decided on other to wit, in grounds j Mr. support Carlisle, Mr. constitutionality by W. S. Cox, Williams, Mr. Mr. S. S. Mr. B. R. Curtis, Mr. Rogers, P. Howe, L. Mr. Poland, Mr. against Mr. Bradley, Wilson, Johnson, Mr. Mr. Townsend, John J. Mr. McPher Mr. son, in Thomsonv. in Wills, Lane County Riggs,* in Bronson v. Willard v. Oregon,† Rodes,‡ Tayloe,§ Magraw. n Broderick v. The was therefore question thor And it was held under oughly advisement. argued. long It is deemed here to present unnecessary arguments, in some of the cases already part presented, named, the case matter in the on both present being fully argued sides, the bench. from

The CHIEF JUSTICE delivered the of opinion court. for our determination question presented the record case whether in this or not the is, of a payee note, assignee made before the 25th of 1862, is February, law obliged by United States accept notes, in nominal equal to the sum due amount to its terms, when according tendered or other bound maker it? And party pay this re- in first a construction place, of that quires, clause of the the. first section the act of passed day, which declares the notes, United States the.issue of which was authorized to be a statute, by tender in legal payment debts. The has clause received much already considera- tion has held here, this court that, a sound upon con-

* Wallacee, 663. 5 7 Id. 73. Id. 229. † ‡ Supra, Infra, 039. 557. n § 607 Dec. v. of the court. State neither taxes nor struction, by imposed legislation,* in terms which demands contracts stipulate coin are included bullion,† by or delivery payment of debts under the description public intention legislative are now determine whether this We descrip and private. before as well as debts contracted after.the tion embraces act. date of the statutes, an rule for construction of

It is established are not to receive legislature that the terms by employed an which conflicts prin- interpretation acknowledged another sense, if consonant with justice equity, ciples to them. But rule cannot can those .be given principles, is clear. the intent Except-in where scarcely prevail a statute case where sets.at plainest nought supposable courts must of morality obligation, social precepts give ascertained if intent, not re- effect to the clearly .legislative in fundamental law ordained Consti- pugnant tution. the rule stated to the act under just considera-

Applying to be reason for there tion, appears strong construing word debtsas reference to debts contracted sub- having only the enactment of the law. For no one will ques- sequent the act notes, that the United States makes*a tion are in nature, tender essentially-unlike and, payment, coin, unlike in irredeemable necessarily value, being intended to contracts parties to the lawful for the money made before its The lawful of money passage. and made a then use iegal payment, money and silver coin. The in use consisted under currency of gold its terms and declared to be lawful act, and a consists of notes tender, promises pay impressed in convenient form for upon paper, prepared circulation, suitable devices and protected against counterfeiting pen- former intrinsic value, possess alties. determined by metal; and fiueness of the the latter have no weight value, value, determined intrinsic but' purchasing * Wallace, County Oregon, Lane 71. 229; Rodes, Horwitz, Id. Butler v. Bronson v. Ib. 258. † Hepburn

Opinion the court. in quantity circulation, consent to its in by general currency payments, to the by opinion probability redemption in coin. Both in derive, different a certain ad- degrees, ditional value from their to circulation adaptation form and to them impress under National given authority, from acts them a tender. making respectively legal

Contracts for the made before payment the act money, had reference 1862, to coined and could not be money, unless consent, otherwise than tender of discharged, sum due in coin. such contract, therefore, Every was, in contract for the legal import, coin. payment There is a well-known law of that notes or currency, unless made promises pay, conveniently promptly coin at the convertible into will of the holder, can never, under unusual and abnormal except conditions, in par an circulation with coin. It is law, that equally well-known must (cid:127) features. no it néeds Now, to that an -certainly argument prove act, in satisfaction of other'than acceptance compelling any stip- ulated alters terms payment, arbitrarily contract and its and that the extent of impairs obligation, impair- is in the ment proportion inequality payment under the constraint the law to the due accepted payment- under the contract. Nor does need it to ai’gument prove that the of such act is to operation practical jus- contrary an tice and It follows that' no construction which at- equity. such an tributes to act of operation to practical Congress or to favored, admitted, be indeed be if other can be any with the manifest intent of the reconciled legislature. that manifest intent? "What, then,-is Are we at liberty, fair reasonable construction of the act, say meant that the word “debts” used in the act not include debts its should prior ? contracted passage case of Bronson we v. Rodes, In the ourselves war thought in' that this used as 'in the Word,, statute, ranted does holding include created contracts for express not obligations whether or silver, coined in bullion. gold rested, however, conclusion on the This terms of the mainly which not but allow, in coin act, only require payments or to the inde government, may fairly considered, of considerations to the law of con belonging pendently delivery specified articles, tracts sanctioning like contracts for without private payments; which, special indeed, provisions relating government payments effect. This Consideration, how hardly practical could does not to the matter now before us. ever, There is apply in the act.which terms looks to differ nothing any in on different its operation descriptions ence debts pay in dollars say, able parts generally —that.is obvious; terms, These on the a dollar. their contrary, all debts not include specially equally expressed import, silver, whether under arising be payable gold past VOL. VIII. Ct, tho court.

Opinion of due, such contracts under or arising contracts and already due a future becoming day, arising and to-become (cid:127) literal com A contracts. strict due under subsequent Justice Story,* Mr. would, as struction indeed suggested Constitution, limit the same word used respect construction, and if this to debts the word “debts” existing; sanctioned can the limitation cannot be because accepted aud purpose obvious scope reconciled it is conclusive act, interpretation certainly against from, The same debts will exclude operation. existing on loans' of interest results from conclusion exception from the' effect of and duties on imports an irresistible This affords implication clause. exception be' contracted, no whenever debts, description can. act if not included within from the effect of the withdrawn And intent of terms reasonable exception. all connection, that in of observation in it worthy this no in which the act occasion Congress, sug debates to gave did clause not made that the tender was ever gestion to contracts made as to contracts made before as fully apply its after passage. to, do us We not seem conclusive.

These considerations therefore, ourselves liberty, say Congress' think to make the notes authorized it a not intend did by in of debts before the tender contracted payment passage the act. pf are thus to the whether

We question, brought Congress make notes under its issued has authority power legal, when' debts, which, contracted, in were in and law silver coin. gold by payable and of this has not been delicacy importance question This court always approaches overstated argument. nature the consideration questions reluctantly; and decision-, constant, is, rule has .that acts beeu, its constitutional, as unless must regarded clearly be otherwise. shown-to

* 1 Story Constitution, 921. § Pec. - Hepburn v. of the court. is the law of

But the Constitution fundamental the United de- it the have created States. By people government, fined them limits, their distributed powers, prescribed in directed, the different departments, general, among No of the manner of their exercise. department govern- has to it ment other than those thus powers delegated All the people. power granted legislative Constitution it has no but belongs legislative Congress; is not And the which thus same observa- granted. tion is true in its to the executive aud equally application judicial powers President respectively granted the courts. All these in in kind, differ but not source or limitation. all arise from Constitu- They tion, limited its terms.

It is the function aud judiciary interpret apply the law to cases between arise for parties they judgment. It can declare what the is, law and only enforce, by proper the law thus process, declared. But, ascertaining respective rights parties, becomes frequently consult to' the Constitution. For there can be no law in- consistent with the fundamental law. No enactment pursuance conferred it can create authority obliga- tions or confer For such is the rights. declaration express Constitution itself these words: “ The the laws of the United States which shall be made in pursuance thereof., all treaties made,.or shall be made under the authority United shall be the States, law of land; supreme and the State shall be bound judges in thereby, anything every constitution the laws State to the' any not- contrary withstanding.”

Not act of every to then, is be as Congress, the regarded land; law the supreme is it nor act of by every (cid:127)that the are bound. judges This character and this force “ to such acts-as only belong made in pursuance Constitution.”

When, therefore, case arises for judicial determination, and the decision on the depends of a alleged inconsistency

$12 of the court. fundamental it is law, with the the legislative provision plain the with the the court to act compare duty a fair construction, if be cannot, former recon- the upon effect to rather latter, the to the Constitution give ciled so This seems that it is tlie statute. plain than impossible If it otherwise the Con- make plainer by argument. to law; it is neither not the stitution is supreme whether or not useful; case, to act of inquire in any it; in and the oath which was passed pursuance Congress' take, court to he member required every without to and do “will administer justice respect persons, and the rich, faithfully poor perform equal right of his him the best incumbent ability duties .the to the Constitution laws of understanding, agreeably an idle States,” form. becomes United' unmeaning The us is one of before private plaintiff case right. to recover of the defendants a the court below in sought face on the of a note. sum certain expressed promissory insisted on the under act of right, Feb- The defendants themselves of their 1862, 25th, acquit obligation by ruary a sum in United nominally equal payment tendering But note had been executed before the notes. States insisted on act, and the his plaintiff passage'of right the amount due to be under the Constitution paid gold been, be, And it has not and cannot and silver. denied that was his entitled plaintiff judgment according claim, a constitutional law Dec. Hepburn v. Griswold.

Opinion of court. the It becomes our to therefore, determine whether the duty, act of 25th, 1862, so far as.it makes United February States notes a of debts contracted prior its is constitutional and valid otherwise. Under- passage, a sense our this to the deep perform .duty obligation best our we shall ability understanding,, proceed of the case the dispose record. presented by We have and it is if not univer- said, already generally, conceded, that the of the United States is sally, government one of limited and that no powers, department possesses any not the authority Constitution. granted by exist-; It is not in order to the however, necessary, prove enee of a and ex- to show a particular authority particular the Constitution was to establish press grant. design to the direction and administration government competent the and, time, of the affairs of same nation, great marls;, definite of its lines, To by sufficiently the’sphere operations. end it needful make this was express only grants gen- awith further of such incidental powers, coupled eral grant for exercise of' might auxiliary powers required These are powers powers expressly granted. necessarily extensive. It has been in the found, indeed, ad* practical ministration of the if not government, very large part, of its functions have been part, largest performed exercise of powers -implied. .thus

But the extension power by implication regarded with some the wise men who apprehension by framed, and citizens who adopted, Constitution. intelligent This is manifest the terms apprehension of incidental and is made. grant auxiliary powers -All under the nature included description of “ to make all laws proper carrying into execution powers expressly granted, Congress vested Constitution inor or officers.” departments The same apprehension apparent tenth equally “ article of which declares that amendments, the powers United States nor delegated the court.

Opinion of are to it the reserved the States or States, to prohibited the people.” either of these mean to that constitutional

We do uot say exercise of be taken as power is to restricting any provisions one of derivation from the’ fairly by legitimate warranted The first enumerated or was powers. undoubtedly express in to the existence doubt introduced to exclude all. respect “ words necessary while the proper” of implied powers; “ words of to use the Mr. sense,” were intended have a “ once directory,” Justice admonitory Story, an means in the execution of express that the used require “ the end.”* be The fide, appropriate should bond power intended to have a like second provision admonitory to restrain the limited sense, and directory from the exercise of the Constitution established under or derived inference just not delegated clearly, so delegated. from powers nor, in maintained indeed, argument,

It has not conversant with constitu- one, however would slightly any is in the that there Consti- law, think of maintaining tional of to .make auy express grant legislative any tution credit currency description debts. can be done then whether this We the must inquire of an exercise power. implied whether a enactmeut rule for determining The legislative an as an exercise of power was implied can be supported' the Marshall, whole Justice speaking-for Chief stated by case of v. State Maryland;† McCullough court, made has ever since been then statement accepted the the Constitution. His words were a correct exposition it end be let within the legitimate, scope “Let these: all means are which appropriate, are end, which not are pro adapted plainly letter and consistent Con hibited, spirit but And another constitutional.” part stitution, * Oonstitution, 142, 4 Wheaton, p. 1253. on the 421. Story § † Dec.

Opinion of.the court. same opinion this rule was thus practical application illustrated: “Should its the execution of Congress, measures which are Con powers, adopt prohibited by or should stitution, under the Congress, pretext executing laws pass powers, accomplishment objects of. intrusted would government, painful duty tribunal, of this should a case such .decision requiring toit, come before an act the law of such was not say the land.' But where the law is not and is prohibited, really to effect calculated intrusted objects govern to undertake here of its into the ment, inquire degree would be to liné necessity the. which circumscribes pass and tread on department, judicial ground.”* legislative (cid:127) must be taken then settled, It as so far as judicial finally can settle that the words “all decisions laws neces- anything, for into execution” ex- proper sary carrying vested, or in the have, a Constitution, granted sense pressly to that of the words, laws, not neces- equivalent absolutely but indeed, t<5 appropriate, plainly constitu- sary adapted ends; tional'and laws not but con- legitimate- prohibited, with the letter of the sistent spirit Constitution; laws to calculated effect intrusted to the objects really govern- ment. then, before us, resolves

The itself into question “Is this: makes United States clause-which notes a ‘the tender legal contracted' to its enactment, debts a law prior for of the de- stated rule?”' scription' not that the to establish a power .is doubted

It standard of all other values which may measured, value inor, other what to determine shall lawful words, a legal nature, is in its and of tender, necessity, governmental all It countries exercised the power.' government. is. so far United.Státes, as it relates In the to'the'precious metals, 'in it is Congress by grant vested power to coin t.he can a to But these impart power money. qualities to notes, to offered in pay money,'when or. promises discharge pre-

* Wheaton, 423. $Snp. v.-

Opinion, the court. or tbe from from coinage power, be derived debts, existing ? other power expressly given to as coin the same power power It is. certainly sense an or satisfactory reasonable is it in any Nor money. means to exercise of that adapted plainly appropriate it is im- more reason that is there Nor saying power. the value to, the incidental in, power regulate plied coins. States, or This United foreign coined money to determine the pu- power weight, of regulation power of the several coins, and denomination form, rity, impression, and the relations of other, to each their relation foreign States. unit United monetary coins make notes the same as is the legal Nor power be used as to issue notes old currency. the power Confederation, was the Articles clothed under Congress, credit, to emit bills of with express power grant as that for circulation currency; yet are fact notes to make these not.clothed bills power Congress And this court has held tender in recently a legal payment. inci- under possesses, Congress, same as the old other power dental to powers, notes; but it was declared at emit bills or expressly concluded same time this decision the ques- nothing Indeed, we not aware tender. that it has tion been claimed to issue bills or ever that the notes has power make them a with the tender. any identity On refutes whole contrary, history that country notion. The States have held to always, possess the and the issue of to authorize bills for circu- power regulate individuals, or as lation banks has been de- subject, lately termined, to the control of for the Congress, estab- purpose a National and and the States currency; yet lishing securing the Constitution from are expressly prohibited making but and silver coin a tender. This legal seems anything gold that to issue and decisive on notes point power are make them a tender not the same to power, power legal have no connection with each other. they has that the But it been maintained to argument power Dec. court. of all a States notes tender in

make United payment legal exe- is a debts means appropriate and-plainly adapted to cution of on war, power carry power regulate commerce, is, borrow If it power money. is not with the letter nor inconsistent prohibited, spirit Constitution, then the'act makes them such legal tender must be held to be constitutional. us, then,

Let is first whether it an inquire appropriate means for on The plainly, adapted war? affirmative carrying thus has stated: to de- argument maybe power Congress war; clare and has for also provide carrying Congress Hepburn 618 v. Griswold. of the court. to determine what have the described powers

power -finally other relation as means to execution of powers plainly and liabil- to exercise without and, then, absolutely granted, -in cases private question, involving rights, ity, relation, to have that would completely thus determined It would American con- nature.of government. change ordained as a the people govern- vert government, of unlimited ment-of limited into a-government powers, boundaries which separate It would confuse the powers. and It the executive from judicial authority. legislative criterion which-this court, obliterate would every speaking in the ease cited, the venerated Chief Justice already through for the determination of established whether the.question acts are constitutional unconstitutional. legislative means appropriate, adapted, Undoubtedly plainly among has unrestricted choice. Hut calculated, really legislature implied not to use means within the be no can there description. what has considered been then, let

Now, actually, of a National In currency. July done provision issue of 1862, the millions 1861, and February, sixty August, demand, on was notes, States payable United of dollars made receivable but payments, were authorized.* They March, when 1862,† until not declared were legal reduced re in circulation had the amount greatly the issue'of four In cancellation. 1862 ceipt 1863‡ notes, millions in States United payable hundred fifty at the convenience demand, but, effect, on not to certain restrictions authorized, was subject government, notes were made millions. These receivable as to fifty for all due to or from loans, debts bonds National interest duties States, imports except the United on. In declared tender. and were also debt, the public- dollar issue of notes for March, 1863,§ parts millions of dol to an amount fifty exceeding authorized but were tender, not declared a notes were These lars. * 259, Ib. 313, 370. Large, and 338. Stat. † 532, Ib. 345, Ib. 711. 709. § ‡ Dec. of the court. tbe

made be prescribed redeemable under regulations the issue 1863,* In .of February, Secretary Treasury. notes of the National three hundred millions of dollars These notes was authorized. were associations banking same as notes, made receivable to extent United States was made to secure their but provision redemption, they . a were not made tender legal The several of notes have constituted, since descriptions under the various acts of common of' currency Congress,- The notes States. which were not declared United a tender have de- circulated with-those which were so legal clared without unfavorable discrimination.

It as a issues, be added that other may part history interest at various were authorized and made bearing rates, a tender, of bank for face legal except redemption notes, amount exclusive of interest. Such were the one and two cent, five notes and three years per years compound interest These notes never entered largely notes.† permanently circulation; into the and there is no reason to think that their was increased diminished the act utility which declared them face a tender for amount. need legal not be further They considered here. serve They only tendency illustrate all remarked who have thq investigated subject paper increase the volume of money, irredeemable issues, to extend indefinitely application quality legal tender. That it was carried no farther the recent during war, civil and has been carried no farther due since, is to cir cumstances, the consideration of which does not belong this discussion.

We recur, then, to under question consideration. No one questions general not constitutionality, very many, perhaps, general expediency legislation by a note which currency-has authorized in recent years. The doubt is power declare a particular class these notes to tender in legal pre-existing debts.

* 12 at Large, Stat. 669. 218, 13 Id. 425. † CL

Opinion of the court. only this is ground asserted is, not was an legal paper provision, all in this was of respect, at com- trifling importance useful made with that them receivable for pared government that, All modern testifies in time of war history dues. espe-' when taxes loans augmented, large daily, negotiated, made, notes issued the author- disbursements and heavy by receivable and made for dues of the government, ity a circulation; at first obtain ready always government, coin, redeemable in are as little demand, not even when other de- less depreciation.than any usually subject for which no better notes, redemption scription And under history is máde. legislation provision it was that is, quality ofreeeivability, consideration tender, that reliance for the quality legal not upon for the clause placed; receivability was originally circulation draft of the while bill, original to have appears have been seems to introduced at a tender clause the legal of its progress. later stage are not without as evidence weight certainly facts

These the notes would have been the useful purposes all that them a tender for without legal pre- making answered fully denied, indeed, eminent writers, It is that by debts. existing at all tender adds to the credit anything of legal the quality insist, notes. They on the government or usefulness both. However this be, it it impairs may that contrary, as a means that it is to an end to be remembered be must that the action implied government, by attained Dec. of the court. in all a is and the values, and of the fluctuations

business, currency and and the the to the people government, increase prices irredeemable from the use of which flow evils train of long are not to at- evils these It is true that money. paper tender. this it to But legal making altogether tributed widens their extent and It these certainly increases evils. their continuance. protracts that an ourselves expedient are unable tó

¥e persuade means and for the adapted sort is an plainly appropriate and war. declare If it the carry execution of power' it'cannot be notes, the uphold adds utility nothing the notes are the end means to as a furtherance bo as such, if, upheld can in our judgment, Nor it, issued. Opinion of the court.

while in-some the circulation notes, facilitating degree it debases and the in its use to injures currency proper much And considerations seem to Us these greater degree. the and commerce equally applicable regulate to borrow Both the use involve powers necessarily money. and neither, but people by government, as we think, as an appropriate plainly carries . its circu- means to exercise, adapted power making tender in debts. notes a lating .payment pre-existing But there which seems to view, decisive, is another us implied express power supposed whatever. rule stated be referred. In the Chief Jus- question may Marshall, tice the words appropriate, plainly adapted, really limitation that the means Calculated, qualified must but with the letter consistent not prohibited, so or incon- of the Constitution. prohibited Nothing spirit or sistent can be plainly adapted, regarded appropriate, means to end. or calculated really us whether bills of then, first, Let credit making inquire, the extent indicated, consistent with the tender, spirit instrument, cardinal of that no principles

Among great venerable than the is more more establish- establish-, conspicuous one And what was intended ment justice. in the minds of the who ordained it people

ment justice a matter of It is not left in- is, disputation. happily, relations to contracts. especialty ference conjecture, ' discussion in When Constitution undergoing of the Confederation was Convention, engaged for the of the ordinance consideration i'u the Ohio,-the northwest only territory subject the territory control. this ordinance time to its By regulation articles of established be- fundamental compact certain were States and the States of the people tween original “ to use its own of ex- territory, purpose, language, of civil the fundamental lib* principles religious tending under the these united republics” whereon States (the erty, “ constitutions are laws, their erected.” Confederation), Dec. court. “ in-the And was this: these fundamental principles

Among is it understood of rights property just preservation made, to be or have law ever that no and declared ought manner whatever that shall any in the said force territory, affect contracts interfere with or private engagements formed.” and without fraud previously bondfide found more condensed expressionrin same-principle of the Constitution of the most valuable that provision an efficient ever States, United recognized safeguard “no State shall law that pass any injustice, impair- against contracts.”' the obligation ing not in terms to is It is true that prohibition applied has United States. Congress express the government laws, we do that a law say to enact bankrupt other power, which, made in the execution express can contract, incidentally impairs obligation only, that held to be unconstitutional for be reason.. who that those framed we think it clear

But those intended that adopted spirit who the entire should pervade body this -prohibition legisla- which the that the justice Constitution was or- tion, was not them to to establish dained thought compati- anof other opposite tendency.' ble legislation words, In that a law not made in doubt we cannot pursuance of an and in its which direct power, necessarily operation express contracts, is inconsistent with the impairs obligation Constitution. spirit found in the-fifth

Another provision, amendment, must in this connection. We refer to considered shall not- be taken property private public ordains This without provision use kindred compensation. that which forbids legislation spirit impairing obliga- contracts; unlike it is but, that, tion addressed directly to the National It does not, solely govérnment. terms, legislation-which appropriates private prohibit property citizens to the use class of of another class.; of one but if taken cannot be for the benefit all, such without property is difficult to understand how it can be compensation, so Hepburn of court.

Opinion the spirit taken for a without violating the benefit of part of the prohibition. amendment, same

But there is in tlié another provision, and intended full its cannot have which,'in our judgment, of legis- effect unless as a direct construed prohibition that It is lation which we- “ considering. have or of life, liberty, no shall be declares that deprived person without due of law.” process property,- amend- of this all It is not doubted provisions and restraint of in limitation ment directly operate conferred the Constitution. only legislative who all those act which compels whether an is, question and silver money of hold contracts for payment gold n accept such value a of inferior deprives currency payment law. of of. without due process property persons whatever be the operation It -is clear, may quite . of it. Does due of law makes no act, such an process part A proportion ? very large deprive any person property civilized in the form of con- men exists property for the These contracts almost stipulate tracts. invariably And we seen that con- money. already payment considera- States, act under tracts in United prior were contracts to for the tion, pay money, and silver And it is coin. beyond sums specified gold were and are that the- holders of these contracts doubt entitled to the of this constitutional protection fully pro- as the holders of other vision any description property. be said that holders of no may description But.it it from which inci- property protected legislation its value. And it dentally impairs may only urged illustration that the holders of stock in a turnpike, bridge, or an insurance or corporation, company, manufacturing its cannot bank, invoke protection against legislation which, similar works or reduces corporations, authorizing market. But all does not meet price appear the real the cases In mentioned the difficulty. injury and incidental. In the case we are con- purely contingent it is direct and inevitable. sidering Dec. the court.

inIf the cases mentioned the holders of the stock were law to it on demand to convey one who required should think fit offer half its value for it, the analogy to. would be more obvious. No one be found probably .could an act contend that enforcing acceptance fifty land acres of in satisfaction of a seventy-five contract to con- a hundred would not come within the vey prohibition against arbitrary privation property.

We confess ourselves unable to solid distinc- perceive any between such an act and tion an act all citizens compelling in satisfaction of all contracts for or accept, half money, other less than the whole three-quarters proportion the value to their due, It is actually terms. according difficult to conceive what act take would private property without of law if such an act would not. process

We are to conclude that act mere obliged making an. dollars tender of debts pay promises legal payment is not a means contracted, previously appropriate, plainly calculated into effect adapted, really carry any express vested that such an act is inconsistent power Congress; of the Constitution; with the and that it is spirit prohibited the Constitution. by

It is not amid tumult of late civil surprising and under the influence of for the war, apprehensions safety universal, different never before views, almost Republic statesmen or were American jurists, entertained by adopted favorable to reflec- The time was not many. considerate limits or executive the constitutional tion upon legislative from If was assumed motives, patriotic authority. found hearts. patriotic ready justification the assumption doubts; who did who doubted their many yielded Many were averse to silent. Some who were strongly doubt making felt themselves constrained have direct reference to the which function of legislation be divided into three primary classes: may confer 1. Those which legislative powers Congress. the Those which exercise 2. of prohibit legislative powers Congress. by States, which Those from prohibit

3. cer- exercising tain powers. legislative conferred on

The be powers Congress subdivided may and the or, into are positive auxiliary, more com- they and the called, express implied powers- monly the former instances of class be As may mentioned the to raise and to borrow money, support armies, and power the value coin thereof. money regulate * 27th, 29th, January 1869. November 1870. † Dec. 1869.] Miller, Davis, JJ., Swayne, dissenting. of

The of founded are implied powers auxiliary legislation on that closes the enumera- largely general provision tion of terms, the declaration powers granted express “ shall also have to make all laws which Congress power shall be into execution proper carrying and all other vested this powers, foregoing States, Constitution United or in or officer thereof.” any department which this court is called question consider, is whether the to make the notes of the United authority a lawful is debts, States to be found in payment under either of these classes of Congress legislative powers. As one of the elements this and in order question, idea that the exercise such a would negative power an invasion of the reserved to the States, rights may as well to that this is outset, subjects say among forbidden to the States Constitution. legislation utterances of that instrument on unequivocal Among “ this tender, is that which declares that no subject State shall coin emit bills of credit, or make money, anything but silver a tender in debts;” coin thus gold payment the whole matter from the domain of State removing legis- lation.

No such is prohibition placed upon power Congress on this there as I subject, are, said, though already matters forbidden to but neither this expressly Congress; nor tender, to emit credit, bills of or to power is impair contracts, them. On the obligation among contrary, authorized to coin expressly and to the value thereof, aud of coins, and regulate foreign of such coin and the securi- punish 'counterfeiting ties of the United has States. It argued strongly able latter clauses, these construed, many jurists fairly to make confer the securities of the United States ‘ tender in a lawful of debts.

While I am not able to see them alone suffi- standing warrant for the cient exercise of power, they without decided we come to when consider ques- weight Miller, Swayne, Davis, JJ., dissenting.

tion of existence of this as one power, necessary for into execution other admitted proper carrying powers For show that so far as they the framers government. of the Constitution did ingo express over granting power the lawful it was confided to money counti’y, Congress States; and forbidden to the and it is no in- unreasonable ference, that if it should be found into necessary carrying effect some of of the essential to its powers government successful to make its securities operation, office perform such debts, would be legislation with the over harmony power money granted express terms.

It conceded, then,- under considera- being tion would exercised not, if be an invasion of by Congress, reserved to the one any States, but are for- right they bidden to and that it is not one in terms either employ, or denied to can it be sustained as a law granted Congress, at the time.it was proper, enacted, carrying into execution of these (that are any powers expressly granted either to to the or to Congress, government, any depart- ment thereof?

From the under the organization pres- ent there have Constitution, been from time to time attempts powers instrument, narrow granted limit.the and literal rule of and these have construction, beeir specially directed to the clause which we have cited as-the general foundation auxiliary powers It government. said far clause, has been that this so from authorizing means which could use been used without is a restriction it, necessarily an implied by so in its instrument general language.

The doctrine that when an act of is, brought the test this clause of the its necessity must absolute, conceded adaptation purpose unquestionable.

Nowhere met with more has principle emphatic and more than in denial, refutation, this court. satisfactory eminent That jurist whose official career of statesman, 629 Hepburn Dec. Griswold. Davis, JJ., Miller, Swayne, dissenting. commenced soon as Chief Justice over very thirty years and whose was opinions after Constitution adopted, as those of man done as fix its living much to meaning any of his clause the benefit has this dead, particular given fullest consideration. decided in

In the case of The Statesv. Fisher,* 1804, United in issue was the claimed for United point priority as a all other States creditor of over creditors. bankrupt statdtes; It was construction mainly argued but the to such a law was also denied. power Congress pass “ Chief Justice Marshall said: It is claimed under author make all laws which shall be necessary proper ity into execution the vested Constitution carry in the or in thereof. In con government, any department it would be and would clause, incorrect, produce struing endless if the should be difficulties, opinion maintained, that law was which was not no authorized neces indispensably effect to Where specified various sary give power. for that systems might adopted purpose, said might to each that it was not respect necessary,-because be attained end other means. must might Congress pos the choice of means, sess and must be to use empowered any means which are in fact conducive to the exercise of the the Constitution.” power granted It was that, under the accordingly:held authority pay the debts of could a law pass giving priority theUnfon^it debts in own cases bankruptcy.

inBut the memorable case of McCullochv. The State of the most exhaustive discussion of Maryland,† this clause is in the found the court the same eminent opinion ex That Constitution. ease involved, it is pounder well known, the to-establish the Bank of right and to authorize it to States, United issue notes for circula was tion. It conceded right incorporate create had a bank no such clause of specific grant Con less stitution, still to authorize it to issue right notes for * Cranch, 2 358. Wheaton, 316. † v.

Opinion Miller, Swayne, Davis, JJ., dissenting. circulation as But it was as a means money. argued, to enable the necessary collect, transfer, out its pay revenues, bank with this organization function within the In speaking Congress. “ of the true of the word in this clause meaning necessary” “ of the Constitution, he Does it an always says: import absolute so that one to which physical necessity strong, thing another termed cannot exist without it? maybe We think it does not. If reference be had to its use, common affairs of the world, or authors, we find approved that it no more than that one frequently imports is thing (cid:127) convenient' or essential to useful, or another. To employ means to an is end, understood as necessary em- generally means calculated to the and ploying any produce end, confined to those means without which being the single end would be unattainable.” entirely

The word admits, he all says, degrees- “A be comparison. thing may necessary, very necessary, . . This absolutely indispensably word, . necessary. then, like others, used various senses, in its construction the context, intention of the subject, person using .them to taken all be into view. Let this be done in the case under consideration. is the execution subject of those on which the welfare great powers ’of a nation es- It must have been sentially depends. the intention of those who these to insure, as far as gave human prudence could insure, their beneficial-execution. This could not be done of means choice to such by confining narrow limits as not to leave init power to Congress adopt any which be and which might were appropriate, conducive to the end. This is made in a provision Constitution intended to endure for to come, to ages be consequently adapted to various crises of human To have affairs. prescribed means which the’ should in all future time government execute its would have been to powers, change entirely character instrument, it the of a give properties code. It have would been an unwise to attempt pro- vide immutable rules for if which, foreseen at exigencies v. Dec. 1869.] JJ., Miller, Davis, dissenting. Swayne, can best- and which be pro- have but all, dimly, must the best have declared vided for as occur.. To they which used alone without means not be but-those shall been to would have deprive would be nugatory, power given itself to avail experience, legislature capacity to its its accommodate exercise to reason, legislation circumstances.” Chief

I these remarks of have unusual cited at length a half Marshall, Justice because made century ago, though Con under- which their circumstances applicability the securities called to aid the its gress making power as a means of tender, successfully seemed likely such aid which without war, prosecuting terminate its and to borrow could existence, of mil the debt borrowed, iu no manner pay other no other which could field, lions duo to its soldiers If had had he seems to almost means paid, prophetic. be. his he before his mind the future clearly country, history not have would could better characterized principle'.which iu on war case have rendered the very carry which would capa deprived nugatory, reason, to avail and to itself of to exercise its city experience, accommodate the use of circumstances, legislation the most means of appropriate supporting government of in the crisis its fate. is

But it is said that the under consideration ad- clause as to and the use adds powers, nothing monitory implied - it. to what would have been without authorized the same idea is intended for new, The not and probably The Mary in the case of State urged McCulloch v. instead conferred land, namely, powers enlarging more, them, liberal use of on Congress, providing as a it was restriction powers designed ancillary to in incidental terms. express power every grant general cited so from that that I can ease, I have only already fully it to that this is there stated refer to cle'arly say proposition refuted. in there exist, then, Does power Congress any Ct, Miller, Swayne, Davis', JJ., dissenting. Opinion of in the execution of which this government, by express grant, tender act was in the sense here proper, and under circumstances of its defined, ? passage war, to declare to insurrection, suppress raise and armies, to and maintain a support provide navy, to borrow on credit the United States, .of money pay Union, the debts of the and to for the common de- provide welfare, fence and each and all general distinctly clauses of the Constitution. separate specifically granted were in the midst of a We war which called all these into exercise taxed them A war which, severely. if we take into account the increased for destruc- capacity tion introduced modern science, and the corresponding cost, increase into its. brought of bel- operation powers more and more than potent that the expensive ligerency world has ever known. means

All the efficient the ordinary several rendering above-mentioned had been (cid:127)powers Congress employed utmost and with the their of the rebellion capacity, spirit armies the field unbroken, with a cur- large unpaid, a million rent of over of dollars expenditure per day, of the credit exhausted, and government .nearly the re- of taxation sources even the inadequate pay interest on debt, was called oh to devise public some new means of on the credit of the borrowing money nation; for the result of the war was conceded all men to thoughtful on the to raise depend capacity in amounts unknown. The banks previously had already their means loaned had treasury. They com- specie their pelled suspend own notes. if The coin it could all have country, been placed within the control of the Secretary would Treasury, amade circulation sufficient to answer army pur- chases army payments, say nothing ordinary business A .of country. general collapse credit, and of business seemed iii payment, inevitable, which faith the of the in would have been ability government destroyed, rebellion have the would the States triumphed, would have Dec. JJ., Miller, Davis, dissenting. Swayne, Na-

been left and the divided, impoverished. people the it, with and, tional have would perished, government with to construe are called Constitution which we now such nice and critical accuracy. re-

That act these disastrous the prevented was the tender clause sults, prevent I entertain no doubt. them, in the a means soldiers

It furnished instantly paying the coffers of field, commissary quar- the filled the. the pri- It furnished a medium for termaster. was a time when vate as debts, being well public, gold cur- bank circulation, withdrawn from the State rapidly means to It furnished the worthless. rency becoming It bonds the government. capitalist buying coun- revived the of-the stimulated trade, energies drooping mind. public and restored confidence try, of this measure The results which followed adoption cause has ever No other adequate beyond dispute. credit, the renewed revival of assigned government trade, facility activity in- at reasonable rates of in or three two borrowed, years, citizens, its own double amount terest, from mainly notes, in coin, there was bank country, including tender ácts. and the notes issued under the legal the calm of these said, however, retrospect It is now for circulation as notes suitable events, money, treasury for- on their face the United States bearing pledge effi- if not coin, would, their ultimate payment equally of the occasion with- hiive answered cient, requirement for debts. out made a.lawful tender being . what was needed was more'than credit But something had been stretched to its That utmost government. .and sufficient in the ivas no tension, clearly longer simple reason to form of Is there believe borrowing money. mere that the the form security would change given all ex- revived this credit? On sinking contrary, not redeemable shows that currency promptly perience on the credit of a whose re- coin, but dependent promissor Hepburn Ot. v. Griswold. Miller, JJ., Davis, and Opinion Swayne, dissenting. sources are while his liabilities are in rapidly diminishing, the dead soon sinks to level of worthless creasing, paper. As no man would have to take it in been compelled pay- ment of as debts, interest, it bore no as its period redemp- tion would have been remote and this must uncertain, have been the inevitable fate of issue such extensive notes. any

But when law were made to the function they by discharge .of had a debts, value, credit paying they perpetual equal of all the debts, and in amount public private, If were never redeemed, as never have country. they they debts their -been, value, and for paid they par .still and been, were then, purpose always eagerly sought then, that this To-say, people. quality legal was to their seems usefulness, to be unsup- view the sound situation. ported by can inference of that Nor- arise proposition . from any just tender notes with the bonds issued comparison about the same time. These bonds had their and a fixed for. period of-the payment, Secretary the. (cid:127) were, declared that they payable Treasury gold. They interest, bore which payable-semi-annually gold, by on-their and face, terms customs duties, which express the. law could but paid nothing gold,-were sacredly of this to. interest. can afford pledged They what would no means of have been the fate of determining most sense in which that word can be stringent used. But if we the of Chief adopt Justice Marshall and construction the full court over which he a construction presided, has to never overruled or this day in this questioned we court, how can avoid this conclusion? Can said it.be that this not conduce towards provision did the of purpose debts, of of borrowing money, armies, paying raising sup- insurrection? or that it was not calculated to pressing effect that was it not useful objects? these and essential to that (cid:127) Can it be said that this end? was not the choice among if not the means, which were means, left only to Congress war for national to this existence ? carry Let us the with other cases compare present decided in this court. n we can that If to as in the declare, case say judicially of The the Fisher, States v. that debt which United owes bankrupt shall have of payment over all government .the other priority law is a to enable debts, necessary proper government we that debts, its own how can to say pay to was not enable proper clause govern on the war to borrow to ment ? carry creation of the United States Bank, and especially is the more effectual means appropriate makiug established currency useful, Congress acceptable, per fect—the of all other out or curreucy existence, taxing to that furnished giving quality tender for lawful debts ? The latter is means con directly end be ducive to the a means attained, which attains the end more and more than perfectly other means promptly can The former is remote and do. uncertain means in its effect, and is liable the serious that it interferes objection with State If can, under legislation. however, its and foster this such implied power, protect currency by means as ou circulation, destructive taxation State bank it indeed, seems if it' cannot the more strange, adopt appro and the effectual means of these notes priate more declaring

* 533. Supra, Dec. Davis, Miller, JJ., dissenting. Swayne,

of its own for the of which its faith is issue, redemption a lawful tender-in of debts. pledged, But it is said that the law is in if conflict with the spirit, not the of several letter, the Constitution. Un- provisions'of is a law of contracts doubtedly impairing obligation made its before But while the forbids Constitution passage. such laws States to it does not forbid On pass Congress. is authorized to establish contrary, Congress expressly uniform the essence of is to system which bankruptcy, debtors from the contracts; of their discharge obligation of this has three times pursuance power Congress passed such a which in law, instance on contracts every operated made before it was Such a law is now in passed. force, yet its has never been constitutionality How questioned. it can accordance with of the Constitution to spirit destroy contract creditor’s for the sake of the directly individual to its but to affect debtor, contrary spirit value remotely it is nation, for difficult to safety perceive.

So it is said that the provisions, shall private property taken not be for use without due public compensation, and that no shall be of life, or person deprived liberty, property, without due course of law, to the acts opposed under consideration. is

The too for argument vague my perception, indirect effect of a great public measure, depreciating the value of lands, stocks, bonds, contracts, other renders a law invalid as such private taking property public use, law., as the owner of it without due depriving course of A declaration of war with a maritime would thus unconstitutional, because the value of abroad every ship lessened twenty-five thirty per cent., those at home almost much. abolition of the tariff on iron or sugar in like manner furnaces, would and sink destroy in the manufacture of employed these capital articles. Yet however statesman, warm an no advocate of tariff’ has high that to abolish claimed such duties would be unconstitutional - as private taking property.

If principle sound, successive issue of every gov- Miller, Davis, JJ., Swuyne, dissenting. void, erumeut bonds the war was because increas- during debt it made those hands ing public already private less valuable. in-

This an law, whole injustice argument ever existed which if it will be now justice repeated by void; it and of its to the opposition spirit holding wholly is too abstract and for Constitution, appli- intangible as a is, all, cation-to courts of above justice, dangerous to declare the on which void ground legislation a court. the decision of It -wouldauthorize this court views of the enforce theoretical genius government, notions of the of the Constitution and of spirit vague void laws abstract which did not justice, by.declaring square with those It substitutes our views. for ideas policy ju- dicial an of "ethics construction, uudeiined code for the Con- and a stitution, court for the National justice legislature. the enactment of these tender laws were Upon they legal received almost universal as valid. acquiescence Pay- were made iu ments tender notes for debts when the. law was existence amount of thou- passed, dollars, sands of millions of was the lawful though gold only when the were A debts contracted. if not great larger amount is now due under contracts made since their passage, under the belief that these tenders would be valid.pay- ment. "the

The two houses President who Congress, signed all and fifteen State but one has bill, courts, being passed their belief in expressed consti- question, upon of these laws. tutionality all

With this con- great weight authority, strong currence of who have opinion among.'those passed upon the. before we have been called to decide it, whose question, duty was as much as it is ours to it in pass light reverse, their action, we to to disturb to declare law contracts, void, because the necessity does not so -its enactment to us as it appear did to strong clear it was to or so other courts ? Congress, idea the relative Such functions my legis* Magraw. Dec. Broderick’s Executor Statement the casé. ve Where

latí judicial departments government. of means the there is choice selection with Congress, If the act to be considered is in sense (cid:127)not court. any essential to the execution of an power, acknowledged of that is for not for necessity degree legislature court to determine. In the case in Wheaton, from which I “ so the court that where the already quoted fully, says law is not and is calculated to effect prohibited, really any of the intrusted to the to undertake objects government, here to into the of its would be inquire degree necessity, the line which circumscribes the judicial department, pass and to tread on This court disclaims all legislative ground. to such a This sound of the pretences power.” exposition duties court in this class of relieves cases, me'from embarrassment or hesitation in the case before me. .If had I entertained doubts of the the law, eonstitutionality-of I must have held the law valid those' doubts until became convictions. But as I have a decided that Con- opinion very acted within the of its I must hold the gress scope authority, law to be and dissent from the constitutional, opinion court.

Note. At the same time with the decision of the case preceding was decided a case in error Court of Cali- Supreme fornia, it; some time before argued case, namely, —the

Broderick’s Executor v. Magraw, the principles In which of the preceding case of Hepburn v. Griswold

were affirmed.

The case was this: a claim Magraw preferred the Probate petition Court of San Francisco, city note made by Broderick York, New on the petitioner 1st of July, 1858. Broderick his executor defended the suit. dying, notes increase the increase of depreciation iu circulation and the diminution confidence quantity put to redeem. Their ability disposition appreciation reversal these conditions. follows No act making tender can them /of change materially operation laws. Their force has these in strikingly exemplified of the United States notes. history with a Beginning when first- depreciation issued, in very March, slight 1862, to'the 1864, sank rate of two dollars and they July, eighty- cents for a dollar and then rose gold, five until recently cents in dollar became to a twenty paper gold equal dollar. then, that contracts are prior within the in- Admitting, act, that the tention act warranted assuming it follows holder of a promis- made before the for a note, act, thousand sory dollars, pay- seen, as we have able, just law accord- according intent of the coin, parties, when ing requh’ed, reached its lowest depreciation point, accept a thousand note dollars, with the thousand although coin due under the he dollars, could contract, purchased two thousand hundred and day eight such dollars. fifty Dec. v.- court. siiice of a act, note Every payment, passage date, similar, earlier has less presented though- striking- (cid:127)

Notes

unless notes accept bound by coin. were Were the directly presented: Thus two’ questions from relieved the act defendants assumed obligation the contract? Could plaintiff compelled, aby receive in to' court, currency judgment was in and value from that which nature the con- different when contract made? parties templation resolved 'both questions The Court Appeals defendants, suit, seek the original negative, writ error. judgment by ^hat reversal-of

to emit bills of notes credit, or receivable power circulating far at least as for dues so payable, parties to receive' them, willing discharge government obliga- wij] tions; it facilitate the use such notes in disbursements make them a tender in debts; legal payment existing make such notes a tender. therefore.Congress may is It difficult to what express power say authority notes a make debts pre-existing not be as incidental, may upheld this principles Is there which does any power not involve the argument. And use is there doubt of-money? any Congress may use issue and bills of credit as in the execution of ? The to establish power power post-offices post-roads, for involves the collection example, and disbursement of a Is not revenue. to make notes great power ten- a legal as incidental der to this clearly to the war power? answer to The this does not question to us appear doubtful. therefore, seems to too much. argument, prove It car- the doctrine of ries far implied powers ex- very beyond any hitherto tent it. It asserts that given whatever in any au end within promotes degree scope general power, whether, correct sense-of the word, appropriate not, be done in the exercise of an implied power. may Can proposition maintained ? It is said that this question court deciding but for cause, But the exercising.the power. decisive answer to this is that the admission of a legislative

notes .issue appropriate plainly for means adapted war, carrying admitted: but that the them tender making to the extent mentioned such a means. we Now, have seen that of all tne notes those issued declared tender all constituted' a very pro- large and that circulated portion, they dis- freely without count. their It be said that may circulation and credit equality was due to the made law for the provision redemption this notes.' But if

notes legal payments power making how far is the Now, claimed under the Constitution. gov- it cannot obtain ernment this means? Certainly helped by one no will rate, new services at cheaper supplies the time are worth at more take the notes for than they rise in the ratio of the will new contract. price if the notes and this is all that could happen depreciation, said that the But it were made a tender. may legal from the who takes them be less to him will depreciation him its will if the government, pledge his to receive .them payments. tó creditors par compel If the certain. quan- as we have no means seen, This is, uncertain and re- excessive, issued be tity redemption if, on the other will take mote, place; depreciation great demands of to the busi- is hand, only adequate quantity is the note's ness, redemption strong, confidence early tender or not. made will circulate whether freely, n increase of is some if it admitted availability But tender under new the notes derived from making ad- follows that no means any appreciable contracts, to receive them creditors is compelling gained vantage is evi- debts. And there abundant satisfaction pre-existing from benefit possible compulsion that whatever dence, is far more than individuals government, tasóme the losses property, derangement outweighed

notes tender legal in the views of advocates measure. to acquiesce insisted who then acquiesced a few upon necessity, Not since the return of under view, have, in that peace, reconsidered their time, of the calmer conclusions, influence VOL. VIII. Miller, Svyayne, Davis, dissenting. JJ.J now concur in those which we have just announced. These conclusions seem to' us to be sanctioned fully spirit letter Constitution. We are therefore, to hold that obliged, the defendant in error was not bound to receive from the the cur- plaintiffs to him in note, of their rency-tendered made before of the act of 25th, 1862. It follows passage February that the of the Court of judgment must Appeals Kentucky be affirmed. It is that Mr. Grier, Justice who was a mem proper say when this cause of the court was decided in conference,* ber when this directed to be stated opinion read,† his tender clause, con judgmeut properly has no to debts contracted strued, application to its prior enactment; but that construction the act given the other he concurred that the opinion judges far as it makes United clause, so States notes a such is not warranted debts, Constitution. JüD&MENT AFFIRMED. Mr. MILLER Justice concurred SWAYNE (with'whom DAVIS, dissenting. JJ.), of the Constitution of the provisions United States

notes circulate-as but treasury designed'to money, and had fixed interest, bore no no time of and redemption, debts, no could and had no pay by.law fund-pledged.for (cid:127) their payment. tender clauses The statutes under consideration those who were enacted emphatically by placed them, upon th-eir further necessity borrowing main-- It was done the army navy.' taining reluctantly' a.nd hesitation, with after the had only been de- necessity and had monstrated Our become.imperative. statesmen had trained a school which looked such upon legislation more than distrust. The debates of the two something show, houses of that on this alone could necessity Dec. 1869:] Miller, JJ., Davis, Swayne, dissbnting. this clause of the bill have been carried, also they prove, think, as I the existence of that clearly very necessity. of that time, not to history gloomy readily forgotten his lover of will forever country, remain, full, clear, vindication of the exercise of this ample Con- power by results have demonstrated the gress, those sagacity who and carried this measure. originated through it seems to the best that I can Certainly judgment bring to bear that this law was a subject necessity

notes to it to issue circulation power granted as resisted without money, strenuously constitutional that a but this court held bank of'issue was authority; neces- sense as used in in the of that word sary, enable the to to .collect, transfer, and to government pay out.its revenues. never claimed It was that could find no Miller, JJ., Davis,' Swayne, and dissenting. means to do other this. It could not then be denied, nor it been, has ever that other means more within the clearly existed, nor that a bank competency Congress deposit have answered without a circulation. possibly But might that was the most useful, because and efficient fitting, mode what was authorized do, it was held Congress doing this court. The by necessity that case is be-necessary to me than much less apparent adoption tender clause. ' In Bank v. Fenno, Veazie decided at the present term,* held, consideration, this court full after that was the privi furnish to the lege Congress country currency it in be used the transaction of business, by whether this coin, was done means of of the notes of the States, United or of banks created And that as a means Congress. could efficient, making body make this exclusive out of existence currency taxing “ authorized States. It was said that currency having, exercise of undoubted constitutional under power, taken for the whole provide currency It cannot country, questioned secure Congress may constitutionally of it to the benefit means.” Which people by appropriate

Case Details

Case Name: Hepburn v. Griswold

Court Name: Supreme Court of the United States

Date Published: Feb 18, 1870

Citation: 75 U.S. 603

Court Abbreviation: SCOTUS