Paper Money and the Federal Constitution

itself owns all the stock, the legislature appoints the directors, the faith of the State is pledged for the redemption of the bills, and they are receivable for public dues, provided the capital is paid in and the bank may be sued. (Story, 4th ed., I. 227, note.) 2. Can the national government do what the States cannot do under this clause? The legaltender cases have recently decided this question in the affirmative. Mr. Gallatin said, in 1831, of Congress : " As this body has no authority to make anything whatever a teiider in payment of private debts, it necessarily follows that nothing but gold and silver coin can be made a legal tender for that purpose, and that Congress cannot authorize the payment, in any species of paper currency, of any other debts but those due to the United States." This is only important as showing the belief of prominent public men on this point in earlier times. For them it was a simple matter of course that Congress could not pass a legaltender act of any kind, how much less one which should apply to existing contracts. The legaltender decision did as HISTORY OF AMERICAN CURRENCY. 59 great a wrong" as the Dred Scott decision, and the latter instance shows us that it is not useless to discuss a constitutional question, even after the court has decided it. It will not probably take a war to overthrow the principle of the legaltender act, but it may take a national bankruptcy.