The Supreme Court of the United States recently decided that
all debts contracted before the passing of the Legal Tender Act of 1862 must be paid in gold. The effect of this decision was to declare that Act unconstitutional, as tending to impair the obligation of a contract, which it is held Congress, like the State Legislatures, is incompetent to do. The Government, alarmed at the decision, filled up two vacancies in the Court with men who were supposed to " favour " the power of Congress, and the Attorney-General applied for a rehearing ; but it was refused, -one of the new judges voting with the majority. The de- cision is of the utmost importance to holders of the older State loans, and also to the character of the Supreme Court, which has thus demonstrated its independence of the Executive. On the other band, the decision exagge- rates the permanent defect in the American Constitution, the absence of any power which can in an emergency decree that which nevertheless must be decreed. Suppose Congress is again compelled, say by a war, to decree that debts shall be paid in United States notes. Are its orders to be disobeyed, or are they to be enforced by mere violence, or is the Constitution to be amended in order to pass a temporary currency Act ?
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