Legal Tender Cases

Legal Tender Cases

▪ United States history
      (1870, 1871), two cases decided by the U.S. Supreme Court regarding the power of Congress to authorize government notes not backed by specie as money that creditors had to accept in payment of debts.

      To finance the Civil War, the federal government in 1862 passed the Legal Tender Act, authorizing the creation of paper money not redeemable in gold or silver. About $430 million worth of “greenbacks” were put in circulation, and this money by law had to be accepted for all taxes, debts, and other obligations—even those contracted prior to the passage of the act.

      In Hepburn v. Griswold (Feb. 7, 1870), the Court ruled by a four-to-three majority that Congress lacked the power to make the notes legal tender. Chief Justice Salmon P. Chase (Chase, Salmon P.), who as secretary of the Treasury during the Civil War had been involved in enacting the Legal Tender Act, wrote the majority opinion, declaring that the congressional authorization of greenbacks as legal tender violated Fifth Amendment guarantees against deprivation of property without due process of law.

      On the day the decision was announced, a disapproving President Grant sent the nominations of two new justices to the Senate for confirmation. Justices Bradley and Strong were confirmed, and at the next session the court agreed to reconsider the greenback issue. In Knox v. Lee and Parker v. Davis (May 1, 1871), the Court reversed its Hepburn v. Griswold decision by a five-to-four majority, asserting that the Legal Tender Act of 1862 represented a justifiable use of federal power at a time of national emergency.

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Universalium. 2010.

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Look at other dictionaries:

  • Legal Tender Cases — The Legal Tender Cases were a series of United States Supreme Court cases in the latter part of the nineteenth century that affirmed the constitutionality of paper money. In the 1870 case of Hepburn v. Griswold , the Court had held that paper… …   Wikipedia

  • Legal Tender Cases — Two cases decided together upholding the constitutionality of the Acts of Congress of 1862 and 1863 providing for the issue of paper money by the United States and making such money legal tender for the payment of private debts. (US) 12 Wall 457 …   Ballentine's law dictionary

  • legal tender cases — Two cases upholding the constitutionality of the Acts of Congress in 1862 and 1863 calling for the issuance of paper money. Knox v. Lee, 79 U.S. (12 Wall.) 457, 20 L.Ed. 287, Juilliard v. Greenman, 110 U.S. 421, 4 S.Ct. 122, 28 L.Ed. 204 …   Black's law dictionary

  • legal tender cases — Two cases upholding the constitutionality of the Acts of Congress in 1862 and 1863 calling for the issuance of paper money. Knox v. Lee, 79 U.S. (12 Wall.) 457, 20 L.Ed. 287, Juilliard v. Greenman, 110 U.S. 421, 4 S.Ct. 122, 28 L.Ed. 204 …   Black's law dictionary

  • Legal tender — This article is about the payment medium. For the song, see Legal Tender (song). Legal tender is a medium of payment allowed by law or recognized by a legal system to be valid for meeting a financial obligation.[1] Paper currency is a common form …   Wikipedia

  • Legal Tender Acts — Acts of Congress, particularly the act of February 25, 1862, making treasury notes of the United States a legal tender for the payment of all debts. Legal Tender Cases (US) 12 Wall 457, 20 L Ed 287 …   Ballentine's law dictionary

  • legal — 1. Conforming to the law; according to law; required or permitted by law; not forbidden or discountenanced by law; good and effectual in law; of or pertaining to the law; lawful. Freeman v. Fowler Packing Co., 135 Kan. 378, 11 P.2d 276, 277. See… …   Black's law dictionary

  • legal — 1. Conforming to the law; according to law; required or permitted by law; not forbidden or discountenanced by law; good and effectual in law; of or pertaining to the law; lawful. Freeman v. Fowler Packing Co., 135 Kan. 378, 11 P.2d 276, 277. See… …   Black's law dictionary

  • legal — adj. 1 of or based on law; concerned with law; falling within the province of law. 2 appointed or required by law. 3 permitted by law, lawful. 4 recognized by law, as distinct from equity. 5 Theol. a of the Mosaic law. b of salvation by works… …   Useful english dictionary

  • List of United States Supreme Court cases, volume 79 — This is a list of all the United States Supreme Court cases from volume 79:SCOTUSTable | data =SCOTUSRow case name = The Collector v. Hubbard page = 1 decision date = decision year =SCOTUSRow case name = Sturges v. The Collector page = 19… …   Wikipedia

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