Juilliard v. Greenman
Encyclopedia
Juilliard v. Greenman, 110 U.S. 421
(1884), was a Supreme Court of the United States
case in which issuance of greenbacks
as legal tender
was challenged in peacetime.
The Legal Tender Acts of 1862 and 1863 were upheld.
Julliard sold and delivered 100 bales of cotton to Greenman for $5,122.90. Greenman tendered $5,100 in United States legal tender notes and the rest in coin, but Julliard would not accept the U.S. notes. The tendered notes were originally issued under an act of Congress passed on February 25, 1862 and March 3, 1863, during the civil war. An act of May 31, 1878 provided to “forbid the further retirement of United States legal tender notes.”
In an 8-1 decision, resting largely on prior court cases, the power "of making the notes of the United States a legal tender in payment of private debts", was interpreted as "included in the power to borrow money and to provide a national currency".
Justice Field
dissented, challenging the Courts interpretation of the terms, to borrow and coin money.
He explained that the term to borrow money was well settled in other instruments such as municipal and corporate bonds, and private contracts. Allowing the government to make their notes legal tender
would interfer with third party contractual obligations as now third parties would be compelled by law to accept notes instead of coin
. A private corporate bond could certainly not require an amusement park
to accept the bond in exchange for entry. To find that the term to borrow money as written in the constitution
allows interference in third party contracts would certainly improve the value of the note, but it would deviate from the meaning of the term to borrow money.
The meaning of the terms ‘to coin money’ is not at all doubtful. “It is to mould metallic substances into forms convenient for circulation and to stamp them with the impress of the government.” In the clause authorizing congress ‘to provide for the punishment of counterfeiting the securities and current coin of the United States,’ a distinction is clearly made between debt and coin.
Justice Field also cited many quotes by the founders against paper money, including the following by James Madison
: "The pretext for paper currency, and particularly for making the bills a tender either for public or private debts, was cut off."
Case citation
Case citation is the system used in many countries to identify the decisions in past court cases, either in special series of books called reporters or law reports, or in a 'neutral' form which will identify a decision wherever it was reported...
(1884), was a Supreme Court of the United States
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
case in which issuance of greenbacks
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
as legal tender
Legal tender
Legal tender is a medium of payment allowed by law or recognized by a legal system to be valid for meeting a financial obligation. Paper currency is a common form of legal tender in many countries....
was challenged in peacetime.
The Legal Tender Acts of 1862 and 1863 were upheld.
Julliard sold and delivered 100 bales of cotton to Greenman for $5,122.90. Greenman tendered $5,100 in United States legal tender notes and the rest in coin, but Julliard would not accept the U.S. notes. The tendered notes were originally issued under an act of Congress passed on February 25, 1862 and March 3, 1863, during the civil war. An act of May 31, 1878 provided to “forbid the further retirement of United States legal tender notes.”
In an 8-1 decision, resting largely on prior court cases, the power "of making the notes of the United States a legal tender in payment of private debts", was interpreted as "included in the power to borrow money and to provide a national currency".
Justice Field
Stephen Johnson Field
Stephen Johnson Field was an American jurist. He was an Associate Justice of the United States Supreme Court of the United States Supreme Court from May 20, 1863, to December 1, 1897...
dissented, challenging the Courts interpretation of the terms, to borrow and coin money.
He explained that the term to borrow money was well settled in other instruments such as municipal and corporate bonds, and private contracts. Allowing the government to make their notes legal tender
Legal tender
Legal tender is a medium of payment allowed by law or recognized by a legal system to be valid for meeting a financial obligation. Paper currency is a common form of legal tender in many countries....
would interfer with third party contractual obligations as now third parties would be compelled by law to accept notes instead of coin
Coin
A coin is a piece of hard material that is standardized in weight, is produced in large quantities in order to facilitate trade, and primarily can be used as a legal tender token for commerce in the designated country, region, or territory....
. A private corporate bond could certainly not require an amusement park
Amusement park
thumb|Cinderella Castle in [[Magic Kingdom]], [[Disney World]]Amusement and theme parks are terms for a group of entertainment attractions and rides and other events in a location for the enjoyment of large numbers of people...
to accept the bond in exchange for entry. To find that the term to borrow money as written in the constitution
Constitution
A constitution is a set of fundamental principles or established precedents according to which a state or other organization is governed. These rules together make up, i.e. constitute, what the entity is...
allows interference in third party contracts would certainly improve the value of the note, but it would deviate from the meaning of the term to borrow money.
The meaning of the terms ‘to coin money’ is not at all doubtful. “It is to mould metallic substances into forms convenient for circulation and to stamp them with the impress of the government.” In the clause authorizing congress ‘to provide for the punishment of counterfeiting the securities and current coin of the United States,’ a distinction is clearly made between debt and coin.
Justice Field also cited many quotes by the founders against paper money, including the following by James Madison
James Madison
James Madison, Jr. was an American statesman and political theorist. He was the fourth President of the United States and is hailed as the “Father of the Constitution” for being the primary author of the United States Constitution and at first an opponent of, and then a key author of the United...
: "The pretext for paper currency, and particularly for making the bills a tender either for public or private debts, was cut off."