Latham v. United States

1 Ct. Cl. 149
CourtUnited States Court of Claims
DecidedOctober 15, 1864
StatusPublished
Cited by8 cases

This text of 1 Ct. Cl. 149 (Latham v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Latham v. United States, 1 Ct. Cl. 149 (cc 1864).

Opinion

Casey, Oh. J.,

delivered the opinion of the Court.

The claimants, on the 25th day of July, A. D. 1855, entered into a contract with the Secretary of the Treasury, acting on behalf of the [150]*150United States, to build a custom-house at Buffalo, in the State of New York. The contract was made subject to plans and specifications annexed to and made part thereof. The United States afterwards directed the building to be enlarged by adding twenty-five feet to its length, and three feet to the height.

On the 7th day of April, 1856, they entered into a similar contract with the same officer to build a like structure at Oswego, in the same State, of the original size and plan of the Buffalo house. During the progress of the work the government directed several changes and deviations from the plans and specifications, in the materials used, and in the mode of dressing and laying the stone.

To recover the value of the extra work, and for the increased expense occasioned by the departures from the terms of the contracts, the claimants brought suit in this court. The case was heard before the reorganization of the court, and resulted in a report to Congress in favor of the claimants for the sum of thirty-six thousand four hundred and forty dollars and ninety-four cents, ($36,440 94.) On the 3d March, 1863, an act was passed increasing our finding to the sum of seventy-four thousand five hundred and eighty-three dollars and thirty-seven cents, ($74,583 37.)

In the contracts already referred to, it was stipulated on the part of the United States that for the custom-house at Buffalo they would pay to the claimants the sum of eighty-one thousand three hundred and forty-five dollars, “good and lawful money of the coin of the United Statesin the contract for the Oswego building, the sum of seventy-seven thousand two hundred and fifty-five dollars, in the same kind of money. And for the erection of these buildings various appropriations were made, the' last of which was for one hundred and ten thousand dollars, by the act dated 1st July, 1857; of which appropriations there remained unexpended at the time of the passage of the act for the relief of the claimants of the 3d March, 1863, over eighty thousand dollars.

On the 9th March, 1863, the claimants appeared at the Treasury Department and, by virtue of this act and the contracts upon which their claim was founded, demanded payment of the amount in the “lawful money of the coin of the United States.” The Secretary of the Treasury refused to accede to this demand, and offered payment in the legal-tender treasury notes of the United States, issued under the authority of the act of 25tli February, 1862. The plaintiffs received [151]*151these under protest, to the amount named in the act. To have made these notes equivalent to coin in the gold market of that day would have required the further sum, in treasury notes, of forty-three thousand six hundred and thirty-one dollars and twenty-six cents, ($43,631 26.) It is to recover this latter sum that they bring this suit, and they base their right to recover on the following grounds :

1. That the act of 25th February, 1862, authorizing treasury notes and making them a legal tender, is unconstitutional and void.

2. That by the express terms of the contracts they were entitled to be paid in “lawful money of the coin of the United States.”

3. That the appropriation out of which payment was directed to be made to them was enacted by Congress when gold and silver coin was the only money in the treasury, and they were entitled to the identical money so appropriated, or its equivalent.

The act of Congress authorizing treasury notes, and making them a legal tender, was approved the 25th February, 1862, and is entitled “An act to authorize the issue of United States notes, and for the redemption or funding thereof, and for funding the floating debt of the United States.”

The first section authorizes the Secretary of the Treasury “ to issue, on the ■credit of the United. States, one hundred and fifty millions of dollars of the United States notes, not bearing interest, payable to bearer at the treasury of the United States, and of such denominations as he may deem expedient, not les's than five dollars each. * *

“ Such notes herein authorized shall be receivable in payment of all taxes, internal duties, excises, debts, and demands of every kind due to the United States, except duties on imports, and of all claims and demands against the United States of every kind whatsoever, except for interest upon bonds and notes, which shall he paid in coin, and shall also be lawful money and a legal tender in payment of all debts, public and private, within the United States, except duties on imports and interest as aforesaid.”

I. The first question raised is, does Congress possess the power underthe Constitution, “ to emit bills of credit” and make them a legal tender in payment of all debts, public and private?

The claimants’ counsel contends that the only legal currency known to, or authorized by, the Constitution of the United States, is metallic coin. This,- it is argued, appears from—

1. The power expressly given to Congress “ to coin money and regulate the value thereof and of foreign coin;” and that this is the only [152]*152power conferred upon Congress in the Constitution to provide a currency.

2. It is a power which admits of no incidents, or choice of means. It is a single, specific act.

3. That the power must bo interpreted by the natural and common import of the words in which it is conferred.

4. That the Constitution is in nowise changed by a state of war. The power must be granted, or it cannot be exercised.

5. The words “coin” and “to coin” have a certain and fixed meaning. “Coin” is a piece of gold, or silver, or other metal, stamped by authority of the government, in order to fix its value, and is commonly called money; and “ to coin ” is to stamp metal,as money. The Constitution having used these terms, excludes all other kinds of money. Expressio unius est exclusio alterius.

6. The amendments to the Constitution also exclude any power to make a paper currency. This power not being expressly granted, its exercise is prohibited in express terms by article 10 Amendments.

7. The power cannot be inferred from that clause which prohibits a State from emitting bills of credit and from making anything but gold and silver coin a legal tender in payment of debts; for a prohibition to the States does not imply a grant to Congress.

8. A creditor of the government is entitled to present payment in money, not in promises to pay at a future time.

Such is a synopsis of the positions assumed by the claimants’ counsel on the leading question in the cause. It is a question of great and transcendent importance. Should these positions be sustained by the courts of the United States, it would in all probability involve the government in financial ruin, if not in hopeless bankruptcy. It would paralyze if not entirely arrest its efforts to suppress the rebellion now being waged against its Constitution and laws, for want of the necessary means to prosecute the war. It would equally destroy, for a time, trade, commerce, and private enterprise, and produce panic and prostration in every department of business. And a 11 this

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1 Ct. Cl. 149, Counsel Stack Legal Research, https://law.counselstack.com/opinion/latham-v-united-states-cc-1864.