If the lawmakers can make any part of men’s contracts, they can make the whole of them; and can, therefore, buy and sell, borrow and lend, give and receive men’s property of all kinds, according to their (the lawmakers’) own will, pleasure, or discretion; without the consent of the real owners of the property, and even without their knowledge, until it is too late. In short, they may take any man’s property, and give it, or sell it, to whom they please, and on such conditions, and at such prices, as they please; without any regard to the rights of the owner. They may, in fact, at their pleasure, strip any, or every, man of his property, and bestow it upon whom they will; and then justify the act upon the presumption that the owner consented to have his property thus taken from him and given to others.
This absurd, contemptible, and detestable trick has had a long lease of life, and has been used as a cover for some of the greatest of crimes. By means of it, the marriage contract has been perverted into a contract, on the part of the woman, to make herself a legal non-entity, or non compos mentis; to give up, to her husband, all her personal property, and the control of all her real estate; and to part with her natural, inherent, inalienable right, as a human being, to direct her own labor, control her own earnings, make her own contracts, and provide for the subsistence of herself and her children.
There would be just as much reason in saying that the lawmakers have a right to make the entire marriage contract; to marry any man and woman against their will; dispose of all their personal and property rights; declare them imbeciles, incapable of making a reasonable marriage contract; then presume the consent of both the parties; and finally treat them as criminals, and their children as outcasts, if they presume to make any contract of their own.
This same trick, of holding that the law is a part of the contract, has been made to protect the private property of stockholders from liability for the debts of the corporations, of which they were members; and to protect the private property of special partners, so-called, or limited partners, from liability for partnership debts.
This same trick has been employed to justify insolvent and bankrupt laws, so-called, whereby a first creditor’s right to a first mortgage on the property of his debtor, has been taken from him, and he has been compelled to take his chances with as many subsequent creditors as the debtor may succeed in becoming indebted to
All these absurdities and atrocities have been practiced by the lawmakers of the States, and sustained by the courts, under the pretence that they (the courts) did not know what the natural “obligation of contracts” was; or that, if they did know what it was, the constitution of the United States imposed no restraint upon its unlimited violation by the State lawmakers.
Section XX.
But, not content with having always sanctioned the unlimited power of the State lawmakers to abolish all men’s natural right to make their own contracts, the Supreme Court of the United States has, within the last twenty years, taken pains to assert that congress also has the arbitrary power to abolish the same right.
1. It has asserted the arbitrary power of congress to abolish all men’s right to make their own contracts, by asserting its power to alter the meaning of all contracts, after they are made, so as to make them widely, or wholly, different from what the parties had made them.
Thus the court has said that, after a man has made a contract to pay a certain number of dollars, at a future time,—meaning such dollars as were current at the time the contract was made,—congress has power to coin a dollar of less value than the one agreed on, and authorize the debtor to pay his debt with a dollar of less value than the one he had promised.
To cover up this infamous crime, the court asserts, over and over again,—what no one denies,—that congress has power (constitutionally speaking) to alter, at pleasure, the value of its coins. But it then asserts that congress has this additional, and wholly different, power, to wit, the power to declare that this alteration in the value of the coins shall work a corresponding change in all existing contracts for the payment of money.
In reality they say that a contract to pay money is not a contract to pay any particular amount, or value, of such money as was known and understood by the parties at the time the contract was made, but only such, and so much, as congress shall afterwards choose to call by that name, when the debt shall become due.
They assert that, by simply retaining the name, while altering the thing,—or by simply giving an old name to a new thing,—congress has power to utterly abolish the contract which the parties themselves entered into, and substitute for it any such new and different one, as they (congress) may choose to substitute.
Here are their own words:
The contract obligation . . . . was not a duty to pay gold or silver, or the kind of money recognized by law at the time when the contract was made, nor was it a duty to pay money of equal intrinsic value in the market. . . . . But the obligation of a contract to pay money is to pay that which the law shall recognize as money when the payment is to be made.—Legal Tender Cases, 12 Wallace 548.
This is saying that the obligation of a contract to pay money is not an obligation to pay what both the law and the parties recognize as money, at the time when the contract is made, but only such substitute as congress shall afterwards prescribe, “when the payment is to be made.”
This opinion was given by a majority of the court in the year 1870.
In another opinion the court says:
Under the power to coin money, and to regulate its value, congress may issue coins of the same denomination [that is, bearing the same name] as those already current by law, but of less intrinsic value than those, by reason of containing a less weight of the precious metals, and thereby enable debtors to discharge their debts by the payment of coins of the less real value. A contract to pay a certain sum of money, without any stipulation as to the kind of money in which it shall be made, may always be satisfied by payment of that sum [that is, that nominal amount] in any currency which is lawful money at the place and time at which payment is to be made.—Juilliard vs. Greenman, 110 U. S. Reports, 449.
This opinion was given by the entire court—save one, Field—at the October term of 1883.
Both these opinions are distinct declarations of the power of congress to alter men’s contracts, after they are made, by simply retaining the name, while altering the thing, that is agreed to be paid.
In both these cases, the court means distinctly to say that, after the parties to a contract have agreed upon the number of dollars to be paid, congress has power to reduce the value of the dollar, and authorize all debtors to pay the less valuable dollar, instead of the one agreed on.
In other words, the court means to say that, after a contract has been made for the payment of a certain number of dollars, congress has power to alter the meaning of the word dollar, and thus authorize the debtor to pay in something different from, and less valuable than, the thing he agreed to pay.
Well, if congress has power to alter men’s contracts, after they are made, by altering the meaning of the word dollar, and thus reducing the value of the debt, it has a precisely equal power to increase the value of the dollar, and thus compel the debtor to pay more than he agreed to pay.
Congress has evidently just as much right to increase the value of the dollar, after a contract has been made, as it has to reduce its value. It has, therefore, just as much right to cheat debtors, by compelling them to pay more than they agreed to pay, as it has to cheat creditors, by compelling them to accept less than they agreed to accept.
All this talk of the