Supreme Court of the United States · 1870 · Constitutional Law
79 U.S. 457 (1870)
Updated
Constitutional LawCongressional powersLegal tenderNecessary and Proper Clausetreasury notesimplied powerswar powerscurrency
Facts
Congress enacted the legal tender acts making treasury notes legal tender for the payment of debts, except those expressly excepted. The cases presented challenges to the constitutionality of those acts as applied both to pre-enactment contracts and to debts incurred after enactment. The Court considered the acts in light of the Civil War, when the government faced immediate and pressing financial needs, an exhausted treasury, suspended specie payments, and the need to support large armies and navies. The Court also noted that since 1862 people throughout the country had contracted debts and conducted business in reliance on the legal tender status of the notes.
Issue
May Congress constitutionally make treasury notes legal tender for the payment of debts? Specifically, are the legal tender acts valid when applied to contracts made before their passage and to debts contracted after enactment?
Rule
An act of Congress is not unconstitutional unless its conflict with the Constitution is clear. Under the Necessary and Proper Clause, Congress may choose any means that are appropriate, plainly adapted to a legitimate constitutional end, not prohibited, and consistent with the letter and spirit of the Constitution; the judiciary does not judge the degree of necessity. Accordingly, Congress may make treasury notes legal tender if that measure is an appropriate means for carrying into execution the powers of the government and is not forbidden by the Constitution.
🔒
See the holding & full analysis
Create a free KwikCourt account to unlock the rest of this brief — and practice the case.
The court's holding and reasoning
Doctrine tests, pitfalls & exam hypotheticals
10 practice questions + 4 AI-graded essays on this case
One of 10 multiple-choice questions for this case. Pick an answer to see why.
During a national financial crisis, Congress authorizes federal treasury notes and provides that they shall be legal tender for all money debts except customs duties and interest on certain federal bonds. In litigation in Ohio, creditor Elena Ruiz argues the law is unconstitutional because Congress could have raised the same funds through higher taxes and long-term bond sales instead.
How should the court rule?
Explanation. The majority held that when the end is legitimate and within the Constitution, Congress may choose any means that are appropriate, plainly adapted to that end, not prohibited, and consistent with the letter and spirit of the Constitution. Courts do not inquire into the degree of necessity or whether some alternative would have been preferable. If making treasury notes legal tender is really calculated to execute legitimate governmental powers, the measure is constitutional even if taxes or bond sales were also possible.