Hepburn v. Griswold
Encyclopedia
Hepburn v. Griswold, 75 U.S. 603
(1870), was a Supreme Court of the United States
case in which the Chief Justice
, Salmon P. Chase
, speaking for the Court, declared certain parts of the legal tender
acts to be unconstitutional. This included the issuance of greenbacks
, which he was responsible for overseeing during his tenure as Secretary of the Treasury
.
The lawsuit
originated when one Mrs. Hepburn attempted to pay a debt due to one Henry Griswold on a promissory note
, which was made five days prior to the issuance of United States notes that this case questioned. Griswold sued Hepburn in the Louisville
Chancery Court
on the note and refused Mrs. Hepburn's tender of United States notes to satisfy his claim. She then tendered the notes into the chancery court, which declared her debt satisfied.
The Court of Errors of Kentucky reversed the chancery court's judgment, and Mrs. Hepburn appealed to the United States Supreme Court, which in this opinion affirmed the judgment of the Court of Errors.
The Supreme Court acknowledged that the Constitution of the United States is the highest law of the land and that the national government was powerless to do something that it was not authorized to do by the people. The Federal government holds the power to do things that are not expressly granted in the Constitution
, so long as they are incidental to it.
The Court went on to explain how the United States Congress
has the power to coin money. However, the Court held that the power to coin money was distinctly different than the power to make paper legal tender
. The Court discussed that the government holds the power to carry on war and since greenbacks were issued to finance the American Civil War
, perhaps Congress could make these notes legal tender under that power. Nevertheless, the Court reasoned that making notes legal tender was not necessary to carry on war.
The Court also talked about how the Constitution prohibits the several states from impairing the obligations of contracts, but it found that although there is no such express prohibition against the national government, it would violate the spirit of the Constitution for the government to do so. Since compelling somebody to accept something other than what was contracted for was a taking of property, the Court found that making notes legal tender was a taking without just compensation and without due process of the law.
The dissent argued that the government was threatened by the war and making the notes legal tender provided the government with the necessary supplies to continue to fight the war. Therefore, the dissent generally rested its hat on the claim that making notes legal tender]was legitimate as it was incidental to the power to carry on war.
The holding in this case was explicitly overruled by Knox v. Lee
and other Legal Tender Cases
, , in which Chase dissented.
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...
(1870), 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 the Chief Justice
Chief Justice of the United States
The Chief Justice of the United States is the head of the United States federal court system and the chief judge of the Supreme Court of the United States. The Chief Justice is one of nine Supreme Court justices; the other eight are the Associate Justices of the Supreme Court of the United States...
, Salmon P. Chase
Salmon P. Chase
Salmon Portland Chase was an American politician and jurist who served as U.S. Senator from Ohio and the 23rd Governor of Ohio; as U.S. Treasury Secretary under President Abraham Lincoln; and as the sixth Chief Justice of the United States Supreme Court.Chase was one of the most prominent members...
, speaking for the Court, declared certain parts of the 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....
acts to be unconstitutional. This included the 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....
, which he was responsible for overseeing during his tenure as Secretary of the Treasury
United States Secretary of the Treasury
The Secretary of the Treasury of the United States is the head of the United States Department of the Treasury, which is concerned with financial and monetary matters, and, until 2003, also with some issues of national security and defense. This position in the Federal Government of the United...
.
The lawsuit
Lawsuit
A lawsuit or "suit in law" is a civil action brought in a court of law in which a plaintiff, a party who claims to have incurred loss as a result of a defendant's actions, demands a legal or equitable remedy. The defendant is required to respond to the plaintiff's complaint...
originated when one Mrs. Hepburn attempted to pay a debt due to one Henry Griswold on a promissory note
Promissory note
A promissory note is a negotiable instrument, wherein one party makes an unconditional promise in writing to pay a determinate sum of money to the other , either at a fixed or determinable future time or on demand of the payee, under specific terms.Referred to as a note payable in accounting, or...
, which was made five days prior to the issuance of United States notes that this case questioned. Griswold sued Hepburn in the Louisville
Louisville, Kentucky
Louisville is the largest city in the U.S. state of Kentucky, and the county seat of Jefferson County. Since 2003, the city's borders have been coterminous with those of the county because of a city-county merger. The city's population at the 2010 census was 741,096...
Chancery Court
Court of equity
A chancery court, equity court or court of equity is a court that is authorized to apply principles of equity, as opposed to law, to cases brought before it.These courts began with petitions to the Lord Chancellor of England...
on the note and refused Mrs. Hepburn's tender of United States notes to satisfy his claim. She then tendered the notes into the chancery court, which declared her debt satisfied.
The Court of Errors of Kentucky reversed the chancery court's judgment, and Mrs. Hepburn appealed to the United States Supreme Court, which in this opinion affirmed the judgment of the Court of Errors.
The Supreme Court acknowledged that the Constitution of the United States is the highest law of the land and that the national government was powerless to do something that it was not authorized to do by the people. The Federal government holds the power to do things that are not expressly granted 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...
, so long as they are incidental to it.
The Court went on to explain how the United States Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
has the power to coin money. However, the Court held that the power to coin money was distinctly different than the power to make paper 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....
. The Court discussed that the government holds the power to carry on war and since greenbacks were issued to finance the American Civil War
American Civil War
The American Civil War was a civil war fought in the United States of America. In response to the election of Abraham Lincoln as President of the United States, 11 southern slave states declared their secession from the United States and formed the Confederate States of America ; the other 25...
, perhaps Congress could make these notes legal tender under that power. Nevertheless, the Court reasoned that making notes legal tender was not necessary to carry on war.
The Court also talked about how the Constitution prohibits the several states from impairing the obligations of contracts, but it found that although there is no such express prohibition against the national government, it would violate the spirit of the Constitution for the government to do so. Since compelling somebody to accept something other than what was contracted for was a taking of property, the Court found that making notes legal tender was a taking without just compensation and without due process of the law.
The dissent argued that the government was threatened by the war and making the notes legal tender provided the government with the necessary supplies to continue to fight the war. Therefore, the dissent generally rested its hat on the claim that making notes legal tender]was legitimate as it was incidental to the power to carry on war.
The holding in this case was explicitly overruled by Knox v. Lee
Knox v. Lee
Knox v. Lee, 79 U.S. 457 , was an important case for its time where the Supreme Court of the United States reversed Hepburn v. Griswold . The Court held that making paper money legal tender through the Legal Tender Act did not conflict with Article One of the United States Constitution.Mrs...
and other Legal Tender Cases
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 money violated the United States Constitution. The...
, , in which Chase dissented.
See also
- List of United States Supreme Court cases, volume 75
- Bronson v. Rodes,