LING SU FAN
v.
UNITED STATES

U.S. | 1910-11-14
No. 20
218 U.S. 302 Supreme Court of the United States (1910) Positive Treatment
Also reported at: 54 L. Ed. 1049 · 31 S. Ct. 21 · 1910 U.S. LEXIS 2026 · SCDB 1910-010
Cited by 20 cases

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Synopsis

Ling Su Fan was convicted under Philippine law for exporting Philippine silver coins in violation of a statute prohibiting such exportation. The Supreme Court upheld the conviction, holding that the Philippine government's power to coin money includes the authority to prohibit the export of that coinage to maintain its value and circulation within the islands, and that such a prohibition does not deprive owners of property without due process of law because legal tender carries inherent limitations imposed by public policy and sovereign authority.


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Opinion of the Court
Mr. Justice Lurton

Mr. Justice Lurton delivered the opinion of the court.

The plaintiff in-error has been convicted of the offense of “exporting from the Philippine Islands Philippine silver coin” in violation of Philippine law No. 1411, being §§ 1998 and 199.9, Compiled Acts of the Philippine Commission, title 3, chapter 194. Sections 1 and 2 of law No. 1411 read-as follows:

“Sec. 1. The exportation from the Philippine Islands of Philippine silver coins, coined by authority of the act of Congress approved March 2nd, 1903, or the bullion made by melting or otherwise mutilating such coins, is hereby prohibited, and any of the aforementioned silver coins, or bullion which is exported or of which the exportar tion is attempted'subsequent to the passage of this Act and contrary to its provisions, shall be liable to forfeiture, under due process of law, and one-third of the sum or value of the bullion so forfeited shall be payable to the person upon whose information, given t© the proper authorities , the seizure of the money or bullion so forfeited, is made, and the other two-thirds shall be payable to the Philippine Government and accrue to the gold standard .fund. Provided, Thai the prohibition herein contained shall not apply to sums of P. 25.00 or less, carried by passengers leaving the Philippine Islands.

“Sec. 2. The exportation or attempt to. export Philippine silver coin or bullion made from such coins from the Philippine Islands, contrary to law, is hereby declared .to be a criminal offense, punishable, in addition to the forfeiture of the said coins' or bullion as above provided, by a fine not to exceed.P. 10,000.00/or by imprisonment for a period not to exceed one year, or both, in the discretion of the court.”

We may pass over the assignments of error which challenge' the sufficiency, of the''evidence to warrant a conviction, inasmuch as it is not contended that there was Tio evidence. This is a writ of error, and upon such a writ the error to be considered must be confined to error of Jaw,

The substantial question is as to whether a law which prohibits the exportation of Philippine silver coin from the Philippine Islands is a law which deprives the owner of his property in such coins without due' process of law, in violation of that prohibition of the organic act of July 1, 1902, which provides that “no law shall be enacted in said islands which shall deprive any person of life, liberty or property without due process of -law.” Act of-July 1, 1902, c. 1369, §5, 32 Stat. at Large, 691, 692. The authority for the law is found in the same act of Congress, §§76 et seq., 32 Stat. at Large, 710, which authorized the Philippine government to establish a mint in the city of Manila for coinage purposes and to enact laws for its operation, and for the striking of certain coins. By the later act of Congress of March 2, 1903 (c. 980, 32 Stat. at Large, 952), it was provided that the gold peso, consisting of 12.9 grains of gold, nine-tenths fine, should be the unit of value in the islands. The second section of that act provided as follows:

“That.in addition to the coinage authorized for use in the Philippine Islands by the act of July first, nineteen hundred and two, entitled 'An act temporarily to provide for the administration of-the affairs of civil government in the Philippine Islands, and for other purposes,’ the government of the Philippine Islands is authorized to coin to an amount not exceeding seventy-five million pesos, for use in said islands, a silver coin of the denomination of one peso and of the weight of four hundred and sixteen grains, and the standard of said silver coins shall be such that of one thousand parts, by weight, nine hundred shall be of pure metal and one hundred alloy, and the alloy shall be of copper.”

Section six of the same act of March 2, 1903, provided:

“That the coinage authorized by this act shall be subject to the conditions and limitations of the provisions of the act of July first,, nineteen hundred and two, entitled 'An act temporarily to provide for the administration.'of the affairs of civil government in the Philippine Islands, and for other purposes,’ except as herein otherwise provided; and'the government of the Philippine Islands may adopt such measures as it may deem proper, not inconsistent with said act of July first, nineteen hundred and two, to maintain the value of the silver Philippine peso at the rate of onegold peso;”

In a subsequent part of the same section the issuance of certificates of indebtedness, bearing interest, was authorized as a specific measure for maintaining the parity between the silver and gold peso.

The law of the Philippine Commission, above set out, under which the conviction of the plaintiff in error was secured, must rest upon .the provision of § 6, above set out, as a means of maintaining “the value of the silver peso at the rate of one gold peso.” Passing by any consideration of the wisdom of such a law prohibiting the' exportation of the Philippine Islands silver pesos as not relevant to the question of power, a substantial reason for such a law is indicated by the fact that the bullion value of such coin in Hong Kong was some nine per cent greater, than its face value. The law was, therefore, adapted to keep the silver pesos in circulation as a medium of exchange in the islands aiid at a parity with the gold peso of Philippine mintage.

The power to “coin money and regulate the value thereof, and of foreign coin,” is a prerogative of sovereignty and a power exclusively vested in the Congress of the United States. 'The power which the government of the Philippine Islands has in respect to a local coinage is derived from the express act of Congress. Along with the power to strike gold and silver pesos for local circulation in the islands was granted the power to provide such measures as that government should “deem proper,” not inconsistent with the organic law of July 1,1902, necessary to maintain the parity between the gold and silver pesos. Although the Philippine act cannot, therefore, be said to overstep the wide legislative discretion in respect of measures to preserve a parity between the gold and silver pesos, yet it is said, that if the particular measure resorted to be one which operates to deprive the owner of silver pesos, of the difference' between their bullion and coin value, he has had bis property taken from him without compensation, and, in its wider sense, without that due process of law guaranteed by the fundamental act of July, 1902.

Conceding the title of the owner of such coins, yet there is attached to such ownership those .limitations which public policy may require by reason of their quality as a legal tender and as a medium of exchange. These limitations are due to the fact that public law gives .to such coinage a value which does not attach as a mere consequence of intrinsic value. Their quality as a legal tender is. an attribute ,of law aside from their bullion value. They bear, therefore, the impress of sovereign power which fixes value and authorizes their use in exchange. As an incident, the Government may punish defacement and mutilation and constitute any such act, when fraudulently done, a misdemeanor. Rev. Stat., §§ 5459, 5189.

However unwise a law may be, aimed at the exportation of such coins, in the face of the axioms against obstructing the free flow of commerce, there can be no. serious doubt but that the power to coin money includes the power to prevent its outflow from the country of its origin. To justify the exercise of such a power it is only necessary that it shall appear that the means are reasonably adapted to conserve the general public interest and are not an arbitrary interference with private rights of contract or property. The law here in question is plainly within the limits of the police power, and not an arbitrary or unreasonable interference with private rights. If a local coinage was demanded by the general interest of the Philippine Islands, legislation reasonably adequate to maintain such coinage at home as a medium of exchange is not a violation of private right forbidden by the organic law. Obviously, if the Philippine government had power to prohibit the exportation or melting of Philippine silver pesos, it had .the power to make the violation of the pro-, hibition a misdemeanor. - The proceedings for the enforcement of the law included the ordinary process in criminal cases lawful in the islands and not forbidden by he act of July, 1902.

Judgment affirmed.


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Cited By

  • Norman v. Baltimore & Ohio R.R. Co., 294 U.S. 240 (U.S. 1935)
    …49. Moreover, by virtue of this national power, there attach to the ownership of gold and silver those limitations which public policy may require by reason of their quality as legal tender and as a medium of exchange. Ling Su Fan v. United States, 218 U. S. 302, 310. Those limitations arise from the fact that the law “ gives to such coinage a value which does not attach as a mere consequence of intrinsic value.” Their quality as legal tender is attributed by the law, aside from their bullion value. Hence t…
  • Perry v. United States, 294 U.S. 330 (U.S. 1935)
    …r a private way. May Congress authorize the appropriation or destruction of these things without adequate payment? Of [*377] course not. The limitations prescribed by the Constitution restrict the exercise of all power. Ling Su Fan v. United States, 218 U. S. 302, supports the power of the legislature to prevent exportation of coins without compensation. But this is far from saying that the legislature might have ordered destruction of the coins without compensating the owners or that they could have been re…
    1 / 2
  • Nortz v. United States, 294 U.S. 317 (U.S. 1935)
    …to deliver unto the Government all gold bullion, gold coins and gold certificates in their possession.” These powers could not be successfully challenged. Knox v. Lee, 12 Wall. 457; Juilliard v. Greenman, 110 U. S. 421; Ling Su Fan v. United States, 218 U. S. 302; Norman v. Baltimore & Ohio R. Co., decided this day, ante, p. 240. The question plaintiff presents is thus simply one of “ just compensation.” The asserted basis of plaintiff’s claim for actual damages is that, by the terms of the gold certificate…

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