UNITED STATES
v.
VAN AUKEN
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Van Auken was prosecuted under an 1862 federal statute prohibiting the circulation of private obligations under one dollar intended to circulate as money, based on his distribution of notes from the Bangor Furnace Company promising to pay fifty cents in goods at their store. The Supreme Court held that the statute did not apply because the notes were payable in goods rather than money, and thus the "sum" referenced in the statute—which contemplates monetary value—could not be measured by the goods standard used in the obligations. The Court established that the statute's prohibition applies only to notes or obligations denominated in money that are intended to circulate as currency, not to commodity-based payment instruments.
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Mr. Justice SWAYNE delivered the opinion of the court.
The act of Congress of July 17, 1862, sect. 2 (12 Stat. 592 ; Rev. Stat. 711, sect. 3583), declares that “ no private corporation, banking association, .firm, of individual shall make, issue, • circulate, or pay out any note, check, memorandum, token, or other obligation, for a less sum than one dollar,- intended to circulate.as money, or to be received or used in lieu of lawful money, of the United States,” and denounces as a penálty for the offence fine ór imprisonment, or both. .
Yan Auken was indicted under this act for circulating the “ obligations ” of the Bangor Furnace Company, a corporation .created by and under the laws of the State of Michigan, which obligations are alleged to be in hcec verla: —
“ Bangor, Mich., Aug. 15,1874.
“ The Bangor Furnace Company will pay the bearer, on demand, fifty cents, in goods, at their store, in Bangor, Mich. (Signed)' “A.JE5. Hough,.Pres.
ChaSí B. ÍIhoder, • Treas.”
“ Each of which said' obligations was for a less sum than one dollar, and was intended by the said Aaron Van Auken to circulate as money, and to be received in lieu of lawful money of. the United State's, contrary,” &c.
Yan Auken demurred to the indictment. The opinions .of the judges of the" Circuit Court were divided and opposed upon two questions, which were thereupon certified to this, court for final determination: —
-1. Whether the obligation set forth in the indictment is within any valid statute of the United States.
2. Whether the statute under which, the -indictment was found is constitutional.
• The solution of the first question , depends upon the construction to'be given to the words “for a less sum than one dollar.” The object of the provision-was obviously to secure, as far as possible, the field for the circulation of stamps,-as provided in the preceding section, without.competition from any quarter.. This currency was superseded by the fractional notes authorized to be issued by the act of March 3, 1863, sect. 4 (12 Stat. 711). Small notes payable in any specific articlés, if issued, could have only a neighborhood circulation, and but a limited one there. It could' be but little in the way of the stamps or small notes issued for the purposes of circulating change by the United States. Congress, could, therefore, have had little or no motive to interfere with respect to the former.. This must be borne in mind in the examination of' the question in hand.
A dollar is thó unit of our currency. It always means-money, or what is 'regarded as money. In this case, the statute makes it the standard of measure with reference to the forbidden notes and obligations. If one of them be for a larger . “ sum than one dollar,” it is not within the prohibition, and is not affected by the law. It is. a fair, if not a necessary, inference, that the standard of measurement named was intended to be applied only to things ejusdem, generis ; in other words, to notes for money, and to nothing.else.
It is certainly inapplicable to any thing not measurable by the pecuniary standard. It could' not be applied where the measurement was .to be, ex gratia,, by the' pound, the gallón, the yard, or any other standard. than money. • This view is supported by the statutory requirement that the forbidden - thing must be “ intended to circulate as money,- or to. be received or used in lieu of the .lawful, money of the. United States.” One of the lexical definitions of the word “.sum,” and the sense in which it is most commonly used, is “money.” “ Sum: (2.) A quantity of money or currency; any amount indefinitely, as a s.um of money, a small sum, or a large sum.” Webster’s Die. “For a less sum'than one dollar!’ means exactly the same thing as for a less sum of money -than one dollar. In the former pase there is an ellipsis; In' the latter, it is supplied. The implication where the. omission occurs -is as clear and effectual as the expression where the latter is added.. The grammatical construction .and the obvious meaning are the • same. The-statute makes the offence to consist of two -ingredients : 1. The token or obligation must be for a less sum than a dollar. 2. It. must be intended to circulate as money, .or in lieu of the money of the United States. Here the note is for “ goods,” to be paid at the store of the Furnace Company. It is not payable in money, but in' goods, and ip goods only. No money could be demanded upon it. It is not solvable in that medium. Wat son v. McNairy, 1 Bibb, 356. The sum of “ fifty cents ” is named,, but merely as the limit of .the value in goods demandable and to be paid upon the presentment of the note. Its mention was for no other purpose, and has no other effect. In the view of the law, the note is as if it called for so many pounds; yards, or quarts' of a specific article. The limit of value, there being none-other, gave the holder a range of ehoice as to the articles to be received in payment, limited only by the contents-of the store.
. But it is said the indictment avers that the note was intended • to circulate as money, and that the demurrer admits the truth of the averment.
To this there áre two answers: — '
1. The demurrer admits only what is well pleaded.
2. The offence, as we have shown, consists of two elements: the thing circulated; and the intent of the.party circulating it.
The' demurrer, at most, admits only the latter. As to’ the former, the judgment of the court is left unfettered, just as if the question before, us. had been raised by a motion to quash, .instead of. a demurrer. The first question certified must-be answered in the negative. The second oné it is, therefore, unnecessary to consider. MR. Justice Miller dissented.
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McMULLEN v. United States, 96 F.2d 574 (D.C. Cir. 1938)…as a definite meaning appropriate to use in reference to dollars and cents, and is restricted in its application to money except where a different meaning plainly appears. Kelley v. Sullivan, 201 Mass. 34, 87 N.E. 72, 73; United States v. Van Auken, 96 U.S. 366, 368, 24 L.Ed. 852; Wetz v. Elliott, 4 Okl. 618, 51 P. 657; Lynes v. Townsend, 33 N. Y. 558; Donovan v. Jenkins, 52 Mont. 124, 155 P. 972. As defined in Webster’s New International Dictionary the word sum means, in the only sense in which it can be…
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Emery Bird Thayer Dry Goods Co. v. Williams, 98 F.2d 166 (8th Cir. 1938)…or silver as the monetary standard of the Nation; (2) coins and currency actually circulating as a medium of exchange; or (3) the unit of value, the dollar. This third meaning is sustained by judicial authority. Thus, in United States v. Van Auken, 96 U.S. 366, 24 L.Ed. 852, the court said (page 368): “A dollar is the unit of our currency. It always means money, or what is regarded as money.” An exhaustive study of the authorities bearing on this subject has not, of course, been possible, but we think i…
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Hollister v. Zion's Co-Operative Mercantile Inst., 111 U.S. 62 (U.S. 1884)…make, issue, circulate, or pay any note, check, memorandum, token, or other obligation, for a less sum than one dollar, intended to circulate as money, or to be received or used in lieu of lawful money. It was decided in United States v. Van Auken, 96 U.S. 366, that obligations payable in goods were not included in the prohibitions of this act, because by fair implication, only obligations for money were .affected. The national banking act of February 25th, 1863, c. 58, 12 Stat. 665, was passed at the nex…