Arkansas democratic banner., 1851-06-03
DECISIONS IN THE |. S SUPREME e0uRT.
 No oeA~-December Term 1880.
hs efJ'0r Co tke Sa : preHis eeart et fks Stats ef Ar- kaRsds.

and Richard PnoF, p1siataes f's ef7'or Co tse Sa- 1 tn error. ys. preHss eeart ef Thomas S. Drew, as Governor tke Sats ef 4r- i of the State ofy4irkansas, kaRsas. ! and successor of Archibald
 i Yell, deceased.
 Mir. Justice MCLEAN delivered the opinion of ] The court
 This IS writ of error to the saprome court of Arkansas, under the 25th section of the judiciary ! act of i1S9.
 judgment was rendered. in the Pulaski ell cut court against the plaintiffs in error on the 23d De- eelnber, lS4T, for SIX thousand one hundred and nineteen dollars and costs on bonds payable at different tunes given for the purchase of part of q seminary granted to the State, by Congress, for the support of a seminary, and which lands were sold by the governor the agent of the State under the authorty of the general assembly. The bonds were made payable and negotiable at the State bank of Arkansas, f in specie or it's eqniva- lent'
 The defendants pleaded tender In the notes of the State bank of Arkansas, and relied upon the 2sth section Of the character of the bank which provided that the bills and notes of said nstiton shall be received in all payments of debts due to the State of Arkansas That the notes of the bank rendered, were issued while this section was in full force, and which constituted contract to receive them in payment Of debts by the State, which the State could not Iepudiate, &c. There was demurrer to the plea which was sustained by the court. The case submitted to a jury, whose verdict was for the plaintiff. on which judgment was entered. A writ of er- TOT was prosecuted to the supreme court of Arkan- sas, on which the judgment Of the circuit court was affirmed.
 ] By the act of the 2nd of March is2T. the Seere- tary of the Treasury was authorized to set apart and reserve from sale of the public lands, within the territory of Arkansas, . quantity of land not exceeding two entire townships, for Inc use of University, &c. And by the act of tae 23Fd of June 1856. it IS provided that the two entire town ships of land which have already been located by virtue of the above act, arc hereby vested ii snd confirmed to the general assembly of the said Stste to be appropriated solely to the use of such semi nary by the general assembly" Under the act of the State of the 2Sth of December lS4s, these lands were sold by the governor of the State, and the bond now in question were given the puF- chase of part of them above stated. 1 The enttIe capital of the bank is owned by the State and its concerns are managed by the agents of the state The directors oi the principal bank and of the branches are elected by the Legislature of the State.
 PsRp ef al rs. Dresc, Governor, sSc. { In the case of Woodruff vs. Trapaall decided at tue present teun, this coaTt held that the 26th section in the charter constituted a contract be- tween the State and the holder of the bills of the bank That the pledge of the State to receive the notes of the bank, i'll payment of debts was standing guaranty, which embraced all the paper | braced all the paper issued by the bank until the rnranty was repealed. And that ihs construction was founded upon the fact. that tue bank belonged exclusively 10 the State, was conducted ey Its off eers and for it's benefit. That the guaranty attach ed to the notes of the bank in circulation at the time of the repeal, aud such notes the State was bound to receive in payment of its debts. That ia this respect the obligation ok the contact applied to State equally as to an individual And that as 10 the binding fetee of a similar guaranty by au inditiduaL there would seem ,o be no ground iUr doubt But that under this guaranty the State IS ! bond 10 receive the notes of the bank only, III payment of debts in its own right.
 The lands sold did not belong to the State of Arkansas, but were held by 1t in trust to be ap- proprla,ed solely for the ase of the Seminary. ."-l ! The money, of course, secuted to be paid by the | purchaser parfook cf tbe same character. The bounds were made payable 10 the governor or hs successor in office. And it appears as stated in 1 the plea that the money to De receised. Insena ed, under the act of incorporation ef tae bank, to constitute apart of its capital The governor acted the agent of the State in making the sale of the ! land ln collecting the money; but be could only 1 represent trust interest. The manner in which | the money V as now under consideration h law the money did Rot belong io the State, in any other capacity than as trustee, and consequently the debt not due 10 the State la is own right No court can sanction the violation oi trust, but wIil always act on the presumption that 1t will be
  case, when the trust ls vested in State, which not anaenahe to jadieial process. To hold that the State of Arkansas s bound under the provision in the character Of the bank to receive it's notes m payment far the Seminary lands, would violate the tFasi, as f would greatly reduce the fund. Should the money hr invested by the Stale, and Ioss. Ii would be responsible fpr it Ne hazard incurred in The appropriation ot use of this money could onefate he State from faithfully esnying out the object, for which ihe fund was oEglpsliy ccnsti- tnted.
 The bonds were given payable "in specie or fas equivalent Tkfs shows that Il vas the nn. derstaadsng ef bCah parties. that currency less valuable than spece sheald not be received ID payment of the bonds If by eontTaci sbe State was boaud to receive the notes of the baak in paynsemt of it's debts, by a contract this ob- hgation Hsght be waiSed. Aad na waiseT could be more express than aa oblgstfoH by ihe debtor 10 pay in specie or is equiv yasent.
 We are therefore of opinion that ss thls fund k trust a the hands of the State, fl eanao,. within the 2sth section of the charter of The bank. he seonssdsyed debt due te the State and VIC thiaS Aby the condition of the bonds to discharge them s" in specie CT is eqaivaleat," the notes ci lae bank also excluded. On both tbese grounds, the contact set up ihe pleading not ee'iig tal paired. we thlak the judgment ei iae Siale eoAtt must be affirmed.
 IF The Board of Managers of the " National MonumeRt' suggest to thsF fellow eftizen through out the Inlan that colleesions bs made OR the ap Droaehiag Anniversary of the NsffdEsl iHaepfn