Volcano weekly ledger., 1856-12-13
State Bonds and State Credit.


On Monday last the Supreme Court Of Cal
ifornia all the judges concurring, rendered
very important decsion---altogethe the
most important that has ever emenated from
that tribunal. The decision is upon bill in
equity filed in the court below, by the AT
torncy General, to enjoin the Wagon Road
Commissioners from entering into any contract
for building the Wagon Road over the Sierra
Nevada mountains, as per statute known as
the Wagon Road Bill"
The eighth article of the Constitution of
of California provides that the Legislature
shall not, IN any manner, create >any debt or
debts to exceed in the aggregate three hun
dred thousand dollars, except in case of
war, to repcl invasion, or suppress insurrec-
tion," unless the same shall be for some spe-
cial purpose, in which event the question must
first be submitted to vote of the people be-
fore the warrants can be constitutionaly is
sued The decision of the Supreme Court,
in the case alluded to, is that certain bonds
issued by Legislative authority have, under
the constitution, created no liability against
the State and the decision virtually places
in the repudiated list every bond and warrant
beyond the sum of three hundred thousand
dollars, excepting only such as have been is
sued under appropriations absolutely neces-
sary to carry on the State Government.
Read the Sth article of the Constitution,
and it must be conceded that the decision Of
the highest judicial tribunal in the State is
in this instance well founded and correct. Yet
in the very face of the Constitution, the debt
of the State is over three millions, we be-
ieve, exclusive of the three hundred thou
sand dollars consttutionaly permitted A
portion of these bonds have doubtless been
necessarily issued in order to carry on the
State government, and a portion have not
been Who is to determine which have been
necessarily issued, and which have not?
Again, in many instances the same bond will
be found to cover both legal and illegal in
debtedness for scrip is issued in such sums
as may be required by the creditor of the
State, and several old ones may have been
cancelled and a new one issued for the sum
total. Who is to decide on the validity of
these mixed evidences of indebtedness? In
word vast mountain of trouble presents
itself to be encountered
This decision will of course greatly affect
the credit of the State-perhaps ruin it for
the time being-and yet, as before stated,
the reasoning and conclusions of the learned
judges must be admitted to be correct Like
children we sometimes read Of, the people of
California have had their fingers burned; and
they will no doubt hereafter dread the fire
We have been taught a good lesson but
this is not ALL We must go to work and as
speedily as possible remedy the difficulty in
which we are placed, or else suffer the odium
of reputation, which God forbid We are
on the brink Of this precipice, and nothing
short of prompt and descisiye action will save
us from the eternal and merited disgrace
which would inevitably follow.
The only remedy we see is that proposed
by the Supreme Judgds to-wit, that the
Legislature adopt the present Indebtedness Of
the State as whole, and in conformity with
the Sth article of the Constitution. submit
their action to the people for ratification.
There can be no doubt Of the good faith
of the people of California. Whatever ex-
travagance may have been committed, they
will pay to the last dollar; and having been
thus taught in the school of experience.
their faith and credit will not only be saved,
but more economical administration of the
government secured for the future, while the
general prosperity of the State must be even
tually promoted. AS has been tie case with
almost every new State, it seems to have
been necessary for us to live and learn"
"ALI SOUND AND Fury, SIGYIFYING MOTH
ISep-The articles in the Sacramento Untor
sipned "An Upwayering Democrat -