The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1868-11-14
From tho Portland Evening Commereial]
THE FINANCE QUESTION.
LETTER From COL. CHAPMAN no TIE SEC
RETARY OF STATE.
PORTLAND, Nov. 2, 1868.

PORTLAND, Nov. 2, 1868.
iSansel Z. Nay, Esq., Secretary Of State /.
Sin While at Salem, learning that
there was a considerable amount Of out.
standing warrants drawing interest from
tho State, it was my intention, when the
appropriation bill should como up, to
have investigated the lawfulness Of their
issue. The condition Of the country. un.
der the failure Of the Legislature to pass
the appropriation bill for salaries of pub.
lie officers, and other current expenses OF
the State, amounting to some four hun
drcd thousand (s40O, ,0O0) dollars, for the
next two years, can but be q subject Of
serious concern. l am decidedly of the
opinion that the Secretary cannot lawfully
issue . warrant, nor can tho Treasurer
pay or endorse warrant for the payment
of principal or interest, unless an appro.
priation has first been made by law
Section 4 Of Article TX Of the Constitu-
ton provides that "no money shall be
drawn from the Treasury but in pursu.
ance of appropriations made by law."-
1t has been contended that granting q
salary by the Constitution is such An an.
preparation. If such an idea prevails, il
IS erroneous. %he granting Of salary is
one thing, and the appropriation to pay
it is another. The 9TH section of the
article Of the Constitution before referred
to explains tho 4th section it provides
that laws making appropriations for the
salaries of public officers and other cur
rent expenses Of the State, shall contain
provisions on no other subject" Il
would seem from these provisions of the
Constitution that if the Legislature should
authorize the Secretary to draw warrants
without making appropriations, that he
could not cons.itutionally do so nor could
the Treasurer, observing the Constitution
endorse such warrants But upon care
ful examination Of the laws governing
the Secretary and Treasurer, it will be
seen that they follow the Constitution.
Chapter /. section Is, of the General
Laws, page 622 Of the Code, provides,
That the Secretary of State shall super.
intend the fiscal concerns of the State,
and manage the same in the manner pre-.
scribcd by law" lst. To keep accounts
etc. I'd. Examine books, etc, Of fTreasur.
er; Sd. Make suggestions on revenue
4th. State certain accounts with tho
United States 5th. Examine accounts
of persons indebted 9th. Superinted col.
lections, etc, aud 7th. To examine and
ascertain the claims Of all persons against
the State, in cases where provisions for
the payment thereof shall have been made
by law, and endorse upon the amount due
and allowed thereon, and from what fund
the same is to be paid, and draw o war.
rant upon the Treasury for the same,
The 18th section might be quoted
also, in support of this position. Sub.
division 2, of section &c, Of chapter /, on
page GA of the Code, relating to the
duties Of the Treasurer, makes it :" the
duty of the Treasurer to pay on demand
out of the Treasury, all sums authorized
By law to be so paid, if there are appro
pirate funds in the Treasury to pay the
same: and when any sum is required tc
DC paid out of particular fund, it shal
be paid out of such fund only; and ht
shall pay no fund out of the Treasury ex
cept in pursuance of law authorizing th,
payment thereof; but when any clam OF
account is authorized by law to be paid
out of general or contingent appropria
tion, the same shall be paid by tn,
Treasurer upon the warrant of the Sccre
tary of State.
I'd. To pay warrants drawn on the
Treasurer in the order in which they arr
presented out of the appropriate fund; i
there is no such fund in the Treasury
then he shall endorse on such warrant
{" not paid for want of funds" together
with the date; and all warrants SO en-
dorsed shall draw legal interest from
and after such endorsement.
Our Constitution, framed upon the
theory Of cash payments, contemplatei
warrants to follow, not precede appropri
ations by law. The revenue may not al
ways have come into the Treasury wher
the appropriation is made, and hence the
provision for the payment of interes
upon warrants lawfully issued. It il
therefore quite plain that, constitutional
ly and lawfully, no demand against tho
State can be audited. drawn for, paid. ol
endorsed "not paid for want of funds p
until after ::the Legislative department
has appropriated the moneHpr fund. /
is expedient that this should be the in
terpretation of tho law Otherwise, the
officers in different branches of the gov
ernment might incur expcnses-excceC
appropriations made by law-cause then
to be audited, draw for, and endorsed to
pay interest, to an enormous amount
when the people, through their represen
tatives, might not choose to recognize the
demand, or appropriate the money
Undoubtedly, it is tho interest and policy
of the State to keep the expenditure,
within the appropriations made by law
IF, from any cause, the Legislative de
partment fails to make appropriation
necessary to carry on the Government, j
must bear the blame. If it has been tht
practice to draw warrants in advance O
appropriations, it was unlawful, anc
should be checked. 10 continue, or in
stitnte practice of drawing warrants tt
the amount of two hundred thousanC
dollars for the next year, without an ap
preparation, would seriously impair the
credit of the State. The warrants them
selves would depreciate, probably fft.
per cent, at once causing the State t
pay exorbitant prices for all she woult
buy Respectfully yours.
W. W. CHAPMAN.
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