Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-08-26

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hey would make it cost about
light or ten millions. In the navy |
hey would makea larger reduction
They. would abolish the free negro
boarding house in tho South, and
oblige the negroes, likethe whites,
TO earn. their own living. Through |
these and by other means they
would considerably lessen taxes.
+ 19. 81 $500 ------ ------.------- iAli %
TIE STATES LIBERIA LfrY FoRlTHE
I - BANK OF TENNEsSEE. aliob
We Expressed the opinion yes
terday that the suit now pending
before the Supreme Court of the
United States to test the validity of |
the repeal by the Legislature fthe
twelfth section of the charter ofthe
Bank of Tennessee, win be decided
favorably to the Taxpayers and
that the repealis void. The twelfth
section of the charter reads as fol-
lows: Cd % sftc cd gilrF % Elu vgl
"That the bills or notes ofthe said cor
poration, originally made payable, or
which shall have become payable on de. ]
mand, in gold or silver coin, shall be re-"
ceivable at the treasury OF this State,
and by all tax collectors and other public
officers, in all payments for taxes or
other monies due to the Stase."
The act of June 10, 1865, repeats
this section. The purpose of this
repeal was to deprive the citizens
of the State of the privilege of pay
ing their taxes in the notes of the
Bank of Tennessee. We propose
now to show why we think the Su-
preme Court of the United States
| will decide this repeal void, and that
the State is bound to receive the
notes of the Bank of Tennessee
"for taxes or other monies due to
the State" In November, 1886, the
Legislature of Arkansas granted a
charter to bank to be called the
Bank of the State of Arkansas.
This charter is almost an exact copy
of the charter granted by the Legis-
lature of this State to the Bank Of
Tennessee. That charter made the
| State of Arkansas the sole stock
holder, and by the twenty eighth
section it is provided "that the
bills and notes of said institution
shall be received in all payments Of
debts due to the State of Arkansas.
In 1S45 the Legislature of Arkan-
sas repealed this section of the
charter. A suit grew out of this,
the result of which has an impor
tant bearing upon the case in Ten
nessee. An action was brought by
the State of Arkansas in the Palas
XII Circuit Court against Woodruff
the Treasurer of the State, and hi
sureties, upon his official bond, fol
the recovery of certain monies col
lected by him as Treasurer. Judg
ment was recovered against them a
the June term, 1916, for S3,359 2
and costs. An execution was is
sued and returned nulla bona, anC
the Treasurer then rendered to the
| Attorney General. who prosecute
the suit in the name of the State
the full amount of the judgmen!
interest and cost, in the notes ofth
Bank of the State of Arkansas
| which he refused to accept. Th
sureties of the Treasurer on tn
18th of February, 1S47, petitione
the Supreme Court Of the State G
| Arkansas for a mandamus, whic
| was issued, and directed to the Al
torney General, requiring him t
: receive the notes of the Bank OF tn
State of Arkansas in satisfaction
the judgment, or show cause VIII
he should refuse to do SO. On th
: return of the writ, the Attorne
General admitted the tender OF I'll
| notes of the Bank of the State
Arkansas, but alleged that he WI
not bound to receive them, becaui
the twenty -eigth section of the cha
? ter of the bank, under authority
p | which the Treasurer could clal
r the right to pay the judgment
e the notes of that bank, had bee
9 repealed by an act of the Legisl'
c ture, which was approved Janual
r 10, 1845. The Supreme Court
| Arkansas held that the Attorne
a General showed sufficient cause +,
G a refusal to obey the mandarin
a | and the case was taken by appe
f to the Supreme Court of the Unit
$ States. The question submitted /
g the consideration and decision
J. the court was, whether the repe
of the twenty eighth section OF t
j. charter of the bank, brought t
n l case within the constitution of t
Q United States, which prohibits
4 State from impairing the oblig
; ton of a contract. The bank W
4 located at Little Rock, with a ca
Il tai of one million of dollars, to
e raised by a sale OF the bonds Of t
e. State, Just as large portion of I
4 capital of the Bank of Tenness
: was raised And it was to be &C
n Quoted by officers and directC
&c appointed in the same manner
, were those for the Bank of Te
# nessee. In delivering the opinion
Ia the couyt, Justice Mclean said
A "The entir stock of the bank is owl
. by the State. 1t furnishes the cap
! and receives the profits. And in sd