The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1870-05-26
rms Bill. 81 en-, HnIiIs os. tho STATE.

The BiiIs Of tns BntiIs OF t,ao 1; state.
/ We referred generally in q recent is
sue, says he Charleston C0 ,i,7e,, to the
deorea OF His Honor Judge Carpenter,
in this very imp6rtapts s5oase, involving,
as it does, not only legal points of large
consequence. butt also questions of State
finance, which are likely TO assume i'm
portance at no distant day. AS already
announced, an appeal has been taken on
behalf of the bill-holders, and their
Honors of the Supreme Court have been
solicited to hear the arguments of coun-
sel on the appeal, if practicable. at an
early day. The legal status of the bills
of the issues of 1861 and 1862, is stated
by Judge Carpenters decree in no unin-
telligible language-they are lifted from
the alleged taint OF war issue, by the
evidence of the officers of the Bank. to
that of State obligation, and as the
State, by her legal representative, parti-
oipates in the trial of the case, she thus
voluntarily assumes the position of seek
of the State under the circumstances,
and with the presumed intent of COM
plying.
A curious phase of this case, now first
legally developed, is in the fact that it is
in proof that what have been known and
designated as "old issues" were loaned
en- bloc to the Confederate Government
for war purposes, the vaults having been
emptied to supply the demand for cur
rency ut that time, while the subsequent
Issues of 1861 and 60 were resorted to
us measure of relief to the people of
the State, who conducted their business
and raised their crops with this money,
which held at that time anG before tho
war, the highest confidence, guaranteed,
as it was, by the State Of South Carroll
ma, those "nld issues" have long since
been funded by tie State.
There are some who think that the Su-
preme Court will confirm Judge Carpen-
ter's decree; if so, the issues Of the Bank
of the State previous to 1860, and also
of 1861 and 1862, are al obligation Of
the State for the face Of the bills, and
this carries along with it the privilege,
nay, the right, to Offset with these bills
any demand Of the State against the
holders of the notes. If, on the other
hand, the decree of His Honor Judge
Carpenter is over-ruled, and the bill
holders have precedence as to the assets
of the Bank, there is more than enough
at cash valuations to pay the par of oil
issues now outstanding. In any event,
We Wv dSo oSS Al nLno ACopCCI,
there can be discrimination between the
notes Of the Bank of the State, except
as to the fractional currency issued in
1868 and 1864, aud made payable on
their face in the ''current funds" of the
times. This was received as Confederate
currency, and will be so treated, and O
clause of His Honor's decree decides
their value.
We publish in full 30 much Of tho de-
cree as relates to the bills of the Eank
and shall keep our readers advised of
the proceedings in the Supreme Court,
so soon rs the case is appointed for
hearing:
The next question which presents
itself for my consideration, is, as to the
right of the holders of bills issued by
the Bank.
The State has become party to these
proceedings. It cannot be sued; but it
may consent to be party. No process
of Court, proprio vigore, can affect it.
No order or decree can net upon it in
inuituna. When it does become q party,
it is to the end that through its courts it
may be advised of its rights or its oblica-
tions; and when these are ascertained,
the highest sanction has been secured to
enforce the one Or, discharge the other.
In this case the State has, of its own
will, submitted to it's courts the decision
of the issues involved. At the hearing,
it was so announced by tho Attorney
General, then representing the State.
In considering tho relation of the
State to the holders of the bills of the
Bnnk, it is not necessary to give critical
Interpretation to so much of the Act of
1872, as declares that ''the faith of the
State is pledged for The support of the
Bank. and to supply any deficiency in
the funds specifically pledged, and to
make good nll losses arising from such
deficiency" When a State becomes
corporation, in that capacity, it retains
no attribute of its sovereignty. It is re-
garded as an individual, so far as any
exercise of control is concerned, in rela-
ton to the corporation. What an indi-
vidual corporator may do, the State, as
acorporator, may do and no moro. And
where, as in some States, the Constitu-
ton provides that the State may be
made party to suit, and therefore, in
such suit, decree in inoitum be made
against it, there is no difference between
the condition Of natural person and
n Toto