The Middlebury register. [volume] (Middlebury, Vt.) 1850-1882, 1871-08-22
important Decision,

Important Decision.
COIN PAYMENTS AND PURCHASES nv the
STATE OF VERMONT.
The case which has attracted most NJ.
tentlon at the August term of the Suprc.
me Court at Montpelier, doubtless wa
that of Hon. Loyal G. Kellogg of Benson
against John A. Page, State Treasurer Of
Vermont. Mr.. Kellogg, as most of our
readers know, was Judge Of the Supreme
court OF our State from 1859 to 1867.
In lool !, he invested some money in Yer
mont State bonds, running ten years. A,
the last session, the attention Of the Loo.
lslature was called by the Governor 10
the fact that the U. S. Supreme Court
nad decided that the legal tender act was
not valid as applied to debts contracted
pe'ore Its passage, and thereupon the
Legislature adopted the following resolu.
tion:
ReSolred by the Senate and House at
Representatives, That the Treasurer Of
the State be authorized to pay in coin the
bonds of this State which shall become
due in 1871 and the interest thereon,
which were issued before the passage of
the illegal tender act" of the Congress Of
the United States and to carry into eff.
Iect l the provisions of this resolution the
treasurer is authorized to purchase gold
com IN such quantity as shall be necessary
ior the purpose aforesaid"
7'''r treasurer Page paid coupons on
the State bonds in December to the
amount of sl0,66O, paying on the same
a premium Of 81, ,l50.2j. He also pur.
chased, under authority of previous acts
OF the Legislature, bonds to the amount
OF $4,000 issued before the passage of
the Legal Tender Act, ut q premium
amounting to 1854, being an average
OF I.s per cent. premium When it was
announced that the question of the valid
ty of the Act of Congress would be re.
considered by the United States Supreme
Court, the Treasurer discontinued the
purchase Of bonds, and upon the rcversa
OF their former decision by the U. s. Gu.
preme Court in May last, he ceased to
pay interest or principal in coin, or it,
equivalent la June, Judge Kellogg
presented bonds to the amount of $4,000
and demanded payment of them in coin
and upon refusal by the Treasurer to pay
IN anything but currency, he Judge X,
pefitonod 'he supreme Court of thi-
State Tor a niaHdamuS directing the
Treasurer ln pay the bonds in coin. in
with lb, resolution of the Leg.
islaturr. which ii naa claimed wa> maj.
datory in its character
The question was heard before JUDGE,
Barrett, Peck, Redield Royce and Ro,,
on Friday last,
Judge Kellogg argued his point in per
sou with ability, and was replied to by
State Auditor Ferrin and Hon. Charles
Reed, for the State and the Treasurer
argued that the resolution was by its terms
discretionary instead of mandatory, and
permitted the Treasurer to pay in coin
or In currency at his discretion. The
point was also taken, and sustained by
affidavit of Hon. Geo. Nichols, Secretary
Of State, that the resolution had never
been signed by the Governor, and that
it was passed upon q single reading, in
stead OF after three readings as required
70 tbis, Jnda"a' da"' naairIssg replied that
resolution might become law, when pre-
sented to the Governor for his signature
and retained by him five days without
his approval and that there was no eyi-
lence that this resolution had not taken
that course. He also blamed the Treas
irer for not giving duo notice of the pay
nent of the bonds, though the newspa-
ncrs, as is customary in other states.
The court, after due consideration, de.
'Iined to issue the mandamus, and gave
is opinion, unanimously concurred in by
he judges, sustaining the action of the
state Treasurer in refusing to pay in coin
The decision is one of some consequence
o the State Treasury, and to the holders
t there be any, of the bonds of 1871