Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1872-03-08
The Public Debt.
THE GOVERNORS VETO OF THE BILL REPEAL
ING THE REcEIvABILITY OF COUPONS FOR

ING THE RECEIVABILITY OF COUPONS Foh
TAXES.
To the General assembly Il return
herewith to the House Of Delegates, in
which it originated, the act entitled ian act
declaring what shall be received in payment
of taxes or other demands of the State"
without my approval.
This act. in its first section declares. "that
hereafter it shall not be lawful for the Off
GERS charged with the collection of taxes or
other demands of the State due now or that
shall hereafter become due, to receive in
payment thereof anything else than gold or
silver coin, United States treasury notes of
the National Banks of the United States
and that no question as to the real object
and purpose Of the act may be raised, II
expressly repeats in its second section all
provision of law inconsistent with the terms
of the first section.
Without pausipg to consider that prcvls-
ion of the act which in effect legislates Ma
tional bank notes up to the standard Of gold,
and clothing them with the attributes of le-
gal tenders to the State regardless OF their
value, proceed to discuss the main subject
involved. viz: the repeal Of so much of the
act approved March Both 1871, as provides
that. the interest upon the bonds Hereunder
issued represented by coupons) shall at and
after maturity be receivable for all taxes,
| debts, dues, and demands due the S:ase.-
Has the Legislature the constitutional power
to repeal this provision Of law, so as to
affect the coupons already issued By the
act of March Both, 1871, the State propos-
ed to her creditors to compromise her in-
debtedness, upon certain specific terms and
conditions alike honorable to herself and ad-
vantageous to her creditors
In consideration Of the surrender to her
of the old bonds, ane the agreement not to
hold her responsible for onc-:hird of the
debt, except in accordance with such settle.
ment as may be hereafter had with West
| Virginia and the extension of the time OF
payment of the balance for thirty four years.
she would undertake the payment of said
balance, which was two-thirds of the old
debt, and interest within the extended time
Of thirty.four years with interest thereon al
tho same rate as the old bonds, payable semi
annually. and would evidence such under.
taking by her bonds, either registered OF
coupon, at the option of the holder and as
further evidence as her intention faithful
ly to fulfill and execute the compromise
thus effected and the contract thus made
she would agree that the interest on the new
bonds represented by coupons) at md aftel
maturity, should be receivable for all taxes
debts, dues and demands due the State
Now the acceptance of this proposition o
| tbo h,,x 81
tract the scope Of which was commensurate
with the terms proposed The receivability
of the coupons for taxes was one of those
conditions, and added a material element t.
the value of the bend, for it increased the
certainty Of the prompt payment of the in
terest at maturity, and constituted. there
fore, an additional iaducement for the cred
itor to accept the compromise and settlement
proposed by the State.
The essential elements of contract ar,
not only the time, place. and mode Of fulfill
ment, but also the conditions which insure
its prompt and faithful performance. b.
making the matured interest upon Der deb
receivable for taxes, the State not only offer
ed an additional guaranty of the promp
payment thereof, but she increased its value
in the hands Of the taxpayer to that Of gold
or legal tender notes, and removed it be-
You'd the uncertain fluctuations of other cur
rency.
While this did not increase her liability
in the slightest degree, it did materially en-
hancc the@value of her securities ant
strengthen her credit And because it ad
ded to the value of the contract it CONSTITUTES
material portion thereof, and the Legisla
ture has no more power TO repeal or nullifl
it than any other part Of the obligation -
The whole statute can as we'll be repealed a
this part Of it, and the payment Of any por
ton or all of the principal Or interest of thu
debt can as we'll be refused in legal pon
of view as the fulhlment Of this part of tht
contract. The whole proposition of tn;
State, as embodied in the 2od section Of til,
act of March, 1871, when accepted by thu
creditor, constituted a contract, every pro
vision and element Of which, though vary
ing in importance. was, nevertheless, in Law
of equal binding force and validity, and The
least important provision can 20 more be
impaired by the Legislature than the great
est In the language Of the Supreme Cour
Of the United States, ''Ary deviation from
its terms by postponiug or accelerating tht
period of performance which it prescribes
imposing conditions not expressed in the
contract, or dispensing with the performance
of those With are a part Of the contract
however minute or apparently immateria
in their effect, impairs its obligation" Zone
of the tests that contract has been impair
ed is that its value has, by legislation
been diminished, It is not by the constitu
ton to be impaired at all. This is not a
question Of degree, or manner, or cause,
but Of eacroaching in any respect on its OBJ
legation, dispensing With any part of its
force" The constitutional inhibition upon
the States from passing any law impairine
the obligation of contracts originated under
circumstances not entirely dissimilar from
those which to some extent qnforuna tely
obtain in our State at this time
1t very early received judicial construc.
tion. while the causes which induced its in.
sertion In the constitution we're still fresh in
the minds Of the people. That construction
has been confirmed and maintained by long
and almost unbroben series of decisions, and
been applied to diferent forms and varieties
of contracts, both Of States and individuals
The tendency Of the later decisions is to en-
large rather than restrict its scope and mean
ing. In fact, they 20 much further in the
maintenance Of the inviolability of contracts
than I should be prepared to advocate were
it an original question, undetermined apd
unillumined by the legal lore and acumen
of the best inteleets the nation has produ-
ced for three-quarters of a century. In the
light Of these decisions, and after careful
and patient consideration Of them, find it