The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-07-13
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before Judge melCou Io~uay, Woo aioo Poos-
| poned on account of the absence OF The par
ties. It Is fixed for hearing tomorrow week.
Itseems that the Ring contemplate attacking
Orr In his strongholds. l. G. Carpenter, of
the Union, speaks In AbbevllIe tonight, and
on the 3Oth instant there will be mass meet
ing at the same place. which will be addressed
by Scott, Neagle, Parker and olher rIngltes.
QUI WYE.
The Argument on Thursday.
The Columbia Uoion gives the following re-
port of the arguments on Thursday, before
Judge Willard, In the matter of the Revenue
Bond Scrip, sketch of which was printed In
The NEWS OF yesterday:
Mr. Pope began his argument for the relator
by stating the positions taken In the complaint.
| he coutended that 1t never was the intention
OF the Legislature that part due taxes should
| be paid In scrip; that the act authorizing the
issue of scrip was contrary to the Constitution
| of the State of South Carolina; and that the
act authorizes the emission OF oils of credit,
and Ia, therefore, contrary to the Constitution
of the United States. He quoted from the
| acts under which taxes now past due were 2aid
| to show that they were payable In certain
kinds of funds, and could not, therefore, be
payable In revenue bond scrip. The bills re-
ceivable were unconstitutional. 1t was con-
tended that the acts of March Z, 1872, repealed
all previous acts, and that the Legislature 10
tended that all taxes we're payable In this scrip;
But he contended that proposition was un-
sound and conld not be maintained; first, be-
cause the act had no appealing clause; second,
repeal by Implication Is not to be regarded
BY the court; and, third, that In all cases
where two acts are not directly opposed TO
each other, and the latter does not expressly
repel the former, they must stand tgether
and be Interpreted together. Mr. Pope quoted
largely from Sedgwi'k on Statutory Law.
Tue language Of the act OF March 7th, 1872,
does not refer to back taxes, but to classes Of
taxes; that is. whether for school purposes or
for paying interest on public debt, DO. Pre-
vious to 1872 there had been no specific levy
to pay Interest on the public debt. Judge
Willard here suggested that there was really
no separate tax t6pay interest on public deot,
but that ali taxes we're levied and collected at
one time ss one tax, and wanted to hear Mr..
Pepe'5 views upon the duty OF the county
treasurer Il bond scrip were recetvable TOR
taxes, except interest on public debt, should
he receive certain proportion or the whole
in scrip.
Mr. Pope thought that certain proportion
should be paid In currency. Nj. Pope coGtin-
uing, said that the Legislature looked entirely
to the future. They supposed, or should have
supposed, that all the back taxes had been
collected. If this act applied to back taxes II,
was Offering bonus to delinquent taxpay yers,:
because such currency as this scrip was
bound to depreciate.
Mr.. Pope then proceeded 10 elaborate bis
next point, contending that the issue OF the
scrip was Unconstitutional. He praised those
provisions of the constitution which limited
the powers of the Legislature In regard to
make taxation the only source Of revenue.
He read these SECTIONS Of the constitution re-
latIng to these matters. The General Assem-
bly, had the power TO provide for ordinary
expenses. he showed how, according to The
constitution, they could do this Untll
debt or liability of the State was
actually In existence they had no power to
issue scrip. 1t was proper that The state
should have no other resource than taxation.
1t Obliged every citizen to bear part of the
burden, end 30 to feel the State. He next de-
Jailed the method OF levylug iaxes tor ord1na-
~ expenses. and for making up any deficit.
The State mlehL issue bonds for extraordinary
expenses, and could meet them In no other
way, and then tax might be laid to pay in-
t-rest on the bonds, and for their redemption.
There never was q debt due from the State to
the Blue Rldge Railroad Company, and there.
fore 1t was unconstitutional TO issue this scrip.
MIR. Pope next gave history OF legislation IN
pany from 1854 TO 1879, contending that
the act TO promote The consolidation OF
the Greenvllie and Columbia Railroad
Company aud the Blue Ridge Rail-
road Company was unconstitutional, because
1t related TO more than one subject, and the
subject was not expressed ia It's title. The
provisions OF the act had never been carried
out BY the Two roads. The act of 1872 COM
mences with a recital which is untrue, both In
In point of fact and point of law. The whole
act is unconstitutional. The act Is contrary
to the Constitution of the United States, oe.
cause It authorizes the emission OF bills OF
credit. Mr.. Pope here gave history OF the
clause of the Constitution of the United States
which prohibits any State from Issuing bills OF
credit. he contended that the revenue bond
scrip are bills of credit. and cited decisions OF
the Supreme Court Of the United States to sus.
tain this opinion.
Mr.. Msgrath, as attorney for one Of the
holders Of scrip, replied 10 Mr. Pope. He pro-
9 pure question of law. The State Of South
Carolina has authorized the Issue Of certain
certificates of Indebtedness of a certain form
and of certain denominations. setting forth
that the sum mentioned therein is due by The
State to the bearer thereof. 1t was not bill
OF credit. The consideration of this question
does not brig before the court all the parties
who have an interest In this case. The scrip
has passed into the hands of third parties for
value. The parties who held bonds have re-
turned them and received scrip In exchange.
1t then becomes contract between the
State and the party who hold the scrip,
which must be enforced. 1t Is Tor
State alone to determine In what form the
public dues shall be paid. No court can con.
troll the form In which dues to the State itself
shall be paid. The form of this scrip Is as un-
like bill of credit as anything can be-. The
contract between the State and the holder le
perfect. The validity OF such q contract and
the competency Of the parties to 1t has been
again and again affirmed by the highest au-
thority In the United States. Mr.. Magrath
contsnded that the opinions cited by Mr.. Pope
to prove the scrip bill Of Q edit sustained the
contrary, and quoted from those opinions to
sustain his proposition. There Is no obligation
on the part Of creditor of the State to receive
this scrip In satisfaction Of debt to him. If
the revenue bond scrip are bills OF credit then
coupons representing the Interest due on
State bonds are bills of credit.
The Columbia Phoenix, in Its report of the
proceedings, says:
Judge Willard seemed to have very well
settled convictions that the bond scrip are
bills OF credit. In fact, he declared as much
to the counsel, and begged that they would
address themselves specially to the point.
The bond SCRIP, as he conceived, being plainly
Intended to answer all the ordinary uses of a
circulating medium, and acknowledging a
debt due and to be paid, are certainly as much
bills OF credit as anything could be.