Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1872-12-16
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>K1cuNoND,4Dec. a --Thesddcision Of thA
Court otssAppeals in the cass Involving thss
validity ii theFundi1 & act iahd the rcccivabilia
ofthc coupons ilssusl under its provisions, ri
State dues, declares list. That the act en-
titled IAN act to provide for the funding and
payment of the public debt, approved March
aahy ISL Ms, not,re1psuaut tofhe eighth sec
ti65n Of article eiglith aid the fifth aud te6h
sections Of article ten, Of the Constitution of
Virginia, and that the contracts made under
thisI act with the boudholders Of the State are
valid and binding gu the State. ID. That the
act Repeating the foregoing act, in force March
9TH, 1872 is in conflict with the Constitutions OF
Virginia and of the United States, and is,
therefore, null and void iDasmuch as 1t impalrs
the obligation of contract. Since the rendering
of the decision Firg inia consos have advanced
from 5Gd to SO aud GO. As soon us an oppor-
tunity offered, this morning, two bill were III
troiuced in the House OF Delegates bearing
upon the question. One was presented by MIR.
crved by the collecting officers into coupons,
under The penalty Of fine and Imprisonment, the
Object being to prevent the officers from spec
ulating iu coupons, either directly or indirectly,
by purchase, exchange or otherwise, and To
put all persons. (other than collecting otficcrs)
buying or selling coupons on the footing OF
brokers. The other bill was offered by MIR.
Riddebargcr, and provides for the repeal OF
chapter &C Of the act to provide for the pay
ment of interest on the public debt. Both bills
were passed, under a suspension OF the rules,
and sent tn the Senate La reference TO the
latter bill, which passed the House unanimous
". there is wide difference Of opinion as to its
effect. The friends Of tho funding bill hold
that it will place the whole question Of the pub
lie debt where it was when the funding bill was
in operation; that coupons will be receivable for
taxes, and that the creditors Of the State will
he able to recover six per ceut. on o-thlrds OF
the debt On the other baud, the antl-tunders
contend that no interest whatever can be paid,
aud that the cJupous cannot be redeemed with
out S, e la appropriation for the purpose;and
further that the $IOO,OOU now 10 the treasury,
unclaimed because the creditors would not ac
cept four per CT, will, by the repeal of the four
per ct. act become liable TO use III the dlScharg;
of the ordinary expenses of the government.
One party holds that the Auditor is bound to
receive the coupons now in payment OF taxes,
and the other contends that he must not until
there is further legislation on the subject In
the meantime the Auditor declines to receive
them. When this bill went to the Senate, 1t
was promptly taken up and passed to its third
reading, but the Senate being SHIN, aud 1t re.
curing two. thirds vote of all the members
elected, it was laid upon the table until Monday,
when it will doubtless be passed.
Whsn the bill Of Mr.. Brooke was reported
to the Senate,
Mr. kirkpatrick thought the purpose Of the
bill good, but believed that it was uncoustltu-
tional, iuasmuch AZ the decision OF the Supreme
Court was that coupons should be received In
payment of all taxes dues and demands due
the State He thought that it was IN the
,wer Of the Legislature to make speculation
with public funds criminal but IN his Judg-
ment, this bill would not properly effect that
object
Mr. Thomas differed with Mr. kirkpatrick,
and believed it entirely competent for the Leg
islature to stop traffic in coupons
Mr. Queseuberry said that if the opinion OF
the Supreme Court was in effect as stated by
MIR. fitzpatrick, the banks now holding on
deposit the State funds could proter coupons
in payment of checks and draft. on them; IN
which case he thought We should at once take
care Of ourselves.
Mr.. kirkpatrick declared that he verify did
believe that the banks might legally offer the
State its coupons instead OF the greeubacks de-
posted with them. He put the coupons upon
a footing with bank notes, so far as the State
was concerned, unit! they were redeemed, when
they ceased to be currency.
Mr.. Hundcy thought it monstrous to say
that the State could not prescribe the conduct
OF its own officers. The State had the un-
doubted right to make officers pay into the treas.
= ba ilopf Innl, mr. t.p1n pOIIpptpd
by them,
Mr.. Penn very nearly concurrel with Mr.
Kirkpatrick 10 his views about this matter.
This bill proposed to take from the coupon one
of the features and part of the value the
funding bill gave it. 1t is said the bill is to
prevent the buying and selling of coupons,
when this is one of the very rights attached to
them. He coutendcd that no power could
prevent treasurers from buying them, and they
would have to be received at the State treas
ury when presented. The way to remedy the
evil was to pass law prohibiting the purchase
or requirement Of coupons by collecting officers
at less rate than par, rs the statute now pre-
scribes 10 the case Of equity bonds
Mr.. Roller declared that we had the right to
say that coupons hereafter purchased by spec
uating collecting officers should not be recelv-
ed at the State treasury.
MIR. Cochran thought that gentlemen failed
properly to draw the distinction between citl,
zen and an official, and when an individual
takes an office and puts himself under the laws
prescribing the duties Of that Office, he relln-
gushes some Of the privileges of citizenship.
His people didn't mean reputation, but they
ddn' t mean to pay the public debt until they
had had breathing spell; and it was too hard
for them to be despoiled by boudholders aud
devoured by spectators at home.
Mr.. Thomas put the collectors of State reve-
Due in the position Of trustees for the State,
and he contended it would be violation of the
trust to convert money into anything-eou-
pons or anything else. The public funds were
trust money in the hands Of these officers, and
they could not touch it except to pay it over to
the State.
Mr.. Penn asked Mr.. Thomas to remember
that the court had decided that nothing could
be done by the State to impair the value of
coupons.
Mr.. Thomas had not forgotten that point,
and he did not propose to impair the value Of