The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1872-07-12
COLUMBIA, S. G.
Friday Morning, July IL, 1872.
Bond Scrip Case.

lima er relatione Edwin F. Gary, as State
Auditor Os. Niles G.. Parker, as State
Treasurer. and others as County Trea-
surers, came up for argument before
Judge Willard in the Supreme Court,
yesterday. It is a case OF grave impor-
tance and of much interest to the peo-
pie OF the State and to her creditors
abroad, inasmuch as it involves the va
lidity of the Act known as the Blue
Ridge Bond Scrip Act, which adds hun
dreds of thousands of dollars to the
already bloated debt of the State. The
object OF the suit is to prohibit the State
and County Treasurers from receiving
the scrip in payment of taxes. Messrs.
Pope & Haskell represent the State
Auditor, Judge Magrath, we understand,
represents Mr.. Wesley, who is a New
York capitalist, Interested in the va
lidity of the scrip. upon which, as col
Iaterals, he has advanced considerable
amount, Messrs Chamberlain and Mel
ton the State and County Treasurers,
and Mr.. Corbin the city OF Charleston.
Only Mr.. Pope and Judge Magrath we're
heard yesterday.
The grounds of Mr.. Pope's argument
were: First. That the Act of Assembly
authorizing the "emission" of the reve-
moe bond scrip did not contemplate that
the delinquent taxes of past fiscal years
should be paid in such currency. Sc.
cond. That the Act itself and the
emission OF the bond scrip under it by
the State Treasurer is against the Con-
ssitution of the State. Third. That the
Act is in violation of the Constitution of
the United States. In support of the
first ground, Mir. Pope maintained that
the Acts of previous years authorizing
the levy and collection of taxes, under
which the delinquent taxes are now due.
prescribed the kinds of currency in
which they were to be paid; that there
is no repesling clause in the Act of
1872 which allows the payment of taxes
to be made in the new scrip, and not a
word to show that it was intended TO
apply to any other taxes than those of
the present and of future fiscal years;
and that to allow past due taxes to be
paid in the bond scrip would be to put
bonus upon. defaulters, who would
thereby be enabled to discharge in de-
preoiated currency what more prompt
and better citizens we're compelled to pay
in gold or sound currency.
Upon the question of she illegality of
the Act, as violating the Constitution of
the State, Mr.. Pope proceeded to show
that the Constitution expressly directs
that for ordinary expenses the Legisla-
ture shall get funds by taxation alone.
and for extraordinary expenses only by
the issue of bonds in amounts not
smaller than ESQ. and he! there ia no
authority whatever for these revenue
bond sorips or anything of their nature.
The argument of Mr.. Pope on this
point seems to Us to apply also with
great force to the millions of bonds
which have been issued by the present
administration. and promises relief
from, them without recourse to the dis.
tasteful remedy of reputation. These
bonds, some $11. 900 in all, have
been issued, with small exception, to
meet no extraordinary expenses. even
estensibly, but to aid the treasury and
provide for alleged defoiences in the
current revenue Of the State. They
have been issued, therefore, in plain
violation of the Constitution, and are,
therefore, void, and can constitute no
obligation upon the State, even if they
had been put upon the market in good
faith and without fraud.
But to the case under discussion.
Upon his third point, Mr.. Pope cited
that section OF the Constitution of the
United States prohibiting the States
from issuing bills OF credit, and then
WENT to show, by argument and au-
thozities, that the revenue bond scrip
were bills of credit in the sense that the
Constitution intended.
To-