The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1872-07-24

ana FUNDS OF the State are pledged, that
such pledge is not in terms that such
scrip shall be redeemed by payment to
the bearer, on presentation of the
amount Of money called for b. Il. but
the language is sthat the faith and funds
OF the State are hereby pledged for the
ultimate redemption of said revenue
bond scrip" It is only ultimate re-
demption, not payment on demand that
is covered by this pledge. What is
meant by ultimate redemption is made
section. It is provided that a certain
tax shall be- annually levied for the re-
demption of the scrip; and it is also pro-
vided that the State Treasurer shall
"retire at the end Of each year from
their date one-fourth of the amount of
tho treasury scrip hereby authorized to
be issued, until all of it shall be retired,
and to apply to suoh purpose exclusively
the taxes hereby required to be levied"
The effect OF these provisions is that the
holder Of the scrip must not look for
payment according to the tenor of his
scrip. but Dlust seek market for its
circulation under the influence of the
pledge of faith and funds for it's ultimate
redemption. In other words, an at
tempt is made to give currency to the
issue, notwithstanding the absence of
any intention or ability to redeem,
according to the tenor of the promise, by
obtaining credit with the community
for the amount of scrip put in circula.
ton, in the strength of certain special
provisions and general pledge OF the
faith and funds of the State for its ulti-
mate redemption.
4. The quantity or volume Of the con-
templated issue is such as tended to
create strong motive and interest in
the community to keep the scrip in cir
culation as money. The amount, ST..
800, 900, as compared with the extent of
the commercial transactions of the COM
mnnity on which that amount was in
tended to be placed, affords the clearest
indication of an intention so to affect
the interest of the community as to
secure its circulation as money. It was
to be placed at once in private hands as
valid obligations on the part of the
State. The various provisions of the
Act that look to distribution among
the people preclude the idea that It was
intended that the recipients OF this large
fund should hold it until redemption,
or even that it should be kept together
in the hands Of a limited number of
AAcioSto, vi VIZ Soheiat ~ "dS ClCuIiy
intended for dispersion, and the magni-
tude OF the interest in the hands of the
first receivers of the scrip was sufficiently
large to warrant the assumption that it
would become thus diffused throughout
the community.
5. AS regards it's adaptation in re-
spect af denomination, We have already
seen that authority was conferred on
those most concerned with it's circula-
ton, to adapt the issue in that respect to
the wants of the community. Such q
proviso shows additional evidence Of an
intent that the scrip should circulate as
money. Considering the Act in it's en-
tire aspect, as we'll as its integral parts,
it is clear that the Legislature intended
that the scrip should circulate as money; (;
and that, for this reason, the provisions
of the Act authorizing the issue of scrip
are in conflict with the prohibitions OF
the Constitution of the United States as
to the emission of bills of credit by
States.
The Act, being unconstitutional, it is
void, 30 far as it contemplates the issue
OF revenue bond scrip. It is unimpor-
tant, therefore, to inquire whether the
scrip that was actually issued was con-
formable to and authorized by the Act.
The Injunction heretofore issued must
be continued until the final hearing and
determination of the action.
A. J. WILLARD, A. J. 8. q.