The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-01-18


| vERTIpILlTY OF STATE BONDS, &C.--Iu re-
ply to Il communication from Senator John
f. Roller, Of Rockingham, addressed TO the
| Second Auditor, General Asa Rogers coul-
,nuuicated the following opinion of the At
| torney-Gencral upon the cunvertibility Of
State bonds, &C.:
Attorney Gcnernrs Office, Richmond, Va,
DeceGalcr II, 1872 Honorable Sirs,-In re-
plv to your note OF the 16.h instant, pro-
pounding to me certain questions. have
the honor to answer the questions in the
order in which they are put by you, and
1st. "IIaye the holders Of registered bonds
of the issue of July /, 1871. under the fund
ing act, the right now to convert the same
into coupon bonds with the rcceiyability
clallsc!"
The Supreme Court of Appeals having by
majority of tt Judges held that there
is sl,l,sisting and irrcpcalablc contract be-
tween the bondholdcr and the State, entered
into at the time the funding took place, sup
pose, us the original act gave to the bond
holder who funded under the act the right
to exchange registered bonds for coupon
bonds and Uice rersd, such party would have
tile right to make such exchange now. In
o, her words, if ut the time the bondholder
funded, part of the consideration of bis
doing 90 was his right to exchange regis
tered for il coupon bond, / take it tue Gene
rtl Assembly could not deprive the bond
holder of that right by simply rcpealing the
act. He might be deprived of the right by
legislation, giving him Il reasonable time i'll
which TO make the exchange, and on failure
to do so, then to be held to have waived the
right.
%. "What is the effect of the recent deci-
sion of the Court of Appeals on that portion
| OF the debt which was tlnfunded when the
act of the 7th of March, 1872, was passed."
The effect of the decision on that part Of
the public debt which WIS unfundcd on the
7th of March, 1872, is to leave the unfunded
part Of the debt as the act of 7th March,
1872, found it, to be or not to be funded, at
| the option of the holder of the bond, but if
funded after that day the coupons to issue
| without the receiyabiity clause; and unless
| funded, interest cannot be paid the holder
except by special legislation authorizing the
same, the court deciding only The question
| that the holders of coupons issued under the
act to provide for the funding and payment
have the right to tender them TO the tax
collectors and demand us right that such
collectors for the State shall receive them in
payment for taxes due by the holder to the
State, and that the act Of 7th March, 1872,
attempting to destroy the right secured
Ivy the finding act to the Taxpayer
holding such coupon to tender the
same in payment of his taxes, is void. In
my opinion the General Assembly had the
right, aud did. by the last net, Withdraw the
permission to fund in bonds bearing cou-
pons, with the rcceiyability clause on them,
from all persons holding such bonds who
had not previous to the passage of the act
funded under the act of Both March, 1871 !;
and that the decision Of the court does not
restore the right of persons who failed to
fund now to do so. This privilege may be
vet granted by the General Assembly.
.4th. "Are parties who received interest
under the act of 10th March, 1872, thereby
prccluded from funding their stock in re-
cciyable coupon bonds or if funded, from
converting registered bonds on which such
interest has been paid into coupon bonds OF
like description" ,
Bv the fourth section of the act OF 18th
March, 1872, il is provided that the receipt
of interest under the provisions OF this act
shall be held aud deemed to be an acqnles-
cence upon the part of the creditor IN tue
provisions Of an act declaring what snail De
receivable In payment of public dues"
The act declaring what shall be received In
payment of taxes and other demands Of the
State, passed the 7th March, 1872, prohibits
the receipt by the taX-collectors OF anything
else than .'goid or silver coin, United States
Treasury notes, or notes of the national banks
of the United States" ] think it Is clear
that the General Assembly intended to pay
interest to the holders of the coupons who
would waive their right to demand that they
should be received in payment for taxes,
&C., ind not to the holders of such coupons
who should refuse to waiySth right TO de
1 mand that they should be received, and That
as 10 ali peysons who accepted interest on