The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-06-18

Mary has been III troubles tnat lnuuce us 10
be especially considerable of her.
a New Phase OF the State-Dcbt cues
ton.
Editors Dispatch: There appeared in the
Baltimore Gazette OF 25tE OF May an edito-
rial OF which the following is an extract: :
"a bill was passed by the New York Le-
gislature Just before lis adjournment, and
which only awaits the signature OF the Gov
ernor to become a law, that will have an
important bearing on the financial policy OF
some OF the defaulting States. 1t authorizes
the holders OF repudialed State bonds, or
bonds in default, to assign them to the State
OF New York, whic!l. by its Attorney-Gen-
eral, under the existing laws, may enter
suit against the defauting State'in the Fed
eral court. The bill gives this right only
to citizens OF New York, but should the
plan be found to work well, other States
may follow its example, Or holders OF repu-
dated bonds in other States might sell them
to citizens OF New York. 1t is, therefore,
not improbable that the right Of State to
repudiatc its bonds. or default the interest
thereon, may be tested on large scale
very shortly
II it. be true that such in act has passed
the sanction OF the Governor it will proba-
bly, lead to one OF the most important and in
terestng suits that were ever determined by
the Supreme Court CT the United States.
1t seems, therefore, proper that public
attention should be called to the subject,
and especially to the provisions OF the Con-
stituton Of the United States which relate
to the institution and prosecution OF suits
against States in the tribunals OF the United
States.
The Constitution OF the United States, lis
originally framed and adopted, contained
the following provision a.
"The judicial power shall extend to all
cases in law and equity arising under this
Constitution the laws Of the United States,
and the treaties made, or which shall be
made, under their authority; to all cases
affecting ambassadors, other public minis
tiers, and consulS; to all cases Of admiralty
and maritime jurisdiction; to controversies
6etneen t,r0 or more States; between a
STATE AND CITIZENS OF ANOTHER STATE; be.
tween citizens of different States between
citizens Of the same State, claiming lands
under grants OF different States; and be-
tween Q State, or the citizens thereof. and
foreign States, citizens, or subjects. AR
ticle Ill, section2.
The same section contains the further
provision that Gin all cases affecting ambas-
sailors. other public ministers, and consuls,
and those in which State shall be party,
the Supreme Court shall have original juriS-
diCtiOn."
1t is proper 10 remark that the italics and
capitals are mine, and intended to call spe-
cial attention to the most Important clauses.
Thus the Constitution stood from 1889
until 1898. Under its provisions it was
competent for q citizen Of one State to in
stitute and maintain suit against sister
State, and such suits were actually brought
in and adjudicated by the Supreme Court.
Ii my memory serves me correctly it was
after the decision OF the memorable case of
Chisholm Us. The State OF Georgia that the
evils Of allowing citizen OF one State to
arraign another sovereign State before the
bar OF the Supreme Court OF the United
States became so apparent that Congress, in
1904, was induced to propose an amendment
to the Constitution taking away from the
Supreme Court the jurisdiction to entertain
and decide any case OF this kind.
This amendment was submitted to the
Legislatures OF the States for ratification or
rejection, and having received the ratitica-
ton oil three fourtbS or the States, that fact
was communicated officially to Congress by
message OF the President, dated 9Th Janu-
airy, 1898. and it thereupon became incorpo-
rated into the Constitution under the title
OF the eleventh amendment.
That amendment is III these words:
ssThe judicial power OF the United States
shall not be construed to extend to any suit
in law or equity commenced Or prosecuted
against one Of the United States by citizens
of another State, or by citizens or subjects
Of any foreign te."-1rticle III.
These are the only clauses in the COnsti-
tuition OF the United States which have any
bearing on the subject.
1t will be observed that the effect OF
this amendment is merely to take from
the Federal judiciary all Jurisdiction over
citizens Of another State, or by CHI
sens or Subjects Of any foreign State.
The remaining provisions OF Article Ill,
section g remain in full force. The
amendment does not in any way mod
ify or impair the jurisdiction of the SUI
preme Court OF the United States to enter
tain and hear and determine original suits
brought by one State against another State.
1t cannot be denied, therefore, that il the
State OF New York can make out proper
case against the State OF Virginia, the SUI
preme Court. has jurisdiction to consider
and decideit.
LII Virginia, for example, had, by direct
contract with New York, borrowed money
from her, or entered into any other con-
tract with her, and failed to pay or comply
with her engagement, New York could
bring suit for redress against Virginia in
the Supreme Court Of the United States.
So also, / presume, il any other party were
to lend money to Virginia, or enter into
any contract with her, ana she should fail
to meet her engagement, and either before
or after the default Of Virginia New York
should become the bona .ttde assignee for
value OF the rights of such party, New
York might maintain q suit against fir-
ginia in the Supreme Court.
But it seems to me that mere colorado
assignment made by citizens Of New York
to The State OF New York not in good faith,
utmerely for the purpose Of instituting a
sait in the Supreme Court OF the United
States, would not avail for that purpose, but
would be regarded as q fraud OH the juris-
diction OF the Court and the rights OF the de-
PENDANT. But il the State OF New York,
with the view OF protecting the rights OF her
citizens, should in good faith, and for full
and valuable consideration, take from her
citizens TN absolute assignment OF the bonds
Of Virginia held by citizens Of New York,
she would become the actual be1le- |
fcsGt ,o,cRer of them, what is there to pre-
vent the State OF New York from suing the
State OF Virginia IN tue Supreme Court Of
tbe United States TO recover the amount OF
those bonds
I Let lis, then, suppose such and an assign
meat to be made aud such d SUIT to be
brought; What next h AS the i debt was