The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-04-05
VlRGINIA'S DEBT.

IMPORTANT JUDICIAL DEcIsIoN-THE coNsoL
COUPONS MUST BE RECEIVED on ALL TAKES,
DEBTS AND DEMANDS DUE THE STATE AND
ARE NOT SUBJECT 10 TAxATIoS--REPuDIA-
TON KILLED.
lBY TELEGRAPH TO THE HERALD
RICHMOND, April 4, 1878.
The supreme Court OF Appeals to-day rendered a
most important decision which eGeciuaiiy precludes
any further discussion OF the theories iorcbls
adjustment OF tho public deot as legal proposition
The settlement OF tho debt oil Virginia under the
Funding biz Of 1871 consisted OF issuing
new bonds for twothirds OF Tie old
debt. 10 the bonds were attached
coupons receivable TOR all taxes debts aud
demands due Tho state" Under this act $50 00o 900
OF bonds wore issued, commonly known Virginia
consola he next Legislature repealed the funding
act aud prohibited coupons from being received Tor
taxes, deois or demands quo tho State The supreme
Coart. IN the case OF Antoni vs.. Wright decided this
repeating statute 10 be unconstitutional US bonds
issued before It's passage the ground ,hai
sol bonds constituted contract between Tho State
amt the bondnolder; that his coupons should be
ceisc', and that any law mpariDg that contract was
void, because contrary TO the constitution OF The
Unned States. That decision subsequently, con-
nrned by tho Court IN other cases. ana tor time
settled the agitations against the Funding bill
REPUTATION IL DISGUISE
Last summer. howuyur. IL broke out again with
ncwed fury uucGr the Iuuio ol REIMBURSEMENT The
authors and supporters OF Tho policy ciug the
creditors OF the State 10 accept such terms The
Legislature should determine was equitable based
their whole theory on the proposition tnat they could
avoid tue operation OF the Funding bill ANA tho de-
tain part oi the taxes SHOULD DO dedicated to tho
support VI Tho government and another part 10 The
maiutenaIce OF pubic schools, aud that those taxes
should bc collected only 10 money, thus preventing
coupons IRON Geing received; impalring or nearly
sucn ysrms me- s vu' no ara ioe e,saors nso
lion hnss were spcchcali, dedicated 10 schools II
iunds SCI apart by that Instrument Tor special pur
poses were payable only IN cash, then lines would
also DO only solvaoc III like manner. On The con
irary, II lines winch were specially designated
constitution 10 Ue applied TO school poses could be
pud Ia coupons, then ali lakes whether Tor school or
government, were likewise payable IN coupons The
theory VI iorcei IsauJustmeLt rested PROPOSE
ton.
CASE
case was brought before the Court by NJ William
l. Royal, who has laborcd Il with great ability and
industry ANA who brought The direct point before tue
Court person named Clurx connned In jail Tor non.
payment OF hnes, under Mr. Royals ADVICE tsndered
coupons at their face pnt amount
due by HIM rho City sergeant refused 10 recoiys
tho coupons, under the advice Of the Attorney Coo
cral ON the srounds-frsi. because coupons were
receivable Tor anes; and, second they
ce,ve them at tucir iuce value because the
State law required the State tax, amounting TO
nearly tour per cent oi the coupon, TO be deducted
from It. Upon thls Royal moved the Supreme Court
OF Appeals tor writ OF hnbsns corpus, the ground
That client, having rendered ~
value equal 70 the amount VI the fine, equivalent
TO tender In that case OF SO much gold and there.
lore, he Illegally confined.
DECISION OF THE COURT
Tie Court tod y neld. The opinion beng de-
liveroi by Judge Christian, ana c0ncurrcd IN by
Judges Anderson and Banks; Judge Staples dissent
ing, Judge Moncurc present, sitting because
he holds somo bonds II - understood that
be fully Endorses tho judgment Of tho Court
Judge Christian decided that the question the con-
Etitutionality oi the Funding bill longer an
open question That ACT constituted contract be-
the state aud the boLdhodcr when NO subsc-
QUE nj action OF the state could impair Tho coupon
State concerned, and must received Tor
It's face value tor a taxes, debts and demands due
the State; that lines were demands that
all moneys coming 70 the state, taxss debts
demands, must be payable IN coupous, no matter
whether dedicated by tho constitution scnooi
tuition, aLd no provisions OF That Instrument could
impair The obligation 10 pay II The State, ike indi-
vlduals, must bs Just boi0rs generous. He held
the pruvisons OF the constitution dedicatt0g certain
revenues to the public schools that an
amount equal 10 tho amount OF such revenues
schools, and that Il the duty Of the Legislature
revenue sufficient both TO pay the interest
The debt and 10 support tho schools and that II
could not BIO presumed that that body would 10 do
It's duty Tho Court, therefore, ordered the peti-
| toner 10 be discharged.
THE DEcisiox ,4
The elect oi the dvcison VIII be widespread. Il
will cxasperatc the readJusscrs anu intensity their
attacks on tho Court but u will operate greatly on
she sober sentiment OF tho State aud rouse positive
aud aggressive oppnstion 70 population. Ii would
seem II the campaign OF Teadlustmcnt was ended
issues winch arc noi however, now very clearly 10
O disccrued