The Donaldsonville chief. [volume] (Donaldsonville, La.) 1871-current, 1880-02-07
The BOndhOlders' First Step
Checkmated.
NJ. A. S. in the LiviL gstonian.

In my opinion, the constitution
lately adopted by the people Of Louis
lana, is by far the best of the many
we have had. That the Convention
had the legal and constitutional right
to frame, and the people the legal
and constitutional right to adopt this
OBSERVATION-DISCLOSURES of the debt
ordinance-is, believe, uuquestioned
and nnquestionable.
But many believed and others feared
that the debt ordinance in changing
the rate of interest upon the State
debt as fixed by the amendments of
1874, impaired the obligation Of a
contract and infracted the Constitu-
tion Of the =. S. The bondholders
and their friends openly boasted that
the Federal courts would declare the
debt ordinance null and void, and
thus sustained by the civil and mill
tary power of the Federal govern
nent, coerce the people Of Louisiana
to pay seven per cent. interest upon
the State deDt. The first step in this
work of coercion has been taken. 1t
will be remembered that the debt
ordinance transferred the interest tax
levied and collected to pay the seven
per cent. coupons to the credit Of the
general fund. There are now some
$4,000 of the interest tax fund in
the State treasury. Recently, nnmer
Gus bondholders, citizens of the State
of New York, brought an action en-
titled Ellio: ct al. as. Nichols ct al,
in the U. S. Circuit Court in New Or
leans, to have the debt ordinance de
clared null and void so far as it con
t1icts with the funding act Of 1874 and
the constitutional amendments of that
year, to compel the Auditor and
Treasurer to enforce the funding act
aud to prohibit them from, transfer
ring the interest tax fund to the gen
eral fund.
THUS the constitutional validity of
the debt ordinance and the powers of
Federal courts in such cases were
brought directly into question.
The case Of McCaulcy Us. Kellogg
was suit by the holders of Louisiana
bonds to prohibit the State officers
from executing the Funding act itself,
which scaled the State debt. In that
case Judge Woods, after giving the
most elaborate reasons therefor, de,
MED the complainants the relief
sought.
In the case in question, Elliot ct al.
IS. F. L. Nichols ct al., after citing
the case McCauley Us. Kell"gg with
appreciation, and fully, ably and logi
caIly expounding the questions at
issue, Judge Billings concludes by
reason and authority and decides:
lst-That suit against the officers
Of State, in their official capacity, is
a suit against the State, and of snch
/, suit the Federal courts are without
jurisdiction.
2d-That the officers of a State, in
the discharge of their ordinary duties
prescribed to them by the Constitn
tion and laws of the State, can not be
iu the discharge of such
duties by process from the Federal
courts.
3d-That tile fiscal administrations
Of the State and Federal governments
are not proper subjects for judicial
control.
Should this case ever become an
adjudged case, the people Of Louis
lana will enjoy the boom of low taxa
tion and the blessings of constitu
ton made by themselves, without in
reference from the civil or military
power Of the general government.
Let the courts now decide, as they
should, that any law which is preju
dicial to the general welfare or the
public morals may be repealed and
that such laws are null and void for
the reason that they violate the genius
and purposes Of republican govern
ment Then will the era of prosper
ity upon which the State and people
Of Louisiana seem to have entered,
be as lasting as time.