Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1881-02-02

lot u !tS ~ TX , AZ ~ poy lue oisio tuy
deb; DO u:aG oEa il 10 the paper Of tho bank.
|. is coltiau!1g suerany BY tho state that
the notes shall be 50 received. Such contract
would be b;aci4g on GO individual, and is not
the less so or the state" And that tho leeis.
latuEo cou!2 10: withdraw this obligation from
tho n0ics il CirtuIslicn at the time tho guaranty
was repesled, is positioa which can require 90
| argument" In Fornan vs. Nicol, reported 10
the Sin Wallace, similar provision in co act
of Tennessee, declaring that er.aia notes of the
bank of that state should BIO receivable" at the
treasury Of tho state and by Tax collectors and
othe, public officers, "io oil payments for taxes
aId other moneys due tho state" was held by
this COURT uas nlmously to constitute valid
| contract between the state and every person 70
ceiring Q note IF tho bank. An a,tcmlt was
mado in the case to restrain tho operation OF
the eusranty c,ttained in the provision, to tho
person Eho received the noto 10 tho courze Of
his deali0S with the bank. but the court said
The gusaa:tg s 10 no s:Dse o personal onc.
1t attaches to the note-is part Of it, as much
50 as if written 90 the back of it; gees With the
note everywhere, aId iDvtes every one who has
taxes 10 pay to take it.
let notwithstanding tho langu 90 OF the acs
Of March 50. 1871, providing that the i1terast
coupons OF the new bonds should "bo r. c,iVsb'e
at snd afser maturity for all tsxas debts, daep,
acd demands duo tho state" and Ills vas 50
eZprtssed upon their lace, the legislature Of
Vlrglrla less than one year afterwards (on the
Tth Ct March, 1872 passed on Get deolarr G
tina: thereafter 1t should mot ba lawful f,r tho
officers charged with the collection of ttx.s and
other demands Of tho state" theu Gu, or which
should thereafter become duo to receive 10
payment thereof anything else ihsn gold CT
| ctlpn I'D koko
Eotes of the nali,nsl banks of the Uoled
States" This aOs, as seen on its fsc,, is 10 di.
rect conflict With the pledge of the stale CT the
previous year, sud with the decisions of this
court to which We have referred.
Its validity, as might havo been expected,
was SOON attacked 10 the courts as i'm pairing the
obligation Of the contract clntsined in The iund-
iCg ac', and clme before the supreme cour. of
appeals Of the state for consideration 10 Antoni
Vs. Wright, ct it5 November term 1872. The
sutj:ct vas there most deliberately and learned
ly treated. The cases above were cited by the
court; aud the provision Of The iu5ding &C: was
sbcHB, ~ reasoning perfectly corcusive to bo
o contrec. founded upon valuable considerations
and binding upon the state. II vas earnestly
pressed upon toe court that it vas cot witbn
the legitimate power of the legislature to make
suoh con!rac that it would tcod 10 en-
b:rrass tho action OF subsequent legislatures
By dsrrlViDg them OF tho proper control
of tho an1ual reVe5ue. aud might, by
absorbing The rtVenne, substantially ertu! tho
taxing paTer ard put sop to the wheels c
government. But hs o)urt said, amorg olher
euswerj 10 this. that no lighuul power Of tho
state Wss surrendered By tho legislation, but
simply provision made for the pay N ut Of the
debts ct the state; that the annual acciuDg
4 iptc b. foPt ho, IL
regulated governments deemed az essential
part al tier Grnua! expenses. aol Vas slssy 8
ANNUALLY provided Tor TIE act only made
provision Ter 60 anLual appropriation OF o por.
!lon OF the revenue. derived from taxation, 10
the pGyuen. Of txisliug debit; al d suoh leiis-
laiion oou'd not he deemed great stretch Of
power. when tho crgerio law CT tie state co.
only contcmplLtcs tie ruGotual aIpusl pay
ment OF tic interest OF Der cniro debt, tut
mrcratiVel0uquired on tho creation o! debt,
thst o sinking fund sh)uId DO t.. orce establish
cd, to be applied to,ely to i's ty:ipo;iou. Tho
organic law thus Got merely auhorz.d ID. but
rcq1!gcd the legislature wtici created Ito
dept. 10 bind all iu;uro legislatures, by tho
establishment Of fund 10 ba applied
scley TO thu tx;iuo i'm Of tho debt. Atd
a. 10 ihs oljacii:n thtt such legislation
might, AID probably would, result ia clppling
War or other grta. calamity, tho cGult ssil, thai.
lctlaiatien tannO. we'll DO adapted in advance 10
extraordinary ard exceptional csscs; thst such
c9scs viii o2Irr at all times in all nations and
must be prcvitcd for by the vision and rru.
Geuco OF thB government for tho tim being.
"At such d time, however" ssid the court IN
words full Of wisdom, "the Eolored namo and
high credit secured 10 a ttste by unhroken faith,
even IN diversity, will, apart from all other on-
| s!ioTatGns, be worth more 10 her in doliars-in.
| a!CulablV n10r1-ihaO ha ol
Ei1cGLt smcunt Of the interest on q portion of
tho public debt or oyed ty brosch CT contract ~
Iho court thus expressed a great truth, which
all lust men appreciate, that thore is no wealth
or power equal to tia! which ultimately cones
10 ststo when in Gil he. ergsg ,men,s ths keeps
her faith upbsoken.
!, Theso decisions Of the federal aud state courts
dispose substantially cfths question presented
IN the case at bar. The sct Of March, 1872, being
held 10 be invalid, the coupons were subseouent'
~ end until March, 1873 rocoiyed for ali t.xes
due the state 10 the full amount. On the c5.h
OF Inst month tho legislature passed an act pro-
pidlng that from the interest payable out of Tho
treasury on bonds OF tho state, whether funded
CT unlunded, there should DO rttaiacd tax
equal in amour. TO Gf.y cents on tha ono hun
dred dollars of their market ya!ue. on tho lrs.
day IN April OF each year, and made it the duty
oleVefy officer OF the commonwealth, charged
with tho collection of LAKES. t. deduct from the
matured coupons which might be rendered 10
| aihA ~ paJ uout VI td4cSI OC Quiet cues 10 Inc
state. such tax SIS was thon or might thereafter
DO imposed on the bonds The sc', 10 terns,
applied 10 all bonds of tho State; whether held
by her own ciHZsns CT non-residents and ctiz ms
OF other States or countries. In 1874, the lesi,.
lsture modified this provision 30 that The tax on
the bonds should not be retained from the inter-
est paid on them, when thoy were tho property
of non'residents of the Commonwealth. Blu.
this exemption was emitted in the oct of 1876
providing for the assessment of taxes in the
State, in which the provision of tho act of 1873
! was inserted. 1t s the validity of this provision
requiring the tax levied on tho bonds 10 bs de.
Quoted from the coupons held By other parties,
when rendered in payment If their taxes or
other dues 10 the Stlte which is presented for
our deter min stion
The power cfthe State 10 impose tax upon
her eva obligations is o subject upon which
there has been dhereIc, OF opinion among
lurlats and Statesmen. On the one hand i. has
been co1tended that such al tax is in conflict with
and contrary 10 the obligation assumed; that
the obligation 10 pay certain ,uu is inconsist.
ent with right, at the same lime. to retain
| nj in hoo Of "a tbnkt