The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1881-01-26
Tne Rendsusscrs squeSened ny sm'
premc Cours Decision.
the TAX oS VIRGINIA c0NsoLs DkchAhEV w
CONSTITUTIONAL.
Especial TO Che Iiaiumore Amsr'es".l

dercd to-day through Jusucc rius !" '"e
Gaze of Hartman pS. .Greenbow. treasurer
III the city az Richmond. pronouncing un
constitutional tie law 81 the Virginia Leg,s'
lalure Of 1915 which imposes TAX on toe
coupons OF the virginia conso's iunue" J"
is7i, and prohibits tax-coilectofs itoui 's'
ceiytug the Interest coupons OF sucu ous"s
in paymcnt Of taxes without nfst ueauc,'"s
from them the amount OF ne STATE 'hA y"
the bonds. j. The principal lheme OF us,
cussjon at the cipitai. Inc court "eIu
that the act in question, imposing suc1
tax aud prohibiting the recepioh oi
the coupons at their fu'i Nalue
in payment 81 taxes, u unconstltu'
tional and void, because II impars the oOil-
cation Of a contract made betweea the STATE
and It's creditors. and which i contrary 10
public faith and public policy. Tocre was
a large attendance at the Supreme'Couft
room In expectation cf the rendering OF 'be
opinion, which was given shortly aiier
o'clock. Justice Field read the opinion 10
a clear and distinct voice, ard the greatest
attention was paid To what he salo. cooh
after he had concluded the last sentence
and declared the law in question unconsu'
tntional, there was something OF rush TO-
ward The door. and in less than ten seconds
afterwards the telegraph offices IN the ioo'
bies OF the CAPITOL we're besieged by crowd,
who sent out the news to al parts OF inc
country. Among those represented III Tue
Supreme Court room we're bankers anu
brokers OF the leading cities. number OF
Baltimore 6rms being among them, ana tney
ouickIy teIegraphcd the result. IL was not
long before information reached the Capitol
that the opihion had created f,ltter IN
a
gone I'D 3 per cent. bali an hour aiter lue
decision became known. very pioin''
nent Virginia acknowledgements III
politics. had such confidence that the gu
irene Court would decide the case In favor
of the creditors that he has made pm chases
through brokers In Baltimore and other cl-
ties i'm The past few weeks ~ Virginia con-
soils 10 the amount of $500, 600, mainly on
margins. As they were secured quite low,
the owner will clear a handsome profit on
his investment. II was generally predicted
that The United States Supreme C0url would
moi sustain o Law such as that OF 1876, which
was demonstrated to be clear violation OF
a contract. and which was looked upon 'as a
step towards repodIation. Representatives
OF Wall street, who had heard that the deci-
sion would he rendered to-day. tClegr,phed
L a,
reading, that the case would be decided III
favor Of the bondbOders.
POLITICAL EFFECT OF THE DECISION.
But while The decision was very i'm
portaut one financially, what gave it addl-
tionaI iniercs. here was the influence 1t will
exert on Virginia politics. 1t is generally
accorded that il is d disastrous blow for the
Readjusiers. The Vrsinians who oppose
Malone aud his Reputation policy think
hat this will ehcctullly put stop TO such
legislation as was demanded and enacted by
the RtAdjusiCrs, and That under the iudg-
ment Of The Supreme Court the Malone
partv will melt away Us fee and snow under
he hot rays Of tie ssh. Senator Johnston,
Of Virginia, said to-day that the decision
will necessarily check any legislation look
ing TO forclbie adjustment OF the Viz
gjnia State debt a." Mahone's mission" he
continued, "as conceived by himself ana
iis followers in regard TO the re-
adjustment OF The debt, is ended. Here
after the legislative bodies Of Virginia will
not attempt to make settlement or
the debt without The consent OF the credit
ors, a. was designed by the Readjusters'
party.r Senator Johnston also said that he
was In favor Of Ieadi usment Of the debt,
but such readjustment az will meet the con-
sent OF the STATES creditors. He believed
that the result Of the decision will be to
strengthen the credit Of The State and pre-
pare The way for an amicable settlement be-
tween the State and the bondh0lders. Other
Representatives Of Virginia were likewise
Of the opinion that the decision takes from
the II, adiusters their power for further
mischief and further tinkering with the
State debt. The Supreme Court dwells
with great emphasis on the sacred ob'iga-
ton of a State TO its creditors, and the dan
ger Of States repudiating such contracts. In
giving their opinion that they have not the
slightest doubt as TO the upconstitutionality
of such laws as those of 1876 they comment
upon the fact that the State will be better
situated If such sentiments do not prevail.
1.-THE decision ends all reputation
schemes of States and Cities" said prOmi-
nent public man to-day. "Tbe supreme
Court lays it down clearly and unmislaka-
bly, that State has not the right to dlsre-
gard its Obligations and violate a solemn
compact which IL has made with others. Ii
will have good effect not only in Virginia,
but in all other States where repudiatlonlsts
still flourish. The earlier it is understood
hat State cannot repudiaie lis debt by
any devices such rs prevail in Virginia, the
better it will be for every State aud for The
" hole county. think the Supreme Court
has rendered Virginia great service, which
that State ought TO appreciate. as anything
W hich demonstrates that 1t will act honestly
with the bondholders helps its credit and
SENATOR WHITES VIEWS.
Senator WHITE, in speaking OF the dcci-
sion, thought that it was good thing for
Virginia. He referred to the time, forty
years ago, when Maryland was on the verge
OF repudiatug its great debt, contracted in
aiding internal improvements, and said that
the past and future generations have had,
and will have, reason to rejoice and feel
proud Of the men who in that hour OF peril
saw d the state from what would have
proved utter ruin. 1t required sacrifice,
and boldness TO persuade the
people that liquidation would end
in disgrace aud humiliation, but Ma
ryland boosted OF statesmen In those
DAYS who considered the public veal and
of the State as greater treasures
than mere eXpedieDcy. Those that clam
eIed for Reputation were soon convinced
Of their error, aud the people with one &C.
cord submitted to q very high rate OF taxa.
ton in order to pay the interest on the
heavy debt and rid themselves Ct burdens
imposed by their predecessors. "Who
within the whole State" he continued, sis
not prouder day because OF this sacrifice
IF Mary LADDERS than he woald have been
had they humiIiated the State by repudia-
ing its debt? Maryland is far more pros
porous than she would have been had not
wise counsels prevailed. So II will be with