Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1883-03-20

By the Supreme Court of the United
States decisions were rendered yester-
day that cannot fail to have very seri.
GUS effect upon the standing and value
of the bonds and other obligations of a
number of the States. In what is known
as the Louisi2na cases. the suits were to
compel the officers CT the State to apply
to the payment of the principal and in
terest of the consolidated bonds of 1874
all moneys derived from tax levied
under an act of that year-which pro-
vided for such disposition of the funds
thus taken into the treasury-and to
compel the continued collection and ap-
plication of the tax. The Court holds
that the officers of the State can only act
as the State directs; that the new State
constitution took away the poWer of the
officers to levy and apply the tax in the
manner and for the purposes ask ed by
the plaintiffs, and that the political
power cannot be ousted of its jurisdic-
ton and the judiciary put in its place.
In other words: any State may issue
bonds, sell them to the public at high
prices in consideration of the fact that a
special tax is TO be annually levied for
the payment of interest and the gradual
accretion of sinking fund for the re-
demption of the principal, and then, by
the adoption of new constitution, f"
the State msy calmly repudiate its OBJ
legations, and the bondholders be left
without recourse. The highest court in
the land so decides.
Another case acted upon yesterday
will attract much greater interest. The
Supreme Bench decided in favor of the
.amous-or, rather, infamous-Riddle-
berger bill, passed by the repudialionist
legislature of Virginia under the whip
of Malone In 1889. With an exquisite
irony of dlction, it is entitled IAN act to
prevent fraud" 1t forbids tax collec-
tors to receive in payment of taxes any
coupons of State bonds of the issues of
1871 and 1879 until the genuineness OF
of such coupons has been established by
judicial proceedings. That is to say, be
fore any taxpayer in any little town can
present for the payment of his tax bill
fifteen dollar coupon, he must carry
the coupon into court and at an expense
far beyond it's value prove that it is gen.
uine, although it bears upon its face IRE
ceivable for taxes" and is signed by the
treasurer of the State. OF course, this
simply kills the coupon-in fact, the bill
is called the coupon killer. No one is
going to invest in thing that smells of
lawsuits and fees before it is touched
1t is little wonder that the price for Vir
giniR consolidated bonds fell from IS, at
which they were quoted Saturday, to so,
at which they were offered to day, with
As the best bid for them and very unea
sy feeling as to their future. Louisiana,
Tennessee and Virginia are by word
and hooking among those who have
any regard for financial integrity, and
the Supreme Courts decisions of yester-
day will do much to retard the progress
of the South by causing at home and
abroad a widespread feeling of distrust
and suspicion of the validity or legality
eff any contracts entered into by powers
so sovereign that what is solemnly
promised by one legislature may be
completely and entirely abrogated by
the next. The story of Virginia's debt
is shameful one. After long years or
non payment of interest, the State
agreed to fund twO-thirds of its debt in
TO consolidated bonds, the coupons to be
always receivable for taxes. The other
third was laid upon West Virginia. Be
fore the funding was much more than
half completed another legislature re.
pealed the tax receivable clause, and the
"Peeler" bonds were the outcome. Then
came the 10 40s of still less value, and
then the piratical Riddleberger bills,
which pre- ctically reduce the value Of
consols to about one fourth of their face.
Malone and dishonesty have gained q
victory that will cost Virginia dear.