Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1885-06-18
HOW to Verify Coupons.

In the following communication nii.
MASSEY, lately the Auditor Of the
Commonwealth, calls attention to the
proper manner Of verifying coupons.
II surprises us that juries and courts
seem TO be so careless in this matter.
The impression seems to prevail that
the State is compelled to prove the cou-
pons TO be counterfeit or else receive
them for taxes; whereas the fact is ex-
actly the opposite. 1t is the business
of the coupoD-holder to prove its genu-
ineness.
To the Editor Of the Dispatch:
/ CHANGED to be present for short
time few days ago at the trial OF
"coupon case" did not hear all the
evidence, but the rulings OF the court
convinced me that the real points in
these cases are not properly under
stood. / hope it will not appear pre-
sumptuous if ask you to publish q
few words upon the subject.
1. No court, so far as | have seen,
has denied that the State has the right
TO require the commences of coupons
to be proved before receiving them in
payment Of taxes or redeeming them at
the Treasury.
Q. II will not be denied that the bur-
den Of proof rests upon the holders of
coupons that those who offer them in
payment Of taxes must prove them to
be genuine. How can they do this?
The funding bill Of 1871, by which
these coupons were created, provides
that "bonds payable to order may be
exchanged for bonds payable to bearer,
and registered bonds may be exchanged
for coupon bonds, or rice versa, at the
option of the holder" There was no
limitation as to the number of times
these exchanges might be made. Hence
il was deemed necessary to have
number Of coupon bonds made aggre-
eating a much larger amount than the
entire debt of the State. These bonds
were to run thirty-four years. Each
coupon bond had attached to it sixty
eight coupons, agg' egating more than
double the amount of the principal Of
the bond.
The Treasurer was directed by the
funding bill of II to have the bonds
and coupons engraved or litho-
graphed." 1t says 1.-The bonds shall
be signed by the Treasurer, and coun-
tersigned by the Second Auditor; the
coupons shall be signed by the Urea
surer, or a facsimile of his signature
shall be stamped or engraved thereon"
The latter mode was adopted. The
facsimile Of the Treasurer's signature
was " stamped or engraved" upon
every coupon. Hence it will be seen
that the bonds could not be used, and
were of no value until they had been
"signed by the Treasurer and counter
signed by the Second Auditor "; but
erery coupon was perfect and complete,
and needed nothing more to render them
uscable? On the lst day of January
and July of each year one coupon ma
tured upon each bond that had been
engraved or Autographed" whether
the bond had ever been issued by the
Treasurer and Second Auditor or not;
or, if issued, whether or not it had been
returned in exchange for registered
bond.
Hence it is evident that the genuine
ness of the coupon, in legal sense,
does not depend upon the simple fact
that it was engraved or Autographed"
and the facsimile of the Treasurer's
signature " stamped or engraved upon
it" by authority of the State, but
upon the further fact that it has been
taken from bond which has been U.s.
sued by the State, "signed by the
Treasurer and countersigned by the
Second Auditor" and never returned
in exchange for registered bond.
Do not these facts show the absurdity
of attempting to prove the genuineneSs
of coupons simply by their face?
The only sure and safe course is to
require the bond TO accompany the cou-
pom before it is detached; any other
course leaves the State prey to both
fraud and ignorance.
"God save the Commonwealth"
JOHN Il. MASSEY.
Ash L0wn, June l6, 1885.