Savannah morning news. [volume] (Savannah) 1868-1887, 1885-04-21

LIN = sAlAAA ~OAlfpal OSLtHs
The decision Of the Supreme Court Of
the United States against the St9.e as
represented by the tax collectors in the
! Virginia coupon cases was not uneX-
pected The history of the cases was such
as 20 make the issue extremely dOubs-
full, and while the court was by no means
unanimous on the principal questions in
yolved, the cases and the rights Of the
holders of the coupons are settled, and
tax collectors Will be compelled toreceive
the coupons in payment Of taxes when
ever they shall be rendered in the terms
of the contract as originally made.
1t is useless now to discuss the ques-
ton whether the better arguments are
contained in the opinion of the court as
| rendered by Justice Matthews or in the
dissenting opinion delivered by Justice
| Bradley, though the latter is peculiarly
strong document.
1t is of interest to the public to know
what effect the decision will have on the
finances Of Virginia, and how it bears on
the dsowned bonds Of other States. 1t is
pretty certain that the holders Of the
bonds affected by this decision will dis
pose Of the past due coupons as soon as
| possible on the best terms they can OBJ
tain Of taxpayers, and the coupons
not yet due viii be put on
the market as rapidly as they become
due. Thus many thousands of dollars
OF these coupons viii pass into the hands
/ Of tax collectors, and from thence into
the State treasury, for the principle that
| requires the officers to receive the coupons
! in payment Of taxes will compel the
| State to receive them in settlement with
! the tax collectors. 1t will be seen, there
| fore, that Virginia will very soon be
seriously embarrassed, for the coupons
are absolutely worthless to the State in
| paying the expenses of the government.
| A very large deficit will at once appear
in the estimates Tor the current year,
and a much larger amount than
usual win have to be raised by taxation
or otherwise annually for several years to
come to allow for such coupons as may
be presented by taxpayers. It's, indeed,
| fortunate for Virginia that this decision
was not made a few years ago before the
State had entered on the era of prosperity
which now marks it as one of the most
! progressive and promising Of the South
ern States. No doubt the people Of Vir-
ginia, now represented by a Legislature,
the large majority of the members Of
which have The true ard permanent in
terests of the State at heart, will prompt
ly meet the situation and overcome the
i rxfif
which they are confronted.
1t is impossible to tell just now to what
extent this decision affects other States
which have similar coupons that have
been disowned or repudiated. 1t is not
probable that any other State is so deeply
interested in the question as Virginia. 1t
applies only to coupons which are OK
pressly declared by the contract
under which they were issued 50 be re-
ceivable for taxes, and those coupons
which are simply payable by the State
Treasurers stand just as they did before
this decision was rendered.
On a cursory examination of the de-
cision, there does not appear to be any
thing in it injuriously affecting the inter
ests of Georgia. The principle involved
in it may be claimed to authorize various
expedients and devices to circumyent the
provision of the eleventh amendment to
the constitution that protects States from
suits on contracts, and, no doubt, consider
able litigation will result therefrom in
several Southern States. The annulled
Georgia bonds stand on an independent
footing. They were declared fraudulent
and invalid because they were not issued
in compliance with the laws authorizing
them, and hence they are not to be classed
as simply repudiated bonds.
No doubt the political effects of this
decision will be to greatly strengthen the
Democratic party in Virginia in the
State election, which takes place
the coming fall. The people OF
Virginia cannot afford to commit
their interests to irresponsible Re
publicans and Mahoneist spoilsmen.
1t will require wisdom, patriotic zeal and
discretion to meet the financial questions
which this decision forces on the State.
and minor differences in the Democratic
party, and personal issues will doubtless
at once be dropped, and united party
will drive the last of the Mahoneist officials
from power.
Gen. Lawton's DcClensiOn.
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