Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1895-12-30
CAN NOT CONTRACT DEBTS
Continued from First Pag,


by bonds, nor notes, nor by express or
implied promise. Nor shall it be done
for any purpose, no matter how urgent,
how useful, how unanimous the wish.
There stands the existing indebtedness
to a given amount in relation to the
sources of payment as an impossible OBJ
stacle to the creation of any further debt
in any manner or for any purpose what
ever. If this prohibition is worth any
thing it is as effectual against the i'm
piled as the express pro mise, ana is as
binding in court of chancery as court
of law"
In the constituting of a constitutional
provision, or statute, it is fundamental
rule of law that resort must be had to the
ordinary Specification of the words used,
and the order and grammatical arrange
ment in which they are placed, and if,
when thus regarded, the words embody a
definite meaning, and involve no absurd
parts of the instrument, then such mean
ing is the only one We are at liberty to
say was intended to be conveyed. The
language of the section now under con-
sideration is clear and explicit, and leaves
no doubt as to its meaning or purpose.
The ordinary mind can grasp its signifi-
cation. The object of its phraseology
is to prohibit the mourning of an
Indebtedness in any manner or for any
purpose by any political or municipal
corporation, county, or subdivision
thereof, in the territories of the United
States, in excess of per centum on the as
sessed valuation of taxable property
within such corporation, county or sub
division, as ascertained by the last assess
ment for territorial and county taxes pre-
vious to the mourning of the Indebtedness,
and all bonds or obligations of any kind
or for any purpose in excess of the limit
are declared to be void. 1t is part of the
organic law of the territory, and the legis-
lature is without power to override H..
1t virtually declares that the limit of in
debtedness prescribed shall in no manner
or for any purpose be exceeded, and
positively avows that all excess above
the limit shall be void. The authorities
cited by me bear out this Interpretation
anu no other. When law is plain and
unambiguous, there is no room left for
judicial construction. Cooley on Const.
Lin. SIS, Sc. The words "all bonds or
obligations in excess of such amount
given by such corporation shall be void"
must be construed with the context of the
section preceding the sentence quoted.
Bonds, as used here, have we'll under
stood and defined meaning in the financial
centers of the country, while "obliga.
tions" is a generic word, and includes all
classes of indebtedness arising out of
contract, express or implied, as well as
all legal liabilities and duties. As said
by Barr, j., in Sinter v. Carter, % Am.
Rep. 535, it includes promissory notes or
mere acknowledgment of indebtedness
as we'll as coupon bonds.
The legislative assembly of New Mex
leo has, in it's wisdom, provided system
of taxation to meet the current expenses
of the several counties of the territory,
and it is to be presumed that the revenues
derived from this source are amply suf-
fcient TO pay all the ordinary running ex-
penditures of each county, and as said in
the case of Valparaiso Y. Gardner, supra,
when the current revenues are fully suf-
ficient to pay the current expenses neces-
sarlly incurred to maintain corporate life
there can not be said to be any new debt
created. When there is money in the
treasury to pay all corporate demands no
matter what the amount Of the existing
indebtedness may be, il will not be
claimed that the amount of these demands
is in any way the increasing of the exist
ing indebtedness. But when there is no
money on hand to satisfy debt against
the county, or no suitable provision made
for the prompt discharge of its obliga-
tions, any debt, even for necessary cur
rent expenses, would be only adding to
an already existing indebtedness, and If
that Indebtedness exceeds the limit of
per centum upon the taxable value of all
property within the county, the excess
would, undoubtedly, be void, and the act
of the county board In creating it, ultra
wires. When the limit of indebtedness
has been reached, the fact of county is
suing certificate of indebtedness to its
creditor, in the place OF a warrant-the law
as at present prohibiting the issuing of a
warrant unless there is money in the
treasury to pay it--does not remedy the
evil. The certificate 80 issued is of itself
an evidence of indebtedness and comes
within the purview of the act, and is void
from the date of its issue.
In concluslon, I am therefore of tho
opinion that the Indebtedness declared to
be void in section 4, of the congressio nal
act before referred to, if exceeding per
centum of the assessed valuation of the tax
able property within the county, includes
all kinds of corporate Indebtedness, float
ing and bonded, and that the word "obliga-
tions," as used in said section is not to
be construed In the strict sense of sealed
instruments, but is to be interpreted as
covering all other official indebtedness
than funded liabilitiesi and when the
floating and bonded indebtedness Of a
county together exceeds the organic limit,
the board of county commissioners has
NO power in any manner or for any pur-
pose to increase it, neither by bonds nor
notes, nor certificates of indebtedness,
nor by express or implied promise
Money must be in the public treasury to
meet the prompt payment Of every official
liability when due. Under present con-
ditions existing in the territory this rul-
ing may seem to be of great hardship
The highest court in the Union, however,
has given it judicial sanction, and we
must only obey its decision. Retrench.
ment and economy should henceforth be