The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-04-14
A DECISION ON A GOLD CLAUSE
HOLDERS OF LEVEE BONDS WIN IN
THE SUPREME COURT.

The supreme Court of Mississippi
Had Handel Down Decision That
Bonds Issued With a Gold Clause
Were InvaIid-The Judgment of
the Mississippi Court Affirmed in
Two Murder Cases.
Washington. April I3.-The supreme
court of the United States reconvened to-
day after a ten days recess and handed
down opinions in a score and "A half OF
cases. Mississippi litigation was the oc-
casion Of the most important, If not the
most interesting. decisions.
Amos Wodruff. trustee, and the German
Bank of Memphis. holders OF certain bonds
issued by the Mississippi leyee board No.
], brought suit in the court Of Kinds
county, in that state, 10 enforce a lien
and trust upon certain lands in that
county created in their favor as holders
of such bonds These bonds were issued
in 1871 and were made payable in gold
coin" although the interest coupons were
payable in lawful money" The case
went against the plaintiffs and the SUI
preme court Of the state affirmed the judg-
ment of the trial court. In its decision the
supreme court said: when the bonds
were issued gold coin" was not the basis
of the business of the country. It was
money, but Of much greater value than
the circulating medium, consisting of
United States treasury notes and of ma
tional bank notes, of which we take ju-
dicial notice. All debts payable in dol
lars generally were, as now, salvable
in legal tenders, but an obligation payable
in gold coin can be discharged only ac-
cording to its terms. In authorizing the
Dee Of Ne for 6
use of the term money" the legislature
must be supposed to have meant in the
act cited that money which constituted
the basis OF the general business OF the
country and was a legal tender for the
payment of debts Therefore, there was
no authority in the act for the issuance OF
bonds payable in gold coin" and they
were void for want of authority for their
issuance. This is a matter OF substance
involving a departure in most material
feature from the act authorizing the bonds
TO be issued. and rendered them void from
the beginning" From this decision
the bondhoders appealed to the supreme
court of the United States. The decision
OF the court was announced by ChleI
Justice Fuller. 1t discussed at great
length the question whether or not gold
coin was money, and reached the con-
ciusion that il was money, and there
fore that the use of that term in a bond
issued under authority to borrow money
was not invalid. The judgment of the SUI
preme court of the state was reversed,
and the case remanded, with Instructions
10 proceed not inconsistent win the Opln-
ion.
The decisions Of the supreme court of
Mississippi in the murder cases of John
Gibson and Charles Smith We're affirmed
in an exhaustive opinion read by Justice
Harlan. The defendants in these cases
were negroes. Their attorneys applied be-
fore a trial for a transfer of the cases to
the federal courts under section 6il, Re
vised Statutes, which provides for such
transfer whenever the state fails to grant
to every citizen the same rights under
the law The petition for transfer was
denied, the trials proceeded in the state
courts, and the defendants were convicted.
As a result of the discussion of the law
and facts, Justice Harlan stated that the
defendants were not entitled TO the trans
fer asked, even If the facts alleged in the
petition were true-that no negroes were
ever summoned for jury duty-because
they were denied no right under the con-
stitution and laws of the state. A denial IN
that form only was such a discrimination
as the supreme court of the United States
could take cognizance of. A criminal trial
was not reversible by the supreme court,
the opinion concluded, unless il was held
under a statute repugnant to the consti-
tuition or laws of the United States. The
records in these cases did not show that
to be the fact, nor did they show any
error Of procedure. The judgment of the
state court was therefore affirmed.