The times. [volume] (Richmond, Va.) 1890-1903, 1898-11-24

ernor Of Virginia from tho approprla-
ton for clothing. and camp and garrison
equipase, January !, 1899 calm,
amounting TO s.. 2.s57S0. for clothing and
shoes furnished for the use Of certain
regiments OF Virginia volunteers.
THE state ~ Virginia being Indebted to
the United States for crrtain non-paylng
and other Virginia State stocks ana
bonds now belonging TO the United
States tHouse Document No. 2s3. Fifty
fourth Congress second session., the
question Is submitted for your consid-
Grafton whether under the provisions OF
tho act Of March 2, 1915 dS Stat, AsD
the Secretary Of the Treasury should
withhold payment o. the claim and apply
the same as a partial payment on the
indebtedness OF the State Of Virginia
Trust FUNDS.
1T appears that prior 10 1851 certain
Indian trust funds were invested Dy the
Secretary Of the Interior in certain State
stocks OF the State Of Virginia. amount
ing to $1,000 that by the act " June
10. 1876 % stat. ~. these stocks were
directed TO be transferred 90 the Treas
urer of the United states. whose duty ~
was made 10 collect the Interest falling
due thereon: that the principal oi tho
stocks became doe and payable January
J. 1894 and that I'm MAY, ls9i, payment
of the principal and accrued interest
(none OF which had been paiD was de-
manded and refused.
"Bv the act of August IT, 1881 q, Stat.
BID. the Secretary " the Treasury was
was authorized and directed 90 place
upon the books OF the Treasury 10 the
credit of the several Indian tribes inter
la O
non-paying state bonds or stocks, ana
provided that
"Thereupon said state bonds or stocks
shall become the property of the Unitei
states.
Congress has also annually appro-
prate1 moneys for the payment Of the
interest on these stocks.
"It thus appears that the state OF Nlr-
gi=ia is indebted 10 the United states n
The amount Of those State stocks and the
interest accrued thereon.
MUST CREDIT THE DEBT.
"sccuon 3i1 Of the Revised Statutes
provides:
d" Whenever any state is in default in
the payment Of interest or principal ON
Investments i'm stocks or bonds issued or
Guaranteed by such state and held Dy the
United States i'm trust. the Secretary of
the Treasury shall retain the whole. or
so much thereof as may De- necessary OF
any moac~s due on any account from the
United States TO such State. and apply
the same 10 the payment OF such Drin-
cin8l and Interest. or either or to lne
reimbursement. with interest thereon. OF
moneys advanced by the United States
on account Of interest due on sucn stocks
or bonds
"rhe act Of March 3. 1910 rs Stat, iSD,
also provides
That when any final judgement re-
covered against the United States or olh-
or claim duly allowed by legal authority.
shall be presented 20 the Secretary of tae
Treasury for payment and the niaintlh
or claimant therein shall he indebted to
the United States IN any manner whether
as principal or surety. it shall Doe me
duty Of the Sccretary 10 withhold pay
ment OF an amount of such iliemont or
claim equal 10 The debt thus due to the
United States; and if such plaintiff OF
claimant assents 20 such set-of. ana dIe-
charges his judgment or an amount
thereof equal 10 said debt or claim. tine
Secretary shall execute 90 discharge ot
the debt due from the plaintiff io the
United states. But IL such plaintiff or
claimant. denies i/nGcDteducss % the
United states, or refuses to consent to
the set-cn. then The Secretary shall with
hold payment of such further amount of
such Judgment. or claim. as i'm his opin-
ion will be sufficient 10 cover an legal
charges and costs in prosecuting tne debt
of the United States. TO final Judgment.
And # such debt is not already boz suit.
it shall Doe the duty OF the Secretary o.
cause legal proceedings to Doe immediate
ly prosecuted to final Judgment with aI
reasonable dispatch. And Dr. in such ac-
ton Judgment shall be rendered against
the United States. or the amount rccov-
cred for debt and costs shall Doe less than
the amount SO withheld as before pro
Vided. the balance shall then Doe paia
over TO such plaintiff by such Secretary
with six per cent interest thereon for the
time fl has been Withheld from The plain
tN.
IS a SET-OFF.
"rheso statutes are dcclarat0ry. The
right of sct-om being "a common right
m Crauot VS. United States as pet
g26-27O Mr. Justice story in the opinion
of the court. in considcring The r.gh, OF
the United States to- set of balance