The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1899-01-04
Validity Of Blue Ridge
Revenue Bond Scrip.
Attorney Lyles Believes
There is No Possibility of
State Avoiding a
DECISION ON TIE IMPORT
ANT ISSUE.

Hearing q rumor several days ago
that case brought by Mr. Wesley,
involving the validity of the Blue
Ridge bonds had reached the United
States supreme court, Mr.. W. 81.
Lyles was approached by represent
alive of the State to know if there
was any foundation for the report.
He declined then to give the infor-
nation. and the State telegraphed to
the clerk of the supreme court at
Washington to know if such a case
had been flied Mr.. McKenney, the
clerk, replied that the, case of Edward
B. Wesley, appellant, against How
ard P Ellis. respondent, had been
filed, and seemed to involve the ques-
ton of the validity of the scrip
A further interview with Mr.. Lyles
yesterday develops the fact that the
case was brought by Mr. Wesley in
1897 upon contract to sell the
property to Mr. Howard P. Ellis, of
Cleveland, o., at the price of $780,.
900 cash, for the purpose Of estab
fishing large manufacturing enter
prise Nr Ellis declined to take the
property when it was ascertained
that the State of South Carolina held
mortgage on it, and the action was
brought to enforce the specific per-
formance Of the contract 1t came
up before Judge Kicks of the United
States circuit court for the eastern
division of the northern district of
Ohio, at Cleveland, in January last,
and was argued by Mr.. Lyles and
Mr. shal!enberger of the Cleveland
bar, for Mr.. Wesley, and by Mr. A..
st j Newberry Of Cleveland, O.,
for Mr.. Ellis.
Judge Ricks reserved his decision,
and was taken sick shortly after
wards, which cauaed a delay in the
fling of his opinion. II was filed,
however, several months ago, and
was adverse to the validity of the
scrip.
The decree concludes with the follow
ing The opinion Of this court is that
the South Carolina bond scrip issued
uader and in purpsuaoce of the act of
March 2, 1872. are bills Of credit within
the prohibition Of The constitution of the
Uoised States. and therefore void
1.-The tender Of the scrip by Alexan.
der TO the State treasurer Of South Car
DINA vas not valid tender. and did
not oppera.e to e1tinguish the mortgage
given BY AIexander to the State. The
said agricuisnre ball property is still in.
numbered by the mortgage aud CON-
plainans cannot give defendant a clear
title to it Complainant is NOS entitled
to the relief asked 10 the bill of COM
plains.''
The opinioo Of Judge Ricks is very
long. covering % pages of typewritteo
% after, and reviews all Of the authori-
ties on the subjecs. His opioioo is
based on the several decisions Of the
supreme court o: South Carolipa. which
involved the invalidity Of the scrip, but
Mr.. L9les seems as con6den, ss ever
of ultimate success. He says that the
decision has left out of consideration all
minor objections to the validity Of the
scrip, and has decided it entirely upon
the constitution of the Uoited States.
and he is now Satisfied that there is no
possibility Of avoiding decision of sbe
question on its merits He says that
the leading case on che question as to
whether securities constitute bills OF
credit within the Inhibition Of the con-
stitution of the Uoited States is that OF
Craig VS.. Missouri, 4 Peters. 40. re-
ferred to by Judge Ricks 10 his decree,
10 which Chief Justice Marshal says.
10 its enlarged. and perhaps Its
literal sense, the term bill Il credit
may comprehend any instrument by
which State engages TO pay money al
future day !; tbas includiog certi6
cate given for money borrowed. Ba:
the language Of the constitution itself,
and the mischief to be prevented, which
we know from the history Of onr coun
try. equally limit the Interpretation o.
the terms. The word emit is neve,
employed in describing those contracts b
which State binds itself to pay money
at future day for services actually re-
ceived or for money borrowed fer pres
ant use; oor are instruments executed
for such purposes, 10 common language
denomioated bills Of credit 70 'emi
bills of credit conveys to the mind tbs
idea Of issuing paper iotendedto cir
cula,e through the community for it
ordinary purposes. as money. whict
paper is redeemable at future day
This is the sense 10 which the term!
have been always understood ("
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