The Ocala banner. (Ocala, Marion County, Fla.) 1883-194?, 1914-04-10
OCALA FLORIDA, FRIDAY
FLORIDA NEVER REPUDIATED
HER OBLIGATIONS
State of Florida
Office of State Treasurer

1aliahaSSee, April 4, 1914.
To the Editor Ocala Banner:
Dear Sir-I notice an article being
published generally in the press stat
ing that British bondholders hold
bonds CT nine southern states to the
amount of $75,o0O,OO0, not including
interest, which have been in default
from forty to seventy years.
Among the Est of these states nam.
ed as default:ng on its bonds is the
state of Florida, which is charged
with having defaulted on $7,O00,O00 of
bonds.
Should this statement be allowed
TO pass without a full explanation as
to the facts of the issue of these ST.
100000 of bonds it is calculated to
work great injury to the state in the
minds of financiers, both in this and
foreign countries. l therefore con-
slider it highly important that the
press generally, and especially of this
state, publish The following extract
from a statement prepared by Judge
James B. Whitfield, of the supreme
court of Florida, in 1901, with refer
ence to this matter, which shows
clearly that the bonds referred to
are neither legal nor moral obliga-
tions OF the state.
Florida was admitted into the I'm
ion as a state. March 5, 1S45.
"The bonds herein referred to were
all issued in 1885 and 1888, when Flor
ida was territory.
"The act OF congress, to amend an
act for the establishment of terrific
rial government in Florida approved
March 3rd, 1928, by section 6, pro-
vides, that all bills to tax the inhab-
itarts of said territory, or their prop
erty, shall before they become laws,
receive the sanction of congress-; ex-
cept when said bills shall authorize
county, city or town officers to collect
taxes for the use and benefit of their
respective counties, cities and towns,
and for other purposes.
1.-The territorial legislature or coun-
Gil of Florida in 1881 and 1885 author
lied the above mentioned bonds to be
issued, signed by the governor and
treasurer of the territory, to be used
IN tha aid 0f oor+oip hoplyc ond othar
corporations, but the sanction of con-
gress to these territorial acts was
never obtained.
Grave DOUBTS were entertained at
the time of, as we'll as after the pass
age of these territorial acts, as to the
power of the territorial legislature or
council to pass them, and it is said
that the secretary of the territory
was SO impressed with the irregular
ity and illegality of these acts that
he refused to attach the territorial
seal to these bonds, and that the seal
was affixed to them by another per-
son under the direction of the gov
ernor of the territory.
"The territorial legislature or coun-
Gil at a session on January 23rd, 1912,
by a vote of 19 to 4, adopted the fol-
lowing resolution:
Resolved, that the territorial leg
islature does not possess the right,
nor was it ever vested with authority
to pledge the faith of the territory
so as to render the citizens of the ter
ritory responsible for the debts and
engagements of any corporation char
tered by said territorial legislature
"These territorial acts provided
that the sale and negotiation of the
bonds issued Hereunder should not
be at discount nor for less sum
than the amount named and express
ed in said bonds, and in any case
where the bonds were sold for an
amount less than the amount named
and expressed therein, they were to
become forever absolutely null and
NOlu. nc JOut1oio vi eIAC IOA AtOA ANA
legislature recite that the bonds were
sold below par.
1T is thus clear that the territorial
legislature had no power or authority
to pledge the faith of the territory for
the use and benefit of private corpora
tions, and that the bonds mentioned
here were bonds illegally issued un-
der the territorial government of
Florida, and that they were of no
binding force upon the territory of
Florida, or the people thereof.
"No benefit has ever accrued to the
state or people from such gonds, and
they have never been recognized as a
binding obligation upon the state or
the people of Florida since the ad-
mission of the state into the Union,
March 3rd 1S45