The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1915-04-22
GOVERNOR HAS
No AUTHORITY TO
BORROW MONEY
Judge John W. Mason, Of
This City Gives Opinion
On States Finances.
LOAN MUST NE A
TEMPORARY ONE
Decision Is Confirmed BY
Higher Court, Eminent
Lawyer Says.

Judge John ". Mason. OF this city.
whose opinions are entitled 70 much
weight, has recently rendered an op:n-
ion, In writing. sustaining Governor
Hatfield in his refusal to borrow
money to cover the deficit in the state
treasury. The opinion OF Judge Mason.
similar to opinions rendered BIZ the
Hon. John II. Holt. or Huntington.
few years ago the Democratic nominee
for governor, and that rendered By
; Tax Commissioner Fred o. Blue.
These opinions al agree that the
financial trouble OF the state Is not
: OF temporary nature. but one OF long
standing and fully understood by the
legislature which refused 10 provide
the revenue necessary TO run the
state government. and is not OF that
nature which would justify The COVER
nor in borrowing money as provided
by law. Judge Masous opinion Is as
follows:
Charleston, W Va. april Is. 1915.
Honorable II. D. Hatfield. Governor OF
West Virginia. Charleston.
Ny Dear Governor:
am just in receipt Of your letter
today asking for my opinion upon
two questions concerning your duty
as governor of the state
First-"Am I, as governor, il the
present financial condition OF the state
and upon the states credit. authorized
to borrow money so as 10 meet eN'
penditures under the appropriations
made by the legislature"
r. 20 I
that, as ] understand the law. The
only authority you have 10 borrow
money for the use OF the state IS
found in Section IS. Chapter II. OF
the Code of West Virginia, which IS
as follows:
THE governor may raise. from
time to time. by temporary loans
not having over eighteen months
to run nor bearing a greater IN.
tercst than two cents per hundred
dollars per day, so much as may
be needed TO supply the wants OF
- the treasury.
: This statute limits your authority
TO raising money by temporary loans.
When II is made TO appear 10 you that
Ii is necessary TO raise money 10 sup
ply the wants of the treasury. lAis
may be done by temporary lean not
having over eighteen months TO run
: sity and as to whether or not the loan
is temporary one.
1t would seem that the legislature
: Intended to confer this authority upon
the governor TO provide money when
it appeared thai there were assets
applicable TO the payment OF tne
states debts but not available at the
time do not understand that the
governor would be authorized. under
This statute, TO provide funds for the
8 nayment of debts created by the leg
stature. but to pay which no pro-
vision was made. by it. In other
words. the authority OF the governor
under this statute is simply TO raise
money by temporary loans TO supply
4be wants OF the treasury for the
time being Whether or not conoi-
tions exist ;ustifying you in raising
the money in this way IS question
for YOU TO determine under all the
circumstances.
Second-You also ask me the follow
ing question:
ties of the state being in excess Q!
available revenues. what is the duty
of the officers who have TO deal with
Z such a condition? AS an example:
In case OF liabilities exceeding reve-
nues in the way of appropriations, is
any preference TO be given with re-
soect to the department OF govern
ment maintenance over appropriations
for general and sundry purposes. or
should they pro rate available sources
of revenue among all appropriations
made by the legislature?
The Supreme Court OF Colorado
has answered this question very fully,
and as believe. correctly.
In a case decided by that court.
October IS, 1859, the court says:
1aly
ing the necessary appropriations TO
defray the expenses OF the executive,
legislature and judicial departments
of the state government for each fiscal
year, including interest on any valid
public debt. are entitled TO preference
= over any other appropriations from
the general public revenue of the
state without reference TO the date OF
their passage and irrespective OF
emergency clauses
This opinion has been repeatedly
affirmed by the same court. and, as
I have indicated in my opinion, cor
rectly propounds the law OF this state.
II the auditor and treasurer OF the
state of West Virginia shall find that
The available resources OF the state
are insufficient TO pay all Of the appro-
priations made by the legislature. then
it is clearly the duty OF these officers
to give preference 10 the payment OF
appropriations made to defray the ex-
penses OF the legislative. judicial and
executive departments OF the state.
ANY other disposition of the public
funds. in case the revenues are in
sufficient TO pay all of the debts,
would weaken and perhaps destroy
the state government. The business
of the state government cannot be
carried on except through the agency
OF these officers. and the services of
these officers cannot he secured with