VIRGINIA. 



795 



The funding process was suspended until 

 new coupons had been printed, which occu- 

 pied about two months. 



The Legislature adjourned, after having been 

 in session about one hundred and twenty days, 

 without passing any tax law, and the Gov- 

 ernor immediately summoned an extra session, 

 for the purpose of having such a measure en- 

 acted. The bill, which was passed after sev- 

 eral days of discussion, retained the old tax of 

 fifty cents on every hundred dollars of the 

 assessed value of all property, real and per- 

 sonal, and provided for the assessment of fifty 

 cents on every hundred dollars of the market 

 value of all bonds issued by the State, and by 

 all railroad and canal companies, the tax to be 

 reserved out of the interest due or becoming 

 due on the bonds. A specific tax was also 

 laid on express, transportation, telegraph, and 

 other companies, as well as a tax on their gross 

 receipts, and a tax of five per cent, on the gross 

 amount of sales of spirituous and malt liquors. 

 A bill providing for the reassessment of lands, 

 which had been passed before the adjournment 

 of the regular session, it was generally thought, 

 would so far reduce the taxable value that the 

 amount raised, under the new act, would hardly 

 exceed that collected under the old law. 



On the 26th of August, a council of foreign 

 holders of the State bonds was held in London, 

 at which a protest was drawn up, and for- 

 warded to the Auditor, against the action 

 which had been taken, suspending the funding 

 process, and altering the coupons. "They felt 

 assured," they say, "that, after her past mis- 

 fortunes, the first sentiment of Virginia would 

 be to make the best possible provision for the 

 discharge of her engagements, and it was in this 

 spirit that the funding bill was received and ac- 

 cepted. All such reliance was, however, weak- 

 ened by the subsequent tampering with the 

 funding bill, and the insufficient provision made 

 for payment of the coupons; that, while these 

 infractions of credit inflict serious damage on 

 the bondholders, they are convinced that they 

 no less affect the best interests of the State 

 and its citizens. 



" At this time, invitations are offered to 

 Englishmen, in our daily papers, to emigrate 

 to Virginia, and settle in a country having the 

 same population, language, laws, and institu- 

 tions. These propositions were well regarded, 

 but they are likely to remain abortive, as well 

 as others for the development of the landed 

 and natural resources of the country, until jus- 

 tice is done. 



" The protesters likewise object to the alter- 

 ation in the coupons under the new funding, 

 as involving a breach of faith on the part of 

 the Commonwealth of Virginia. 



"The protesters further object to the heavy 

 amount of the State tax, as being a tax farjbe- 

 yond the ordinary burdens of State taxation, 

 and as being, consequently, what it is intended 

 to be a form of repudiation, and a spoliation 

 of the bondholders. 



"The bondholders also object to being kept 

 out of dividend on the plea of an assignment 

 of one-third to West Virginia, for the assump- 

 tion of which no terms have been made with 

 West Virginia. That the protesters feel it 

 their duty to urge that the natural resources 

 of a country are dependent for their real value 

 on the intelligence and moral capacity of its 

 citizens ; that material resources may be wast- 

 ed by the calamities of war ; but, that the good 

 name of tire State and citizens is an abiding 

 inheritance which may remain in all times." 



Meantime, the constitutionality of the act 

 changing the coupons had been brought in 

 question, and suits were commenced in the Su- 

 preme Court to test its validity. A final de- 

 cision was rendered in December. The ques- 

 tions involved were 1. Was there, under the 

 act aforesaid, of March 30, 1871, between the 

 State and such of her creditors as should ac- 

 cept and comply with the terms of the act, 

 a valid contract that the interest coupons is- 

 sued thereunder should "be receivable, at and 

 after maturity, for all taxes, debts, dues, and 

 demands, due the State ? " 2. If so, was the 

 obligation of this contract impaired by the act 

 aforesaid of March 7, 1872, which substantially 

 declares that the collecting officers of the State 

 shall not receive the coupons aforesaid in dis- 

 charge of any "taxes or other demands of the 

 State, now due, or that shall hereafter become 

 due?" 



Both these questions were considered at 

 length by the court, and decided in the af- 

 firmative. In rendering the decision, Judge 

 Bouldin said, in conclusion: 



We are of opinion, therefore, that the act aforesaid 

 of March 7, 1872, is repugnant to the constitution of 

 this State and of the United States, inasmuch as it 

 impairs the obligation of a contract, and is, on that 

 account and to that extent, void ; and, being further 

 of opinion, both on principle and authority, that the 

 writ of mandamus is the proper remedy in the case 

 (the duty of the sheriff being purely ministerial), a 

 peremptory writ of mandamus must be awarded in 

 the case of Antoni vs. Wright, and the judgment of 

 the Circuit Court of the city of Richmond in the case 

 of "Wright vs. Smith must be affirmed. 



The court is sensible of the grave, responsible, 

 and painful duty that will be cast on the Legislature 

 by this decision, but we feel assured that it will be 

 faithfully and wisely met. We think, with the whole 

 court in the homestead cases, that temporary relief 

 from pecuniary pressure would be too dearly bought 

 at the price of the broken faith of Virginia. She has 

 just emerged from a terrible trial, an ordeal of fire, 

 without a stain upon her escutcheon impoverished, 

 crushed, and dismembered, but not dishonored. She 

 is now taking a new departure, and we would hope 

 to see it in the right direction. In the language of a 

 vigorous writer, " Now is the sad time of faith and 

 honor. The least fracture now will be like a name 

 engraved with the point of a pin on the tender rind 

 of a young beech : the wound will enlarge with the 

 tree, and posterity will read it, a full-grown charac- 

 ter." This court is unwilling to inflict that wound. 



Judges Anderson and Christian gave their 

 assent to the decision as delivered by Judge 

 Bouldin. Judge Moncure, being a holder of 

 State bonds, did not sit as a member of the 



