Whaley v. Gaillard

Citations

• 21 S.C. 560

Syllabus

<p>1. The legislation of this state in relation to the public debt, beginning ■with the joint resolution of June 8, 1877, was designed to ascertain judicially, by the rules and principles of law that regulate contracts between individuals, what was the valid debt of the state, and to make ample provision for the punctual payment of interest thereon.</p> <p>2. The state having by statute constituted a special court for the purpose of determining the validity of any of her obligations declared by the bond commission to be invalid, and having permitted herself to be sued therein, and suits having been then brought against the state by certain persons claiming to be her creditors and representing every class of the securities so reported to be invalid, and an adjudication having been made by the Supreme Court of this state, and no writ of error taken to the Supremo Court of the United States, as was authorized by such statute, the state by subsequent legislation provided a mode by which the percentage of invalidity in its outstanding bonds under this decision of the court should be ascertained, and then directed other bonds to be issued.by the state treasurer for so much of the outstanding-bonds as were found to be valid, and in exchange therefor, and prohibited county treasurers from receiving any coupons in payment of taxes, except those of such new issue of bonds. Held, that this legislation did not impair the obligation of a contract by the state with her bondholders, whereby she had agreed to receive the coupons of her bonds in payment of taxes, but only provided a mode by which it would be definitely and easily ascertained whether a coupon so offered represented any portion of her valid debt, and was therefore receivable in payment of taxes.</p> <p>3. The state having permitted herself to be sued in a prescribed mode, and having invited all persons asserting certain claims against her to appear and establish them, a person holding such claims but neglecting to app