Kellogg v. Page

44 Vt. 356
Supreme Court of Vermont·Decided August 15, 1871·Published·Cited by 8 cases

Opinion

The opinion of the court was delivered by

Redfield, J.

This is a petition for mandamus. The relator avers, in his petition, that on the 22d day of November, 1870, he [357] was and ever since bas been the lawful holder and bearer of four bonds, of the State, legally authorized and executed, amounting in the whole to the sum of three thousand dollars, with interest, and issued before the passage of the “ legal tender act,” so called, which was enacted by the Congress of the United States, and approved February 25th, 1862; and became payable in the year 1871. That at the October session of the legislature of this State, A. D. 1870, a joint resolution of the Senate and House of Representatives was passed, entitled “joint resolution relating to paying in coin, certain debts of the state of Vermont,” wherein it was resolved “ that the treasurer of the State be authorized to pay, in coin, the bonds which shall become due in 1871, and the interest thereon, which were issued before the passage of the “ legal tender act” of the Congress of the United States, and to carry into effect the provisions of this resolution, the treasurer is authorized to purchase gold coin in such quantity as shall be necessary for the purpose aforesaid.” That he demanded the coin, in payment of such bonds, at the proper timo and place, and was refused; the treasurer offering to pay the same in treasury notes, commonly called greenbacks. That on the first day of June, 1871, when said bonds became duo, and when the coin was demanded, the treasurer had in his hands coin, provided by him, under the authority of said joint resolution, sufficient to pay said bonds, and all other bonds of the State falling due at that time ; and that the treasurer had paid all the semi-annual interest becoming due on that class of bonds, after the passage of said joint resolution, on the first days of June and December, respectively, A. D. 1870, including the four bonds held by the relator.

The respondent in his answer admits that the relator was the legal holder of said four bonds ; that they were legally issued, and became due and payable as stated in the petition; and that payment in coin was demanded and refused. The respondent justifies his refusal to pay said bonds in coin upon two grounds :

First. That said bonds were solvable in legal tender notes. And that, at the time said joint resolution was passed, the sixpreme court of the United States, at the city of Washington, had decided in the case Hepburn v. Griswold, 8 Wall., 603, that contracts en-[358] terecL into before the passage of the “ legal tender act” must be solved in coin. That said decision was made by a divided court. That other cases, involving the same legal question, were on the calendar awaiting the decision of the same court; and it was then doubtful whether the decision of the court in Hepburn v. Griswold would stand and remain the law of the land, or be reversed. And that said joint resolution was purposely drawn, and designed to give the treasurer discretionary power and ability to pay this class of bonds in coin, if the law should continue to require it, and not otherwise. That in May, 1871, the supreme" court of the United States, at the city of Washington, in the cases of Knox v. Lee, and Parker v. Davis, reversed the rule of law as held in Hepburn v. Griswold, and decided that the “ legal tender act” of February 25th, 1862, did apply to and control contracts made previous, as well as subsequent to its passage; whereby it became the law of the land that said bonds held by the relator were ever payable in the paper currency authorized by said act of Congress. And therefore the respondent refused to pay said bonds, and the interest thereon, in gold coin, and insists, that in doing so, he obeyed the will of the legislature, as expressed in said joint resolution.

Second. The respondent insists that said joint resolution was never approved by the governor, nor ever presented to him for approval, and for this reason it has not the force of a legal enactment ; and imposes no absolute duty upon the respondent.

The relator insists, in argument, that “ both justice and the public interests concur in requiring the payment of a debt in a currency equivalent to, or not depreciated below that in which it originated,” and that the legislature in “ authorizing” the treasurer to pay this debt in coin — the same currency in which it originated, — recognized that duty.

The very able argument of the learned relator, in the forum of conscience, ought to be satisfactory to any mind. And very good reasons, as I think, could be given that no other than gold and silver, under the constitution, was intended to be the legal currency of the government. The relation of debtor and creditor; of capital and labor; the growth and stability of commerce; in [359] short, the whole material fabric of the State is so interwoven with, and dependent upon a stable and unfluctuating currency, that no considerate mind doubts its importance and necessity.

But it is the high prerogative of the supreme court of the United States to determine the limitations of the laws of congress ; and declare their harmony, or conflict, with the constitution. The subordination and respectful deference of all other courts within the national jurisdiction, to the adjudication of these questions in that court is a duty ; because such adjudication is the law of the land. The judgment of the national court of last resort, in May, 1871, that all debts, whether created before or after the passage of the “ legal tender act,” were payable in the paper issues authorized by congress, determined and fixed the rule of legal duty. And whether loans in gold coin should bo solvable in the like, or in depreciated paper, was thereafter to be determined at the forum of conscience.

The relator further insists that the language of the joint resolution, though permissive in form, is imperative in law.

Free access — add to your briefcase to read the full text and ask questions with AI

Kellogg v. Page, 44 Vt. 356 (Vt. 1871).

44 Vt. 356 (Kellogg v. Page) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Herald Ass'n, Inc. v. Dean
816 A.2d 469 (Supreme Court of Vermont, 2002)
Goddard v. Kirkpatrick
1943 OK 265 (Supreme Court of Oklahoma, 1943)
Joy v. Swanton Savings Bank & Trust Co.
10 A.2d 216 (Supreme Court of Vermont, 1940)
Walsh v. Farrington
165 A. 914 (Supreme Court of Vermont, 1933)
State ex rel. Dawson v. Sessions
115 P. 641 (Supreme Court of Kansas, 1911)
Long v. State
127 S.W. 208 (Court of Criminal Appeals of Texas, 1910)