Ristine v. State ex rel. Board of Commissioners of the Sinking Fund

20 Ind. 328
CourtIndiana Supreme Court
DecidedMay 15, 1863
StatusPublished
Cited by54 cases

This text of 20 Ind. 328 (Ristine v. State ex rel. Board of Commissioners of the Sinking Fund) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ristine v. State ex rel. Board of Commissioners of the Sinking Fund, 20 Ind. 328 (Ind. 1863).

Opinion

Perkins, J.

Indiana owes a foreign debt contracted anterior to the war, the aggregate annual interest on which is 320,000 dollars, payable semi-annually, on the first days of January and Jidy, in the city of New York, to such persons as may hold her bonds. To the punctual payment of the principal and interest of this debt the faith of the State is solemnly pledged; and the non-payment of either, when due, would cover the State with dishonor.-

The money to pay these demands, at the proper times, must be provided by the State, and placed in her treasury, before it can thus be applied in payment. 1 G-. & H. 645.

The modes that may be adopted by the State to place the necessary money in the treasury, preparatory to payment of demands against her, are taxation, borrowing, &c.; Const, art. 10, sec. 5; but the money raised by either mode must be placed in the State treasury before it. is applied in payment of debts. This is expressly required by statute. 1 G-. & H., p. 645. The money must be paid to the several creditors of the State, by the Agent of State, in the city of New York, but it must be transferred, to him, to be thus used, from the treasury of the State, at Indianapolis, by the State Treasurer. Such is the statute. In the Code of 1843, p. 292, we find this section:

“ Sec. 20. The Treasurer shall also advance, from time to time, to the State Agent, such sums of money as shall be necessary to pay the principal and interest on the public debt,” &e.

By the act of 1859, it- is provided that, “ at some convenient period, prior to the falling due of the interest on the for[330]*330eign debt of tbe State, payable at, &c., the Treasurer shall, &c., transmit to New York,” &c. This section is incomplete, in this, that it does not say to whom, in New York, the Treasurer shall transfer the money; but when we look at the acts prescribing the duty of the Agent of State, we find the defect may be conjecturally supplied; nor does the section apply or directly authorize the application of the money in payment of any thing. The question now arises how, upon what authority, what condition precedent, can the Treasurer make the transfer or advance the funds ? The law explicitly answers the question. By the Code of 1843, jp. 252, it was enacted :

“ Sec. 21. Such advances shall be made on requisitions drawn by the Auditor of public accounts on the Treasurer of State, which shall be numbered, and the amount thereof ■charged, by said Auditor, to the Commissioner or Agent receiving the same, in a book to be kept for that purpose; and for the amount so charged, the Commissioner or Agent shall settle with the Auditor,” &c.
“ Sec. 22. Eor the amount of satisfactory vouchers produced at such settlements,-the Auditor shall issue warrants with 'which shall be redeemed the requisitions before issued; and should any amount yet remain in any such Agent’s hands, he shall refund the same to the treasury, unless the same shall be required for a new expenditure, when a new requisition shall be obtained therefor.”

Under this statute, then, a reasonable time before the interest fell due, the Agent of State procured from the Auditor a requisition on the Treasurer, upon which the latter transmitted the money to the Agent, which requisition was afterward redeemed by a warrant. But in 1859 the law seems to have been changed to this extent, that the warrant issues in the first instance in place of the requisition, thus simplifying the transaction without any possible increase of hazard to the [331]*331public fund. Sec. 7 of tbe act of 1859 (1 G-. & TI. 647) declares that “the Treasurer of State is expressly prohibited from paying any money out of, or transferring any money from, the treasury of State, except upon the warrant of the Auditor of State.” It is thus plain beyond a doubt, that the Agent of State must receive the money for the payment of our interest, whether that money may have been raised by taxation, borrowing, or othenvise, from the treasury of the State, and that the Treasurer can not now, nor could he ever, transfer or advance that money to the Agent, except upon authority previously given by the Auditor of State, a warrant from him, or a requisition, the equivalent of a warrant.

This settles the question as to the power and duty of the Treasurer, because, by sec. 3 of the act of February 22,1861, it is made a criminal offence for the Treasurer to pay out money in any other manner than as prescribed by law. 2 G. & H., p. 456. It now devolves upon us to ascertain when the Auditor is authorized to draw his warrant.

The Constitution of the State provides, art. 10:

“ Sec. 2. All the revenues derived from the sale of any of the public works belonging to the State, and from the net annual income thereof, and any surplus that may, at any time, remain in the treasury, derived from taxation for general State purposes, after the payment of the ordinary expenses of the Government, and of the interest on bonds of the State, other than bank bonds, shall be annually applied, under the direction of the General Assembly, to the payment of the principal of the public debt.
“ Sec. 3. No money shall be drawn from the treasury, but in pursuance of appropriations made by law.”

Section two, it will be observed, directs that the funds shall be annually applied “ under the direction of the Legislature,” showing that there must be under that section a legislative direction relating to each year; and section three [332]*332points out how the legislative direction is to be given, viz., by an appropriation of the money. 'And sec. 8 of the act of February 22,1861, (Acts 1861, p. 112,) enacts thus :

“ If the Auditor of State shall draw any warrant upon the Treasurer of State, unless there be money in the treasury belonging to the particular'fund upon which the same is drawn, to pay the same, and in conformity to appropriations made by law, he shall be deemed guilty of a misdemeanor, and, upon conviction thereof, shall be fined in any'sum not less than 100 dollars nor more than 1000 dollars, and be imprisoned in the county jail not less than one nor more than six months.” 2 G. & H., p. 457.

This act of 1861, is defective in not defining what an appropriation is, as a guide to the Auditor in regulating his action; but the very fact that the Legislature enacted no definition argues that they must have supposed that an appropriation was something palpable, distinct, recognizable, clear in its own expression so that it could not be mistaken.

Can it be possible that this thing of an appropriation, so important as to be made the subject of a distinct constitutional provision, and the mistaking of it by an officer, a criminal offence is anything, everything, and nothing, according to circumstances; something to be ascertained by conjecture, or created by imagination ?

As, then, the Treasurer can not transfer the money to the State Agent without a warrant from the Auditor, and the latter can not issue the warrant without an appropriation, the whole question in the ease turns upon the existence of that fact.

The Auditor necessarily decided this question for. himself, on the application for the warrant, and he decided against the existence of' an appropriation, and refused the warrant.

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Bluebook (online)
20 Ind. 328, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ristine-v-state-ex-rel-board-of-commissioners-of-the-sinking-fund-ind-1863.