Page:Federal Reporter, 1st Series, Volume 2.djvu/554

 MEECHANTS NAT. BANK, LITTLB BOCK, V. PULASKI 00. 647 �issued to complainant for the amount of its original daim, less the 25 per cent, remitted. �Default for more than 60 days has been made in the pay- ment of the interest on these new bonds, and the county court of Pulaski county has refused to levy the tax provided for in said agreement. �These are the principal facts as averred in the bill and amended bill, which, for our present purpose, are to be taken as true. �It is, however, further averred that the supreme court of the state of Arkansas has declared that the county of Pulaski has no power or authority to levy a special tax of any amount to pay interest upon the bonds issued under the aforesaid act of Mareh 6, 1877, entitled "An act to authorize the counties in this state to fund their outstanding indebtedness," etc.; and that said court has determined that the obligation of -the contract, and the taxing power, which were in force and effect at the time of the issue of the surrendered bonds, cannot be carried into the bonds issued under the last recited act, �Complainant now brings into court the new bonds and ten- ders them to defendant, and claiming its rights under the old bonds, and the agreement of compromise, prays a decree for $43,026.13, that being the amount of the indebtedness now claimed as due and unpaid on the old bonds and interest. �McCkaey, C. J. The demurrer raises the question whether the complainant has an adequate remedy at law ? The new bonds, as already stated, were given in lieu of two classes of bonds previously held by the complainant. I will consider the demurrer aS it relates to both classes. �1. As to the first class, to-wit, bonds issued under the act of April 29, 1873, the contention of the complainant is that by the construction plaeed by the supreme court of Arkansas upon the act of March 6, 1877, it is deprived of the right to sue at law and recover judgment upon its debt, and to enforce the payment of the same by levy and collection of the taxes which the county agreed to levy and collect for that purpoBe, to-wit, such taxes as were authorized by law when the original bonds were issued. The decision referred to is ����