Thereupon the state of New York, on the twenty-fifth of April, filed in this court a bill in equity against the state of Louisiana and the officers of the state composing the board of liquidation, with substantially the same averments and the same prayer as in that of the state of New Hampshire. There was, however, a statement in this bill, not in the other, to the effect that many of the consolidated bonds were issued to citizens of the state of New York in exchange for old bonds of Louisiana which they held, and that citizens of New York now hold and own bonds of the same class to a large amount. Testimony has been taken in support of this averment.
The first question we have to settle is whether, upon the facts shown, these suits can be maintained in this court.
Article 3, § 2, of the constitution provides that the judicial power of the United States shall extend to 'controversies between two or more states,' and 'between a state and citizens of another state.' By the same article and section it is also provided that in cases 'in which a state shall be a party, the supreme court shall have original jurisdiction.' By the judiciary act of 1789, c. 20, § 13, (1 St. 80,) the supreme court was given 'exclusive jurisdiction of all controversies of a civil nature where a state is a party, except between a state and its citizens; and except, also, between a state and citizens of other states, or aliens, in which latter case it shall have original but not exclusive jurisdiction.'
Such being the condition of the law, Alexander Chisholm, as executor of Robert Farquar, commenced an action of assumpsit in this court against the state of Georgia, and process was served on the governor and attorney general. Chisholm v. Georgia, 2 Dall. 419. On the eleventh of August, 1792, after the process was thus served, Mr. Randolph, the attorney general of the United States, as counsel for the plaintiff, moved for a judgment by default on the fourth day of the next term, unless the state should then, after notice, show cause to the contrary. At the next term Mr. Ingersoll and Mr. Dallas presented a written remonstrance and protestation on behalf of the state against the exercise of jurisdiction, but in consequence of positive instructions they declined to argue the question. Mr. Randolph thereupon proceeded alone, and in opening his argument said: 'I did not want the remonstrance of Georgia to satisfy me that the motion which I have made is unpopular. Before the remonstrance was read, I had learnt from the acts of another state, whose will must always be dear to me, that she too condemned it.'
On the nineteenth of February, 1793, the judgment of the court was announced and the jurisdiction sustained, four of the justices being in favor of granting the motion and one against it. All the justices who heard the case filed opinions, some of which were very elaborate, and it is evident the subject received the most careful consideration. Mr. Justice WILSON, in his opinion, uses this language, (p. 465:)
'Another declared object (of the constitution) is, 'to establish justice.' This points, in a particular manner, to the judicial authority. And when we view this object in conjunction with the declaration 'that no state shall pass a law impairing the obligation of contracts,' we shall probably think that this object points, in a particular manner, to the jurisdiction of the court over the several states. What good purpose could this constitutional provision secure, if a state might pass a law impairing the obligation of its own contracts, and be amenable, for such violation of right, to no controlling judiciary power?'