Individuals v. States - Brutus XIII
In Brutus XIII the Anti-Federalist author discusses problems with the ability of individuals to sue States in Federal Court.
Brutus XIII
February 21, 1788
In Brutus XIII the anonymous Anti-Federalist author (probably Robert Yates) continues his criticism of judicial power under the Constitution.
After two Papers that didn’t carry the weight one might expect, XIII lands hard.
His argument falls heavily into the realm of economics, but clearly identifies the possibility of financial ruin for the separate States.
Government Notes
After acknowledging several parts of the judicial system under the Constitution that he agrees with, Brutus comes down against the ability of individuals to sue States in Federal Court.
At the time, it was common for States to take out debt from individual citizens and in return give them notes promising to repay the loan...similar to the government bonds available today.
This was especially true during the Revolutionary War when States were desperate to pay for the conflict.
Suing States
Brutus feared these notes could easily be sold to individuals in neighboring States who would then immediately turn around and sue the original State for the money that was owed.
The author assumed several note holders would do this at once and saw no reason the Federal Courts would prohibit it since nothing about calling in loans is illegal.
This, coupled with the Federal Government taking a substantial portion of the tax revenue (as discussed in Brutus VI), would lead to all of the States falling into bankruptcy and becoming hopelessly dependent on the States.
An Interesting Note
Selling notes to individuals would continue under the Federal Government. It was an important, though controversial, part of Alexander Hamilton’s Assumption Plan.
A substantial majority of the Founders believed the wealthy should have a financial interest in the well being of the nation.
As John Jay would say, “those who own the country ought to govern it.”
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