IMPAIRING THE OBLIGATION OF CONTRACTS. The constitution of the United States, art. 1, 10, cl. 1, contains this provision; among others : "N.: state shall pass .. .. any bill of attainder, ex post facto law, or law impairing the obligation of con tracts." 2. This article of the constitution only for bids the states to pass any law impairing the obligation of contracts ; but there is nothing in that instrument which prohibits congress from passing such a law: on the contrary, it would seem to have been impliedly reserved to congress ; for in the prohibitions of general application as well to the United States as to the states, art. 1, 9, el. 3, it is declared that "no bill of attainder or ex post facto law shall be passed." 1 Pet. 322. The omission of the prohibition in the one case, and the expression of it in the other, would imply that such power remained in congress ; though the exercise of it is said to be contrary to the first princi ples of the social compact, and to every prin ciple of sound legislation. Federalist, no. 44. This provision is not applicable to laws enacted by the states before the first Wednes day of March, A.D. 1787. 5 Wheat. 420.
3. All contracts, whether executed or exe cutory, express or implied, are within the provisions of this clause. 6 Cranch, 135 ; 7 id. 164. A state law annulling private con veyances is within the prohibition, as are laws repealing grants and corporate franchises. 3 Hill, N. Y. 531 ; 1 Pick. Mass. 224 ; 2 Yerg. Tenn. 534 ; 13 Miss. 112 ; 9 Cranch, 43, 292; 2 Pet. 657 ; 4 Wheat. 656 ; 6 How. 301.
With regard to grants, it is also necessarily the case that this clause of the constitution was not intended to control the exercise of the ordinary functions of government. It was not intended to apply to public property, to the discharge of public duties, to the exercise or possession of public rights, nor to any changes or qualifications in these which the legislature of a state may at any time deem expedient. 1 Oho St. 603, 609, 657 ; 4 Ohio, 427 ; 5 Me. 339 ; 5 Ill. 486 ; 13 id. 27 ; 11 Ired. No. C. 558; 13 id. 175 ; 1 Green, N. J. 553;
1 Doug]. Mich. 225 ; 17 Conn. 79; 13 Wend. N. Y. 325 ; 10 Barb. N. Y. 223 ; 2 Den. N. Y. 272 ; 2 Sandf. N.Y. 355 ; 6 N.Y. 285 ; 6 Serg. & R. Penn. 322 ; 5 Watts & S. Penn. 416 ; 4 Penn. St. 51 ; 13 id. 133 ; 1 Harr. & J. Md. 236 ; 6 How. 548 ; 10 id. 402 ; 1 Sumn. C. C. 277. See 4 Wheat. 427 ; 19 Penn. St. 258 ; 4 N. Y. 419 ; 3 How. 133.
In general, only contracts are embraced in this provision which respect property, or some object of value, and confer rights which can be asserted in a court of justice.
4. The grant of exclusive privileges by the state governments are all subject to the exer cise of the right of eminent domain by the state.
The legislature has full authority to exer cise an unlimited power as to the manage ment, employment, and use of the eminent domain of the state, and to make all the pro visions necessary to the exercise of this right or power, but no authority whatever to give this away, or take it out of the people, directly or indirectly. 6 How. 532; 13 id. 71 ; 20 Johns. N. Y. 75 ; 3 Paige, Ch. N. Y. 72, 73 ; 17 Conn. 61 ; 23 Pick. Mass. 360; 15 Vt. 745 ; 16 id. 446 ; 21 id. 591 ; 8 N. H. 398 ; 10 id. 369 ; 11 id. 19 ; 8 Dan. Ky. 289 ; 9 Ga. 517. See EMINENT DOMAIN; FRANCHISE.
The power of one legislature to exempt altogether from taxation certain lands or pro perty, and in this way to bind subsequent legislatures and take from the people one of their sovereign rights, is not yet definitively settled ; though the supreme court of the United States is disposed now to hold that particular property may be exempted, where a consideration has been given ; but the aban donment of this taxing power is not to be pre sumed where the deliberate purpose of the state does not appear. 4 Pet. 514 ; 3 How. 133 ; 10 id. 376 ; 4 Mass. 305 ; 12 id. 252 ; 25 Wend. N. Y. 486 ; 1 Hill, N. Y. 616 ; 2 id. 353 ; 10 N. H. 138 ; 11 id. 24 ; 5 Gill, Md. 231 ; 13 Vt. 525 ; 15 id. 751 : 10 Penn. St. 442; 1 Ohio St. 563, 591, 603; 7 Cranch, 164 ; 6 Conn. 223 ; 7 id. 335; 10 id. 495 ; 11 id. 251.