In the 1902 case of Wilkes County v. Coler, the U.S. Supreme Court ruled in favor of Wilkes County, Georgia against former Secretary of Treasury Charles S. Fairchild and Commissioner Nathan B. Scott over a dispute regarding tax refunds on distilled spirits that were destroyed during a fire while under federal bond in 1896. The county argued that it was entitled to its share (one-half) of taxes collected by the Federal Government from distillers within its jurisdiction as per an Act passed by Congress in 1864 which stated that counties could claim half the proceeds if they provided facilities for storing distilled spirits under bond until taxes were paid on them. The government officials had refused to pay this amount arguing that since no actual tax was collected due to destruction caused by fire, there was nothing to be shared with the county according to their interpretation of law's language. However, Justice Edward D White delivered majority opinion stating that despite no physical collection taking place due to unfortunate circumstances; liability still existed and thus should be treated as if payment occurred when considering division between parties involved.

In the dissenting opinion for Wilkes County v. Coler, it was argued that the majority's decision to allow a county in Georgia to default on its bonds contradicted previous rulings by the Supreme Court. The dissenting justices believed that this ruling undermined public trust and confidence in government-issued securities, which could have serious economic implications. They also pointed out inconsistencies between this case and past cases where municipalities were not allowed to repudiate their debts even when they were issued under dubious circumstances or used for illegitimate purposes. In essence, they felt that allowing Wilkes County to avoid paying its bondholders set a dangerous precedent and violated principles of fairness and justice.