Nashville daily patriot. [volume] (Nashville, Tenn.) 1855-1857, 1856-04-05

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! their policy and charge them, as they abhor the
| title of repudiatOr to stay their hands Again.
sir, / am but initiating the example of a gentle
man, now a member of Congress. who some
| years since in the Senate of this State when
| recklessness was running riot and bonds were
being issued for turnpikes, pointed out the losses
to the State, and the danger of bankruptcy and
Reputation. His appeals were effective mem
| bers then listened, were convinced, and paused
in their suicidal acts before the amount issued
was sufficient to bring ruin and disaster upon the
| State. His predictions, then made, have now
become history the State has lost three-fourfhS
of her entire investment in turnpikes, about tLcO
! and quarter millions of dollars.
Mr.. Speaker. One of the companies, asking aid
by the bill before the House, was in such hot
haste, the other day for bonds. granted under ali
old law, not to be content to wait the move
ments of the Comptroller. and we were called
upon to, and did, pass law on the lightning
line, authorizing an additional officer TO grind
| the bond machlne-tO keep it creased and run
ming so as to grind out this grist; and now we
are asked to add to the grist only half million
! more.
Mr.. Burch. Does the gentleman say that the
Comptroller is engaged. all the time signing
State bonds, and cannot sign thensfast enough?
Mr.. Brown. l only state the facts, which have
! transpiTed in this House | do not know what
the Comptroller is engaged at. l have not seen
him for month, but suppose that he is faithfully
discharging his duties.
Mr. Burch. | do not wish the impression to
90 out, that the Comptroller is constantly en-
gagged in signing bonds, when he is employed in
other departments-is signing bank notes under
the Free Banking law: the people are uniformed
on these subjects, and are timid and easily
| frightened.
Mr.. Brown. What l say here l expect to 90
out. | am making my record upon which | ex-
pect to stand or be condemned IN the court of the
people, they shall know all | say or do, and all
that is done here by others and if they find
anything to be frightened at, let it be so, we are
their agents, and they have a right to know all
that is done, and to approve or condemn it.
| am not alone, sir, in the belief, that the
grinding of these bond machines will ruin the
credit and depreciate the value of the bonds.
The citizens of Memphis thought so, some two
years since, when in sefdefence and for self
preservation they obtained an amended charter
for the City, prohibiting the further issue of
bonds and that too, after feeling the effects of
| the over issue of bonds Again, the citizens of
| Kentucky entertained the same views ; and to
save the honor and credit of the State, they
amended the constitution of that State so as to
prohibit the issuance Of bonds, and thus the val
| ue of her bonds has been sustained. And sir, if
cities and other States have thus guarded their
citizens from these evils why should not de-
| plOre these reckless acts of Legislatures, and
resist them with all the ability we have even to
the change Of oar Constitution
Mr.. Speaker. We have been told, however. by
the gentleman from Maury, and he was seconded
by the junior gentlemen from Wilson and David
son, that if our bonds deprecated, it is be-
| cause the State has not issued bonds enough -
| that the greater the amount of bonds issued by
the State the higher their value, the greater
the premium they bear and that the longer the
| bonds have to run to maturity, the more readily
they sell in the market. This to me, sir, is strange
dOctrine--a new chapter in political economy
a new road to wealth for nations. which have
not learned and have not the courage to en-
dOrse.
IT, however. these positions of the gentlemen
be correct, and the gentleman from Wilson has
been successful in explaining 1.-THE paradox" |
can with their aid, drive reputation in all its
hideOus deformity back to its native hOmc-dis-
pei the murky pOrtents of bankruptcy, and open
a golden future for Tennessee and methinks
eUeH NOR 1.-THE bright morning star of hope is
gliding the horizon and laurels gTeeHer than
have encirced the brow of any of the ssterhOOd
of States, "beckOns us on to action and to glory.
How is this, Mr.. Speaker? How is so much to
be accomplished? | answer, increase the officers
in the Bond department of the State, and issue
bonds without limit-eHOUgh as to number and
amount, and in the language Of the gentleman
from Carter and Johnson let them mature at the
day of final jUdgment-gO into the III trket with
these multiplied issues, sell them at the enhanced
premium produced by their erceSS, and with the
premiums. which are clear profits, received on
these bonds, pay the present State Indebtedness
at its face, as the debtor is not bound to pay a
premium in discharging his own debts every
issue will thus clear ten per centum at least, and
every ten turns of the Bond Machine, will make
an amount equal to the principal for the State
then reserve the principal received on the last
sales to meet the principal on the last issues,
and the interest on the principal received, will
pay the interest on the bonds producing this prin
cipal. With diligence then, in running the Bond
.ls L
plan Will lay our Indebtedness to the land, and
we will walk forth dsenthralled, a happy and
prosperous people aye, sir, in the language of
the gentleman though clouds may lower around
us now, there arises bright star of hope in the
future and an angel hand beckOns us onward"
But Mr.. Speaker, these propositions were as
sumed and argued by these gentlemen seriously.
and in good faith, and / will now answer them.
Do the same rules govern States and individuals q,
If a Western Merchant issues his notes and in
creases his Indebtedness, how promptly the East
ern Merchant sends an agent, or by the light
ning's wing, orders an Attorney, to attach the
debtors property and secure the debt Or again,
if it is announced that bank has issued three,
five or ten dollars to one in specie on hand, how
suddenly the note holders, in an avalanche Of
life, come down upon the bank, while the officers
BelchaZzar-like, tremblingly read the hand wr-
ting on the vaults rOke-Bdnkrupt! IT, how
ever, you say these illustrations are napplcable
| " OthttS' Will give UOTCeduS from history,
showing the effect of issues of bonds, upon
the credit OF the State, upon the bonds and upon
the friends Of excessive issues LCheH the bonds
were issued, and again ICheR deprecated
You will recOlect, Mr. Speaker that the
French, during the reign of Louis XVI though
an unstable, lighthearted, frivolous people had
too much respect for public faith, and too much
horror amid all their sans cuiOtfiSHl, at the in
famous word bankruptcy, to familiarize them
selves with the idea of violating public engage
ments to issue her paper credit until a basis had
been provided in the ecclesiastical property, call
ed by the State National domains" aud by the
clergy 1.-THE patrimOny of God and even with
this basis, added to taxation and other incomes
1t required all the ardOr, power, and electric eO-
quence Of Mirabeau, to induce the Assembly to
vote the propositions of NJ Necker the ceIe6rd-
ted FinaHcieT, to issue paper credit called as
signats.
The first issue of assignats was quickly alb
sorbed, and passed off successfully-sO that this
resource was tempting for instead of rackng
ingenuity to devise means of raising money the
fabrication of paper seemed all that was requi-
site. Meanwhile VI. Necker, for his skill in de-
vising and facility in raising money by assig-
mats, was permitted to enjoy the intoxicating
fumes of popular incense. His progress through
France was triumphal march. The issue Of
assignats went steadily on, and in proportion as
the emissions were made, they declined IN value
until they were not saleabe at tenth, twenti-
eth, hftieth, of their nominal worth and the
government, for the purpose OF retiring these
asslgnats exchanged them fer National
yhGHddt,' in the ratio Of thirty to one and
shortly afterwards the AssIGNAT and MANDar
alike disappeared since they were both univer-
sally repudiated worthless. AT this time NJ
Necker, the Great FinGneieT paid the penalty
OF his errors in finance aud was compelled TO
quit his country, charged with having basely
abandoned France TO calamities created by HIM
self Thus he endured the torment Of OUTLYING
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