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

bond machine-abandOned precedent-gave evil
denee of caution and prudence and the yeo-
many of the State, the last resort in monetary
troubles, are now engaged with their sweat wash
ing out the stain upon the credit and with ham
mer axe and pillow, are paying taxes to discharge
the debts of the State. Thus the credit of the
State has been restored, and in the meantime
her citizens have multiplied the miles of imprOve-
ments by combinations OF their private means,
until the whole State is traversed and radiated
| bv her iron roads And where, Mr. Speaker,
YOU might ask, are the original, liberal, courage
| Gus friends of Improvements who voted bonds
| for every enterprise? | answer in the language
| of the Italian poet. They still walk-but they
| are dead
Again. Mr.. Speaker, lest this sketch of the
| Hoozier be discredited because his lands lie be-
| yond Mason & DixOn's line, | will give you
moroccan from our own annals. In 1872, our
| system of improvements inaugurated amid
| reioicings and bOnfres-under it, our bonds is
| sued and were sold at premium as high as nine
| dollars on the hundred. At the session OF the
| Legislature of 1854. the system was departed
| from-enlarged-a precedent was set, and bonds
| continued to issue. The Legislature at the pres
| ent session, give indications of regard for the
| precedent-bonds are granted to new objects,
| and upon new grounds uncOnnected with the
! system, and without its rules and limitations,
! and the price or value of the bonds in the mar
ket has receded in the ratio of their issuance to
/
! the hundred. from the highest point of value.
| And the officers of the Railroads now urging
| the Legislature to repeal the law requiring the
| bonds to sell at par, as to enable them to dis
pose of the bonds at their selling price, without
/ a fraud upon the State, and a violation of the
! law. Officers must sell the bonds below par, if
| they do sell, or, as in France, if the bonds
| taken in payment, at their nominal value, the
| prices of iron and railroad machinery and com
| mOdities rise in price IN propOrtlonable ratio.
| To counterfeit this infallible consequence the
minimum value of the bonds has been fixed by
| law. In France, they went farther, and also
| fixed by law the maximum at which commodities
| should be sold attempting to override by force,
| the most inevitable tendencies OF finance, trade
| and paper credit but there, here, and every
where, the laws of trade and credit have resulted
alike. An excess of paper credit depreciates its
| value in the market, more certainly than large
| cotton crop reduces the price and arguments
and laws will not check this tendency OF foil this
result In proportion to the emissions, so is the
| decline in value. And sir, if you will, in the
recklessness Of legislation, disregard the system
of improvements now opening in yigOr and
] beauty-make new grants of aid as aSked-em-
| brace new objects of State and County, and then
repeal the law fixing the selling price, the bonds
Of the State if they sell at all, will sell at TWEEN
/ ty, thirty, fifty per centum discount, and we will
/ have solved the question, where does the point
| of safety end, and bankruptcy begin
! Mr. Speaker. | came here DESTROYS for grant
/ of aid to the Mobile and Ohio Railroad, Of some
| 100000 as bridge mOney-that Road Is in the
| Omnibus, but without bridge money, while all
the other roads in the Omnibus have money
! granted for bridges. Ny views, however have
| changed. | will not ask this aid. Why not, you
| ask? | answer, / do not know that | could get
| it. | have made no contracts or contributions,
! | will not vote aid TO an undeserving project, or
! support proposition that my Judgment does not
/ | "A Ot he a a pOpS
| by contract, am not in the line of succession
| and Will not be favored In the second place
| there are scores here asking grants for various
/ enterprises-endOrsement OF all Characters-fOr
1 all kind OF objects, public and private-in the
State and out of it-tOr roads, cities, and cOun-
| ties-all departures from the system, summing
| up millions.
II the Mobile Road was favored, others should
and would be- To grant the Mobile Road 5000, 900,
together with grants all the other projects pre-
scented, would be a positive injury to the Mobile
| Road instead OF a benefit. he Mobile Road is
now entitled to- say 100000 aid for iron, at
$40, 900 per mile-to grant the $500, 600 IA bridge
aid would swell the grants to 81, 200 600. Now, if
the bonds asked for this session be granted, and
the Free Banking Law which has IN the retirement
OF bonds aided the system and sustained the value
| of the bonds, be suspended-and the Legislature
fails to set aside sinking fund commensurate with
the issues aud Indebtedness, and fails to levy taxes
the people to aid these auxIiaries OF the system
the State bonds will depreciate more than twenty
FIVE per centtgt Then bow would the account staLd?
Now the road gets $1,000 900, and if confidence in
the system aud in legislation is sustained she will
realize that amount With the new aid, she would
get 81 200 900, less twenty five per eeHtHH the de-
probation, say $500 900; so that the Mobile Road
would only realize 100000, including aid for
bridges, if she could dispose of the bonds, and
would be indebted 81, 600 for the 100000,
| 900 e
| made-an operation not proper for solvent CONS
pany such as the Mobile Road, intending and able
to pay her Indebtedness. Perhaps this fnanciering
may do for a kting, irresponsible company, which
will have performed its mission when the country
is developed by city being built, or a land specu-
lation perfected leaving the literal tar payers to
declare the pro rata of insolvency, and then pay
the dividends. This statement of depreciation is
not latcy sketch-it is being realized every day
by other roads aud the East Tennessee and Virgil
MA Road now asking aid by the bill before the
house, is an apt illustration of these facts. That
company, by a memorial now on file, shows a loss
10y such depreciation, of $4,000 since the grant
of aid was made. This reasoning, then, does not
apply alone to the Mobile Road the effects
produced by this legislation attaches to all the
first class solvent debt paying roads embraced in
the system. And all that class Of roads-snd il is
not material a. to the others-will be affected just
the Mobile Road and it is the duty Of the friends
of these roads, and Of the State to sustain the sys
TEN established, and protect the credit OF the
! State.
Good faith, Mr.. Speaker. requires that the State,
after she has loaned her bonds 10 certain companies
should not, by her own acts depreciate the value
| OF the bonds thus loaned, without the consent Of
the companies interested. The bonds were at par,
yes, Sir, above par, when loaned, aud the compa.
MES received them agreeing to pay the interest and
the full amount OF the principal Of the bonds with
| out the expectation OF loss, and they will have
every dollar to pay, it they have the ability, and
the State har no right, either moral or legal, to
sink, by her act the value OF her bonds in the
| hands OF these companies, by new issues or by
| aiding new projects. This would be, by law, ell
dorsug fraud, which, BY a citizen, would be rep
| rotated by all good men, aud be punished by i'm
| posing on the individual the losses caused by his
act. The faith OF the ST. to is pledged, aud she is
legally bound TO act so, that the old companies
/ should not be injured by he.-thAt she should not
benefit others at the cost of these companies with
ont their consent. II individual were TO act
I thus he would be restrained in Court OF Equity
aud the State should take advantage Of the cit
Zen, and, by means OF Ter sovereign power, perpe-
rate gross fraud which, in the individual, is re-
garded by the State bad faith, which the State
has instituted Courts 20 remedy and correct. Sir
if the state acts thus has she right 10 demand of
her citizens better morals, or that they should be
[ more given TO covenant keeping than she is9 This
doctrine OF the State extends beyond the mere
sOuliess body of the company-the citizens, on the
faith OF the State, have invested their fortunes in
these roads-have vested rights-and the State, by
is action. not ouy destroys the company, but ruins
the individuals and impOverishes them for the pur-
1 pose Of extending bounty To others Good faith
stouid be kept by nations or States, as well as
| by individuals and Tennessee should recoil AZ
I the promptings OF that cupidity which would run
4 l. ~ q -. = ~.