Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1870-03-01

A reSaQ washington telegram says.
&'The House Banking Committee to-
day took up the Loughridgs instruc-
lions, yesterday adopted by the
Hons. They were found to be u 5
cenfibIe If two widely different in
fernretsfions, Some persons held
that thew might obey the order by re
Dorting The Senate Currency bill with
the addition of five millions. Others
held that the House intended to pro-
vide for the issue of fifty millions in
addition TO what is given by the SEN
ate bill. The committee finally de-
cIded TO adopt the l2st-named view,
and as soon as il team be drawn up Will
their readiness to report a
new bill for $50, OO0, 900 addition TO our
circulation. a favorable vote on this
bill. of course, will be aYOte for so
much imitation. Its passage by the
House is doubtful, and Its defeat in the
Senate is as certain SIS anything in the
future can be-"
The history, from official sources, Of
the Tennessee bonds is: The State
Of Tennessee created her large bonded
debt mainly by the loan Of her credit,
In bonds which she issued in aid OF
railroads.&c. procure iron rails, and
sundry equipments, and for putting
down the rails-tO the extent of $lO,-
900 per mile, and $I60, 900 for bridges
across certain rivers and streams,
such bonds having not more than
forty nor less than thirty years to ma
1ure. Tennessee Code, Sections 1891,
1897 The law of the State Code,
Sections 1897, I09S) constitutes the
bends issued to each particular road
"a lien on the whole road, superstruc-
tHre, equipments and stock, and upon
all the property owned by the com
DR1y as incident to or necesSaryfOE its
business" vesting thus in the holders
Of such bonds rights of which they
NAV not be Invested. An act Of Feb
ruary %, 1863, allowing any railroad
company to cancel its Indebtedness TO
the State, in whole or in part before
thu maturity Of the bonds loaned, re-
cognized the rights vested by the par
ticular lien in each series of bonds, in
q provision, that the bonds returned or
maid 10 the State by any company
should be the same bonds or the same
serjes of bonds issued to such cOmpa-
nv. But an act passed January u,
1870. amending that Of February, 1869,
ignores the specific lien of the bonds Of
each particular series upon the road
IN aid of which issued, and would per-
init any railroad company to pay its
indebtedness in any OF the six per
cant. bonds of the State outstanding,
whether the same bonds or same series
of bonds were issued to such company
or not; and at any time, until the ma
thrifty Of the bonds in 1892 or 1900, as
the case may be, and to pay its inter-
est meanwhile in past due coupons in
steadtG money, which was required
by former acts, making litigation GER
tain. whenever any one of the few rail-
read companies which have the abil-
ity, shall attempt TO cancel It's debt
and obtain the release Of its road, by
the return 10 the State ofmiscellaneOus
bonds, leaving the bonds issued to it.
self outstanding, their lien practically
repudiated, the vested rights Of their
holders not accounted of, and with no
other protection for their claims than
& bankrupt State treasury; and roads
which have neither the will nor the
ability to pay (Which are the many
left still TO burden the State-securing
comparatively nothing for the bonded
debt for which they are liable-a
f,lRv'' asserted by the highest legal au-
1hority 10 be Unconstitutional, as di-
vesting of legal rights, and certain to
be followed BY suits at law"
The following is an official exhibit
Of the present and prospective condi-
ton OF the finances OF the State: