Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1873-03-07
THE STATE DEBT.

D - We have received by mail a copy Of
funding bill introduced in the House of
Representatives by Judge Houk. 1t diff
fers in some material respects from all 9TH
er pending bills on that subject. We will
endeavor to point out the contra. disin-
gushing features of this measure. 1t is
we'll known to Judge Houk's friends with
whom he has conversed that he has all the
time feared the results of any funding
scheme that might be adopted. Many
reasons for this view of the matter, by
others as well as the author of the bill, to
which attention has been called, may be
found in the late message of Governor
Brown. Time nor space will allow of an
extended review of this subject here,
but we call attention, among other
things, to this paragraph of the
message: This measure lfundingl If
adopted, should provide, also for the fund
ing of all i0cN dscertained liabilities of;ttc
State, other than what is recognized as the
floating debt" What does this mean
He had previously, i'm a separate paragraph,
recommended the funding of ''the entire
course, the past due coupons" 1t could
not have reference to outstanding war
rants.
The loan account is not considered
liability to be ascertained. 1t was strong
ly supected that this mysterious allusion
meant "Torbett ISSUE" or something in
the shape of Confederate war bonds, of
which Governor Harris and his legislature
issued several millions. The late decision
of Chancellor Fleming strengthened this
suspicion. And still other confimatOry ev
idence accumulated in the introduction
of bills containing kindred sentiments to
those expressed by the Governor, and the
judicial opinion to which reference has
been made More than one bill proposed
to fluid, not only the many character of
obligations mentioned, but sail such as
may be decreed by the Courts" Here isa
vast field for plunging the State into debt,
and the people into ruin. Nor is this all.
The several bills offered in the respective
Houses, all proposed to fund all the legally
issued bonds, without providing any means
of detection, or any standard by which to
Judge. The Governor, Comptroller and
Secretary of State were to be clothed with
some kind of extraordinary judicial func-
ton by which to decide on the legality of
bonds.
Plenary power over this subject has
sought to be lodged in these three by no
means unimportant personages Judge
Houk land we will add many others, but
refer to him because he has offered a bill to
checkmate this unprecedented procedure
desired to defeat this giant financial para
dox, and hence the bill under review.
And, while providing against this evil his
bin happily strikes in another direction.
He goes on to the marrow of the whole
bond question, and defines what is legal,
and illegal, by dates and facts, leaving
nothing to construction or intendment.
SECTION 1. Be 1T enacted by the General
Assembly of the State of Tennessee, That
all the bonds, and coupons thereto attach
ed, issued by authority of the General As
senlbly of the State, previous to the 9th
day of May, 1871 and all bonds, and cou-
pons thereto attached, issued by authority
of the General Assembly, subsequent to
the reorganization of the State Govern
ment on the Sd day of April, 1865, bearing
the signature of the several officers as pre-
scribed by the statute authorizing the issue
and sale thereof, and bearing the great seal
of the State formally affixed thereto, shall
be and are hereby declared to have been
legally issued, and valid to all intents and
purposes, and the faith and credit of the
State is hereby pledged to the payment
thereof; Prorided, That all bonds, and
coupons thereto attached, issued by the
authority or pretended authority of the
General Assembly, or by the authority or
pretended authority of any body or assem-