Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-03-25
THE FINDING BILL.

The bill known as the funding bill, that
has passed the present Legislature, provides
for funding the past due bonds and the past
due coupons by issuing new bonds bearing
six per cent. interest per annum, thereby
increasing the annual interest on the State
debt to little over three hundred and sew
enteen thousand dollars, which amount
must be raised by levying an additional tax
and placing an additional burden on an al
ready tSX-ridden people. 1t must be re-
membered that funding is not paying the
debt, but renewing and increasing it. The
very idea of funding carries with it the ina
bility to pay, and, instead of like men
meeting the responsibility, shifting it on
others and leaving it for future legislators
to provide for.
1t is urged by the friends of the funding
bill, as a reason why the past due coupons
should be funded, that the State can be
compelled to receive them in payment of
taxes, and that the country will be flooded
with coupons and presented by every tax
payer in payment of his taxes. To sup
port this position they contend that the
Courts have decided that the coupons of
bonds due from private and public corpora
tious aud municipal corporations bear in
terest and should be received in payment
of their debts, which, l submit, is not a
parallel case. a corporation, in law, is a
person and is bound as an individual, can
sue and be sued, which is not the case
with State. A State is sovereign
and bound only SIS she may consent through
her Legislature. a State can levy and col
lect-if so enacted by her Legislsture-tax
es in the products of the soilOr in gold and
silver coin. This position IS sustained by
the highest tribun lis. Chief Justice Chase,
in the case of Lane county VS.. Oregon-7
Wallace p. 71-states thus: Gan enactment
in a State statute, that the Sheriff shall pay
over to the County Treasurer the full
amount of the State and school taxes, in
gold and silver coin, and that the several
County Tressurers shall pay over TO the
State Treasurer the State tax in gold and
silver coin, requires by legitimate, if not
necessary consequence, that the taxes
named be collected in coin. But if, in the
judgment of this court, this were otherwise,
yet the Supreme Court of the State having
held this construction to be correct, this
court will follow their adjudication. The
clauses in the several acts of Congress of
1882 and 1868, making United States notes
a legal tender for debts, have 10 reference
to taxes imposed on State authority" Again,
Mr.. Justice Davis, CT the United States
Supreme Court, in the case of Witherspoon
VS. DuncSn-4 Wallace reps. p. 2l7-says:
cit is not the province of this court to in
| terfere with the policy of the revenue laws
of the State, nor with the Interpretation
given to them by their courts. Arkansas
has the right Of determining the manner of
| levying and collecting taxes" etc. But it
| is argued again, that the State was required
| by ccart decisions TO receive in payment of
taxes the old issue Of the Bank of Tennes-
| see, which is true; but again l contend
there is no parallel between the old issue of
the State Bank and the past due coupons
| of the State bonds. There was special
| provision in the State Bank charter pro-
viding that its issue should always be re-
ceivable in payment of taxes due the State.
| There was a contract mad&by the State
with the holders of the notes. To listen
to the arguments of the friends of the fund
| ing bill, it would seem as if the honor and
credit of the State was suspended on the
mere passage of that bill. In my opinion,
| funding will not permanently protect or
preserve the credit or honor of the State
| it may give temporary relief. But should
the present and future legislators fail to
provide ample means for meeting the an
nual interest, the State credit will be lower
ed by the passage Of this bill. The only
way to preserve and improve the State
! credit is to provide sinking fund after
providing for the annual interest on the
! debt, This could have been-done without
increasing the taxes on the people. l. the
| debt had not been funded with the precise
| amount that is REQUIRED, under the bill, to
pay the interest of the funded debt, there
could have been set apart three hund-
red and seventeen thousand dollars as q