Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-03-18
THE FUNDING BILL.
speech Of Hon. j. HI. JamisOn, Of
Rutherford County.

speech of Hon. J. HI. JamisOn, of
Rutherford County.
The House having under consideration
Senatesbill No. 211 to fund the past due
bonds and coupons,
Mr.. Jamison said:
Mr.. Speaker: A young man that l am, /
feel deIicacy in addressing this body upon
the bill before us, but the interests of my
constituents are involved and with it the
vital interests of the whole peop Q of Ten
nessee, so l am compelled to speak, and in
opposing the passage Of the bill it is with
due Difference to the abs gentlemen who
advocate it. But as Cromwell once said to
the artist 'spaint me as L am; if you leave
out the scars Pll not pay you a cent"
And in opposing the bill stand here not
as the champion of any ring or clique, but
upon the great principles of equity and
justice.
Itmatters but little in what school of
political economy we have studied, we are
soon confronted with the stubborn fact,
that States as well as individuals must
practice economy or their freedom must
perish. In purely material sense, in one
| form or another, it underlies every virtue
and achieves every success. This is more
binding upon the public than the private
man; the private man deals with what
| is his, the public man with what is not his;
the public man exercises trust, and a
| trust is more sacred than right, for it is the
right Of another in trust.
The importance of this principle is in
creased by the magnitude of the wealth
| and resources involved, and rises with them
until it found to comprehend every ques-
ton and pervade every interest OF both gov
eminent and people.
| If the advocates of the bill would show
me wherein the interests of the people are
benefited, or where we pay the debt by
this splendid financiering scheme, would
be for it in toto; but on the other hand l see
none will be benefited but the bondholdsr,
and be at the expense of the people, the
bone and snew of the land upon whose
broad shoulders rest the whole burden of
government. And l appeal to you as their
representatives upon this floor, can you leg
| isIate sgaiDst them, for there is The strength,
the hope and the glory of the State; there,
indeed, is a majority of the people, and
there, indeed, is . weight Of sober thoughts,
lust Judgment and virituous feeling, that
will sit in judgment upon your actions here
to day.
The great cry is, sustain our Stata credit.
| [ would this could be done, and thSt is why
am opposed to funding. For the sake OF
argument, if we recognise this as the one
grand point in dispute, would it sustain our
credit or advance the value of our bonds
permanently in the markets of the world?
Can the State, when she has failed to meet
her obligations, increase her credit pernld-
nentIy by assuming new obligations when
her resources are not increased, and when
she has no more guarantee she can meet
these obligations when they fail due than
when she assumed the first? In the name
of reason, no; for it is paramount law of
political economy, ''if you increase the La
| bilities of any concern without increasing
the assets in the same ratio, its credit is i'm
paired" Then, if you increase the liabili-
| ties of the State, you must immediately in
c, ease her resources. Funding this inter-
est NAV cause a sudden rise in our bonds,
but it will be as false and as tickle as
gamblers dream; and let the State bat fail
| TO pay this interest once again, aud down,
| down go her bonds until they touch boz
tom.
It's the resumption Of payment Of in
terest that gives our bonds permanent val
ues in the markets of the world, and not
the comp )unding to effect postponement.
If shs can't pay all, pay what she can, and
they will have confidence in her word and
honor. she will pay the whole debt.
As you well know, this funding proposes
not to pay dollar of the debt, but only
poslpones it to be paid by the rising genera
ton, and by this Ostponement increase our
debt $500 600 per annum, aside from all
the expenses of funding. The amount on
which we now pay no interest, proposed to
be funded, in round numbers is s., 100000
The interest on this per annum is S3OO,OUO,
this in forty years, the time it is to be fund
ed. amounts to $l2, 000,0 900; this added to
the s., 100000 makes grand total OF Sl7,-
900, 600, nearly as much as the whole pres
ens Indebtedness of the State. Facts are
facts and figures will no, lie. If the State
assumes this debt she will have it to pay or
to repuIiate. If she pays 1t, turn It or
twist it as you may it must come out Of
the pockets Of the people and pass
into the pockets Of the bond
holder. In the name OF
common sense and of common reason,
Whepc4 comes all this Boosting about sus-
tanning the public credit. In the name OF
the people who have it to pay, can't see it,
st is too thin"
Ithas been urged, ''if not fund, what
shall we do?" answer, commence paying
interest now. Nearly all the old issue OF
the Bank of Tennessee is now in, and we
can commence paying this interest, and
why postpone it any longer? To prove 1t, l
will take the figures of one of the warmes5
advocates of the bill. Our annual interest
on the present funded debt of the State is
100000 By proper assessment laws, al
tne same rate of taxation we are now pay
ing, 40 cents on the 500, the income OF
the State can be made, from all depart
ments, 81, $50, 900, plus the cost or collect
ing. Taking from this 5000, 600 to pay cur
rent expenses of government, presuming
the back taxes will pay the Tennessee
money and Comptroller's warrants
now outstanding, we have as
net income S1,250,OO0. Taking 100000
from this and We have $35O,O0O pei
annum to pay back interest. In three years
we can pay one years back interest, IN six
wears, two years back interest, AMI so on
until all is paid. So in fourteen years Ten
nessee will stand square with her debt.
This will give her bonds permanent val
mes in the markets; this will prove tC
the doubting and skeptical minds that Ten
nessee is solvent to-day, and intends to pay
every dollar Of her debt; this will prove we
stand wit shoulders to the wheel, ready to
mete out Justice 10 the bondholder, on the
one hand, and on the other stand firmly by
the interests of the people; this will prove
we shoulder our own burdens and will moi
transmit to posterity compounded and
piled up debt, claiming and throwing
around them all the horrors Of centralized
power.
taking the same figures. By funding We
,, increase our annual interest from $780,
600 to Sl,2O0,000 PER annum, leaving
the pitiful sum of $4,000 to the
: sinking fund. By comparing this with the
figures before given, you will see it takes
ffty-two years to place Tennessee square
with her debt, where we propose, by not
, funding, to place her in fourteen years
. These are figures any man can examine
and verify for himself. Is 1t right; is Il
lust zoe should pass this blu 1 can nece,
uote for measure that 11iU bolo the people
of ma State in such bondage! 1t was ar
gued this interest is just, and the State is
"a much bound on honor for Interest on 1t