Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-03-20

unceremOniOusiy kicked out of the CaDitO
because they are supposed to be here askin.
US, after four years of waiting, to pay then
semi annual interest on the principal @
the debt we owe them, and that we sol
epnly, as State, promised to pay them
Whether these bonds and coupons now due
are owned by "bloated bond-holders," or
phsned minor children or citizens, we owe
| them; we are able TO pay them, they are
now due and have been for four years, and
| it il, beyond doubt, our duty TO pro-
vide for their payment. Sir, in our
time of need we applied to these
holders of our bonds for meney.
They let us have it; then we were pleasant
and kind to them. NO,o, after we~.have
used their capital in our own way and for
our own purposes, snd after long delay, we
are asked to treat them as corruptionists.
so odious that we are not even bound to
pay them an honest debt, due and unpaid.
Can Tennessee, in view of her past and her
prospectiVely great future, afford to stoop
80 low as to adopt this policy?
A great State, dunEed for borrowed
money on apromise to pay, over due, losses
her sovereign head proudly.and de6antly,
and attempts 10 stave off payment by over
whelming the creditor with an avalanche of
abuse and denunciation. Deliver Tennes-
see from such course. Sir, we cannot
"guard the peoples interests" by refusing
to settle up with their creditors--to strike
balance with them and arrange for
the gradual extingHishment of their
debts. The public debt is increasing
rapidly every year, ana whether we owe it
to the bloated bondholder or to an orphan
child n nook ha
commence it the better.
Mr.. Speaker: The opponents of this bill
have great deal to say about stRings."
The alarm cry runs all along their lines
"rings,' rings, rings" Certainly, sir. There
are always rings on both sides Of great
money question, and doubtless there are
''rings" on both sides of this one. If we
fund the creditor of the State will be bene-
fitted. If we refuse to fund, the SPECTATOR,
ever watchful of "otbers' Woes' viii greedi-
ly pounce down on our securities and en-
rich himself by gathering them up at nomi-
nal prices; and then, forseoth, he will be
transformed at once into regular-built
simon-pure "Bloated Bondholder."
1t is well known fact, Mr.. Speaker,
that mans monetary interest will some
times, with lightning rspidity, change his
pecuniary politics. Rings, indeed, whas
have we to do with rings? True and relia-
BILE craftsmanship follows principle sand
leaves the rest to Weep" but, sir, if had to
act with "ring" at all, would prefer the
ring that proposes to pay debts, rather than
the ring that counsels postponement of hon.
est demands and makes reputation even
probable.
Sir, there is ring formed on this issue,
a powerful ring-compose1 of all political
parties, headed b. the leading statesmen of
the State and backed up by the solid yeo-
many Of the country, all alike determined
to stop the rapid accumulation of our pub
lie debt-to stand squarely and honestly up
to the promises of the State and to lift
"proud old Tennessee" up to the high
financial position she is entitled to and will
assume. L would respectfully, though
earnestly, advise all other rings TO stand out
of the way of this one, and thus avoid a
startling "gulp up"
The other side press upon US earnestly
the view, that by funding our past due
coupons, as proposed in this bill, we COM
pound interest thereon, and thus unneces-
sarily increase our indebtedness. We hold
it to be settled beyond all reasonable dispu-
tation, that these coupons bear interest
from the time Of maturity. This rule of
law is well established by divers decisions
in the various superior courts of the Union.
We invite the attention of the House to
the case of North Pennsylvania Railroad
VS.. Adams, tried in the Pennsylvania Court
of Appeals, and reported in four Smith
Pennsylvania reports. Adams sued the
company on some coupons owned by him.
The court in that case said "That coupons
bear interest is decided" in "the county
of Beaver VS.. Armstrong, eight Wright six
ty three" also, "There being no readiness
to pay averred in this case, the court bslow
was right in allowing interest from the time
the coupons fell due"
We refer also to the case of Mills vs..
Town of Jefferson, Wisconsin Reports vol.
20, an action on interest coupons attached
to bonds issued by defendant to the Wis
consin Central Railroad. The court said,
"There are number Of cases which hold
that where there is an express agreement
in note or bond to pay interes5 at a
specified time annually or semi annualiy-
upon interest, from the time it be- |
comes due may be recovered" "When !
person agrees to pay interest al a specified |
time and fails to keep his undertaking. why |
oLOulO AC AOe DO SOuu lOllCu W pay lulSICoG |
on interest from the time he should have |
made the promised payment" off The |
debtor has the means Of discharging his |
he can do so, or if he has not or
prefers to retain his money, let him be sub |
ject to the general rule, which requires the |
payment Of interest upon debt equitably |
and justly DUE"
We refer also to the case of Gelpake VS..
the city of Dubuque-1 Wallace, U. S. Re-
ports-suit on coupons issued by defendant
10 railroad. The Court said: "Bonds and
coupons like these, by universal commercial
usage, have all the qualities of commercial
paper. If the plaintiffs recover in this case,
they will be entitled to the amount speci-
ted in the coupons, with interest and ex-
change, as claimed"
We call the attention of members on this
question to a Il tie decision of our own Su-
Dreme Court in the case Of the Mayor and
City Council Of Nashville VS.. the First Ma
,ional Bank-suit upon past due coupons
Of the city. The Court said: at is next
argued that as to the coupons in the form
If an order or draft, no interest should be
Allowed Until after demand was made.
f it should appear that the de-
endant held the funds ready
o pay the coupons at maturity, it won
lot seem reasonable TO charge them with
interest until dema nd was made, for they
,ould not know VIII held the coupons, nor
,ould they pay them until they were pre-
ented; but in this case it was shown that
he defendants provided no funds and made
10 provisions for their payment. Ia such
,ases the authorities seem to establish that
10 demand is necessary, and the coupons
)eing for the payment of fixed sum, at
iven day, bear interest from that date, like
promissory note-54th Pennsylvania, o.,
nd the authorities referred to. This
GEMS TO US to be sound doctrine"
Thus we have it, Mr.. Speaker, 1ndubi-
ably fixed as a rule of law that interest
COUPONS draw interest from maturity unless
he debtor is ready to pay them. II is ad.
nitted that Tennessee has not been and is
lot now ready to pay her past-due coupons,
nd We are, therefore, compelled to cou-
Jude, whether willing or not, that these
oupons have been from maturity, and
re now drawing interest upon us; but gen.
lemen say that these decisions do not ap-
ly to State, but to corporations only;
hat State is sovereign and a corporation
FEATURE Of statute, that the rule does not
pply to States. Sir, what is a State? Sow
reign in some respects, and subject to a
uperior power in others. Her powers are
United by constitutional provisions, and
.or ~ HypH htr oil CT, |