Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1873-04-01

Bond Ring has not yet asked the exclusive
privilege of specializing In coupons Of the
State. Here is proposition presented in
the shape of a bill, which, if passed; would
amount i'm substance to incorporating the
Railroad Ring, with full power to control
the value Of overdue bonds and coupons,
for the reason that under such q law the.
railroad companies who are indebted to the.
State would be the only parties authorized
to use them, and consequently have the
means of controlling the market. It is a
smonstrous propositions. Think, if you
please, of the great State of Tennessee
the railroad rings as wall of defense be-
tween them and the rest of the people of
thesState Think of placing our. bliga-
tons on the market under, the circum-
stances already detailed, and then think of
the State prescribing into whose hands
these obligations shall 60, and who shall be
entitled to their full face-value, to the ex-
clusion of all others, and to the actual and
positive oppression Of those who now hold
these coupon obligations. Mark you, the
tax payer, the citizen, and all individuals,
are required to pay their obligations to the
State in greenbacks, gold or silver; but
here the poor, weak, harmless, and de-
sfenceless incorporated railroad ring is to be
authorized to pay its debts to the State, in
the past due coupons, that you SAY by your
refusal to fund, are scarcely worthy ofcon-
sideration. IuOIH ff.Eq-l .Il1Ii
Some have argued this question as
though every man who favored this bill
did 80 in the interest of a "bond ring.n For
myself, / desire to say, that am not one
of those who believe everybody dishonest
who happens to differ with me on public
questions. do not charge, that those
against the bill occupy that position to aid
the railroad companies to buy up our
State bonds at nominal figures, and thus
pay off their indebtedness to the State with
less than song. Still every body knows
that to defeat this bill viii cause State
bonds to go down in the market to perhaps
fifty cents, when the simple fact that one
branch of the Legislature has passed it,
with q prospect Of passing here, has caused
our bonds to go up in the market to S44
cents, and the passage of it will raise them
to 90 cents before Saturday night. And
yet there are two sides to this question. I
came here favoring and expecting TO vote
to fund the debt. But, believing as / did
that there existed an organized effort to in
.clude in this scheme the "Torbett issue"
and "war bonds,'' / changed my mind.
Indeed, went SO far as to prepare an ar
gument against funding, which, by the
way, without boast Of myself or reflection
upon others, think is decidedly better
than anything we have yet heard on that
side of the question. But, on reflection, I
deliberately concluded that no other dis
position could be made of the past due
debt, and this bill having been amended
and hedged about SO as to certainly protect
the people by the exclusion of the "war
bondsn and "Torbett issue," these provis-
ions having been drawn with my own
hand, I assented to its support and shall
vote for it with pleasure. take the re-
sponsibility Of placing myself on record in
this measure. Talk of changing, if you
please all change, except the great invis-
ible God! ~ -.
And now another word i'm reference to
bonds and bOndholders. Tennessee is not
only indebted to the bOndholders' money
for her capitol, her railroads, her schools,
her asylums and other improvements, but
the people are indebted to the bondhOlder
and his money for life and fire insurance,
for ocean steamships, canals and telegraphs.
Yes, it is the bondholders' money that en-
ables the merchant to procure policy of
insurance against the misfortunes which
may overtake him in his business by the
ravages OF wind, waves, water, storm, or
the lightning of heaven itself. Yes, it is
through the money of the bondholder that
the widowed wife and orphan, otherwise
left in want, are enabled to supply them
selves with bread. 1t is through the money
of the bondholders that the unfortunate
man who has lost all by the devouring
flames of an irresistible fire is enabled to
restore his family to shelter and provide
for their necessities. The gentleman from
Upton Mr.. Cumminsl referred to the
funding policy of England in the speech
delivered by him against thepresent meas
ure. He called our attention to the warn
ings AGam Smith gave to the English peo-
funding the public debt. AS I listened to
the soft eloquence of the gentleman, I
thought he had entered upon dangerous
experiment in his invocation of English
history on his side Of this debate. I won
dered then, as / wonder now, that a gen.
tleman of his intelligence should dare to
wander into the financial policy of Great
Britain to find precedents of disaster in re-
gard to funding and consolidating the
whole debt of State, principal and inter-
est, into one series of bonds. It will be
by those familiar with the
subject, that England began the policy of
issuing bonds and using her credit as early
as 1892; and that she commenced at high
rate OF interest, ten per cent. and after
wards consolidated both principal and in
British consols at three per cent. interest.
And it is well known that these consolida-
led bonds are of the most popular charac-
ter of investment. Capital is constantly in
search of them. Now, we have been cited
70 this experiment of England, as the
gentleman Mr.. Cummins] and his friend,
Adam Smith, have pleased to call that
great financial project; let us examine the
history of THAT policy, as portrayed by Eng
and's great historian, Macauley, and see
whether it will frighten us from the sup
port of this bill, or strengthen our convic-
ions of right in making it the policy of the
State. -. -
Speaking of the depleted Treasury of
England after the struggle of war through
which the kingdom had passed, just pre-
vious to 1892, he describes the circum-
stances that impelled that government to
adopt q financial policy, and the surround
ngs were SO strikingly similar to the stu
alton in which we find ourselves to-day,
hat call special attention to them, and
,sk their particular consideration by the
House. referring to the subject, on page
.S7 of volume 4, Macanley says: "Still,