The home journal. (Winchester, Tenn.) 1858-188?, 1874-12-31

The simplest mind can draw the dis
t~inction between the Treasury note we
propose to issue and the bill OF credit we
have here defined. While il Is one of til
chief advantages of nj plan that these
notes may be used rs currency by the
people, yet it l. gratuitous with them
they can take them like cash notes or let
them alol e, and the State cannot say yea
nor nay they are issued to pay the debts
of the State, just what the Federal Court
says they may do in the case we have
cited, but after being issued the people
can and will be- glad to get Il chance to use
them ~ currency.
We think it clear, beyond all dispute,
that our plan Is not interdicted by the
Constitution. and in support we might
cite numerous prccedents for the same.
Even nov our Comptroller issues his war
rants daily to pay the debts OF the State
and in the price current Of the brokers we
notice they are worth about nlnety-three
cents on the dollar. Did it ever occur to
any one that these warrants were bills of
credit? They are just what we propose 10
issue to pay the bNudhulArr tor his debt
against the State, except they are perhaps
emily ,transterablc by assignment. and those
We propose ought IT, be transferable by de-
livery.
But il may be said that thus coercGin9
a payment OF the bonds in tins manner
iEIpairs the obligation ofthe contract with
the ~bondholdcr, and is therefore obnoX-
iOlS to the last clause of the Constitution
which we have quoted. We must always
bear in mind the obvious fact, that the
obligations Of a government are not to be
treated like those of individuals, and
hence we find in all ages governments ar
bitrarily reducing their public debt, or
funding it, or otherwise paying it of; in
some instances reducing it to Il 1.-THE Of the
former sum, and in some instances repu-
dating it in toto. Great Britain has
done this mUre than ONCE, as well rs many
of the nations of continental Europe. and
other nations of the world have not hest
tatcd to do the same thing. We all re-
member the notable instance in which it
was lone by the Confederate States of
America. 1t Is one OF tile attributes of
sovereignty like eminent domain and
those who contract with q state are sup
posed to recognize this power, and Il pos
siblc happening OF this contingency, and
to contract accordingly,
The principle we think correctly laid
down in the case of Mccullough, VS. the
State OF Maryland, 4 Wheat. AS follows:
II SoNCl IllNlJ NllCll HIS IL llpHl W
do an act, and has imposed upon it the
duty OF performing that act, must, accord
ing to the dictates of reason, be allowed
to select the means"
This simply acknowledges a fact, or
rather Il power, that all States Inherently
possess, and when the eXigcncies of the
times require it, all alike act upon it.
Perhaps under the right OF eminent do
main Il State has not only this right, but
the right to repudiate its binds also. In
the case OF WeSt-river Bridge VS. Dix, 6
ii )Ward. the court laws down this rule:
The power of taking private property
for public use may be exercised not only
where the safety, but also where the in
terest or even the expedicncy OF the State
is concerned, and is paramount to all pri-
vatc lights. Franchises are subject to it
like other property. The exercise OF this
right of estate Sovereignty is not forbid
den by the clause in the Federal Consti-
tuition inhibiting tile States from passing
laws iInpairing the obligation OF con
tracts
Thus it would seem. if the public inter
est should require 1t. not only these bonds
and the interest thereon, but every other
species Of private property Is brought UNI
der the dominion and control of the State,
and may be taken tor public use. To eX-
press it in the plain language OF the court,
in Townsend IS. Townsend. Peck II:
The State has the eminent domain. or
utimum dominion over all the subjects of
property in its territory, and may use it
on urgent occasions for the public good,
where, IN the opinion of the sovereign
power, it is just and necessary to use it,
This is so plain that comment is unncc-
cssary. 1t will be seen, also, from this
case, that the Legislature or the state is
to decide for itself when an appropriate
time has come for the exercise of the
power. The same j. also recognized in the
case of Memphis Freight Co. VS.. Mayor
and Aldermen of Memphis, 4 Cold, and
Mr.. Kent and all other publicists who
have written on the subject agree to this
The simple question then is, Has the
time come when the public exigencies
Justify the use of this power? We think
it has. The law is unquestionably clear
in its favor. Has our representatives
courage enough to come to the relief of
their taX-ridden constituents, and save
them from the impending ruin that is in
the near future?
We have written these communications
with something Of reluctance. We do
not pref, nd that VT have a plan TO please
all, but we would respectfully ask of him
who objects to give us a better me-; it is
not fair to tear down our air-castle, il you
please to call it so, without giving some
better means Of getting Oat OF the trouble,
Our worthy Comptroller will recommend,
we suppose, the re establishment of the
State Bank. You canlOt do this without
a change OF the State Constitution, and if
you could the Fed raj tax of ten per cent.
on its capital would be an insurmountable
obstacle in the way but if both of these
were out of the way, you could not get five
millions Oflegal tenders unless you issued
twelve or fifteen millions of bonds, rs the
bonds would 90 down still lower ifyou
were to issue any more, and 4 consequent
increase Oftaxation to pay the interest on
them
Bat ifall these difficulties were out of
the way and you were to issue three tor
one rs is proposed. the National banks
would run it down in Il few days. or drive
it into perpetual suspension, which woulG
reduce its paper below par. The consc-
quenre would be that while the State
would be compelled to receive it at par in
the way of taxes. she could not pay 1t out
at Il discount at at ALL ON the in
terest OF the very bonds issued To start the
bank. j. j. WILLIAMS,
WINCHESTER, Dec. 18th, 1874.