Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1874-07-12


1855 :, GA 600 plus int. sink. fund I,S7l SGT
In twenty years, in this way, we shall
have reduced our debt SIC, ,I64, 34l, and
be in a condition to pay to the sinking
fund thereafter over s., 600, 600 annually,
without increasing the rate Of taxation.
| But we have other expectations of an
| increase in taxable property. By 1875
nearly every railroad in the State will
! be liable to taxation, which will add
| $40, 900, 600 to our taxable property,
| though we have included One-half of
/ this in our estimates. All the elements
exist in the State also for giving full de-
I velopment to the manufacturing indus
| try of the people. Within the next de-
csde, all the pent up forces will burst
! forth, and the erection Of manufacturing
| establishments will proceed with mar
velous rapidity. Evidences of this are
| beginning to be seen. Without some
Unforeseen calamity, at the present rate
| Of increase 500, ,000, 600, will be invested
in manufacturing enterprises within the
next ten years, and the debt Of the State
can be almost extiDguished at the pres
ent rate of taxation"
THE JEFFERSON DOCTRINE AND THE
PRACTICE oFTHE GOVERNMENT.
The doctrine that State has no right
to contract a debt to bind future genera
tions, although advanced by Mr.. Jetter-
son, or rather suggested by him az a
matter OF doubt, has never been the
practice of this government nor of this
State nor of any State in the Union. The
present debt of the State was contracted
from Is49 to 1861, and from 1865 to 1859
During that time William B. Campbell,
Andrew Johnson, Isham G. Harris and
William G. Brownlow, were governors.
None of these men in their messages
ever advocated the Jefferson doctrine
on that subject, whilst we were con-
tracing the debt. Abraham Lincoln
and Andrew johnson were Presidents
Of the United States from 1851 to 1868,
and neither of them advocated such
doctrines when the Federal govern
ment was contracting a debt of more
than two billion of dollars. The bonds
issued by the government during the
war, many of them were sold for
United States currency at low rates, and
yet now we are required by the consti-
tuition which we all as individuals and
as parties have solemnly bound our
selves to support, to pay them in good
faith. The following act passed April Il,
1866, was signed by President johnson:
An act TO amend sn act entitled "AD act TO
provide ways and means 70 support the
government" approved March 3, 1855.
Be 1t enacted by the Senate and House
of Representatives of the United States
Of america IN Congress assembled, That
the act entitled "An act to provide ways
and means to support the government"
approved March 8, 1885, shall be extend
ed and construed to authorize the secre-
tsry Of the treasury, at his discretion, to
receive any treasury notes or other obll-
cations issued under any act OF congress,
whether being interest or not, in ex-
change for any description of bonds au-
thorized by the act to which this is an
amendment; and also to dispose Of any
description of bonds authorized by said
act, either in the United States or else
where, to such an amount, in such man.
ner, aad at such rates as he may think
advisable, for lawful money of the qited
States, or for any treasury notes, certifi-
Gates Of Indebtedness, or certificates
Of deposits, or other representatives of
value, which have been or which may
be issued under any act of congress, the
proceeds thereof to be used only for re-
firing treasury notes or other Obliga-
tions issued under any act of congress;
but nothing herein contained shall be
construed to authorize any increase of
the public debt: Pr0Uided, That Of the
United States notes not more than $10,-
000, 900 may be retired and cancelled
within six months from the passage of
this act, and thereafter not more than
81 100000 in any other month: Ind
prOUiLed further, That the act to which
this is an amendment shall continue in
full force in all its provisions, except as
modified by this act.
Section 2. Ind be Il further enacted,
That the secretary of the treasury shall
report to congress at the commence
meBt of the next session the amount of
exchanges made or money borrowed
under this act, and of whom, and on
what terms; and also the amount and
of Indebtedness retired under
this act and the act to which this is an
with detailed statement
Of the expense Of making such loans
and exchanges.
Mr.. Sherman, the distinguished Re-
publican senator from Ohio, says in ref
srenee to this bill: "Under the enor-
nous powers conferred by this act the
secretary of the treasury, Mr.. McCul-
loch, adopted what is called the contrac-
ton policy; that is, he authorized the
funding Of all forms OF Understanding
securities into six per cent. gold bonds
Of the United States, while be proposed
to raise the greenback up to par In gold
by contracting it by gradual stages linn
tied by the law. This act, and the very
first thing done under this act, separated
forever the gold bonds Of the United
States from the legal-tenders, and aban-
oil Hau NJ rfrrN.f
and the practice to convert the green
back into bond. The law did not even
stipulate what bond it should be,
whether 1t should be q forty or
q twenty-year bond, or whether It
should run five years. The only
Limitation was that the rate Of interest
on the gold bond should not be over six
per cent, but no duration as to time |
was prescribed Under that act the sec
retary funded the treasury notes, and ali |
the various forms Of interest bearing |
notes, into six per cent. bonds, swelling |
the amount OF our six per cent. bonds |
from about 500, ,000, 000 to about 81 $780, |
OOO,OO0. All the treasury notes payable ia /
currency were converted into six Ger
cent. gold bonds" Here nothing was |
said about the want OF power in a gov
ernment to fasten debt upon pOsterity, |
although 1t was done In this instance at |
most ruinous sacrifices, and under the |
operations OF this bill the contraction |
which now oppresses the country took |
place. This act was the Iliad of All cur
woes and the cause Of all our financial
troubles The doctrine that one genera
ton has no right TO bind another will
not bear the test of investigation. IN
an individual, State or nation con-
tracts debts which posterity gets ti1e
benefit Of by having the property for
which these debts we're contracted, then
posterity is both legally and morally
bound TO pay those debts, and such has
been the uniform practice Of this gov
eminent for the last fifty years, ss i