Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-05-06

We are thoroughly familiar with
the old argument against usury.
Soil and stock have God-given natu-
raj power of increase. Money has no
such natural power given by God, and
interest is an artificial increase invent
ed by the Devil The individual or
government that acts on this idea, and
pays as he goes, will enjoy a perma-
nent prosperity. But we. object to
either State or individual accepting the
Devils device, obtaining millions of
others money by the promise of in
terest, and then falling back on me-
dieyal theology to repudiate the con-
tract.
We are glad that our contemporary
has paid some attention to the question
of the constitutionality of a repeal of
the funding law. 1t questions the
accuracy of the construction which
makes the Treasurer pay the interest
on the debt before current expenses.
Then it must want an accurate con-
struction. instead of repeal 1t con-
tends that the repeal of this clause
would not impair the obligation of the
contract. But if our contemporary
construction be the true one, repeal is
unnecessary Finally it contends
that the law is unconstitutional
because it impairs the validity of
State contracts with other creditors.
With its practical way OF setting aside
all contracts for interest, it might seem
that the Dresden journal cared nothing
for the Constitution, or law, or equity.
The confidence expressed on these
points might induce 1t 10 submit the
whole matter Of construction and con-
stiJutionality even to the State courts,
much as it ridicules the idea. The law
authorizing the State to be sued was
enacted in the old honest days Of
peace and Andrew jackson. The
repeal Of that law was, according to our
contemporary, made by the unrepresen-
tative Rump Legislature Of 1865. Shall
the Democracy of to-day screen itself
behind this device of Brownlowites to
cover up all their 1niquities. Our con-
temporary proceeds:
The creditor Of the State is without
any legal remedy, but must rely solely
upon its faith and honor.
Therefore, we should proceed to de-
stroy the faith and honor of the State,
seems to be the logic. And this, from
a journal that speaks of the funding
law itself as being every reprehensible
in morals, especially by a sovereign
State" There is something of a
chuckle in the concluding sentence of
the article:
NoI We are not afraid of any legis-
lation, for there is no court in Chris
tendon that has jurisdiction.
And yet it happens that courts can
be found, and the State can be sued,
even under existing circumstances
unless it proposes to remain a skulking
bankrupt forever. There is surely
enough of legal talent in control of our
West Tennessee contemporary to I'M
derstand how this is possible. Another
point to which we called attention is
disposed Of as follows:
What was the consideration that was
intended to influence the holder Of a
bond due, and make him extend the
credit forty years: d recognition by
the Legislature of its liability on bond
that had heretofore been tainted NTH
fraud IN its issuance. There can be no
denying this fact.
The italics are not ours, and we VIII
assume that the writer means what Is
said. 1t is distinctly stated that the
extension Of forty years was accorded
on a "bond due" Yet, the assertion
is emphasized with italics that the Leg
islature, by funding, recognized "a
bond that had heretofore been tainted
with fraud. 1t may benews to some that
no bond issued since the war is ''due, !"
and that the law expressly excludes
"bonds which were fraudulently issued
or obtained" These facts ought not
to be news to those who undertake to
write and wrangle on the subject.
Therefore, if any "bond due is reoog-
nized by funding that ''had heretofore
been tainted" it must be a bond issued
many years before the war, and it must
be in violation of the law.
Evidently there is vast and varied
amount of transformation being dill
gently inculcated on this subject, and
we invite all well-meaning writer's to
revert to the law itself, and compare
Herewith the official reports on State
finances since the war.