Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1874-12-05

j
would be rejecting upon their 0fficia
acts in a manner we are not willing q
DO. aud which would doubtless be verl
unjust. Another fact which shows tha
nothing wrong was done is that thi
whole amount Of the liabilities OF th'
state in 1861, including the State deb
proper, was only S20, ,l05, COS, although
all of the important railroads OF th'
State had been completed except th'
Nashville and Northwestern, upon whicl
much work had been done. The legis
lSture had provided for the payment o
the interest and of the principal OF th'
debts as they fell due, but the war came
on and caused securities otherwise vain
able TO be in some instances worthless
on account of the destruction Of The
railroads aud the accumulation OF inter
est. Even under all these disadvantages
the whole liabilities Of the State in Oc'
tober, 1860, We're only S25 ~ 406, ol
which only s., 1888, l2l were for irsOlvenl
! railroads. Had the ins0lvent railroads
! been given away, the debt for which the
] state would have been compelled Il
provide would only have been SlO,6 ,
$40. These facts have been given and
these references made 10 order "a
show that the pTesext now urged,
/ that the internal improvements
were internal swindles, and that
/ the disposition Of the bonds issued be-
/ iore the war was fraudulent and in di-
I rect violation OF the laws authorizing
/ them,n - is without foundation in fact,
snd Is merely invented in order 10 ex-
cuse the doctrine 81 repudiatiGn. The
| subsequent issue of bonds 10 insOlvent
railroad companies is the cause Of cur
/ financial difficulties. Had no bonds
been issued TO any except the great
through lines with important connee-
/ tons, they would have been able to dis
charge their liabilities and have saved
the State harmless. The amount
Of debt which the insOlvent
railroads owed to the State
in October, 1870, was $40 000, 000 Had
ali the insOlvent railroads been given
away in 1860, AMI no aid extended tJ
other iBsolvent roads, the whole loss on
railroads by the State, as before stated,
would only have been S5, 953 f2l; but un-
fortunately bonds were issued 10 insol-
vent railroad companies to such an
amount as to deeply involve the State
without adding anything Of eonse-
quencs 10 the value of these roads. In
this way the debt of the State
was increased from 1865 to
1870, under Radical administra-
ton, SIG, 900, 000 In lS69-70 the legisla-
ture passed and act authorizing railroad
companies to pay the debts which they
owed the State in bonds OF any series.
except the Mineral Home and Valley
Of Virginia insurance company. The
effect Of this act was TO cause the rail-
road companies to buy the bonds issued
to theinsoIvent railroad companies dur
ing the Republican administration, be-
cause they were, on account of their sus-
picious character, selling lower than
any other bonds, and in this way ali Of
these bonds, except 81 500 COO have Leen
returned into the State treasury, and
even those outstanding have been re-
cognized by the Conservative legisla-
tUre OF 1869. In this way the deb, Of
the State was contracted, except 50, 000,
600 Of Tennessee bank notes which the
supreme court Of the United States de-
cided TO be receivable for taxes 1t was
this ebt which Governor Browns ad-
ministraliOu had 10 contend with. The
credit Of the State had been drawn away
by our failure to meet our obligations,
sine no state which Iails 10 meet
its yTst obligations can ever be prosper
Gus. States that are either unable or IN
willing TO comply with their contracts,
DO not pres ent an inviting field for
either capital, labor or immigration.
Never did q governor have a more diff
cult task to perform than Governor
Brown at that time, he cOmprehended
the situation and acted with decision.
He found bonds and coupons 10 the
amount OF near six millions OfNtollars
due and falling due, which the people
felt themselves unable to pay, since they
had to redeem Immediately 3 900 600 Of
Tennessee bank notes. Either the
credit Of the state had to remain at its
low rate, greatly 10 the injury of the
people, or q tax amounting 10 three or
four per cent. had TO be levied on the
bonds and coupons due and to be re-
ueWed. Governor Brown preferred the
latter plan, and SO stated in his first
message. In 1872 he was again nOmi-
mated by the Democratic party, with q
full knowledge of bis views on this
question, as well rs of his action In re
gard 20 the lease OF the penitentiary;
and they passed the following resOlu-
ton:
"Inasmuch a. the administration OF
Governor John c. Brown, by its pru-
dence, moderation aud wisdom, by the
fidelity displayed IN the discharge Of
every trust imposed by the constitution,
or by legislative enactment, upon the
executive, and by the vigilant care with
which the rights and interests of the
people have been guarded and protected,
has fully vindicated the wisdom Of the
people OF the Stsre IN calling him to the
gu JernstOriai chair; and believing that
sueh honesty, fidelity and capacity in
pUOlic trust, deserve, in these times, to
be specially recognized, and that the
welfare of the State demands the reten-
ton OF Governor Brown in the executive
office for another term; We do, there
fore, unanimously present the name of
Governor John c. Brown to the people
Of Tennessee as our candidate for re-
election to the office Of governor; and
in so doing, pledge to him our united
and most cheerful support"
He canvassed the State in 1872, advO.
eating his policy without any objection
on the part Of the DemOcra-
cy, and even the Republican candidate
for governor took no issue in the view
in regard to the funding policy. An is
sue was made in regard to the lease of
The penitentiarY, and although there was
an unhappy division in the Democratic |
party, which resulted in the election of
Horace Maynard TO congress from the /
State at large, Governor Brown was re-
elected by a large majority under the |
In his message to the |
legislature in 1873 he renewed his recon- |
iation in regard TO funding the bonds |
and coupons which were due. What |
Else could be done, unless the State in |
-ended to remain in a suspended coDdi- !
lion, with her credit destroyed and her |
seriously impaired? The peO-
pie were then not able to pay the bonds
and coupons which were due, and which |
amounted to nearly six millions Of dol |
lars, An extension upon such |
terms as were obtainable, and which |
would restore the credit Of the |
State, was all that could be done. The |
funding bill was proposed and a great |
popular clamOr was attem pied against |
II and against Governor Brown because !
he had done what be said he would do. |
Many condemned the bill without ex-
amiDing into its provisions, MANY |
thought the whole debt OF the State, |
amounting to S27, ,O00, 900 was funded. !
Others thought the Brownlow bonds |
we've funded Many believed the fund |
ing actaeFeated the debt, when in fact it |
did not add one dollar to the debt Of the |
State, but saved on the bonds and cou-
pOns already presented, SS22, 5S2 81, by |
not allowing interest on them after due, |
which many considered a very qUes-
tiOnable policy. 1t may be said that
the State could have refused to pay the !
bonds and coupons, and could have still !
further deprecated them. So she can
goo0 if the people have no regard for
their obligations and no desire to pre-
serve the credit Of the State. There is
no more obligations to pay the debt nOJO
.han there was before the funding bill |
was passed. That bill created no stronger
1or more binding obligations upon the
State than existed before. If we wish
and intend TO repadiste we can do so