Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-02-19

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actions certainly SAVIOR Of it. To say
that the b9ndholders paid less than par
for their bonds is simply TO prove that
our course since the pledges Of two
yeals ago had so shaken their faith in
our willingness to pay our honest debts
that they had to leave a large margin
for the risk Of loss. For years We had
been promising to pay the interest
promptly every six months, and met
our promises only with new promises.
At length after some years of self-rule,
we have paid one years interest (since
the passage Of the funding law but
each payment has been accompanied
with the threat from interested poll
tieians and ignorant demagogues
OF future repudiation. No wonder our
bonds are below par. But is it
honest, is it honorable, is it even res
pectable to take advantage of our own
shortcomings, to defame our own credit
and depreciate our own paper, in order
to scale our honest debts which we are
abundantly able to pay? What would
be thought OF an individual who, with
the money in his pocket to pay, should
dispose of his property so that an exc
cution could not reach it, and allow his
notes to 90 to protest, in order That he
might take advantage Of the necessi-
ties of the holder to buy them up at a
price to be fixed by himself? Would
not an honest man call that either
swindling or theft ? Yet, this is Just
the kind of stigma which the advocates
of low taxes are trying to fasten upon
the gallant and noble old State of Ten
nessee.
All public debts treated of in works
upon political economy, have been Gre
ated for the purpose Of carrying on
wars, and represent an actual waste
and loss of capital; but the public debt
Of Tennessee represents an actual In
vestment which has more than doubled
the wealth of the State, and which by
the operation of railroads, and their
accumulation of capital is daily adding
thereto. The bOndhOlders once had a
recourse against the railroads, but this
was taken from them by the Lhgisla.
ture In the sale of delinquent railr Dads,
and the reception of bonds and
coupons of all issues for the pay
ment of their debts to the State at
face value. Thus our debt was reduced
one-half, and our faith was solemnly
pledged to the payment of the prinei-
pal and interest o. the remainder. To
go back on this pledge, on the plea Of
poverty, when we can pay without Sc
rious inconvenience, would be simply
disgraceful.
There Is one way, aud only one, IN
which this Legislature can prevent the
formation of rings to put up or put
down the price of bonds, and that is to
pay the interest promptly, provide for
a sinking fund, and consign to politi-
cal infamy aud death any man who
proposes to levyia tax less than viii
pay the interest on the bonds and the
expenses Of an economical administra-
ton, resolutely frowning down all pro-
positions for extravagant and Unneces-
sary expenditures. By pursuing this |
policy our bonds viii be at par in cur
rency. and will not be heard Of in the |
market, but viii be held as investment. |
Spectators Will not careto dabble then |
in Tennessee bonds, any more than N
those Of Massachusetts,, and We shall |
hear no more of bond rings in Nash |
vile or New York.
If our Legislature viii adopt this |
policy, and adhere to it rigidly, they |
will 20 down to history as the greatest |
benefactors the State has ever had.
The people are honest at heart, and |
when they see the right they mean to
do.it. They may be deceived.On some |
points, but they never honor again
those whom they have once trusted to
their sorrow.
Taking it for granted that a Legis-
lature composed of such material as
the present body, will not fail to fol-
low the right so soon as they shall have
fdlly considered the question with that
whichits Importance demands,
it remains to point out one false step
which should be retraced. By this is
meant the bill which passed the Senate
a few days ago repeating section q of
the act>of March l, 1869, (chap. XIV.
acts 1859 which was as follows:
Sec. q. Be 1t further enacted, that
the Comptroller Of the Treasury be
and he is hereby authorized and en-
with the advice and consent
Of the Governor, Secretary Of State and
Treasurer, 10 borrow, upon the faith
and credit OF the State, such amounts
as may be necessary to meet the nee
essary demands upon the Treasury Of
the State, upon such terms and condi-
tons as may be agreed upon"
There is no charge that this power
has ever been abused, and If all pay
merits cut of the Treasury are pro-
vided for under "a general appropria-
ton law, there is no possibility that it
can be abused. The necessity for the
power comes from the fact that the in
5erest on the debt falls due on the first
days of January and July, when the
taxes are never collected in sufficient
sums to meet this liability. Now, if
it is intended to meet the interest,
which is taken for granted, the Comp
roller must either have the power to
borrow the money until the taxes come
n, or he must have the power to COM
pel the tax collectors to press the
,aor,la harder in their collections |