Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-02-17
The Minority Report.


Mr.. Speaker. The undersigned chairman
Of the Committee on Banks, differing from
the majority Of said committee in their
recommendation for the passage Of a bill.
% be entitled aAn act TO redeem the bond
ed Indebtedness ofthe State, begs leave TO
submit this his minority report:
TIE bill proposes to pay of in Treasury
notes, all the bonds Of the State issued
prior 10 May 9, 1851, all outstanding
COmptrOller's warrants, all interest which
is now due or which may hereafter fall due
on all the legally issued bonds Of the state,
and makes these Treasury notes receivable
in payment Of all taxes or moneys due the
State, counties or municipalities, and re-
ceivable in payment Of all debts or liabili
ties due from the State, counties or NUM-
cipalities, etc.
1 believe the Treasury notes provided
for in the bill, are prohibited by section
10, OF article 1, Of the Constitution
of the United States, which sayS:
''NO State shall emit bills Of credit
make anything but gold and silver coin a
tender in payment Of debts, or pass any
law impairing the obligations Of contracts"
The Treasury warrant proposed to be
issued by this bill, if anything, is a paper
issued by the State on the faith Of the
State, intended to be circulated through
the community as money. The Supreme
Court, in the case Of BriscOe vs.. the Bank
Of the Commonwealth Of Kentucky I'll
Peters, 31S) substantially uses the above
language in defining the term ''bills Of
credit" IS used in the Constitution.
think the seventh section Of the bill,
which declares the bonds forfeited and held
to be no longer evidence Of Indebtedness
against the State, if not presented in the
time specified to be paid in these notes, is
opposed by the last clause Of the section
above mentioned in the Constitution Of the
United States, and by a similar clause in
our State Constitution.
Were there no constitutional objections,
l could not support the bill. Il proposes
to throw ten million dollars, face value,
Of incOnvertible paper upon the people
of our State. This paper, to say the best
for it, can have no general purchasing
power, and hence will be worthless as a cir
culating medium. The measure of its pUr-
chasing value necessarily becomes as varia-
bic as the drift Of the winds. l do not
think it the part Of wisdom to adopt a
financial measure which the lights Of
science and experience so clearly prove to
be unsOund, and will result in injury to
our people.
It will derange the business transactions
of our people, disturbing values, disorder
ing credits, and will operate decidedly
against the agricultural aud labOring classes;
in fact, against the entire productive inter
ests Of our State.
/ believe these notes will be subject TO
the 10 per cent penalty imposed by Con-
gress upon circulating issues other than
these Of National Banks.
If the bill is passed, it will most ef-
fectually destroy the Common School
system Of the State; and for that reason, if
no other, 1 can not recommend the bill.
For these and other reasons 1 recommend /
that the bill do not pass.
Respectfully submitted,
J R. NEAL.
ID. /. NORTHlNGTON.
In addition 70 the above recited reasons, /
which / accept, l cannot recommend to
your favorable consideration, a measure /
evidently obnoxious, not only TO the spirit |
Of the constitution, both Of The nation and |
Of the State, but to every principle Of honor
and Justice. If passed, il would be a long
stride toward the shameful doctrine Of re-
pudiatiOD. D. E. PARKER.