Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-02-13

- 0DNENA Autfl4 " EO@NEr-I A1AAA~A
consideration Of the bill until next Friday.
Mr. LedgerwOOd said he was opposed TO
even the semblance Of reputation, but be
knew Of no law in morals which prevent
ed the State Of Tennessee from entering
the markets Of the world through her fnan-
cial agents and purchasing her " paper;
he knew Of no law in morals that would
prevent the State of Tennessee from re-
ceiving for taxes her bonds or past due
coupons, at the rate Of 60 cents on the dol
lar. Give the citizens of Tennessee the
right to pay their State debt as cheaply as
possible.
Mr.. Anderson hoped that action on the
bill would be postponed. If the people
had been benefited by the debt created by
these internal improvements that had
brought them into tie markets Of the
world, they ought to pay it. The price of
bonds had been naturally deprecated since
the Legislature had been in session. One
month ago they were worth IS or 60 cents,
and were worth now only 43 and 45 cents
on the dollar-caused by just such discus
sion as this. The State of Tennessee was
able to pay her deOt. The people Of the
State at the last assessment owned $780,
100000 worth of property, and the State
owed only S~21,000,00O. By the passage of
the funding bill the representatives of
the people had endorsed this debt, and he
did not think that the operation of the bill
under discussion would be Just, right or
roper. The people had suffered cOnsid-
! erably during the past twelve months, and
their ability to pay now was thirty-three
per cent less than two years ago He would
be in favor Of the bill if they would strike
out the sixty cents on the dollar and insert
and make it dollar for dollar. Mr.. Ander-
son closed by Offering an amendment to
that effect.
Gr. NOblitt regarded the matter as moth
ing more than a business proposition. He
was in favor Of paying the just indebted
ness Of the State, but was opposed to pay
ing the interest," which amounted to 80
! per cent, while the mechanical and agri-
cultural interests Of the State only yielded
two per cent. The people could not stand
this long.
Mr.. Lea moved to strike out the words,
"and detached past due coupons of legally
| issued bonds of the State of Tennessee, at
the rate Of sixty cents on the dollar" In
stating his position on the question Of re-
pudiatiOn, Mr.. Lea said that his desire was
to curtail expenses and pay every cent that
the State owed. he believed that it could
be done, if the Government was run eco
~nOmically. If they could pay the State
debt by cutting down the expenses of the
State government and by taxing railroads
and other property, he thought il would be
the g-andeSt thing that ever happened to
Tennessee. The debt was contracted BY
railroad rings, and the State had been run
for twenty years in the interest of rail-
roads. They should get out Of this fnan-
| cial condition with as much honor as pos
sible. His efforts would be directed toward
paying every cent Of interest and principal
the State owed. If they passed this bill,
they could not be termed repudiationists.
Mr.. Head said that the bill looked TO re-
pudiation; il was not compulsory, but left
il optional with the taxpayer to pay his
taxes in bonds. He had heard the old cry
Of preserving the faith and credit of the
State until it had become common, but he
never heard it when the State was to de-
rive some advantage from it. Railroad
companies could buy up bonds aud pay
them into the treasury al par value and
nothing would be said, but when the
State was 10 be benefited bv earning an
honest penny, the cry of preserving the
faith and credit Of the State was sure to be
made. The office of Comptroller had been
bought TO preserve the faith and credit Of
the State, as had been stated by one Of the
witnesses examined before The investigat-
ing committee. This cry Of faith and
credit was made by men who had bought
up bonds at thirty and forty cents on the
dollar, with the view Of specializing in
them. Il was time that this song Of rapu-
diatiOn whenever the State was to be bene-
fitted. should be stopped. He had taken
the position, in bis late canvass, that he
was in favor Of paying the market price for
bonds, and if the b~Ondholders did NOT like
il they could step out of the way. lie was
there to carry out those views, and they
could sing out reputation as much as they
wanted 10. If by funding the debt, the
State could save over a million dollars, he
did not see why 1t could not be benefited
in this instance
In reply to an inquiry from Mr.. Ander-
son as to whether the Democratic party, in
the convention held last August, had not
expressed itself opposed to reputation and
in favor Of maintaining the faith and credit
Of the State, Nr. Head said that he believed
there was something of that kind in the
platform. but It said in another breath that
there should be no increase of taxation.
He was no TepUdiaJiOuIst, had never
thought be was and did not admit now
that he was; but be would say. for the ben
eft of gentlemen who cried reputation,
that if they continued to increase the debt,
TO roll t. up One million or a million and a
half dollars each year, the time was not far
distant when they would hear the cry Of
reputation in its true sense If there was
not something done 20 reduce the States
Indebtedness, the s0ugOf population would
be heard more frequently than it now
was.
Mr.. Spears liked the name Of repudia-
ton, as il meant relief for the people. An
~irTepressible conflict was going on between
the taxpayers and the ~bondbolders, and
y or the other must 60 down.
Mr.. Finlay objected TO tie complicated
machinery under which the bill was 20 be
operated. The creditor was not the taxing
power, but the representatives Of the peO-
pie, constituting the Legislature, were the
judges Of this question. One financial
agent Of the State could judge as TO the
validity of a bond as well as ninejy-fOur.
Only a few days age the third section Of
the funding act was repealed because il pre-
ferred the creditor to the State. The bond
holder was the preferred creditor in this
measure, as be was permitted to indulge in
Speculd ION.
Mr.. Gibson spoke substantially as fol-
lows: It had been said that this bill would
SINK the credit Of the State. The bill nei-
Their favored the b~CndhOlder nor crushed the
tax payer. Those who were in favor of
unfolding the faith and credit Of the State
lie was here interrupted by Nh. Ander-
son, who asked ifthe Republican party, to
which Mr.. Gibson belonged, did not, in
their State Convention, express themselves
as opposed to repudiatiOn.
Mr. Gibson said: Don't talkt to me about
what party / belong 10. This was no
place for party. lie had not said party once.
He was for the people Of all paT,ies-Dem-
ocrsls, Republicans, Conservatives, Rebels,
Radicals. Union men, white, black, East,
Middle and West Tennessee. That was
his party. He had been sent there by men
of both parties unanimously, because he
repudiated platforms and parties when they
stood in the way Of the wishes and welfare
OF the people.
F0rty-fOur men voted for the Funding
bill. and only one had been returned to this
General AsSembly-the gentleman from
MaTshall-and he was elected because there
was a multiplicity Of candidates, aud he
squeezed through. His vote was repudiated
bv his people, as be received only GAG votes
out of over LOO. Twenly-fCUr men voted
against The Funding bill, and seven had