Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1876-10-19
Bonds and Taxes.

The following extracts are
from speeches of Col. John H
Savage. Every subject ought
to be thoroughly investigated
and understood = both sides
heard. Next week we will
give an extract or two from a
speech lately delivered by Capt.
W. j. Sykes:
To rivet the chains of State
taxation, orators and papers as
sumo "that all legislative power
not prohibited by the Constitu-
ton is vested in the General
Assembly," and that this in
cludes the power to contract
debts and issue bonds. This
assumption begs the question,
and is the doctrine of Federal
ism and the diyineright of kings.
Democracy teaches that the
people are sovereign, and that
the Legislature possesses no
power not granted by them.
And inasmHch as there is no
power found in the State Con-
stitution to issue bonds or bOr-
row money, none exists. Plain
people can understand this sim
| pie construction.
The cases. in Peck's Report
p. POT, and s Humphreys, p. l,
do not decide that the Legisla-
ture has power to issue bonds
or borrow money. They mere
! ly decide that the Legislature
can charter Il bank or incorpo-
rate a town. The dicttm by the
Judge decides nothing. The
case cited Is Wallace CTS, over
ruled the decision of the SUI
Ipreme Court Of the State Of
Wisconsin, AMI was resisted by
| Chief Justice Chase, Miller and
Davis at the time. 1t violates
principle and is entitled to nc
respect as a precedent. It's doc
trines have been severely criti-
cised and substantially over
ruled in p Wallace, p. 655
Loan Association VS.. Topeka
In this case the Court says
"Therc is no such thing as I'M
limited power in the State Oh
Federal Governments. and that
the right of taxation is limited,
and can only be used in aid of
a public object" THAT the
right to vote aid to railroads is
still under discussion in the
State Courts. That few decis-
ions have been made without q
division of the Judges, and al
though a Preponderance is in
favor of the power some States
have decided against it altogeth-
cr." "Of the disastrous con
sequences which have followed
its recognition by the Courts
and which were predicted at the
time there can be no doubt" II
is therefore an open question:
and has never been decided by
the Courts of Tennessee that
the Legislature has power to is
sue bonds to wild cat railroads
and such a decision, if ever
made, will be suggestive Of the
memories of judicial errors and
crimes against justice and right
in past ages. This is a great
legal and political battle, be-
tween common right and per-
petuity and monopoly-the tax
payer and the bOndholder. Eng
fish and American history is
full Of such contests. He that
is not for the people is against
them.
The new Constitution only
prohibits the State from loanin9
its credit to, or going in part
nership with, private corpora
tons, so that if the Legisla-
ture ever possessed "unlimited
power, it has it still, and can
by a single act issue hundred
millions OF bonds to level the
mountains or clean out the riv-
ers and create a debt that pos
terity could never pay. This
doctrine vests the power Of tax
alton in the bonds, making the
Legislature a mere instrument
to record the bondholder's will
who as now, will always pt
found active in the canvass anC
present in the lobby.