The Milan exchange. (Milan, Gibson County, Tenn.) 1874-1978, 1876-11-16

state Only-eVen were he 10 IdAc lt'
Looking to The non-payment of inter
eSts, to the value of bonds, to the
largeness of our debt and the impov-
erished condition Ct the taxpayers,
| think our creditors, could they be
advised, and careful bill framed,
they would make the exchange. !
Once holding Such paper that yielded |
no interest they seek opportunity to |
put it out by buying up all cur pro-
duce, our heavy town lots and farms,
and by establishing manufactures,
especially in our mineral regions. A |
very picture of prosperity would soon |
dance under our vision. was told |
when in the Legislature last ses-
sion, that our creditors would make |
such All exchange and so informed |
by sources that | did not hesitate to |
credit. OF course the interest of the !
creditor, as well as that of cur own,
would require we avoid excessive Is
sue. The scheme could be ruined |
by excess. ] feel sure such paper |
would pass current. For the benefit |
of the public | begtorefer to the views |
John c. Calhoun, expressed in the |
United States Senate in 1887. Speak /
ing upon the same subject, he said: |
1T may throw some light upon |
shis su! ject 10 state that North Caro-
lima, just after the Revolution, issued |
large amount OF paper, which was
made receivable in dues to her. 1t I
was also made legal tender, but |
which WAS net of course, obligatory !
after the adoption of the Federal Con-
stitution. \ large amount, say be- /
tween four and five hundred thousand |.
dollars, remained in circulation after /
that period, and continued 10 circus
late for more than twenty years at par |
with gold and silver during the whole !
time, with no other advantage than
being received in the revenue Of the !
state, which was much less than
S1V0, coo per annum."
In the same debate, speaking fu TIL !
er, Mr. Calhoun said:
We are also told that there is no |
instance of a Government paper that |
did not depreciate. In reply, | affirm !
that there is none, assuming the form
| propose, that ever did depreciate. /
Whenever paper receivable in the |
dues Government had anything Ikea
fair trial, it has succeekcd. Instance /
the case Of Carolina, referred to in
my Opening remarks. The drafts of
the Treasury at this moment, with all
their incumbrance are ready ut par
with gold and silver; and | might
add the instance alluded to by the
distinguished Senator from Kentucky,
in which he admits that as soon as
the excess of the issues of the Com
monweaIth Bank of Kentucky were
reduced to the proper point, It's notes
rose to par. The case Of Russia might
also be mentioned. In 1927 she had !
4 fixed paper circulation, III the form
of bank notes, but which were incon-
vertabIe, Of upward Of S12,000,O00, |
estimated in Ir.e mct..:c rublc, aud !
which had remained for years with>
out fuctuaiion, having nothing TO
sustain ii bat that ii Was received in the |
iUcs Of the Government, and that too,
With revenue Of only about 500, GOO
600 annually. | speak on the au-
thority Of Il respectable traveller.
Other instances, no doubt, might be
added, but it needs no such support"
Mr. Jefferson, hack of Mr. Calhoun,
in 1873, held the same views. lie |
used tLo following language i'll CORES
pondence with his friend, Mr. Eppes
In the war Of t775 our State
awaited itself of this fund by issuinga
paper money bot.omcd Oh specific
tax for IFS redemption, AID, to insure
its credit, bearing an interest Of ) per
cent. Within very short time not
Il bill Of this emission was to be found
in circulation. 1t was locked up in
chests of executors, guardians, widows,
farmers, &c. We thea issued bills bot
toned on Il redeeming tax, but bear
ing no interest. These were readily
received, and never deprecated
single farthing.'
On the matter of what would lie "a
sound relation of amount 10 be issued,
the amount to be annually absorbed
by taxes, attention is called to the
first extract, by which the relation Of
1 or ) dollars of currency to one of
taxes annually levied Is safely pre-
served. Upon this rule at the outset
the credit OF our State would float
say as much as $4,000, ,000-yCt my
Judgment would be 1000, 900 TO
start with. Then, as our prosperity
increased, and as our earnestness APP
pearcd, and as the certain process Of
redemption by taratjoH was demonstrate
cd our confidence and that of Others
would grow, and our credit strength
en- and harden. Under the effect of
such all experience a much larger
amount could be tiOatcd without un-
due depreciation. However the elas-
tic feature Of the plan would govern
the amount.
1t may be objected that to issue
such paper would be in conflict with
the Federal Constitution, that inhib,
It's the Issuing or emitting Of bill of
credit. The case of Craig ct ais. VS..
the State of Missouri, 4th, Peters, is no
authority to show illegality. In that
case Justice Mexican said: eff the
State Of Missouri in the discharge of
its debts had paid such certificates,
the act would not have been Illegal"
james Madison held, that for such
paper to become obnoxious to the
Constitution, it must be made legal
teader-must have circulation enforc-
ed. Again, the thing prohibited is
the throwing out general promise
~ the State to redeem, when no fund
has been provided, or no certain
means of absorption created. The
power of taxation IS great enough and