The Morristown gazette. [volume] (Morristown, Tenn.) 1867-1920, 1877-05-23
| BANKRUPT 18TATES-AN EXTRA
SESSION OF THE LEGLSLA-
TIRE TO BE -CALLED.

| L
! . r SESSION OF THE LEGLSLA-
TURE TO BE CALLED.
From the Nashville Cotton and Tobacco Record.
1t is the intention of Gov Porter to
call an extra session of the Legislature
to assemble in November next, or at
least as soon as assessments under the
new law are completed, which will be
about the middle of that month.
Pertinent to this question, an article
published elsewhere in this paper from
the London Saturday Re0ieao, under the
caption of Bankrupt American States,
is worthy of approval 1t will show ex-
aetly in what light the debt of the
Southern States is looked at from an
English standpoint. The subject of
| National and State debts is one that is
exciting a great deal of interest at the
present time-the investors in looking
over their portfolios find that railway
securities are very doubtful, and their
correspondents instead Of being Presi-
dents, Treasurers, etc., are receivers, as
| signees, and the like-the consequence
is that much thought is given to the
manner in which States debts are to be
arranged and placed on a sure founda-
tion Opinions can be adduced for the
total reputation of every dollar of them
and this plan of liquidation is not with
out its advocates and followers. Argu
ments for the full payment of all can be
made with much force, and find respon-
sive approval in the hearts of all good
citizens, for no one can argue from his
heart the Reputation of single mill,
no matter how strict a construction his
idea of equity may cause him to place
upon the original issuance of them, they
are unquestionably obligations from
the holders view of them, and should be
met and treated as such. Some of them
beyond doubt, if obligations of individu-
ais, would not stand the test of chance
ry litigation-would be ruled out of
court for want of consideration. You
cannot compel a man to pay something
for nothing, even should you beguile him
into giving his note or acceptance, upon
promises that are never fulfilled. Bond
upon bond in many of the States have
been obtained under fraudulent promi-
ses, the carrying out of which was never
intended. Many millions of North
Carolina bonds were in this way stolen
from the people through venal, vir-
tually nonresident Legislature who pro-
fitted by divide of the steal. The Con.
stitution of the State of North Carolina
was open to investors, and most men in
vestigate titles before purchasing pro-
perty. They could also see that the
hands Of the people were tied, and bayoz
net legislature a farce. But bankers
high in the confidence of the Federal
Government were parties to the job, and
gave sufficient reason why military
government should be continued-for
without it their occupations vanished
they are really the parties to go into
court upon this question.
In Tennessee, however, our funding
bill Of 1873 removes from us this argu-
ment, because the bona tide representa-
tives of the people confirmed and bound
the State to all past obligations; it was
supposed that the validity of the obli-
cations werefully required into; and it
would be bad faith now to even inquire
into the minuti@ of that much discuss
ed measure of public policy. But when
the holders of our bonds come and say
to US that they see our impoverished con
ditiOn, they see that our resources for
the payment of our debts are little over
one-half what they were when the debts
were created, and that the purchasing
power of fifty or sixty cents now is fully
equal to the purchasing power of one
hundred cents when they bought the
bonds, and propose from high e9uita-
BILE standpoint to settle for. less than
what we say we owe them, only asking
us to make the settlement final and posi-
tive, that they may feel certain of fheiI
interest and secure in the investment;
we think it wisdom, not dishonor, to
meet them fairly and squarely, and set
tie the debt. Get it out of politics, and
revive business confidence and patriot
: ic feeling of honor. To this end We
would beg our Legislature to work with
energy and intelligence; and come tc
: Nashville in November with that ides
in mind, prepared to work out what We
believe to be the will of the people.
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