Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1877-04-14
REPUTATION in ILLINOIS.

We copy the following from the
Cincinnati Enquirer, the facts reported
being important for our readers to
know but we do so without endorsing
the comments of the Enquirer. Even
the title of the article cannot be con
sidered correct the decision of a
court as to the validity of a claim
standing on very different grounds
from reputation.
The comment of our contemporary
upon the financial condition of Mis-
sIssippi is not based upon a correct
knowledge of the facts. tits true that
after the reputation of her debt, Dor
rowing on the credit of the State was
rendered illegal by a constitutional
provision, but this presented no eff
Gent obstacle to the rapacity of the
carpet baggers. They simply borrowed
in the name of the counties instead of
the State, and the people are no better
off, being oppressed by county debts
where others suffer from State debts,
and county debts cannot be repudia-
ted, for counties are not sovereigns.
A recent decision of the Supreme
Court of the United States at Wash
ington, in a case before it from Hi
nois, has created no little stir in tinan-
cial circles. Several counties of Hill
nois, supposing they had authority by
a Legislative act, issued their bonds
for railroad purposes, and paid the in
terest on them as it became due for
some years. Examination Of the Leg
islative records of the State disclosed
the fact that while the House journal
noted the fact that the bill had passed,
the Senate journal did not 1t was,
therefore, claimed by those who issued
the bonds that there was no law passed
to authorize their issue, and they were
therefore void, and they refused any
longer to pay interest on them. Suit
was brought by the bondholders in
the Illinois State Courts, and it was
held by the Supreme Court of the
State that as the Senate journal did
not show that the alleged law had passed
that body it was no law, and conse-
queutly the bonds issued on its sup
posed authority were void.
The case was transferred to the Cir
cult Court of the United States, sit
ting at Chicago, and decided by it that
testimony dhuRde the certificates of
the presiding officers of the two
branches of the Legislature that the
act was law of the State, could not
be received to invalidate it which de-
cision was confirmed by the Supreme
Court ut Washington. A re-hearing
before the Supreme Court was, how
ever, obtained, and the case reargued
when the Court decided, five to four,
that the Court should abide by the
construction put on the act by the Su-
preme Court Of the State, and so re-
versed the decision of the Circuit
! Court.
There were between 100000 and
100000 involved, all of which is dead
loss in the hands of the holders. This
act of the issuers of the bonds is de-
nounced as reputation, and the credit
of Illinois, it is declared, will suffer in
consequence. 1t is sometimes of great
advantage to a State for its credit to
be under a cloud. There is Mississip-
pi, for instance. 1t long ago repudia-
ted its bonds, and got a very black eye
therefor in the money markets of the
world. Nobody would trust it. That
was its condition when the carpet
baggers and negroes got control of it,
and per necessity they had to leave it
as they found it and now it is COM
paratively out of debt. Other South
ern States, on which the stain of repu-
6iation did not rest, and which fell
under the control of the carpet-bag-
gers and negroes, are now suffering
from the debts piled ON them, which
must be either scaled or repudiated
The decision in the Illinois case just
rendered by the Supreme Court of the
United States will hereafter necessi-
tate rigid scrutiny of the Legislative
journals of State before parties will
purchase bonds purporting to be is
sued by virtue of the authority of
State law. Lawyers will not complain
Of that.
| 1t may not be out of place to say, in
closing, that the repudiating counties
OF Illinois are Kane, Kendall, La
Sale and Marshall, all strongly Re-
publican, giving in the aggregate To-
99S votes for Hayes and 10,S05 for
Tilden.-Cincipaati Enquirer.