Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1878-07-25
Gov. Porter's Letter.
A History Of the State Debt
How 1t was Created.
It's Present Status-HOw
1T May be Met.

For a history of this bill, |
give You the following extract
from a letter written in July,
1874, by my immediate prede-
cessor, Gov. Brown, to a com
mittee Of leading citizens of
Memphis. There were but two
modes of redceming the past
due debt. One was TO pay ii
by taxation, and the other to
renew it by giving new bonds,
bearing interest, which is called
funding 1t could not be paid
by taxation without an addi-
ton to the ordinary levy that
would have ruined the country
by its opprcssiyeness. ] thought
the other mode-that IS, taking
up the past due Indebtedness by
the new bonds to be issued at
par-could be adopted, and cur
rent interest paid on The whole
debt without increasing but
very little, if at all, the rate of
taxation. Therefore, with the
highest and most disinterested
motives, [ made
THIS POLICY
the burden of my address TO
the people through the entire
canvass. One of my competi-
tors, Hon. A. O. Freeman, in
dorsed this position, and an other
Mr.. A. S. Colyar, without dis
cussing it, declared that he saw
no other more feasible remedy.
The result of the canvass is
known. l renewed the recon-
mendations, previously made on
this question, and the General
Assembly passed what is known
as "the funding bill" by which
it was provided that the bonds
and coupons due, on or before
The first day of January, 1874:
and none other than those due
on or before the first day of
january, 1874, should be re-
deemed by the issuance to the
holders of new six per cent.
ten-iorty bonds.
CONSTITUTIONALITY OF THE IS
SUANCE.
It is too late to discuss the
wisdom of the act of 1870, auth
orizing the railway companies
to dischagc their debts TO the
State in amy series of bonds OF
that of the funding act Of 1878.
1t is sufficient to say that it was
entirely competent for the Leg
islature to bind the State by
both of these acts, and, but foi
the request that | should cite
YOU to some authority on this
point, ] would suppose that
there, was just as great a neces-
sity for it as there is to prove
to the contrary that two and
two make four. TO demand
law in the shape of constitu-
tional or Legislative enactment
or judicial decision for the pow
or Of a sovereign State to issue
its bonds for any purpose Of
/. government, is like asking for a
demonstration Of one Of the AK
IONS of Euclid or the positive
law by which an individual can
contract a debt binding on him
and property in the future. The
exercise Of the power is so es-
sential to the very existence Of
the government in certain .ex-
igenccs, that it has been conce-
ded by both theoretical and
practical statesman. ] have al
ready cited you to the opinion
of several of the latter class.
President Polk and others. Ev-
cry government exercises the
power. "Thc power and juris-
liction of the English Parlia.
ment" says Lord Coke, "is Sc
transcendanr and absolute thdr
it cannot be confined, either lol
persons or causes, within any
bounds. 18th Just, 36. "lr
is" says Sir Wm. Blackstone
"lhe exercise of the highest au
thority that the Kingdom ac
knowlcdges upon earth. = Is
Blacks, com. 81, 160, 186
''Thc principle in the Englisl
government that the Parliamen
is omnipotent, docs not prevail
in the United States, though, il
there be no constitutional ob
lection TO a statute, it rs will
us as absolute and uncontrolla
! bic as laws flowing from th'
sovereign power under any 9th
er form Of Government" us
fKent's com. AS. "The accep
ted theory, on this subject,
says Mr.. Cooley, "appears to b
this: In every sovereign Stat
there resides an absolute an,
uncontrolled power Of legisla
lion. In Great Britain thi
complete power rests in tn
Parliament; in the America
States in the people themselve
rs an organized body polite
But the people, by creating tn
Constitution Of the Unite
States, have delegated this pow
er as TO certain subjects and III
dor certain restrictions TO til