The Bolivar bulletin. [volume] (Bolivar, Hardeman County, Tenn.) 1865-1888, 1878-08-08
Sealing Public Debts.

Hon. s. F. Wilson, of Sumner, in
the course of Il speech made before
the Legislature during the late extra
ordinasy session said:
Governments have repeatedly exer-
cised the right to reface any part OF
their debts, at lower rate of interest.
! The transaction of the British Elk
chequer affords numerous and forcibIe
examples Of this. After the peace of
1915, interest on Exchequer bills was
reduced from 81 t. 81 per cent, and
! by this operation, 5000, 600 pounds
were added to the debt, 100000
pounds were cancelled. Another OPP
Grafton was the reduction of to per
cents. on 40, POS, 1928, at an annual
saving in interest Of 1,122,000 In
1924, 4 per cents to the amount Of 76,-
606,85 were changed into 81 per
cents.
Do you want more examples? The
Romans at the end Of the first Punic
war, raised two ounces of copper to a
denomination which had before ex-
pressed the value of twelve ounces.
The Republic in this manner, accord
ing to the idoas advanced by the other
side, paid only one-siXth of its obliga-
tions. This is not all In the 18th
century, the English pound and pen
ny contained only ], tbs Scots 1-36,
and the French 1-66 part Of their orr
giral value. The Roman as in the
latter ages Of the Republic was re-
duced to the 1874 part Of its original
value. L this all? Let Us come
nearer home, and what do we see?
America failed to pay the debt con-
tracted in winning her independence.
She failed to fulfill a contract, made
in the darkest days Of the revolution,
by which she agreed to give certain
elistment full pay for life, and finally
compromised by giving these men full
paw for five wears. In other words.
according to the modern State credit,
she repudiated. What as to the
States? Virginia, at the close of the
revolution, compromised her debt at
/ 900 for l. The colony Of Massachu-
sets settled ct y for / Indiana,
some years ago, eliminated some S10,-
600, 900 from her bonded debt. Geor-
gia a few years since Topped off about
SO, 900, 600. Minnesota last year re-
pudiated by popular vote So, 100000
or S4,000,000 Mississippi, thirty-odd
years ago, repudiated $4,000. Ar
kansas has Just reduced her public
debt from SO, 100000 to S5,000,000,
or S6,000,000; and Alabama hers
from $50, 900, 900 to about SO, 600, 900.
Gentlemen may say all this Is dishCG;ni-
Orable, but such an aS.orulon is a gross
SANDER. To- uniform action Of GOV
er--inents, in all ages, means something
1t is not the product Of dishonesty. 1t
expresses, in action, the law of the
contract as to public debts, and that
is, that in the creation of a public debt,
a sovereignty, by implication and from
necessity. reserves thepower Of control
it, and the right to reduce it within
the compass of the ability Of its people
to pay, without subiecting themselves
to undue oppression orself-denial. This
being the law, parties who deal in OF
purchase the obligations of govern
ment, deal with a knowledge Of this
law, and when the governments right
fully exescise this supervision and re-
ductiou, they cannot be heard to COM
plain. This uniform action Of govern
mcnts, also expresses the law Of limita-
ton as to the extent to which the pub
lie debts can be created, and that is to
the extent of absorbing the surplus
earnings Of the people as arrived at by
the governments method of taxation
and no further.