Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1878-07-06
Grand TOT. GOl7I 924 'l47lII 81 I2OT go p 844

Green, b.. 645 III 1888 100 ...... 81 sos
White, ~; 2G6 4SS 5 5 81 . 1870. So s. 7'9Ii
Grand TOT. o0l7 92lI47llI 252 100 go 22,84
The first series, Green, no letter,
were issued under the act of 1872,
and amendments, 1888, 100000 is
sued to railroads and turnpikes, and
$407, 100000 were renewals of bonds
past due. The second series, Green
"B," were issued under authority
of the act of 1872, 1920, 900 were re-
neWals for past due bonds, the bal
ance issued to railroads and turn
pixies. The third series, &C" and
fourth series, White Cd" issued
under act of 1866 and 1868, were for
past due interest, and known as
funding bonds. This table shows
that there are now outstanding
$3,033,000 of the bonds popularity
known as "BrOWnlOW bonds"
VALIDITY OF THE BONDED DEBT.
The large amount of this issue of
bonds cancelled resulted from the
passage of the act Of the Goth of
January, 1870, which allowed any
State by reason of the bonds loaned
to said company, to pay its debt in
any series of bonds of the State.
This act fixed the entire bonded
debt of the State, and gave all the
bOnds-Old and neW-the same
force and dignity, and deprived the
State of all opportunity, if there was
any reason for it, of cOnteSting their
validity. This act was passed by
an overwhelming majority in the
House, and in the Senate there
were only eight dissenting votes, in
the face of an able and exhaustive
report against it, made by the dis
tinguished Senator Cooper, from
Davidson. Under its provisions,
the Comptroller was bound to re-
ceive any bonds issued in accord
ance with the forms of law.
THE FUNDING BILL OF 1873.
For history of this bill, I give
you the following extract from a
letter written in July, 1874, by my
immediate predecessor, Governor
Brown, to a committee of leading
citizens of Memphis:
There were but two modes of re-
deeming the past due debt. One
was to pay it 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 OppreSsiveness. / thought the
of ln@ g 70 hn
past due Indebtedness, by new
bonds, to be issued at par-cOuld be
adopted, and current interest paid
on the whole debt without increas-
ing but very little, if at all, the rate
Of taxation. Therefore, with the
highest and most disinterested
motive, l made
THIS POLICY
the burden of my address to the |
people throughout the entire can
vass. One of my competitors, Hon.
A. A. Freeman, Endorsed this posi- |
ton, and the other, Mr.. A. S. Col |
var, without discussing it, declared |
that he saw no other more feasible |
remedy. The result of the canvass
is known. / renewed the recon-
mendations, previously made, on
this question, and the General As
sembly passed what is known as
"the funding BILL" by which it was
that the bonds and coupons |
due, on or before the first day of
January, 1874, and no other than
those due on or before the first If
January, 1874, should be redeemed
by the Issuance to the holders ofnew
six per cent. ten-forty bonds.
OF THE
ISSUANCE.
1t is too late to discuss the wis
dom of the act of 1870, authorizing
the railway companies to discharge
their debts to the State in any series
of bonds, or that of the funding act
of 1878. 1t is sufficient to say that
it was entirely competent for the
Legislature to bind the State by
both of these acts, and, but for your
request that / should cite you to
some authority on this point, /
would suppose that there was just
as great a necessity for it as there is
to prove to the country that two
and two make four. To demand !