Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1878-01-05

JutStlOn SD ttS 10 IlldkG our dCIiOll
irrevocable, | refer to the ease of
Furman. VS.. Nichol, in the 8th vol.
of Wallace's United States Supreme
Court reports, which is well known
to the legal profession everywhere.
in 1888 the Legislature of Tennessee
chartered q bank, enacting as fol-
lows:
A bank shall, and is hereby established,
in the aud for the beHeff Of the State. to
be known under the name and style Of '.,rhe
Bank Of Tennessee and the fdftb and credit
of the state are hereby 1IeGged for the sup
port OF said bank.
The capital of the bank, which
was five millions, consisted chiefly
of the school fund of the State and
of surplus revenue of the Federal
government. The deficiency was
to be made up by funds raised on
the faith of the State.
The twelfth section of the charter
contained this important provision !:
That the bills or notes of said corpora
ton originally made payable, or which
shall have become payable on demand in
gold or silver coin, and shall be receivable
at the treasury of this State, and by all tar
gaeats for ta1es. and other moneys dUe to the
State.
The people of the State thought
they had the right to pay their tax
es in the notes of this Bank. They,
after the war, were denied that
right and this case was taken by
appeal from the Supreme court of
Tennessee to the Supreme court of
the United States, to test the gues-
ton. It was decided in December
1868, Judge David Davis delivering
the opinion of the court. There
was no dissenting opinion by any
of the Judges.
1t was insisted on the trial, that
the 18th section of the Bank charter
had been repealed by implication
by section COB of the Code OF 1853,
but the court held that the enacting
said 18th section and the issuance
of bank notes thereafter while that
section was in force, made a con-
tract between all persons holding
such notes of the Bank and the
State, that they would abe received
for taxes and other dues to the State
that the guaranty was not a per-
sOnal one, but attached to the note,
was part Of it, as much so as if writ
ten on the back Of it goes with the
note everywhere, and invites every
one who has taxes to pay to take it !;
and that only such notes as We're
issued after the repeal of the 18th
section, could not be received for
taxes. 1t is clear from this decis-
ion, which is the highest judicial
authority in this country, that the
Legislature has not only the right
to make the coupons and bonds
themselves receivable for taxes, but
such laws would be irrevOcable by
any future Legislature so far as all
those who might accept the terms
of the law before its repeal are con-
cerned. As to those who might
fund their bonds for new bonds at
fifty cents, with coupons receivable
for taxes, there would be a contract
between them and the State from
the moment Of such settlement, and
no law could thereafter be enacted
to interfere with their rights under
such contract. ItWould bea finality
as to them, and Il final settlement of
this question is, above all things,
most desirable.
Having shown that it is our duty
to make this settlement on the terms
proposed by our creditors, / propose
TO show that we ought to do so even
as a matter of interest, which is plac-
ing il on the lowest plane upon which
it c;uld rest. | say it is to our inter
est that the creditors proposition
should be accepted. As already
stated our bonded Indebtedness, ac.
cOrding to the COmptrOller's report,
tOab0ut tWenty-three mill
ions Of dollars. These bonds bear
six per cent. interest. BY accepting
the offer of settlement we cut the
debt half in two and have left only
about eleven and One-half millions
to be provided for. We could at
least retain a show of honesty and
not utterly destroy the credit and
OF our people. That we
can provide for the payment of this
balance without feeling it does not
admit of argument. We have a
population of nearly, if not quite,
one and q half millions. The value
Of the taxable property of the State,
to the report of the Comp
trOller, under our present assessment
law amounts to two hundred and
millions of dollars. The
estimates that a tax of
four mills will pay the expenses of
the State government and meet the
interest on the compromise bonds.
That is a very small tax, one easily
paid, and then it would not initiate
with the views of our Democratic
who feel bound by the
platform which pledges them not to
vote for a greater tax than four mills.
| act with the Democratic party as
1t present organized and to certain
md, | hope, proper extent aclInOwl-
edge allegiance to it, but | owe to
my State and the great interests of
the people an allegiance higher than
any that party can impose. | should
leem myself recreant to the inter-
9sts of those who sent me here if |
should hesitate for one moment in
accepting this most liberal offer,
which in reality gives to the people
IF Tennessee eleven and One-half
millions of dollars. 1t is the duty
If this Legislature to meet this ques-
lion squarely and meet it Just ac-
,Ording to the bill presented by the
gentleman from Bedford (Mr. Frier-
SOM, which embOdies the COmprOm-
Sc offered by our creditors. We
,annOt afford to leave this capitol
providing for the settlement
Of this question. | say to the MEM
Ders of this General Assembly, go !
nome if you can and tell your people |
hat you voted it down, that you re-
used a gift, if you please, offered to |
hem of eleven and One-half millions |
If dollars, to be credited upon their |
Indebtedness, and you will witness
disappointment in the cOuntenance |
If every good man, The day will |
'ome, just as certain as | stand here |
O-day, when you will regret it. | |
all upon members to remember this /
In the future, when /
ome of you will be candidates for
,tfice, | expect you to call on me
md those with whom | act on this
question for certificates showing that
7ou never did oppose this compro-
Mise. Just few days ago the House
will remember that while the gen
leman from DeKalb (Mr. Ford was
this committee, the gen
leman from Giles (NIr. TaliaferrO)
sked him if he was not a member
# the General Assembly of 1859,
When the issue of about ten millions
# these bonds was authorized, and
f he raised his voice AGAINST if and |