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

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! for which it has received value, are
not binding obligations against it;
| that the Legislature never had au-
thority to create debt by issuing
bonds. / lay it down as a correct
proposition, aud it is so plain a prin-
ciple that I will not troG bic N.Y.
self to produce an authority to sus-
/ tain it, that the Legislature of this
| State can do anything; that it can
! do all things in reference to the af-
| fairs of the State which are not pro-
! hibited by the Constitution of the
State or of the United States. The
Legislature is omnipotent in refer
ence to all things within the State
except those prohibited by the Con-
! stitution. The statement that such
| is not the case and that the Legisla-
! ture never had authority to issue its
bonds is like the denial of an axiom
and can need no proof to overthrow
/ it. The gentleman from Warren
/ (Mr. Savage) is the only member on
/ this floor, so far as | have been able
to learn, who denies the legal exist
ence and validity of our bonded in
! debtedneSs. There being no ques-
zion as to the legality of the debt,
/ lltCu NlldN Slletll We NlO W III II. WV
ing the debt as we do | hold that it
is our duty to settle it. | am one of
those who believe that we ought to
have provided for the payment of
! the whole debt because we owed it,
had received value for it and are able
to pay it. But our creditors gene
! r0usly offered to receive sixty cents
on the dollar for their bonds, and
now they have made a more liberal
offer still, to take fifty cents on the
dollar and to take other bonds in
their place, bearing six per cent. in
tereSt, the coupons on these new
! compromise bonds to be made re-
ceiVable for all taxes and dues to the
State. The creditors having volun-
tarily made the offer to compromise
and transmitted their proposition to
us through the Governor, | feel that
the State can honOrably accept it
and that it is our duty to do so. We
owe about tWenty-three millions of
dollars, in round numbers, and we
now have an opportunity to pay it
all for one-half that sum, and in the
same sort of bonds now held by the
creditors. except that the coupons
are to be receivable for taxes and all
dues to the State. 1t is objected by
some that the coupons are to be SO
! receivable. | can see no objection
to that feature of the compromise if
we intend to pay the debt. 1t IS
scarcely probable that the bond
holders would be willing to give up
their bonds, which call for par and
bear interest at six per cent. for one
| half thnfr TNpnEnTt fqRD NrAiIJn will
no greater security. 1t does not look
reasonable to expect it, and it is not
! Just to require or demand it. But
it has been argued that the Consti-
+! tuition does not authorize the making
of these coupons receivable for taxes;
that such provision would be an
abridgment of the rights of the citi-
zens of the State and therefore OBJ
nOXious to the Constitution. [ hold
| the very reverse, and insist that this
! Legislature has the legal and consti-
/ tutiOnal right to make the coupons
/ receivable for taxes.
Mr.. Collier-Will you vote for the
| Frierson bill?
Mr.. Smith-MOSt unQueStiOnably
| If the State holds a claim or debt
againsta citizen and the citizen holds
| the bonds of the State and cuts from
| the bonds coupons which are due
and offers them to the State in pay
ment of what he may owe, is it not
/ right for the State to receive the
| coupons as a payment? Is it not
/ the duty of the State to enact such
! law? Does not fair dealing and
common honesty require that we
| should provide that when the tax
collector calls upon the holder of our
coupons for his taxes that he shall
have the right to discharge his taxes
with the obligations which he holds
against the State? If he should owe
! more than the amount of his cOu-
| pOns, of course he must pay such eX-
cess. Is not this right? Is it not
| honest? II / go to the gentleman
from the county Of Lincoln (Gir.
/ TOlley), who sits hear me, and he
/ should present my note for payment
/ for II 600 and ] should happen to
I have his note for $500, does anyone
/ say that he ought not to receive his
note for $500 in part payment of
what | owe him ? Or shall ] be
| made to pay him the whole amount
of my note and be forced to retain
the note | hold against him? If
that would not be right neither
would it be just to require a creditor
of the State to pay q debt due to it
while he holds a just claim against
it. If [ am right about this then
there can certainly be nothing wrong
or unreasonable in making the cOu-
pons on the bonds Of the State re-
ceiVabIe for taxes. That the Legis-
. l H., II. j - ;
make them so receivable is unques- |
tiOnable; the Legislature can make |
anything receivable for taxes. | am
told that in Virginia at one time to-
baGcO was made receivable for taxes, !
and in Maryland some other farm |
product was made receivable in dis |
charge of all taxes to that State. In
Tennessee the scalps of wolves, wild !
cats and red foxes are made receiv- |
able for taxes, and if they can he |
made legal tender for taxes why |
may not our own coupons or bonds? |
Mr.. WilsOn-WOuld you hold to |
the position that it would be COM |
petent and good policy for the Leg /
iSlature to say that fox skins and |
wolf scalps should be forever re- |
ceiVed for taxes and never change it? /
Mr.. COlyar-I want to call your |
attention to what is the difficulty |
with me. The point is this
Whether OF not it is the theory of /
our government for the Legislature |
for every two years, under the pc |
cuniary condition of the country, to |
fix the tax for the next two years,
determine what is and what is not |
the ability Of the people to pay? Is
it not abridging the right Of the
people to fix it for thirty years?
Mr.. SMITH am prepared to an
swer the question. The gentleman
from Davidson (NIr. Colyar) yields
the point made by the gentleman
from Sumner (NIr. WILSON,.
Mr.. COlyar-I beg pardon. The
gentleman from Sumner puts it as a
question Of policy and l as a ques-
ton of necessity.
Mr.. SMITH suppose the Legis-
lature enacted the law making wolf
scalps, fox skins, etc, receivable for
taxes from wise motives of public
pOlicy-for the purpose of making
it an object on the part of the people
to destroy those animals, because
tbpV are Destructive TO other DrO-