Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1880-09-15
The state Deb,.

EDITOR LEDGER The state debt
question has been before the people a
long time, aud has been discussed so
thoroughly and extensively that il
would seem that by this time all had
made up an opinion aud determined
how to act with regard to it, But we
fud many in doubt and public opinion
much divided, and the end Of the
vexed question farther from solution
than ever before.
Ii is most unfortunate that this
question should be made or considered
a political one. Most men follow po-
litical parties in reckless disregard Of
any sound principle whatever, in pol
tiles, morals or religion.
A matter Of debt once incurred,
becomes a purely business affair, and
cannot be seer 10 its true character
through democratic, republican nor
greenback glasses. Policy, aVailabili-
.ty, prejudice, prediction, these chief
iormatives that make political parties,
are not wanted in an investigation of
mere legal or moral question like that
of tbs state debt. and no honest man
will yield his convictions as to what
justice, honor, wise and judicious
policy demand, as 70 matters Of
debt, to the dictum Of any political
party.
Looking then to the question Of the
state debt, or particularly, what is
called the the railroad debt, in disre-
gard Of the platforms Of all parties on
the subject, many Of US have reached
the conclusion following:
/. The debt is, legally considered, a
valid debt against the state, and could
be enforced throughsny court Of com
petent jurisdiction. But that legal
fiction that allows a state to contract,
With every observance OF legal form
aud principles, and in defiance of the
contract interpose its sovereignty to
defeat a legal claim under said con,
tract, makes a state debt practically
a debt Of honor, and colleetable only
by and with the consent OF the state.
2. Being then practically a debt of
honor, it becomes a subject Of investi-
CATION rs to how much of the debt the
state is in honor bound TO pay.
3. Such an investigation will involve
an inquiry into the history end nature
OF the debt, and would properly en-
brace all the equities of the case.
The equities Of the case embrace
prominently the facts following: That
the railroad debt was created ia aid
of railroads and state bonds consti
tuted 3 large proportion Of the means
used 10 their construction. That
while these.railVoads have augmented
the wealth Of the state and their con
%struction was a worthy object Of state
aid and encouragement, yet there are
none Of these owned by the state; that
most OF then thus built have changed
hands and now Lost 70 the original
stockholders are owned by corpora.
tions foreign 10 the state, and were
purchased &C sumo considerably below
! their value; that while gme OF the
bonds were issued In perfect complir
ance with the law regulating their
issuance, many Of them we're issued,
sold and used 10 violation Of the law;
that some Of them arc Tor wal interest
aud as such are not supported by a
good consideration in law or equity,
that many bonds aro owned by limo
cent purchasers who hold them for
full value paid: that the debt aggre.
gates a very large sum, out Of all rea.
sonabls proportion 10 the wealth Of
the state, aud It's payment in whole
would Cypress the taxpayers very Sc.
riOusly and bear heavily on p0sterity
8. A debt OF honor, complicated
with all these equities and money mel
becomes very properly and naturally
a matter Of eompromise.
6. A compromise when made
should have all possible validity anC
should be final, authoritative and ob
ligatOry on both parties to the agree
ment
Z. Such a compromise would EN-
brace, as parties to it, the payor a
we'll as the payee; the debtor as vel
as the creditor; the people as we'll a
the boudholder.
g Even if such a mode Of settle
e ment should cOntravene democrati
[ doctrine or Legislative usage. the fac
= that in 1878 the people did vote al
reetly on the subject makes it policy
5 both 10 the state aud the creditors,
. repeat a reference to the people; 10