The weekly herald. [volume] (Cleveland, Tenn.) 1876-1888, 1881-03-11

INV N'ltlHllrblh Afu Allt l~NNll Oh Us /.
tilors. In the light Of experience, "a
~ ihcnrIinary yours OF human even
c tile indemniiics Intended 10 project 1
d State against loss, were deemed by q
e most saglciOus rs amply suiicicut.
one then dreamed OF tie |apprUachil
ciyil war. No human sigaCiiy cJu
have fyrcscen IL.
: Up TO che time that Tennessee bccaI
. involved IN this war, bonds 20 anouU
OF SD, 9IJ 900 had been issued iE aid
. the various railroads IN the State. aI
a so far Lat few OF them had failed
. promptly provide Tor the interests "a
70 crniug upon the bonds loaned them au
r no doubt was then felt but hiatt Ic lic
, held 10y the state WAS ample |securii
against ultimate loss.
In 1855, as oar state began to emery
from The darkness and horrors whic
had 20 long hung like a pail over II
fortunes; rs it came forth crippled
bleeding, ANA mourning the loss o
many OF its strong supports, the gcncr
al assembly, looking around for mean.
10 restore Ou. former prosperity, aut
TO save the SCllc from the loss of ia.
large investments it had made In loan
ing It's credit to the various railroad
companies, determined TO restore the
credit of our state, and TO reconstruct
alrl r"iiabilitite our roads. In this de-
termination il but reflected the general
desire of the great body of the people Of
the State i.iout distinction OF party.
Bat hOw was II 10 Gc accomplished.
Interest had accumulated upon our
bonds during the war, and remained
unpaid. The railroad companies were
utterly unable to provide for the liabil-
tiles. Tre State Itself WAS without rev.
euueS, and Was again compelled to re-
sOit 10 It's credit in the money market
ofthe world. The good name Of our
State aided in this emergency. The past
due Interest was luhdcd, the honor, the
faith and ere liz 0tihe State being sol
emily pledged for the payment OF prin-
Cipdl aud imtercStOf new bonds issued
TO rebuild our rOads, and place them
once more in condition 10 aid in bnild-
ing up the great agricultural, CONNER
cial, and industrial! interests Of the cUun
try.
The funding aud new bonds issued
~ ~ NTFAliE NtNlll VI lllt Ntlllill Y
sweIled On bonded liability as reported
by the Comptroller at january list, 1871
including claims of the United State. Tor
rolling, material, etc., purchased by the
State Tor the use of the Edgciicld and
Kentucky Railroad Company, and the
Memphis, GAINESVILLE and Louisville
Railroad Company, and all unpaid in
terest to that &ate, y37, 004, O97.90. This
sum also included bonds endorsed 10y
the State for various railroad compa-
MES to The amount Of$2, l72, 0J0.
Deducting from the aggregate sum
the bonds held by the United States
before mentioned ,$55l ,Olj-
%, and bonds endorsed by the State rs
mentioned, 81, ~, O00 leaves the
actual bonded debt ofthe Stateat that
date, on account Of bonds issued to rail
road companies, including, $3j, 0Gl ,Ojl-
Is.
The funding act of March I7th, 1873,
authorized the funding ofail past due
bonds and coupons, aud for registering
all bOHdS not then due.
Since the passage Of this act, the debt
been largely reduced by the sale
NCllJ OdlN, IilNi'I kNCltCS Oi
the chanCely court at Nashville.
As the accountnUW stands, including
interest to JANUARY lst, 1851, it amounts
o $2G,337, $50.
Until Il comparatively recent period
he moral and legal responsibility Of
he State for the payment o thcsc bonds,
md the interest thereon, has hot been
seriously questioned. They were is
sued in pursuance Of the plain provis-
Ons Of law. They bore the great seal
If the State of Tennessee, ANA the sign
manual of her hOnored governors. Tie
various political parties WED with each
Jther in formulating positive and cm-
declarations in favor OF main
"the faith and credit of the
Our public presses and other
Of public opinion in Tennessee
gave expression to the same views.
Capitalists have been induced, by our
sacred pledges, to pay the bonds and by
,ur repeated acknowledgement Of their
'alidity, to invest their money in them.
We are in the full enjoyment Of the
blessings contemplated by their issu-
,nCc.
They were once regarded as the best
# securities, therefore guardians hold
ng the funds belonging to their infant
wards were authorized to invest the
anne in these securities. Many ofthcm
re to-day owned by our citizens. I'm
il recently, perhops, no insult would
ave been nor keeuly felt by an intel
igcnt citizen Of our State, proud Of her
,O0d name, than the i]nsinuation Of a
upon tho part Of the people to
epudiatc her just obligations. AL
hOugh we have paid no interest upon
.ur public debt, except upon Il few
peciied bonds, for II period Of five
ears, | yet have confidence in the in
egrity Of the masses Of the people Of
f Tennessee, and their Willingness to
ear all just burdens to the extent Of
heir ability.
This estimate Of the herOism ana
cnse Of justice Of our people is strong
Y fortified by The fact that their repre-
entatives in the general assembly Of
S12-3, while admitting va inability
or the prompt payment of the interest
asst due, and providing for the funding
/ into new bonds, made the following
trong declaration; "Ilat the faith,
onor, and credit Of the State is hereby
lodged for the prompt payment Of
aid bonds at maturity, and for the pro- ;
iding sinking fund for that purpose,
nd for the prompt payment Of interest
n said bonds, rs well as the interest on
he registered bonds hereinafter pro-
idcd for, commencing with the inter
st to fall due OF the LIST day Of July,
ST..
Now it must be remembered, that I'M
er this solemn pledge, made with all t
he foymalities Of law by the legislative
uthority of the State, and approved by
he Governor, the holders Of past due
onds and coupons surrendered them
nd accepted our new obligations, and
early the entire bonded debt Of the
tnip was Dlnppl uuOn the basis of This