The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1867-12-06
The Liabilities of the State.

The Liabilities of the State.
We have not met with copy of the Report
of the State Comptroller, and are indebted to
the Nashville Banner for the facts and figures.
drawn from that document. recorded below
They will be found instructive and suggestive
to all engaged in industrial and other pursuits
upon whom the burden of taxation falls. We
trust the length the extract will not prevent
the reader from giving 1t candid pcrusal:
Two years ago the State of Tennessee owed
on account of Turnpike Roads. State Bank.
state Capitol and other things, S3.3i3,SO6 &C,
and on account of Bonds to Railroads Sl3. 222 =.
600. Since that time our present State Govern
incnt has piled up I'M additional railroad debt
of S1O,3i9,OM. anu additional debts otherwise
of OLD !l2 making our entire state liabil-
ity, actual and contingent, ut this time. 3d.
5G2, 1923 ~. Thank God, this has not got to be
all paid ut once. Perhaps even the interest OF
1t may not all have to be paid by the state next
year. The railroads may do something to.
ward paving the interest on bonds loaned ia
them. They are. without Il single exception
managed by practical, energetic men, who are
straining every nerve to meet their liabilities
but so heavily have financial cmbarrassments
oppressed them, that they not only owe the
state S7lD.3Ol Al of interest that they should
have paid last year. but most of them are four
or five months back in paying the wages OF
their employees. 1t is clear, however, that
next year Tennessee will have enormous debts
to pay. Let us see how much.
We will not, it Is to be hoped, have next
year to pay. rs we paid last year. sl04,5D5 4!
for State Militia. nor l53.2OG OS for Mctropoli.
tan Police. nor SlS,5S6 40 for II Frazier I'm.
parchment ease. but will have to pay for the
ordinary executive expenses rs salaries. print
ing, charities. and the like. ut least as much rs
last year, and this will he about SGS0,O00. We
4. I ...t...
Common Schools. us the money has been col.
lcctcd for that purpose, and Is roughly cstima.
ted at 1897 .0O9 66. We will have to pay the
interest on the State debt. and this will bt
S171.1li -. We will have to pay the bonds
that have already maturcd and have not beer
paid, and this amounts to 1916, 1866 6G. W.
will have to pay the State debt proper that
comes to maturity in 1865, and this will be 81,
2Ij,OO0. Perhaps there are other items we dc
not now remember. but these alone amount tC
I'M aggregate of debt that must be met next
year by the people Of Tennessee. and consti
tutc the enormous sum of S3,SSj.20O OF. We
can dodge paving the schools, and may per
haps cut down the other items a little. but
there's no lodging the bulk of this debt. with
out sacrificing the credit of the state. Even t.
fail to support the common schools would bt
disgracrful.
If the supreme Court of the United State,
decides. as ninc-tcnthS of the lawyers of tn,
state believe it will decide. the Tennessee Stat,
i'nrl: note case. then the State will have to re-
deem by taking for taxes S3.629. lOG of Trnncs
see Bank notes. of old issue, which are official
Is stated by the Trustee of the banks to he il
circulation. Some suppose that prompt col
lection of the assets of the State Bank woul,
liquidatc the old issue notes of the State Banl
even if there is an adverse decision, bur thu
Trustee says he has only S692.S9 A of asset,
in domestic bills, and S1S3,291 G6 in discount
ed notes. and moreover, there cannot he
NOT t all il..1,
that fifty per cent. will ever he realized from
such assets If the Supreme Court Of tn
United States decides that the State must talk
the old issue notes for taxes she will have tn
whole amount forced upon her before she cal
collect the outstanding assets of the Stat
Bank. Even if she could collect thrce-fourth
of the assets. the State Bank owes individual
dcpositors $1,ll0.,II3 40. and to other bank
$50. I6i rs, and large amount to other things
The State can't collect all these assets and pa,
her debts and liabilities with them to the cN
clusion of other parties. The only way il
which the State can possibly avoid having t.
take her whole revenue in unavailable stat
Bank notes. if the supreme Court of the Unit
ed States decides adversely, is to anticipate
such II possible decision and give long time
six per cent. interest bearing bonds for Sucl
notes. This would enable us to meet the una
voidublc debt with available means. Whl
are those means? Where do they come from
Our taxes come from real property, persona
property and privileges. There Is taxed il
East Tennessee 1.7oG,102 acres of land. in Mid
die Tennessee S.10+, ll3acrcS. and in West Ten
ncssre G,525,0l2 acres. This land, since 1865
has been taxed five times as high as in 1912
twice us much MS in 1880 and once and two
thirds rs much rs in 1861. The whole taNabl
property of the State is estimated ut $3.50 ,3J7
63l. In 1861 it was 1851, 477,Il6, but slave
Were then taxable property.
The entire revenue Of the State next yea
Ia, tnl ,n lar.
ger than it has been this. and we see that th
is 81 .S31,217 05. 1t is curious to trace the sour
ccs from whence this revenue came. Their
was S29O.79G 65 from East Tennessee. SI36, BOB
Is from Middle Tennessee. and 1910, III ., from
West Tennessee. From East Tennessee Their
came S254 ,GSl 66 for taxes on property. an,
S3G.114 90 for taxes on privileges. From Mid
die Tennessee there came S555,927 for taxes OF
property. and S1S0.376 10 for taxes on priv
lcecs. From West Tennessee there came S4Ib,
Do 80 for taxes on property, and S333, 300 IS TO
taxes on privileges.
sive that they are driving capital and bushes
from the State. Heavier taxation of them vii
Weld less revenue than is now obtained. j
there is an increase of taxation 1t must be Of
lands, which can't run away. This Will Civ
East Tennessee the butt end of the log to car
nv. Thus, if the tax on property is fifty cent
on the hundred dollars worth, instead of TWEEN
ty-fivc cents as ut present, East Tennessee vii
pay S545, ATS 81 instead of $3.50. I96 %, Will
West Tennessee will only pay 81 ,2S6, 4O3 G6. in
stead of SS10,177 81. In other words. the az
gregate taxes of West Tennessee will only b
increased fifty per cent. while those of Eas
Tennessee will be increased nearly one hun
bred per cent
Our space does not permit our pursuing thi
subject further at this time. On future occa
sion we may attempt to show how the presen
difficulties should be met.
p. S.-Snce the above was in type we hav
been Informed that it has been already propos
ed to authorize Governor Brownlow to horror
four hundred thousand dollars to pay the en-
suing January interest on the State debt. Boz
row-always borrow-and this they think
tinancecring.
TO,