Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1868-05-28

July interest would have been raiseu Dy
the issuance Of that amount Of gold bonds
with an interest not ever z per cent 50
that under the plan of the majority the
whole amount Of bonds would have been
] 1900, ,000a Under the plan Of the minoi-
/ ~ the whole amount Of bonds issued would
have been $3,00000O eleven hundred
thousand more Than under the majority
plan. The cost OF issniRg the three mil
lions OF dollars of bonds would have been
in fees 20 the Comptroller and Secretary OF
State $1,000. The cost Of issuing the nine
teen hundred thousand weuld have been an
| fees $500. a saving in fees Of $1,000 q
It is true the plan of borrowing money
for the Interest, and the pledging OF the
million of dollars as collateral was .abanT
dOned, (bal not until ] had nrged its aban-
| donment) aBd sll agreed TO borrOwlmoRey
for our July interest by a sale Of gold
bonds. s,.f.fEt.e s. asak
IL this should be carried out, then under
the plan Of the minority, when completed,
the State would have out two millions in
currencyand half million in gold bonds, in
all two and half million of bonds. Under
the plan Of the majority, the State would
have ont nineieen haRdred Thousand dol
lars of bonds, less than the amount Of the
minority S6O,000 and less than the present
bonded debt Of the State 100000, and
there would have been turned over 10 the
treasury of the State out of the proceeds
of the 81, 100000 of bonds S500,0O0 to pay
its July interest. Isl that scheme Of
finance most injurious to the State and
most oppressive to the taxpayer, that would
turn over 10 the treasury of the State $780,
600, and instead Of increasing, reduce its
bonded debt 100000.
All having agreed TO issue the half mil
lion gold bonds to pay the July interest,
the only point of difference was the pro-
priety Of renewing the maturing debt of
the State, (which is two million of dollars,
with thirty years six per cent. currency
bonds, or exchanging it or an amount
equal to it for gold bonds at seven per
cent. interest or less. This purchase or ex-
change could have been made at seventy
cents or less in the dollar. If made at
seventy cents, the whole amount of seven
per cent. gold bonds out in place of the
two millions would have been 81, 100000.
If the plan of the minority be adopted
and the two millions renewed, the whole
amount of bonds out under that plan Wouii
have been two millions of dollars, by the
plan Of the majority there would have been
saving in the bonded debt of the State Of
5000, 600. .... .....-
And as TO the question of interest of
seven per cent. gold interest, should aver
age nine per cent. in currency for period
of thirty years, which scarcely any one can
contend for, the loss in interest would be
&knfAn 10 Init fha IN ha
cipal would be 100000. III the seven per
cent. gold interest should average eight per
cent. there would be an annual saving of
interest Of $4,000. If it should average
seven percent, the annual saving would
be So, ,00Qs II it should average six per
cent. theannnal saving wouldbe $36,000. SO
that the financial plan ofthe majority would
certainly save the State 100000 in its
bonded debt, and would almost certainly
save 1t large amount annually in interest.
We will try 10 make this clear by the fol-
lowing figures: .... - ...
Maturing bonds renewed with six
per cent currency 900 900 90
Maturing bonds exchanged for gold
400 900 90
Saving in the bonded debt.......S GOO. 900 90
Annual interest on the two millions
SIX per cent. bonds .............. 8 10000 90
Annua! interest at nine per cent on
S,iO0oHO gold bonds.................... l25OOO 90
Loss ia interest t.......,.. ............s 6 600 90
Annual interest on the two millions
bonds at six per $4,000 90
Eb5nds at eight per osnt...,.,:.e,...,$ n2OOO 90
tss;gEa to the State in interest......s 5000 90
hGS49linterest on the two millions
tsesas atsix per oent....,,...........t 10000 90
bonds at seven per cen;.,,,,.........., 5000 90
Gain to the State in interests % 900 90
Annual interest on the two millions
bond; at six per -. S $4,000 90
| AnnualiuteresJ on the 81 400 900 gold
bonds at six per cent................... $4,000 90
Gain to the State in interests 30 900 90
Although the bonds of !he majority are
| called gold bonds, it must be remembered
that when specie payments shall be re-
1 sumed, or when greenbacks are no longer
| a legal tender, the bonds Of the minority
are "a much gold bonds as the bonds of the
majority.
There is another important difference in
the plans Of the majority and minority.
The State under the plan of the latter
which is 10 issue bonds for thirty wears
without privilege of redemption is ire
vocably bound to pay Sl20,000 a year for
annual interest for the next thirty years
| Under the plan of the majority the bonds
are payable at the end Of thirty years, but
the State has the privilege of redeeming
them at the end of five years. Should a
favorable change take place then in our
monetary affairs or shonld the credit of the
State have that high position in the public
confidence which she ought 10 have she
could then take upl her seven per cent bond.
with new bonds at a lower rate Of interest
all the advantages are reserved TO hel
under the plan of the majority.
The simple is this, is it better for the
State to have a debt of two millions o
| dollars with an annual interest of $4,000
which it cannot gel rid OF for thirty years
or is it better TO have a debt of fourteen
hundred thousand with gold interest al
seven Of which interest after FIVE years may
be changed to acurrency interest, and which
may be reduced to six per cent or less.
That it can be reduced to six per cent OF
less, soon after i've years, there can be bu
little doubt. For by that time, our rail
roads that cannot pay their interest will
be sold, and the remainder will be com
illeted and prosperoesly operated, and
paying their interest. Our State will theE
certainly have recovered from the calami
ties Of war, and her great resources largely
developed by the Snduslry aud energy o
her own citizens and by the hundreds o
thousands Of emigranis that will hav,
come into her borders
When that day shall arrive, does am
Tennessean doubt that the credit of IN
State will be rs high as any State in th,
Union or even IA the Federal govern
ment; and If 1t is she can 90 into the mar
ket and borrow money al a reduced rate o
interest. All the State nov needs is sucl
a system Of finance as will carry her sAfell
over July, for her Legislators have mad
ample provision by increased taxation q
meet all deficiencies on the part of rail
! roads that may occur after that period.
, Ia addition 10 this legislation, IL ~
pears from Gov. Browniow's circular an
, letter IN the. Press and Times of to-day
that he is taking the most vigorous meas
ures 10 ensure the prompt payment Of %
terest by our Railroads, and that he wi
recommend 90 the next Legislature
check the increase of the public debt by
{ changeiu the constitution, and that he St
: also recommend the sale Of all railroad