The Sweetwater enterprise. (Sweetwater, Tenn.) 1869-187?, 1869-12-09
The Interest on the State Debt.

This is a question of serious import, in
the present embarrassed condition of the
finances of the State; and one that should
receive the earnest consideration of the
Legislature. To that body the people
have entrusted their honor and interest;
and every effort consistent with the duties
and rights they are under to their con.
stituents, should be made to preserve the
honor and integrity ofthe State. Tenncs-
$50 nds heretofore maintained a high char
acter among her sister States. From cir
cumStances beyond control, growing out of
the war, her finances have become embar-
raised. The two preceding Legislatures
Attempted to meet the interest upon the
State debt, first by funding that which
had accumulated during the war and by
increasing the rate of taxation. They
were compelled to largely increase the debt
to put in operation the railroads that were
broken down during the war, and in which
they had so large an interest; it became
necessary to do so to save the amounts
that had already been advanced. Whether
the policy was right or wrong is no longer
an open question. The bonds we're issued,
and they have passed into the hands of
innocent holders; and the State is bound
in honor to pay the accruing interest.
| propose to show from the report of the
Comptroller that by proper legislation, the
ACQUIRING interest can be paid, and the
honor and credit of the State saved, with
out increasing the rate of taxation. The
interest due on the LIST of July, 1869, is
Sl,l00,0O0; ditto due the lst Of January,
1870; Bank of Tennessee, say 2 ,000, 600,
making $3%,lOO,OOO. Balance against
Treasury for fiscal year ending 30th of
October, 1870, would be-: the claim of
Messrs. Ward 4 Briggs, 100000; out
standing warrants due 30th October, 1869,
100000; borrowed money due 30th Oc-
tober, 1869, 100000; claim of the United
States against the Memphis Charleston
and Louisville Railroad Company, $5ll,-
$50, State interest due July /, 1870 ST.
l00,O00-making in all the sum $2,276,-
$50. To meet this debt the taxable prop
crty of the State is, say $225,000, 900.
At the present rate of six mills to the
dollar, revenue is 81 100000. Deducting
expenses for collecting, 100000, leaves
$l,l50,000. Add from taxes on privileges
and polls $730,000, and amount from Rail-
roads 100000, making $2,68O,O0O. De-
duct from this amount current expenses of
the State $400, 000, leaving $2,290,000, to
pay indebtedness of the State at the end of
the fiscal year 1870.
By assessing the State tax, on property
at twelve mills to the dollar, and on priv
ileges in like proportion, payable in Bank
of Tennessee paper; and at six mills in
national currency, the amount would be re-
allied in par funds. The levying Of taxes
is an act of sovereignty, and the State can
not be controlled in the exercise of that
right. Taxes arc not debts. This ques-
tion is no longer an open one, as settled by
the Supreme Conrt at Washington in the
case of clone VS. the State of Oregon" re-
ported in Z Wallace; in which it was held,
hat the State had a right to levy a tax,
payable in kind. The debt of s4,200,-
600, for the Bank of Tennessee, and the
unpaid interest, could be funded. The
holders of Tennessee paper, under such a.
policy, would gladly receive the bonds of
the State. They are principally in the