Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-12-03
THE INTEREST ON THE
STATE DEBT.
can j. Be Paid without I1s or


Can ID be Paid without ITS OPP
pressing shc People
To the Editors of the Union and American:
This is 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 peo-
pie have entrusted their honor and inter-
est and every effort consistent with the
duties and rights they are under 10 their
constituents, should be made to preserve
the honor and integrity of the State.
Tennessee has heretofore maintained a
high character among her sister States.
From circumstances beyond control,
growing out of the war, her finances
have become embarrassed 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've compelled to largely
increase the debt toput 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
w SAVE luC dillOuiltS llldl lldu dlIEdNlN DtGn
advanced. Whether the policy was right
or wrong is no longer an open question.
The bonds were 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
accruing 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
81, 100, 900; ditto due the LIST Of Janu-
airy, 1870 ; Bank of Tennessee, say ST.
600, O00-making $4,000 900. Balance
against Treasury for fiscal year ending
Both of October, 1870, would be- theclaim
of Messrs. Ward g. Briggs, $207, 900
outstanding warrants due 3Oth October,
1869, 5000, 900; borrowed money due
3Oth October, 1869, $16O, 600; claim of
the United States against the Memphis,
Charleston and Louisville Railroad Com
pany, $5l1, $50; State interest due July
|, 1870, 81, 100, 000-making in all the
sum 81, 276, $50. To meet this debt the
taxable property of the State is, say $225,-
600, 900. AT the present rate of six
mills to the dollar, revenue is 81, $50, 600
Deducting expenses for collecting, $780,
600, leaves $1,125, 900. Add from
taxes on privileges and polls
$3.50, 900 and amount from Railroads
$500, 600, making 81, $50, O0O Deduct
from this amount current expenses of the
State 100000, leaving 81, $50, 900, 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
eleges in like proportion, payable in Bank
OF Tennessee paper; and at six mills in
national currency, theamOunt would beTe-
allied in par funds. The levying of taxes
is all act of sovereignty, and the State
cannot be controlled in the exercise of
that right Taxes are not debts. This
question is no longer an open one, as set
tied by the Supreme Court at Washington
in the case of 'LOne VS. the State of
Oregon" reported in Wallace; in
which it was held, that the State
had a right TO levy a tax, paya-
BILE in kind The debt of $4,000
600 for the Bank of Tennessee, and
thC uupdlu lutcIcSt, COulu De IuUQtU. Inc
holders of Tennessee paper, under such a
policy, would gladly receive the bonds of
the State. They are principally in the
hands of spectators; but a small sum
would be paid to collectors; and the in
terest could thus be met that would &C
crue after January, 1870. Within the next
two years the defaulting railroads would
be sold and the debt greatly reduced.
Consequently the taxes, after that time,
would be greatly lessened. If such
policy should be adopted the amount paid
to the common schools would have to be
Withdrawn for d short time. Let those
counties that wish the school system car
ried out, have the right TO levy tax for
school purposes.
If no effort is made to pay the interest
on the debt, it is equivalent to repudi-
alton, and { stigma will forever be
fixed upon the State. Interest is a con
stantly increasing liability, and if per
United to accumulate, will not in the end
be met. To make no provision for the
debt is reputation. Let the members of
the Legislature determine to meet the debt
as men to whom such high trusts are con
tided; they will be retained by their con
stitutents, and their acts will meet the APP
probation of all true patriots LoI