Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-12-12
TO PAYING RAILROAD.

| 10 HOS-PAYLsG RAILROADS.
| Edgeheld and Kentucky. ll7Oi67 8;
| Memphis Clarksvie and Louisville. 1,Sl4, 500 On
| Nashville and Northwestern. ......... 36lt $50 0(
Cincinnati, Cumberland Gap and
Charleston. ...................... 1,4Ol,ssO OF
| Knoxville and Kentucky ....... .... 1888, 800 on
McMinnville and Manchester. ....... S51, 800 On
! Rogersville and jefferson. 423,16a OF
Winchester and Alabama. ........... 49,, $50 "
Memphis and Little Rock, endorsed
| Donns., ....-.--- ...........- 4o0,OOO Y
| Evansville, Henderson and Nashville 100000 Of
Carolina ..-................- 100000 o.
Southwestern. ACKNOWLEDGEMENTS. 387, 900 q
Total debt of non-paying railroads Sl4 626 276 8;
Total debt Of paying railroads. 15,34S,76e u
s29,975,O a6 g
State debt proper, with interest
| funded ,..-.-.. .---.-.,..-. 3,415,l0o Ok
$a3,44s,2O3 It
The above table includes every dollar OF
the bonded Indebtedness of the State up
to the date of the COmptroller's report,
and it also embraces $455, 900 of the
endorsed bonds of the Memphis and Little
Rock Railroad. These are Clsssed with
the State bonds, because the State has
been compelled to pay the interest on
them.
| The table does not embrace the bonds
of the East Tennessee and Georgia, the
East Tennessee and Virginia, and the
Nashville and Chattanooga Railroads, en-
dorsed by the State, because these roads
have always paid the interest on their
bonds, and there is not the slightest proba-
bilty that the State viii ever be called on
to pay the interest or principal of these
bonds. From the above table it appears
that the entire debt of the State IN bonds
is $50, AS, 203.26 The annual interest
on this debt, at six per cent, would be
| $2,006, S92, 10, but part of the debt bears
an interest of five per cent, so that the
| entire annual interest cannot exceed 81
600, 900.
How can this interest he paid?
In the above table the railroads owing
the State are classed as paying and nom
| paying roads. have embraced as among
the paying roads the Knoxville and
Charleston road. This road has recently
been leased to the South Carolina Rail
lima Railroad, which has bound itself to
| pay the interest of the Knoxville and
Charleston road on its debt TO the State,
and to complete the road. The future
payment Of its interest is therefore in
| sured.
The debt owing by the paying roads is
| SIS, 34S, 1875, the annual interest on
which is 1920, 926; deducting this from the
81, 0O0,O 900 annual interest to be paid by
the State, would leave s1,079,O 74 to be
provided for
The annual revenue of tina State, exclu-
sive of the school tax, up to Sept. 30,
1859, from polls, property, Clerks, and
insurance and express companies, was
81, 4S7, 500. This would pay the ST.
079,0 of interest which the State has
to provide for, and leave $4OS, 5S5 to
pay the annual current expenses of the
State, which is clearly shown in the fol
lowing table:
Annual receipts from taxes, etc. s., 4S7,6 SOC 90
| {" Railroads for int 92O,926 90
S2.4OS,5 s5 90
Deduct annual interest on bonded debt 100000 90
Leaving balance for annual current
expenses -.................... s4GS,555 %
1t is, therefore, beyond all doubt that
the receipts from the present revenue
laws, if unchanged, and the receipts from
paying railroads, will be amply sufficient
to meet the future interest on our bonded
debt and to pay the current expenses of
the State, and if there were no other debts
owing by the State, our financial cOndi-
ton would not be a source of any I'M
easincss.
But, in addition to this bonded debt,
there are other debts pressing upon the
State, and these debts are really the in
cubus that is now weighing US down.
We shall owe for interest on our bonded
debt on the LIST of June next 81, 900, 600,
and on the LIST of July next $4,000, 600.
We owe for State Bank issue 81, 500, GOO.
l place this at 81, 800, 900 because a good
deal of what are called old issues may
prove to be new; because a very
large 5amount of the issues of the
bank must have been destroyed,
and because the dealers in Tennessee
money, who are men of great shrewdness,
do not estimate the old issues of the bank,
now in the hands of the community at
over $l,00O,0OO The entire indebted
ness of the State then would be, besides
the bonded debt
Intrst on bonded debt TO July 1870, S. 100000 OC
Liability for bank Issues. ........... 100000 on
l OUTSTANDING WAGTEDL8. . E5oOJO W
Penitentiary ....-................ 100000 o.
Inar.................. S4,99s,OOO q
have left out the debt assumed by the
State for the Edgefeld and Kentucky and
the Memphis, GAINESVILLE and Louisville
Railroads, because the State has not be en-
pressed for its payment, and because it is
uncertain whether the State is liable for it,
How shall this pressing debt (of 81,
998,0OO) be provided for? For the
interest due up to July next, l would
tender the bonds of the State dated
July /, 1870, having so year;
to run, and redeemable at the plea
sure of the State after three years.
This would add three millions to the
bonded debt of the State, and increase
the semi-annual interest $50, 900. The
interest being funded up to July next, the
State would owe for interest on the Isl
Jan. 1871, S1,010, 900. This interest car
be paid as follows:
The paying Railroads will owe for iu-
terest on LIST Jan. 1870. $500 46;
Jan, 1871 900, 92f
In NEUTRALITY-SUSPICIOUS. 1, 3s1
Deduct interest due on State bonds from
Jan !, 1871 1O9O,O OC
Leaving to be applied to July interest," 1871 SEA, SIS
Add interest from paying Railroads from
JAN l, to July l, 1871 O,46S
Total for July interest 1871 ......... s751, s53
By funding the interest to July next II
will be seen that the State will be able to
pay its interest up 90 January ],
1871 on its bonded debt, when
increased to $50, AS, 2O326 out OF
the interest that will he due from
paving railroads, leaving balance of
1851, 852 towards paying the July inter
est of 1871, without drawing upon the
State Treasury for one dollar But this
cannot be done if the Legislature suffers
the railroads to pay their interest in de-
preciated State bonds or in deprecated
coupons. This interest should be held
sacred for the payment of the interest on
the public debt, and the roads certainly
have no higher claim for paying their
debts in deprecated bonds or in deprecia-
ted coupons than other debtors TO the
State have; but yet learn that bill is on
its passage, almost without opposition,
giving them this exclusive privilege The
remaining debt of the State is for Tennes-
see Bank notes, outstanding warrants and
the penitcntiary. The outstanding bank
notes arc estimated at $1,000, 900. But
the bank will collect fully $500, 900 Of
this amount by or before the LIST of July,
1871, which will leave only 81, 200 00
to be redeemed by the s'ate. This viii