The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1869-07-02

/ =
The aggregate of the State debt IL estimated
! mt about S40,000,000. Ofthis sum, it is cstima-
ted there is funded in the
Bond, running to maturity, 81 S96, 900 900
Que on account of July interest, 1,100.000
9 Money bor'd in n. Y, 100000
| School fund.- which the ~
state has used and must replace / 900 600
Due on account Of matured bonds
unfunded, 1,OOO, 900
Due onaccount of Penitentiary and
Militia, -. +. 100000
TotM Indebtedness estimated at Si0,O0O.0O0
Annu1 int. q per ct OH Sl0.000,000, S2.400, 900
~ penses of Government, 100000
$330O,000
Sources of Revenue less School Fund
proportion, taxation. privileges,
&c. rs per Comptroller's report of
December. 1868, Sl,2055i49S
ANTS paid by railroads, about 100000 20
. S2,005.54i.9S
Annual deficit, S1.29l, ,i55. .O2
From this exhibit, it will be seen there
is All annual deficiency in the State
Treasury Of largely over one and a
quaHer,millioni dollars, which will pro-
bably be, increased by the decision of
the Supreme Court, making the State
liable for the three millions dollars of
notes 'of,the' Bank of Tennessee, now
outstanding and this in'the face of the
present taxation, which is quite as
heavyias the people can bear. .' ,
l. Now as totthe remedy: it is. certain
that'no relief to the State eNchcquer
can be,had bvincreaseno taxation, for
there,is not statesman in the land who
would venture to hazard the expert
mentiof adding furtherrburdcns TO an
already ovcr-taxed people. 81.
The next remedy proposed by some
Isl the sale ofthe nonlinterest paving
Railroads. What relief does this prom!
ise r. None atall. Ifthese roads (manv
of them in hu incomplete statcy Iwcre
advertised for,salc, they would lscarcelv
bring the expenses attending the sale,
much less the State lien on them
Where could companies of sufficient
WORTH be found TO take hold and pur-
chase these roads: The answers plain.
Nowhere! Aud the,roads, if force,lito
sale. would pass out of the hands of
the State for nothing or the next thing
to nothing. thus leaving the State lien
| unpaid, and the outstanding bonds Of
the State constituting grinding and
perpetual burden upon the honest labor
and industry of the State; or else to soil
the fair fame of our glorious old mother,
with the disgrace Of reputation.
To arrest calalnitics pregnant with
evil, should be and no doubt is the
earnest desire of every true son of Ten
neSsee. Allow me, therefore, to sug-
gest the following remedy for the con-
sideration of the people:
lst. Instead of attempting TO sell the
non-intcrest paying roads (Which is
impraOticable) | propose that the Leg
islaturc pass law creating preferred
stock ip all such roads;'a and place it in
the hands of the Comptroller to be en-
changed for the matured bonds of the
State, dollar for dollar.
ID. Let there be nofurther effort on
the part of the State'to pay the interest
until the bondholdcrs come forward
and fund the bonds into the stock of
these roads. {" a." e.: $50" "
:. This, although itmaya at first appear
| in the light of bad faith OH the part of
/ the Stale, nevertheless, whenthcmatter
| is viewed from the eproper standpoint.
| it does not present such objections.
For instance, the epresent holders, OF
by far the largest portion of the bonds
of the State, obtained them atvcrv low
prices, giving in exchange the very ma
terials which went into the construc-
ton of these roads, and these ewere OK
changed for bonds at low prices, and at
high prices orthc materials. jic'
This plan would give to- the bond
holders the first lien on all the property
for which the bonds were sold; added
TO which, is the amount contributcdlby
the individual stockholders, which is
also given under IL prior lien to the
bondholdcrs. .,
Sd. How long would il REQUIRE to sus
lipend payment of interest in order to
fund the bonds in the stock of the
roads? Probably two to three wears :
and while this is being done, | propose
Ito first paw the borrowed money which
| the State owes next, propose to use
any ,sugplus that might arise in the
treasury to- refund and enlarge the COM
mon school fund. e.; =
The educational interest of people
Lis by far the most important preroea-
tive that belongs to a, State in all civili-
zed countries.l At the present time, it
is subject of most momentous magni-
tude toEthe people of'Tennessee. ,i ..
we now. nave alafGe element 0ltnOpu-