Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-12-15
OUR FINANCIAL CONDI-
TTON.
How to Pay the state Debt with
ont Additional Taxation.

that, by funding our interest up to
July next, the interest on our State
debt would be paid up to January, 1871,
and most of our interest up TO July, 1871,
out of the interest that would be due
from our paying railroads-that our reve-
nues from taxes, ETC., would pay our re-
manning debt now due, would pay all the
current expenses of the State up to Oct.
l, 1871, and leave at that time hand
some surplus in the Treasury, and that
the receipts from revenues and paying
railroads would pay our future interest
from that date.
Among the debts to be paid by the State
out of the revenue, is the amount owing
for the issues of the Bank of Tennessee.
l placed this at S., 200, 900, and am conf
dent that, after deducting the amount that
will be collected by the Trustee of the
Bank, there will not be over 81, 200, 900
offered in payment of taxes. Should this
amount be received for taxes during the
next fiscal year, which ends Oct. l,
1870, it would seriously embarrass the
Treasury of the State. To obviate this,
let the Legislature provide that one-half
of the taxes may be paid in these issues
the present fiscal year and One-hat the
next fiscal year, the remainder OF
the taxes to be paid in United States
currency. This would undoubtedly be
entirely satisfactory to the holders of
these issues and to the taxpayer. This
provision would bring into the Treasury
up to October next S743,SO4 and up to
October, 1871, $1,O31 ,4l2, in all for two
wears in United States currency 81, us, PIG,
which would be amply sufficient for all
the wants of the Treasury.
1t has been proposed to pay out again
to the creditors of the State the issues OF
the Bank received for taxes. This would
throw upon the community at least 81 POO,
600 of currency, and as this currency
could not be exchanged for greenbacks
and no provision is made by the State for
its redemption, it would be seriously de
preciated. 1t would not be received by
the merchant for his groceries or his dry
! goods. 1t would not be taken by the
farmer for his produce and would not pay
debts. With what justice then can the
State ask its office-hOlders and its Credi-
tors to take this currency and what ne
cessity can there be for the State to pay
| It out? 1t should be heidi by it, and if the
State is indebted to the Bank, as 1t ap-
pears to be largely, the Bank issues
should be used in paying that debt, and if
any should remain in the hands of the
State after this payment, it should be held
by the State for its share of the assets OF
the Bank.
An objection is sometimes made TO the
issuance of bonds. Any issuance of bonds
to increase the Indebtedness of the State
should be sternly resisted; but what posi-
! bic objection can there be TO convert a
; debt due and pressing upon the State
into one having thirty years to mature,
and redeemable at the pleasure OF the
State in three years. 1t adds to your an
nual interest, it is true; but is it not right
to paw interest when you ask indulgence
! of ourcreditors? Toobiect to issue bonds
! | on this ground is wholly unjustitiabe.
. | Such an objection from an individual,
| | when his embarrassed circumstances
| compel him to ask an extension from his
a | creditors, would be highly dishonOrable
4 | and no member of the Legislature would
: dare to make such an objection in his
4 own affairs, when his means of final pay
ment are ample. Our Legislature should
It remember that wilful delay in making
It some satisfactory arrangement for our in
Q dcbtedness is reputation, and every day
4 delay is familiarizing our people to this
great crime. The most serious question
is whether the funding of our interest
:, would be acceptable TO the holders of oul
- bonds or honorable to the State Wha
N bondholders want is certainty as TO the
payment of their interest When this i
u rendered certain, the principal is neve
10 demanded and maturing bonds will al
er ways be readily renewed
n The financial plan proposed will plac
v the future payment Of our interest bcyon'
doubt.
In Our bOndholdeIs, knowing UuT cripple
70 condition and seeing our firm determine
70 ton to make provision, and not mer
G % promises, for the future payment of on
- interest, viii most gladly accept the ten
&c der of our bonds and will feel it to b
. Just and honorable to the State.
ba 1t will be observed that in making pre-
no vision for the Indebtedness of the State
et no reliance has been placed upon the do
ed faulting railroads.
Of This has been done because PROM
a provision for our Indebtedness is necei
n sary and nothing can he expected frOl
sT- these roads for many months certainly
er' and perhaps for years to come; and b.
ter cause by making provision for our il
ms debtedncss Independent Of the roads,
/" will give ample time for making judi
-. cious disposition of them.
%o There is one thing that is almost 10
nal sight of by our Legislators and the publ
we in treating of our defaulting railroads, th
in is, our duty to the stockholders in the
roads In providing the State with the
nd | valuable highways of industry and trad
tly the stockholders have spent millions
so dollars, from which they have never res
18th | lied one cent, and their investment is nc
md | worthless This has been caused not
lch their own mismanagcment, but by I
me public calamity that has OveTtakCn a
Oh Legislation towards these stOckhOldC
a mo should, therefore, he not only just }
oar, liberal
on The future of these roads is nOtwithC
tba hope, and the State can certainly rely I
go on them for future relief, even if thu
me should be no sale of them.
her -Four of these roads-the Nashville a
,ck. Northwestern, the Ed5etield and h'
be lucky, the Memphis, GAINESVILLE q
Louisville, and the Evansville, HendCrs
+ Of and Nashville-Owc the State 1857
ON 6l7.S5. The Memphis, GAINESVILLE q
sent Louisville Road can be sold any day
ran the amount of bonds it owes the State.
give The Edgefeld and Kentucky road Il
1Eci be said to terminate in the woods, and
III course, can pay nothing.
Ina INA The Evansville, Henderson and Ma
~ vile Road is uncOmplctCd, and cannot ]
ate | the interest. These two roads form
ting | line of railroad from Nashville TO Eve
ram vile, in Indiana, requiring only twer
,wav five miles to he built to complete the j
state This is under contract and the road vii
Ome- completed the coming year. These 70
D be- connect Tennessee and oil the Alta
.ould States South, by the shortest possible
peo- with all the railroads of the NOrtby
ouch and with the great Pacific Railroad. 7
ed IN traverse then fertile agricultural rel
con of ths West and bring the rich coal reg
dc of Kentucky to Nashville, and the I
ti u river. When completed these roads
h tbe certainly pay the interest on the deb
rrow the State.
The Nashville and Northwestern
owes the largest debt to the State, II
APP ing s., 6l4,S5o.
ell as This road is haTdlyyCt IN tull OpeIa'
with Immediately after it was finished 1t
with turned over TO a receiver, and after
Presi- ming few months was suspended; tn
was temporarily leased and the com
ance of the lease being uncertain, II C
tjsCR not be run efficiently. 1t is now per-
wing emily placed under the able and etti
monty management of the Chattanooga Rail-
This road will soon be closely come
our with the Iron Mountain Railroad OF
called souri,, which will make it the she
slaw, and most direct route to st. Louis.