Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-10-24

5,776,533 IS
Leaving balance Of. S26, S75, 622 SO
From this deduct the balance due
from purchasers of delinquent
roads, as follows:
Memphis, GAINESVILLE
and Louisville. ...... SS49, 800 90
Interest for IS months. 76,4S2 90
Edgefeld and Kentucky $4,000 90
Interest for Is months. 60750 90
chester ............... 225,OOO 90
Interest for Is months. q, $50 o.
Winchester and Ala
bama ................. 225,0O0 90
Interest for Is months. 20 $50 90
Cincinnati, Cumberland
Gap and Charleston. 100000 90
Interest for Is months q 600 90
Knoxville and Kentucky $50 900 90
Interest for Is months. 1900 90
Nashville and North
western. ............ I,lOO,OOO W
Interest for is months. 1853 900 00-S4,7 ii 1882 90
Leaving balance Of s21 ,661, $50 90
Deduct from this balance the esti-
mated value of delinquent roads not
yet sold, viz:
knoxville and Charles
ROgersviiIe and Jefferson $1,000 90
East Tenn. and w. n.
Carolina. .............. 5,OOO ~
Tennessee and Pacific,
ACKNOWLEDGEMENTS OOO,VVO W SOOO,OOJ w
Balance of debt......... 81, 161 $50 SO
Deduct floating debt proper:
Tenn. money (Old issue)
unredeemed. 50 10000 60
Treasury warrants out
standing. ..-.....-..... l52,4II a
Loan account. ..-...-.... Do,O0O OO-Sl,6Go,4l' q
Actual balance bonded debt and
interest. SIS, i93, lIS "
Thus it appears, that after deducting the
reliable assets and securities of the State,
other than taxes levied and uncOllected,
there remains an actual Indebtedness of
sd ,16l $50 90, which must be provided
for.
Of this amount, 81 1854 p is floating
debt, and the bonded debt with interest to
the lst of January, 1872, $40, 1918 G6.
Of this latter amount about SlJ,000,OO0
is principal, or bonds with no interest added.
Until the accrued and accruing interest is
funded, and the payment Of current interest
is provided for, the debt will increase every
year on the balance of bonded debt, about
100000 in the way Of interest.
With these figures it needs no argument
TO prove that it is the most disastrous pol
! icy to postpone the resumption of interest
payments.
While have earnestly hoped, and sin
cerely believed, that by adopting the policy
of funding the interest on the bonded debt
| up TO and including July /, 1873, We could
discharge our floating debt and resume the
payment of interest at that date and at a
reduced rate of taxation; yet after a careful
examination of the whole question, l can
not see how material reduction can be
| made, unless new and reliable source of
revenue can be made available sufficient to
IaGo;f ,.acr,1f
ductiOn.
The following estimates are relied on as
Approximately correct:
Balance bonded debt
without interest SIS ,OOO,O 90 on
Past due coupons and
coupons maturing
list Jan. IS72..... 1870, $50 93-19 970, 5g3 90
Interest on $4,000 10000 from 1st
Jan. 1872, to LIST July, 1S73....... 1,350,00O 90
If this interest isfunded the bonded
debt would be....................s21 $50, 800 90
Interest to LIST Jan.
1874, six MONTHS. S639, 602 ~
1874, six months. 639,GO2 70
Annual interest ...... s1,279,2O4 Al
Estimated current ex-
penses ............. 100000 OO--sl ,S79, 2O4 "A
Amount TO be paid annually.
RESOURCES FOR PAYMENT.
$500. 900 10000 of tax
able property at 80
cents per 800 and
deducting 10 per
cent for losses and
costs collection. 800. 81 ,300, 900 90
Nett taxes on mdze
and privileges $4,000 s1,75O, 900 90
Showing deficit of............ 129,2O4 A
This deficit must be supplied from new
sources of revenue.
The theory of taxation in Tennessee is
not based upon the idea of incomes or
profits from wealth, but upon absolute
values, privileges, etc.
Section Is of article XI of the Constitu-
ton provides that ''all property, real, per-
! sonal OF mixed, shall be taxed, but the Lee
| gislature may except such rs may be held
! by the State, by counties, cities or towns,
and used exclusively for corporation, or
| public purposes, and such as may be held
! and used for purposes purely religious,
| charitable, scientific or educational, and
| shall except one thousand dollars worth
! of personal property in the hands of the
taxpayer, and the direct product of the soil
in the hands of the producer and his i'm
mediate vendee." But the
Legislature shall have power to tax mer-
chants, peddlers and privileges, in such
manner as they may from time to time
| direct" etc.
And the only exception to the rule that
| taxation is upon the idea of values and
privileges alone, is found in another pro-
vision in the same section, viz:
''The Legislature shall have the power to
| levy a tax upon the incomes derived from
stocks and bonds that are not taxed ad va
! ioreToo -