Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1873-04-01

OF all the undersigned 10 amend SAT-
hin Ia lieu 30 .as % provide an unnuu
sinking fund Of S9l7,2O0, instead o
S5O0,OO0 In addition 10 the passage o
A bill providing Tor a sinking fund, th'
hudersigned would have provided 70
the payment OF hlure interest oh th'
outstanding debt. which could have beer
done with precisely thu sarne money re
Quired under said bill, No. I'll, Tor thu
sinking innd We desired waa Just the AN
nual interesto on thepast due Debt funded
by said bill No. 2ll.
la the opinion Of the undersigned
funding will not permanently ana
ultimately improve the State credit, bnl
will require heavy taxes to pay the in
lerost on the public debt, without re-
ducing it.ih the least. and probably ruin
| the State credit in the end.
They do not think IL just TO take from
ths people thirteen millions Of interest
upon interest, aud al the maturity Of the
bonds leave them with -, 2S6.65I Of in
ieresl still hanging over them.
Instead Of funding the past due debt,
the undersigned propose 70 let L stand,
aud TO privide an annual sinking fund
OF at least SSH, 200 with which to pay il
OF. By this means the whole past die
debt could be paid on in few years, in
stead Of paying sSl7. 200 annually for
forty years, and leaving 1t still hanging
over the people at the maturity Of the
bonds. no Nl
IN a sinking fund Of $4,000 had
been adopted, the tax necessary 10 raise
II would L..e been precisely the same
as that necessary 10 pay the annual IN
terest on the debt proposed 10 be funded.
Under the funding bill. the annual sinte-
rest on the past due debt will be $3l7,-
800. and the interest on the outstanding
debt will be about 1925 600. II an an.
naal sinking fund Of $3l7 200 we're APP
piled to the payment OF the pastdue
debt until It is paid on. aud then to the
principal Of the outstanding debt, and
Inc further sum of $685., 900 (now neces-
sary to pay the future interest on the
outstanding debit were also raised aud
applied 20 such interest. so far as nsces-
sary, and the surplus thereof remaining
after paying the interest on the outstand-
ing debt we're also applied TO the reduc-
ton Of the principal, the entire State
debt would be paid of at psr in thirty
nine years with precisely the same
money necessary TO pay the interest un-
der the funding bill. For the sinking
fund of $4,000 would, after pay
ment of the pGstdue debt, constant
lv reduce the amount on which
interest would have TO be paid, thus per-
hitting part Of the $925, 600 now
necessary 10 pay INTEREST," to be applied
10 the reduction of the principal as
sinking fund. That is to say, if the same
sum of money which is necessary to pay
merely the interest on the State debt
under the Funding bill were raised an
nually, aud $3l7, 900 applied TO the past
due debt until it is liquidated, and then
to the reduction Of the principal of the
outstanding debt; aud the surplus Of the
&c.,, 900 remaining alter the payment OF
the interest due on the outstanding debt
as reduced by the sinking fund OF S3l7.-
200 were also applied as sinking fund;
the entire State debt could be paid off at
par in thirty-nine years, with precisely
the same sum that will be paid in interest
under the Funding bill. We have de-
monstrated this by actual calculation
Ii is clear that under the Funding bill
the people will, in thrty-nine years, pay
enough money in interest 10 pay of the
whole debt, principal and interest, i'll
properly applied, and that they will still
owe above twenty-one millions at the end |
Of forty years. sfaD OIL n
1t would, therefore, be far better to |
provide q sinking fund and pay of the |
past due debtin a few years, and the |
whole Of it in thirty-nine years, than to |
pay 81 ~, 900 annually lin addition to
ali other taxes) for forty years, and |
leave the debt entirely unpaid.
The undersigned therefore solemnly |
protest against the passage Of said Sem
ate bill No. I'll. -aN
/. Because they do not think it will |
permanently improve the State credit; |
but on the contrary, that funding the
past due debt will injure it by increas-
ing the debt, and thus make it the more
difficult to meet.
2. Because it is bad financial policy
3. Because its provisions are injurious
and oppressive to the people.
In voting against the passage Of said |
bin the undersigned did not, by any
means, intend TO ignore the State debt, |
nor to defeat any measure that would |
improve and sustain the State credit |
On the contrary, they are opposed to re-
pudiaton in any form or shape, and
were willing and ready TO assist in pro-
viding a sinking fund for ths payment Of
the past due debt, and funds to pay the
future interest on the outstanding State
debt, or to assist in the passage Of any
measure that would do equal justice to
both the bondholder and tax payer.
N. SNTHsoS,
]. CALEB MORGAN,
s. L. WARREN,