Whig and tribune. [volume] (Jackson, Tenn.) 1870-1877, 1873-03-08
words Fun OF Thought.

The Avalanche, which is fighting
the battle of the tax payers with a
courage which all must admire, and
a zeal which is commendable, in IFS
iesue of the 4th inst, has the follow
ing, which we commend to the
thoughtful consideration of our
readers. The truth is here, in as
narrow a compass as it could well
be crowded:
Let us get at the inside of the
funding job now sought to be crowd
ed through the Tennessee Legisla-
ture. On the surface the desired
object is simply to fund the entire
debt of the State by substituting
new for the old bonds. To those
who regard as gold everything that
glitters there seems nothing obj &C.
| tionable in this. If a change from
one to another shape can be effected
without increased interest, all right.
But Just at this point tear off the
mask, and the wheels Will be visi-
| BILE. The entire debt is about $2l,-
! 0O0,O $5,5O0,000 being past due
coupons, not bearing interest
Thus we have only SO, SOC, 900 bear
/ ing interest at per cent. The
| holders of these $15, 100000 interest
! bearing bonds, and the 100000 in
| terest coupons which do not bear IN
terest, are laboring to have both the
/ interest bearing bonds and the &C
! crued interest on them funded
And for what purpose? That they
may compel the taxpayers to pay
interest on S21, 10000 instead of
! SIS, 100000. In other words, they
propose to collect S5S0,000 per an
mum as interest at per cent. on the
! So, 500,00 interest debt past due
This means paying interest on in
| terest-compeundi nterest-though
heavily taxed as the people are, it is
/ at present impossible to pay inter-
| est on the $15,5O0.000 principal
What viii be the result of this &C
tiOn2 VIII it give relief to the peo-
pie to have their public interest
/ debt increased $3.50, 900 per annum
Ian increase which can be met only
/ by piling other mountains on the
present mountains of taxation? viii
1t decrease the debt? Not at all
| The scheme of the funding ring sue
cessful, and we shall have, not 3d.
| 500, 900 but $21 ,O00, 900 bonded debt
bearing six per cent. interest. As
already stated, the interest on the
So, 800, 900 now not bearing interest
! will be $3.50, 900 per annum. At the
end of forty years this additional
and unnecessary annual interest
which the funders propose to add
to that on the present interest bear
ing debt, will have cost the tax-pay-
ers just $13, 100000. This nice lit
tie sum will drop into the pockets
of the spectators in our bonds if
the Legislature sanction the pro-
posed robbery of the already i'm
poYerished people. And the pub
lie debt of $21 100000 will then
amount to- exactly S21 100000, as
at present. To reduce the matter
to plain phrase, the funding scheme
is merely-nothing more, nothing
less-a scheme to pay certain spec
ulatOrs 13,20O,0 900 out of the public
treasury as interest on interest
The people are now clamoring for a
reduction of taxes. The present
rate of taxation is eating out the
substance of the State. Yet, 1t is
seriously proposed to add Sl3, 2O0,-
600 more, which can be paid in no
other way than through additional
taxation. Are the people ready to
sanction this monster outrage,
which, virtually, means increasing
the public debt from SCI 100000 to
| SS4, 900, 900? What will they think
of the men chosen to protect their
interests, who lend themselves to
so unworthy a scheme? Are they
willing to have their taxes doubled,
not that the debt may be decreased,
bat that, in effect, it may be in
creased? We want the public to
look into this matter, for in a short
time their public servants will be
coming home to give an account of
their Stewardship. We warn our
Legislators against making so damn