Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1873-02-25
THE yoNDED DEBT OF THE STATE.

We have heretofore referred to this mat
ter, and recur to it now in order to express
few thoughts which seem to be pertinent
and practical. 1t is a question of great
Importance and magnitude in its effects on
the people.
There is now due, in bonds and coupons
something near five millions of dollars.
To pay this debt at once is an impossible
ty. True, the resources of the State arc
sufficient to realize an almost unlimited
sum i'm very few years from moderate
rate of taxation. And those who, pander-
ing to morbid political appetite, reduced
the revenues of the State below the annual
demand to meet accruing interest and 9th
er liabilities are censurable in morals and
political policy. Yet, we have to deal with
existing facts. Those welding the politi--
cal power of the State permitted the OPP
portunity to pay the interest OH this State
debt TO pass. They proved incapacitated
to meet the eXigencieS for which q con-
fiding constituency had selected them.
With a mean conception of duty and
false estimation of public opinion, they
provided basis of revenue altogether in
adequate to defray current expenses and
maintain outside credit.
For more than three years reputation
has been threatened. Practical reputation
was, in fact adopted by the two last legis-
latures in failing to make any provision
for the payment of either principal or in
terest on the liabilities of the State. Our
credit went down! Tennessee was looked
upon something akin to rcpudidti',g Mis-
sissippi. However, the recent political
revolution in this State caused revOlu-
ton in the money markets, and also as to
our State credit. And be it remembered,
that the change in the financial standing
of Tennessee, was not because John Brown
had declared policy in reference to our
debt Not at all. What cause an add
vance in Tennessee bonds, was the fact of
the Republicans and independently hav-
ing controlling influence in both branch
es of the General Assembly. In other
words the anti-Democratic sentiment Of
the legislature gave hope to our creditors.
Now that confidence should be fully met.
The Republicans and "Independent"
Democrats should see that no step back
wards is taken Then the question is,
what can be done to meet our liabilities
and satisfy public expectation? If the debt
cannot be paid, what is the next best
thing to be effected? a tax
might be imposed, a sinking fund
created, and the future accruing interest
paid, while the already due debt could be
gradually decreased until finally wiped
out. TIES would take series of wears.
But purely cold-blooded selfishness
would dictate this as the less costly policy.
And those who prefer to deal in the close
logic of actual figures have great opportu-
nifty to show the extravaganza of the fund
ing scheme on the ten-forty principle.
The question of compromising interest for
the benefit of bond holders is also of great
force. Nor is the moral argument relied
on sufficient answer to the solid reasons
urged against the compromising of interest
and extending the debt forty years into the
future. However, there are other argu-
ments which address themselves to the
practical mind, which are entitled to great
weight in determining the action to be
taken by the General Assembly.
Are we better able to pay five millions Of