Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-03-06

bonds, and for the purpose OF paying tnH
interest on said bonds proposes to tax the
people for period of not less than ten nor
more than forty years. The annual inter-
est on the interest proposed to be funded
will be $317,199. At the rate OF $3l7,l99
annually for forty years the people VIII pay
out S13.21B,635 interest, and still owe the
s., 286,654 now proposed to be funded Inc
interest that will be paid on interest under
this bill, In forty years, viii nearly pay Inc
bonded debt of the State, and II the INFER
est which will be paid on interest unoer
this bill, to.wit, $317, 19s annually, were
compounded for forty years It wonio pay
the entire principal of the State debt.
Is it fair or Just to take from the tcc-
ridden people thirteen millions of interest
upon interest and al the maturity of the
bonds leaue them Nth the S., 286. 654 Of an
terest still hanging ouer them? Most dSsatr-
edit u Is hot, and I will neper cote for such
q measure.
Another cogent reason why the State
should not frnd any thing at this time is,
that it will probably be compelled to receive
millions ofthe "Torbett issue" Of the Bank
Of Tennessee in payment Of taxes. 4 1t
should so turn out the next Legislature
would have to compound aud fund the in-
terest again. At all events, nothing can be
lost by waiting the result OF the Torbett
issue before we fund.
The past due bonds and past due interest
now amount to $5,2S6,654. These bear
no interest. five take UP a half million OF
them annually, we will h.ve taken up the
whole past due in ten years. This bill pro-
poses an annual tax Of $317, 199 to pay In
terest on interest. l propose that instead
of funding the past due debt that we let it
stand and provide sinking fund OF half
million annually and apply it to the redue-
ton of the past due debt. The tax pro-
posed by this bill with q small addition will
make the half million annual sinking fund
which / propose.
By this means the whole past due debt
will be paid off in few years, instead of
paying S317, 199 annual interest on it and
fnally leaving it hanging over the people at
the maturity of the bonds.
And the difference between the tai neces-
sary to pay the annual interest and that
necessary to raise the sinking fund of
100000 annually will not be more than
six or seven ceLts on the 500. It would
therefore be far better to provide the sink
ing fund and pay off the past due interest
in few years than to pay $317,l99 annu-
ally for forty years, and still leave the prin-
cipal unpaid.
ARGUMENT OF MR.. RICHARDSON.
In reply TO Mr.. Smithson, Mr.. Richard
sun said:
He was content 10 take a vote on the bill
under consideration without further discus
cir of ho win fOr frua sfo RI
and participated in the debate on the va
rious amendments offered to the different
sections; but the Senator who has just
taken his seat (Mr. Smithson) having open
ed the discussion, and rendered to the Sem
ate certain figures which, in his judgment,
ought to defeat the passage of the bill, he
felt that it was his duty to give expression
to the considerations which would induce
him to support the bill and also to show
that the Senator was mistaken in the calcu-
lations he had made. His object would be
to show that without raising the tax on the
people, with the proper assessment, or the
assessment already made, according to the
Comptroller's report Of 1872, the State
would be able to pay the current expenses,
and also to discharge the annual interest on
the bonded debt. Taking the taxable pro-
perry of the State as assessed in 1872, to-
vii: the sum of SIT, GA, 352 90 at 40 cents
on the hundred dollars, and you have ST.
O90, 697. 40; add to this the tax on privileges,
say $500, 900, and you have $3.50, 697. 40,
from which deduct cost of collection, 90
per cent? and you have left 81 ,431, 627 66.
Now take the uncollected taxes for the year
1872 and previous years, as shown in the
Comptroller's report the sum $1,656, 542;
pay the outstanding floating debt, Tennes-
see money 5000; loan account $500, 900;
warrants $476, S34.72, and at a very low
estimate, there will be left, say $500, 200.
This sum added to the assets shown above
make $l,SS1, 627 GO, total assets Jan. 1,
1874. Now look at the other eide. Take
the expenses Of the State government,
$500, 600; also the interest due LIST July, 1874
$7c5,000, together making the sum of $751;
500, 900; deduct this sum from the assets
set forth above, and you have a net balan,e
in the treasury of S526,627.00. Thus the
capacity of the State to fund the debt and
thus meet the interest, after discharging the
current expenses is clearly shown. The
speaker then referred to the duty OF the
Representatives of the State to protect the
honor of its people, bring its credit up out
of the dust and place it On the high groupd
where, in justice to the resources and pride
OF the State, it should be,