Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-03-25

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sinking fund, and which would have liquid
ated the entire debt, principal and interest
in little less than forty years, the cate
that the funded bonds fall due. Hence, be-
lieVe that there should have been est biish-
ed sinking fund, such as would have
been consistent with the present finances
Of the Safe by the present Legislature,
and applied annually toA-ths gradual ex-
,tinguishment Of the public debt, instead OF
funding and staving of that which should
have been met now, and which could have
been done without any increase OF taxes, II
the debt had not been funded. This poll
cy is not only recommended by weighty
considerations of public economy, but d.
manded by patriotic concern for the pre-
seryation of the faith and credit OF the
State Influenced by this view OF the sub
ject, Gov. Polk, in 1S4l, Gov. Jones, IN
1643, Gov. A. v. Brown, in 1916, and 9th
-ess, since that time, in messages to their
respective General Assemblies, s'renuously
urged upon them TO provide sinking fund
for the redemption of the State debt. This
recommendation failed to be carried out.
But pursued by the same foolish policy as
has been pursued the present Legisla-
ture, funding from time to time, which, to-
gether with other reckless Legislation, has
increased the State debt, according to Gov.
Jones' message in 1845, from a little over
forty-six thousand dollars to the enormous
SUN of twenty-one millions of actual In
debtedness, with an additional liability as
security for corporations, twenty-five mil
lions, making in all about forty-three NIL
Inns. See Comptroller's report. Under the
funding bi | there will have been paid out at
the maturity of the bonds fifty millions OF
dollars, and the debt remaining precisely
the same. If this policy is continued, 1t
must ultimately ruin the credit OF the
State, and produce bankruptcy. 1t will
constitute heavy drain upon our industry
and resources, In the transfer of sum so
large in the form Of interest to the pockets
of capitalists living beyond the borders Of
the State.
l am emphatic,lly and unsquivocally OPP
posed to reputation, and will go as far as
the farthest to preserve the honor and
credit of the State. No greater calamity
could befail anv State than to repudiste.
We have an example in our sister State,
Mississippi. Should it ever be the fate of
Tennessee 10 repudiate, no one will regret
it more than myself. Funding comedies
an imaginary advantage to the stock
holders, at the real expense of the tax
payers of the State. 1t proposes to pay
compound interest, and draw the means
TO 90 it from the pockets of the tax payers.
1t fixes State debt, owned by Northern
ana European capitalists, the principal of
which is 10 remain perpetual incubus
upon the "body politic' and the property
of the State by drawing over a million of
dollars out of the circulating medium of
the State every year. 1t must be remem-
bered that some of these bonds were issued
under the Brownlow administration, the
DISTINGUISHED taxpayers of the State pro
testing against it, and sold to Wall street
and other spectators at from thirty to fifty
cents on the dollar. These are to- be paid
in full, with compound interest, at six per
cent. per annum on the face of the bond,
which is equal to twelve per cent. per an
mum, and at maturity to be paid in full.
The financial condition of the State was
known to the purchasers, and also the con-
dition under which they were issued, hence
they were not dece ived.
JAMES HAMILTON.
March 20, 1873.