Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-04-05
Comparison of What We Have to
Pay with That Paid in
Other States.
From the Memphis Appeal.

NASHVILLE, March 81, 1S73.-The great
question before the last Legislature was the
funding bill, and although there is discon-
tent In some quarters, it will meet with the
appreciation of the people generally through
out the State. The simple question was,
would the State meet her obligations, and
If she had not paid the interest on her
bonds, would she be willing to pay the in
terest upon the coupons that were due and
unpaid? II an individual cannot pay q
debt when it is due, and refuses to pay in
terest on it by renewing his note, what
would that be cODsideredY
THE STATE DID NOT PAY
the coupons as they fell due, and the very
least she can now do is TO pay interest on
them if she has any desire TO comply with
her obligations. This is the view disinter-
ested parties take of the whole matter.
The preservation of the credit of State is
of the highest importance. Whenever the
credit of State is destroyed, it pIostrates
all the commercial and manufacturing in
terests ia the State, prevents immigration,
and destroys all hopes of improvement.
As to the pretense that Tennessee is unable
to meet this interest, there is nothing
in it.
THE REAL VALUE OF THE PROPERTY OF
THE STATE,
as appears from the census reports in 1870,
was S497,34l ,S5l, whilst the assessed value
in 1872 was only ST., 674, 1852. This shows
that there is something very wrong in the
assessments. The property OF Tennessee
can not be less than S400,000,000. 1t is
useless to say that the State is unable to
pay interest. With proper management
the wealth ofthe State will increase each
year until the piesent debt will be compare
lively light; but if the credit of the State be
destroyed, and all her enterprises stop there,
she never viii be able to pay her debt. The
rate of taxation is less in Tennessee than
in most ofthe States. In IL inois the rate
of taxation is four and fve-tenths per cent.
In Pennsylvania it is one and eigh.-tenths.
In Iowa it is two and nine -tenths. In
Missouri it is two and ive4enths. In Ten
nessee It is very little over one per cent. on
an average over the State, including State,
county ard city taxation, though in some
particular localities it is higher than this.
The average 10 nearly all the = sates is much
greater than in Tennessee, and in some it is
two or three times as much.
THE VALUE OF FARM PRODUCTIONS IN
THE STATE IN 1870
was $50, Az 47. 1t was, doubtless, much
more last year. In view Of these facts
there is no excuse for refusing TO meet the
interest. 1t is true there may have been
some bonds fraudulently issued, bot these
have all, it is understood, been returned
into the treasury, and it is now too late %
raise that question. Former Legislatures
should have looked TO that matter. When
the law was passed authorizing railroad
companies TO pay their debts in State bonds;
then some provision should have been made
against fraudulent bonds. 1t is now too
late.
THE ASSESSMENT BILL
passed by the Legislature is very defective.
II contains the bad features of the old law,
and under its operations it is feared the az
sessments will not show the real value Of
the property of the State. 1t is very i'm
perfect law. The failure to pass the reVe-
nue. bill, it is thought, will force the Gov
ernor TO call an extra session of the legisla-
ture. | do not know that he has ever intl-
mated what he intends 10 do in regard to
this matter. If there could be proper as
sessmcnt, forty cents wOuld be enough to
pay TIE interest on the bonds and to pay
the expenses of the government; but there
is danger that the assessment will be far
below the real value of the property. 1t
has been for years, and may be so again.
The State debt must be paid. A State can
not sfird to let its credit be destroyed.