Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-03-12

Indebtedness With bonds OF any series OF
number, and Of course those bonds Of ques-
tionabls legality were cheapest, and conse-
quently first bought up and paid in, and
those now outstanding are equal in value
with the old bonds, and are mainly bonds
issued by the State for the purpose
Of taking up matured bonds and accrued
interest, which accumulated during the late
war, when the State was paying no inter-
est, nor redeeming any of her bonds.
The subterfuge resOrted to as an argu-
ment by the opponents, that we will by
| this bill, acknowledge and render ourselves
| liable to pay, bonds which were sold for
less than their par value, is already an
swered, because we have shown, first, that
they willnot fail due IN time to be funded,
and that in reality this class of bonds
have already been paid. But the argument
| is utterly worthless and falacious, in this,
| that no bond contains these conditions up
| On It's face, and all our bonds being male
| payable outside of the State of Tennessee,
the purchasers are not legally advertised
Of the law, and consequently not affected
By it, and having no notice of such condi-
ton, either in the f.ee of the bond, nor le-
gal notification, the holders, would, in law,
would be regarded as innocent purchasers.
But all such arguments proceed from 8
false statement or conception Of facts, and
are unworthy of notice.
Then, as these obligations, fundable IN
der this bill, are unqestionably such as we
ought to pay, the next question arising is,
are we able topay them?
All parties here agree that it is utterly
impossible, without ruinous taxation, which
our people cannot stand, and which would
drive less brave and generous people to
repudiation--a step abhoTent to every
sense of honor, and which Tennesseeans
can never, never accept. Then, if to pay it
now would bankrupt our people, and if the
State, being simply the aggregate people,
should be actuated by principles controlling
individual action, there is but one eoHsid-
Grafton for us to take, but one question
to ask: How would act, were it my in
diyldual debt? Certainly no gentleman
could refuse to renew his obligations, and
give bis creditor the use of his money, at
legal interest; for if we were able to act
justly with him, we would pay him the
money, and with that our creditors could
do immensely better than with our note
when our credit is badly impaired. But
some parties answer that the State is be-
yond the reach of law in her sovereign
capacity, and can dictate terms to
| her creditorsl for one shall
never degrade the honor Of my native State
by pleading for her either infancy or royal
! tn. 1t is the soul and sense Of honor for
| Tennessee as a Stats to do, what were
right and equitable for the citizen to do.
Next arises the question:: How much
will it augment our debt to fund? Simply
the expense of procuring the engraved
! bonds, (the holders of the bonds paying
other incidental expenses), and the interest
on the amount fundable, which is $3l7,C00
annually. Nor is il admitted as true that
our past due coupons and bonds will not
bear interest, though not funded, it is a
mooted question; and nearly all decisions
of court assert that they bear interest sfoer
maturity. And one such decision of our
own Supreme Court might be cited.
Next, are we able to begin and continue
the payment of interest after we fund, &C
cordirg to the terms of the bill, and our
acknowledged duty? a brief examination
Of facts and figures, from official sources,
| will certainly set this matter at rest, not
only that we can pay all our outstanding
liabilities, and the interest as fast as it falls
| due, but that it can be done without
any increase in the rate of taxation. Our
present financial condition, as shown by
| Comp.rolIer's and Trsasurer's reports, is
briefly summed up as follows: Balance due
/ from revenue collectors for 1872 and pre-
vieus years is Sl,6S6, 542. Deducting 10
per cent. for loss and expense of collecting,
leaves due and collectable 81, AGA, SCI. Add
to this the balance in the Treasury Jan. /,
1873, viz, S159.44, gives Us 81 ,433, 720.44
in the Treasury and collectable Jan. l, 1873.
| From this deduct Whist was owing at that
date and payable, made up of the following
| items, viz:
Outstanding payable warrants. s476, S34 Y
Tennessee Money receivable in
to Treasury. ........... 15,OOO w
audited. ................... 100000 90
Amount owing banks for Dor
rowed money!. ......... SOO,OOO %
Due Mississippi Central and
paid interest. .............. 1880 90
Amounting to-. .$933, ll5 81
leaves clear balance 10 f4vor Of the Treas
ury of S4S0,605.12 to be carried forward to
account of 1873.
Uuder our improved assessment laws for
1873 and years following, the aggregate
property will, without any doubt, reach, if
not exceed, $500, 900, 900, which at 40 cents
on the hundred dollars worth of property,
the present rate of taxation, will yield the
! gross sum of 100000, from which de-
duct 10 per cent. for loss and cost Of collec-
ton gives net...............s1, 0s0,OO0 90
To this add amount from priv
ileges .................... 100000 90
Add also amount surplus Jan.
! /, 1s7S.........a....... 4SO,6O5 II
Gives for operations in 1873