Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-09-22
NEW BONDS


The Argument is often made That the
State IS not bound for the internal improve
ment bonds issued from 1865 TO 1869. OF
this class there is yet outstanding only S4,-
l37,CG0. They will not mature for more
than twenty years, and cannot now be
funded; and the only practical question TO
be made upon them now is: Shall we pay
interest ON them? But It must be Temem-
bered that of this number 3, G23,OOO were
issued to railroads that have either paid
their entire Indebtedness or are solvent and
are paving their interest. Under the legis-
IatiOn Of 1S6lT0. all the other internal
improvement bonds issued since the war
were accepted b. the State in payment Of
loans made 10 railroads, and have been
cancelled. 1t therefore appears that Of all
this class there are now outstanding only
s., So, 600 Of bonds that were issued 10 in
solvent and unfinished railroads. The
only question about these bonds Is; Can
the State either repudiate or cease to pay
interest upon them, after she has legalized
them by the various acts Of the General As
sembly of 1S69-IO? Aud it may not be
improper To ask whether the State can af-
ford 10 fix upon her fair name the stain OF
Reputation for that sum, when the bonds
were issued under all tine forms of law ,
have since been acknowledged by repeated
legislative acts rs valid, and when the State
has enforced its mortgage upOn the uniin-
ished roads partially constructed by the
proceeds of the sale OF these very bonds.
The question is often made: Is the State
able TO pay this debt? According TO the
census Of 1870, our actual wealth is only
| a few thousand dollars short Of
FIVE HUNDRED MILLIONS OF DOLLARS,
and our annual production, one hundred
and forty millions. This furnishes a COM
plete answer to the inquiry. a simple cal
culaiiOn shows that i've per cent. OF our
wealth will pay our debt, principal AND in
tereSt, and that fifteen per cent. OF Our ar
nual productions equals our debts. And
when il is considered thai 40 cents on the
| 500 has paid, and with the ait OF new
| sources of revenue now accruing To us, and
a little wise legislation, reducing the eX-
penses Of administering the criminal law
J will continue TO pay the current interest
| there can remain no dOubt. OF Tennessee
ability to take care Of her present debt. A
SUSPENSION OF THE PAYMENT or IN
TEREST
will only add To her burdens by increasing
the debt by about a million and a quarter
| annually. And that policy has already
materially aided to swell our debt TO it
present proportions. Our State tax is les
| than i'm any Of the States Of the UniOn ex
| cent three. Even Kentucky, with sutficien
| money i'm her treasury 10 pay every debt
/ leyies a tax of As cents on each 500, whi.l
| ours is 40 cents. The assessment of prop
ery in Tennessee is lower than in most o
the States. Take, for example, clever
/ States in 1870:
In Tennessee property was taxed at 81 pc
| cent of its true value.
In Alabama property was taSe'l at 81 per cent
/ OF its true value
1 In Arkansas property was taxed az 20 Pc
1 cent. of its true value.
In Florida property was taxed al 20 PER cent
In Georgia property was taxed at 50 per cent
4 of its true value
/ OF its true value
In Maine property was taxed at 66Per cent o
/ its true value
In Massachusetts, property was taxed at 10 pc
4 cent of its true value
i In Texas property was tiNed al 70 per cent q
i lis true value.
In Maryland property was taxed at "a per cen
i of its true Value-
/ In Kentucky property was taxed az O. re
i cent OF ifs true value.
at is not i'm the reduction Ut State take
that YOU must look for relief from the bun
dens upon the taxpayers. IL is local taxa
ton that is crushing the energies OF Oh
State. | wish that the State tax could b
diminished. But, repeat, that is not Tn
great burden. Take six counties in tn
State, including Davidson and Shelby, an
look at the taxes collected in 1870: