The Pulaski citizen. [volume] (Pulaski, Tenn.) 1866-current, 1874-09-24

eeled. ...................-. l7e.oOO
Total registered bonds outstanding
lst July, ls74..................... 900
Making grand total of bonds funded
and registered under the act Of 1873
aud still outstanding Of..........., SCI, 249 600
"Ihis is complete and accurate exhibit
of what has already been done in execute on
of the funding bill. The following table
shows the mGrinlHB of bonds and coupons
still remaining to be funded or registered.
Past due bonds yet to be funded, to-wit:
Bank Of Tennessee bonds due May,
Turnpike bond: due from 1858 to ISL 5 $500
Capitol bonds due from 1870 to 1S74..... 174OOO
Total bonds : M an
Fundable coupons that may vet be pre-
sented due prior to July, Is74........S 100000
Total that NAV yet be funded. 81 ,5I7 900
BONDS not due that may yet 6e register
Making the total yet to be registered
or funded 5,017 900
And the grand total which has ucen or can
be funded or registered Will tiIs amount
to $25,2G6,000. Of this amount the sol
vent roads will hereafter pay s., 40, SII.75,
aud the purchasers OF delinquent railroads
will pay SS23, 2T7, total 81, zS5, IS. 10; leav-
ing to be provided for by the State S2u,-
$50, S5I.25.
1.-The bonds which have been TINS re-
newed under the provisions Of the funding
law, were all issued before the war, to es-
tabiish the Bank Of Tennessee, for the con
struction Of the Capitol, and the building
OF turnpike roads, and large majority Of
the coupons funded were from the same
class Of anti-war bonds, against which no
possible question could arise. Not one
bond issued since the close Of the war has
been funded under the act nor can lie.
IL , 4 - I
S7,0O0,OOO, and, as l believe, less than So
$4,000. But this amount could not be
paid at once without paralyzing industry
and bringing distress to the country. Com
plants are made of tax Of forty cents on
the hundred dollars, which is barely sufli-
Cert for the current interest. To have de-
voted the entire tax to the payment Of this
past due debt would have required five
years to eXtingnish it, and in the meantime
the current interest would have maIured to
the amount Of S6,00",OO0. To have left
these bonds and coupons unprovided for
while resuming the payment Of interest
would be like an individual who makes
provision for payment of debts not vet due,
but fails to provide for those of equal digni-
ty already past due. The State found her
self like many solvent individuals who
having large property, have no money with
Which 10 pay past-due debt, and like any
business man i'll your commercial circles
surrounded by these unusual and untoward
circumstances, she proposed TO her cred
itors to renew her past-due Obligations at
their face to some future day, and in the
meantime pay interest for the fOrbeaTance,
trusting to renewed prosperity and in
creased business to meet her obligations,
thus doing justice as between creditor, and
preserving intact her own faith and honor.
And this very process of indi yidual adjust
ment Of debts by renewing them, is essen
TALLY funding" The State. under the
operation of this funding bill, instead of
paying her matured debt, reuews il, paYa-
Bile at a future day, and Obligates herself, in
the meantime, to pay interest upon it.
Before the converting OF the next General
Ascend v, the law will have been fully ex-
ecuted, and the people of the State, through
their chosen representatives, have plight
ed the faith and honor of the State to
compliance with its provisions. There
is striking feature in the practical re-
suits of this legislation which has not
yet been considered. 1t will not be
questioned by any well-informed legal
mind, that as a legal proposition, all of this
due obligation bore interest fiom its ma
turity until redeemed by the State. In
the case of the city of Nashville, VS.. the
First National Bank, adjudged by the Su-
Preme Court at the December term, 1872,
it is held that the coupons of the bonds of
the city Of Nashville bore interest from ma
turity, and the terms and language of those
coupons do not differ, in any essential par
ticular, from our coupons. Now, the hold
ers of our past-due bonds and coupons, in
consideration of the pledge of the State to
commence paying interest the first of July,
1874, and her solemn promise to continue
Its payment as it accrues, were willing to,
and did, accept our new bonds for the face
Of their securities. They thereby lost, and
the State saved, this item of interest. But
the creditor gave it up, under a contract
with the State, that he should receive in
terest regularly upon his new bonds. Had
this contract not been made, the creditor
could, and doubtless would, have demanded
of the State this large amount of interest.
"The following table shows the amount
already saved to the State by this means
upon the securities already funded, as well
as the amount that will be saved, when
the funding is completed:
SAVING OF INTEREST BY THE FUNDING
BILL.
s'The creditors of the State have submit
ted to a loss of interest on past-due bonds
and coupons, thus far funded, as follows:
On past-due Bank OF Tennessee
bonds maturing in 1865. ...........S 6,55J Of
On turnpike bonds maturing from
July, 1868, to January, 1S74....... I0,390 OC
On Capitol bonds maturing from
March, 1870, to January, 1S74..... Al $3.50 u
Total loss of interest on bonds. S 1885 OF
Interest coupons maturing from
July, 1860, to january, 1S74......-. 703,657 81
Total on bonds and coupons ....s SD, $50 81
"This amount is upon such bonds and
coupons as have already been funded. Up
On the bonds and coupons that may yet be
presented, a saving of interest in the same
proportion will likewise be made.
on bonds vet to be presented. ..-..S 159 $40 0,
On coupons yet to be presentud.-.... H. q
Add amount already saySd..-....... s22,5s2 6
Aggregate amount saved ,l2l, 242 6
"And while this amount is a clear gain
to the State, the Interest TO be paid OF the
new bonds is only the same interest fOl
which the State was bound on the old Sc
cnrities. And while this large amount
has been saved, the execution of the fund
ing act has cost the State less than foul
thousand dollars. The popular error thai
the whole debt Of the State, which is as
sumed to be SOS, 900, has been postponed
| forty years, and that at the end of that pc