Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-05-09
ANDREW JOHNsOEs FINANCIAL
DEPARTURE.

You want an item OF a million and a
half of dollars TO pay theinterest upon
your bonds. Suppose you bring your
assessment down to 20 cents on the
500; you pay three per cent on this
debt, and, as many of the holders of
these bonds bought them for fifty or
sixty cents on the dollar, they will then
get six per cent on their investment,
and this would relieve the great mass of
the community to a considerable ex-
tent.
would recommend this same rule of
reduction to run through your counties
and corporations, and give the people
relief accordingly. But it is said that
this tax question must not be touched.
We quote the above extract from ex-
President Johnson's speech in this city
Thursday evening, as it embodies the
practical policy which he seems to ad-
vocate at this juncture. Cutting away
all side issues, let US seize the main
question. Mr.. johnson disclaims re-
pudiation, and grounds his views on
the assumption that thepeople are now
unable TO meet their Obligations. He
suggests that we merely suspend a
part or all of the interest, for
short time" He makes the
ability Of the people a question of
time. This was exactly the question
so exhsustiyely discussed In the last
Legislature, resulting in the time being
set at July l, 1874. Since the enamel
patton of the State, we had tried tax
of twenty cents, sixty cents and forty
cents. With this experience, and the
woes of war receding in the distance,
the middle rate was selected. Each
Legislature regulates the affairs of the
State for a term of two years. The
money to meet the first four semi-an-
nual installments of interest is already
provided by law, without touching one
cent of the revenues for 1875, which, of
course, viii be determined by the new
Legislature. The practical question
is, therefore, Shall the State,after pay
ing four installments, default on the
interest due July l, 1876? Shall all
that retrenchment and economy can
accomplish In the coming two
years, together with our nat
ural increase and development DUR
ing that period, result only in plea
of increased poverty to justify the
abandonment of a work well begun
Tennessee boasts as rich and varied fer
tilty as any of her sister States. She
possesses a wealth of ores and minerals
that few can approach. She has more
miles of railway than any other South
ern State, including Kentucky and
Maryland, with the one exception of
Georgia She escaped from the clutches
Of Radicaism much earlier than other
States, several being still in the tolls,
and We will have enjoyed seven years
of sef-goyernment and recuperation,
at the epoch proposed for default. We
appeal to Mr.. johnson, as a Democrat
for he claims to be one, and We give him
the benefit of the doubt, if this would
not be a rather shabby showing for
seven years of Democratic rule-to be
made more than eleven years after the
war. Our conviction is firm that the
true interests of the people are against
it-that a suspension of interest, even
''for short time, F" as proposed by him,
would retard the development of the
State so seriously as to defeat the tenn
porary relief, making the lesser tax
really more onerous.
There is another phase of this mat
ter, to which the ex-President invites
US. After suggesting the suspension
Of interest on the State debt, he re-
commends that the same rule run
through our counties and corporations.
Further on, he says: Let US quit talk
ing about party so much, and have some
thing to say about country" Does Mr..
Johnson propose to apply the same
policy to the country's debt and taxes?
We ask the question because others
enemies-will ask it. The Democracy,
like Radicalism, will be judged by its
deeds If it adopts semi-repudiation
in State where it has power, it will be
argued that such must become its ma
tional policy. Besides, the national
taxes collected from Tennesseeans, are
three or four times the amount of the
State levy. Shall we make a bold
strike for universal relief throughout
the land in July, 1876? Mr.. johnson
has a national reputation, and the mode
of relief he proposes for a million and
a half of Tennesseeans, has a remark
able adaptability to the entire forty
millions.
In all kindness, let us look into Mr..
Johnson's record on the policy of fund
ing. The hugest funding operation
ever attempted or accomplished in this
country was IN 1867, under his admin
istration. At the close of the war, be-
sides the United States notes then in
circulation, there were nearly 81 ,30O,-
600 900, of debts in the form of inter-
est-bearing notes, temporary loans and
certificates of Indebtedness, a portion
of which were maturing daily, and all
of which, with the exception of the
temporary loans, had to be converted
into bonds, or paid in money, before
Oct. Is, 1868. These temporary loans,
certificates of Indebtedness and the five
per cent netes were all paid with the
exception of some small amounts, while
the cash in the Treasury was increased
from SIS, 2lS,O55 to Sl39, 1896, 1893, and
the funded debt augmented $685.
800.
The sum thus funded constitutes one
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