Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-06-25
JUSTICE TO EX.COMPrROLLER
PENNEBARER.

Ou Jue 1OIn INST we =puDLlSueQ an
extract from the report of Comptroller
Ed. r. Pennebaker, made in October,
1870, urging the need of a tax at that
time of at least IS cents. Weprefaced
the quotation with a reminder that the
rate for that year had been only 20
cents-which proved utterly made
quate for even current expenses, owing
to the decision of the Federal Supreme
Court in June, 1870, compelling the
State to accept old Tennessee bank
notes in payment of taxes.
Some friends of Mr.. Pennebaker
seem to think that we did him injus-
tice in failing 10 mention that the State
debt bordered on forty-three millions
when he advocated a IS cents tax. The
reason that we did not do so is because
we invoked the ex-Comptroller's views
for the purpose of answering those
who plead the inability of the people
to pay more than twenty cents now.
The question of ability is to be decided
not by the amount of debt, but by the
amount of resources. Our line of
thought was: if the people of Tennes-
see could pay IS cents in 1870, five
years after the war, they can certainly
paw more than 20 cents in 1876, ten
years after the war. We had no
thought or motive for criticizing Mr..
Pennebaker, but merely invoked his
aid to sustain the position We hold.
His views then and since accord with
ours. He thought the best way to deal
with debt was to go to work and pay
it; and that the next best thing was to
stop the accumulation Of interest by
prompt payment.
The Ex-Comptroller deserves great
credit for his share in reducing the
State debt during his two terms from
some forty-three millions to about
twenty-one millions. He was a strenu-
GUS advocate of the divorce between
State and railroads, and other meas
ures by which this was done. He de-
serves more credit perhaps than any
other State official, past or present, for
his consistent advocacy of the funding
of accumulated overdue debts, instead
of levying an enormous tax for their
immediate payment. In his report of
October, 1871, Mr.. Pennebaker said:
1.-THE idea that we will lessen the
taxes for the year to come, SO that the
revenues shall be sufficient alone for the
current expenses of the State, is an at
tempt only to defer for the day the
payment Of a debt for which the
honor of the State is bound, and
which, we all agree, must at some day
be paid. venture to sug-
gest that past due interest, and also all
interest that shall be due on the LIST
January, 1873, including the coupons
due of that date, should be funded In
coupon bonds of the State, due at thir-
ty or forty years. This plan, if adopted,
without a serious reduction to the pre-
sent rate of taxation, would enable the
State to meet its interest in July,
1873"
Mr.. Pennebaker's expectation of an
ability to resume one year earlier than
has been the case, wouid probably
have been realized if the Legislature
had retained the 60 cents State tax in
in force when he wrote. In his last
report as Comptroller, dated Jan l of
last year, Mr.. Pennebaker addressed as
follows the Legislature which passed
the present law:
81 would respectfully suggest that
the entire outstanding debt, including
unpaid coupons, warrants on the
Treasury, the old issue of the Bank of
Tennessee, and in short, all debts, ex-
cept those preferred by law, be funded
in uniform series of bonds, having
thirty years to run, with semi-annual
interest coupons attached, bearing IN
terest at the rate Of six per cent. per
annum."
The Legislature did not so so far as
this, but We make these extracts only
to.show the friends Of Col. Pennebaker
that We could not possibly have any
motive for Withholding from him due
credit in urging views so much IN ac-
pordanea with our own