Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-07-28
Our Public Debt and the History
of its Reduction.
An Elaborate Review of the
Funding Policy.
The Civil Rights Bill UncOnstitu-
tiOnal and SubverSive of
Popular Liberty.
Memphis Appeal, july 2s

ttclVll rights Dill, WHICH We ueeIn OeSlFuc-
tive of the most sacred. principles of the
constitution, violatiye Of all justice and de-
cency, and the Inauguration OF social equal
ity and amalgamatiOn.
The people Of Tennessee are also deeply
concerned on the subject of the States
finances and taxation. Believing that
these questions have aroused your liveliest
attention as a citizen, lover of yOur
country, and the Governor Of the State, We,
as your personal and political friends, de-
sire to have a public expression Of your
views upon these grave and all-absorbing
questions, by addressing the people of
Memphis and of Shelby county, at such
time as may suit your convenience.
By complying with our request you will
oblige, very respectfully.
TThe above letter is signed by one hun
dred and seventy-two of the leading mer-
chants and professional men Of Memphis
Ed. UNION AND AMERICANA
GOV. Browns Answer.
MEMPHIS, July p, IS74.-Gentlemen:
For reasons, in which the public are not
especially interested, / am induced TO de-
cline, for the present, your very fattering
and complimentary invitation to address
the people of Memphis, on the subject of
State finance and taxation, and the Civil
Rights bill. hope, in short time, TO do
myself the honor to respond fully to your
request. In the meantime, having no dis
position 10 maintain silence on these vital
questions when thus called upon, and re-
cogniZing the right of a constituency TO de-
mand of their public officials free eX-
preston of public sentiment, as well as an
account of their official administration of
public affairs, | will briefly express my
views, reseTvfng a full discussion of them
to such time as may be more convenient
| and appropriate to address the people. To
that portion of your letter requesting an
address upon State finances and taxation, L
presume l cannot give any reply that Will
| be more satisfactory than simple recital
of the history of the State since the people
acceded to power in 1870, and an exhibit of
the true condition Of the finances Of the
State at the present time. This is not the
| time nor occasion, nor can l see the neces-
| sity for commenting or criticisinS the leg
| islation which has shaped Our financial pol
lev during that period; whether the ABSORB
| ton of the issues of the Bank OF TenneS'
see was polite or not; whether the liberty
given the railroad companies by the Gen
| eral Assembly of 1S69-10 to pay their
/ debts to the State in new as well as old
bonds; whether the passage OF the funding
/ law was wise or unwiSe, or whether these
measures were all deTHieT resorts forced
/ bv a combination Of circumstances which
weeould not control, il is not necessary
| now 10 inquire. Nor could lustic6'be done
| them in the circumScribed limits of a let
| ter. They have passed into, and form a
part of. the history of the State. The Cen
eral Assemblies which shaped these meas
| uras. after mature delibeTatiOn, we're AMI
mated by the highest and purest motives,
and adopted them as afiording the best so
| luton. under the lights then surrounding
them, of the financial questions then EN-
barrassiBg the State.
Some Of these measures, and especially
the one known as the funding bill, have
! provoked much criticism. PoStpOning 10 a
| future occasion a full discussion Of all the
causes which led to and made this legiSla-
| ton necessary, a brief reference TO the
/ financial condition of the State, the proyi-
sions Of the bill, and what has been &C
complished by it, will afford the impartial
reader sufficient evidence by which TO eSti-
mate its merits.
| The FIRST GENERAL ASSEMBLY CONEEN-
ED AFTER THE RESTORATION
| of the ballot to the people, were confronted
| on the first of January, 1870, with an enOr-
nous debt, amounting, according to the
| most reliable estimates. to the appalling
sum Of S43,O52, 652.2j, more than three
| fpuIfhs Of which had its origin in the in
| ternal improvement policy of the State
| under which bonds of the State had been
| loaned to railroad companies, to aid the
\ construction of various roads within nor
borders. Many of these companies had be
| come insolyent, and had entirely ceased pay
| ing Interest, as required under their contract
| The roads and property of these companies
had been placed in the hands of receivers
| under whose management they were &
charge npOn the State Treasury, as reported
| by the Comptroller and other officers, OF
over 81, 900 per day, without taking into &C
| count the accruing interest upon the bonds
loaned, or the rapid depreciation of the
| value Of the States lien, in The wear OF the
/ roads. II was then. as now, charged that Z
| large number Of these bonds had been reck
| lesslv or impruyideutly issued, and sold al
| ruinous rates by the companies TO whom
| loaned. However these charges may have
been, vet that General Assembly, after an
| elaborate inyesl igatiOnOf the facts, passed
| an act. with only threcsdiSscnting votes IL
the Senate and eight in the House, author
| izinc all railroad companies TO whom bonds
| had been loaned to anticipate the maturity
Of their debts by paying into the Comp
| tTollers Office bonds of any series, number
or date, interdicting only the Mineral
| Home and the insurance company
of the Valley Of Virginia. Under the pro
visions of this law the Comptroller could
| refuse no bond issued under the forms OF
| law. He could not inquire into the Wis
dom of the legislation that created the obi
cation. nor whether the bond was sold II
| the market at par OF at ruinOus rates. Thi;
WAS the act Of a General Assembly of the
| DeOpIe, by vote almost unanimous. The
! same body, by a large majority vote, dl
rectcd the sale of all the insOlvent and de
linouent railroads upon which the STATE
held siatuary mortgages, to secure the pay
ment of bonds loaned TO them, and by the
same act aud amendments thereto, ap
pointed A commission to direct the eNecu
lion of the law. Under the aforementioned
act all the solvent railroad companies pnr
chased bonds and paid them into the Stat'
Treasury in cancellation Of their debts
except
| The NIempIlrs and Charleston, which
a .
yet owes OF bonds Al %, e Z
| Interest in litigation tSJolO y
The Mississippi Central, which vet 80, =,
7 .----- lsA'NiANS
| The Tennessee and Mississippi,
which YET cwes....----.--......... l''eVoV
| Under the last named Get, the insolven
and delinquent railroads were sold, as con
templated by the law, and the larger pro
| portion Of the purchase money collected IL
bonds. Under this legislation OF the Gen
eral Assembly Of I8G9-70. the State deb
was reduced:
lst January, ISL, 59oO-
| LIST January, lsi2, tO--.-.-.--....-. SS'lS5Soo ?
| ISt january, 49,, tO........-.-.. S0'Cs-'a,s .
| I>t OF july, 1874, tO....-.....-... <''t-"-'oo
OF this amount existing on first July
1874. there is the sum of -, 1852, 400, upol
which the State is only secondarily liabl'
As indorser, and the principal debtors ar
! perfectly solvent and pay the interest. HI
State has also.
RAILROAD ASSETS
which will still further reduce her liablll
~. consisting of what is due from solyen
r,iIroa6s. hich have not yet retired thel
debts. amounting to $. 46I, STl.I5, and tE
further sum Of ssh, 2TT1, owing By the PA
chasers Of delinquent railroads, and In
further sum of $4,000 which is alread.
paid over to the State, and only awaits ap
nropriai7 LEGISLATION to be Cancelled ana ex