Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-07-28


have reduced our debt Sl6,164, 341, and be
i'm condition TO pay to the sinking fund
thereafter over s, 100000 annually, without
increasing the rate of taxation
NEW BONDS.
The argument is often made that the
State is no, bound for the internal improve
ment bonds issued from 1850 to 1869. VI
this class there is yet outstanding only 81
$4,000. They will not mature for more
than twenty years, ard cannot now be
funded; and the only practical question
10 be made upon them now is: Shall we pay
interest on them? But it must be remem-
bered that Of this number S2,6Z3,OOO were
issued TO railroads that have either paidtheir
entire Indebtedness or are solvent and are
paying their interest. Under the legiS-
iatiOn Of 1SG9-T0, all the other internal
improvement bonds issued since the wal
were accepted by the State in payment OF
loans made to railroads, and have been
Cancelled. Ii therefore appears that of all
this class there are now outstanding only
Sl.j34, 900 of bonds that were issued to in
solvent and unfinished TailrOads. The only
question about these bonds is: Can the
State either repudiate or cease to pay in
terest upon them, after she has legalized
them by the various acts Of the General As
sembly Of IS69-7G? And il may not be i'm
proper to ask whether the State can af-
ford to fix upon her fair name the stain OF
reputation for that sum, when the bonds
were issued under all the forms Of law,
have since been acknowledged by repeated
legislative acts as valid, and when the
State has enforced its mortgage upon the
unfinished roads partially constructed by
the proceeds of the sale Of theseveTy 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 complete
answer TO the inquiry. a simple calcula-
ton shows that five per cent. Of our wealth
will pay our debt, principal and interest,
and that fifteen per cent. of our annual
productions equals our debts. And when
it is considered that 40 cents on the SlOU
has paid, and with the aid Of new sources
of revenue now accruing to us, and little
wise legislation, reducing the expenses oil
administering the criminal law, VIII con-
tinue TO pay the current interest, there can
remain no doubt Of TenneSsees ability 10
take care Of her present debt.
\ SUSPENSION OF THE PAYMENT OF IN
TEREST
will only add to her burdens by increasing
the debt by about a million and quarter
annually. And that policy has already
materially aided TO swell our debt to Its
present proportions. Our State tax IS less
than in any of the States Of the Union eX-
cept three. Even Kentucky, with sufficient
money in her treasury to pay every debt,
leyies a tax Of IS cents on each SlOO, while
ours is 40 cents. The assessment Of prop
erty in Tennessee is lower than in most OF
the States. Take, for example, eleven
States in 1870:
In Tennessee property was taxed at 90 per cent
OF its true value.
of its true value.
In n Arkrnsas property was taxed at 20 per cent
In Florida property was taxed at IS per cent of
In Georgia property was taxed at IS per cent
Tn virginia property was taxed at IS per cent
of its true value
In Maine property was taxed at &C per cent OF
In n Massachusetts, property was taxed at 70 per
cent OF its true value -,
In Texas property Wa t'AAe' a. - Pc SeA' Va
its true value. ..
In Maryland property was taxed at Ga per cent
of its true value.
Tn Kentucky property was taxed at &c percent
Of its true value.
n Is not in the reduction of State taxes
that Won must look for relief from the bur
dens upon the taxpayers. Il is local taxa
tinn that is crushing the energies OF the
State. wish that the Stste tax could be
diminished. But, l repeat, that is not the
treat burden. Take six counties IN the
State. including Davidson and Shelby, and
look at the taxes collected IN lolO'