The Morristown gazette. [volume] (Morristown, Tenn.) 1867-1920, 1875-12-29
OUR STATE INDEBTEDNESS.
An Open Letter From Governor
Brs Porter. nag -

l. Asi.-s 6OLDEEsf aaaE ~
EXECUTIVE OFFFcE, NASHVILLE
Tennessee. Dec. Is. I875.-lJame.
Morton, Esq. New York. Youl
communication, covering article from
the New York Times, sis received
Il The January interest on the debt o.
the State Of Tennessee will not be
paid, and allthat can nov be promis
ed is that 50 soon as the REQUESTS
amount of money is paid into the
treasury it viii be applied 70 the
payment of the interest due the first
of July last. Before this can be
done, however, there is q balance OF
two hundred and fifty-fve thousand
dollars, borrowed by the State, to
pay the interest due January, 1875,
and an outstanding warrant account
of four hundred and twenty five
thousand dollars to be provided for.
! An effort was made to borrow the
money to pay the last July interest.
/ believed then that it was unfor-
tunate for the State that the nego-
tiation failed now I am thoroughly
satisfied that the failure was q for
tunate circumstance both for the
State and for the holders of her se-
curities, for the reason that the JAM
uAry interest, due in few days,
could not be paid without resorting
to another loan. and to undertake to
carry an additional loan account of
| fifteen hundred thousand dollars,
with sn empty Treasury, ,wOnld SIM
ply be at the sacrifice of whatever of
credit is left to the State. The ex-
ecutive officers Of the State have
therefore resolved to look to the re-
sources Of the State for the payment
of the interest on the public debt,
and not to further loan. The ar
ticte enclosed By yourself assumes
that the resources derived from tax
able property. amounting to $780,
100000. was dedicated to the pay
Inent of the interest on the State
debt. and that "the Legislature had
provided Treasury warrants TO pay
I the floating debt" Neither assump-
is true. A tax of four mills was
levied by the State to pay all ex-
penses, and subsequently the Legis-
latnre provided for the issuance of
treasury warrants. receivable in pay
ment for all dues to the State. linn
tied to $500, 600 at time, to be is
sued for current eGFlenSeS only. And
because of the alleged poverty Of
the people. resulting from q general
failure Of the crops for the year 1874,
the collection of the revenues with
! which it was expected to meet the
last July Interest. was suspended
until the 18th day OF November,
1875. Since that date there has
been paid into the Stale Treasury
the sum of .$l5l,167.26, of which
amount $7l, ,69o.2t was in Comptrol-
Ier's warrants, $10,576 in old issue
of Bank of Tennessee, the balance
of $68. .901, ,02 in currency. The
writer of the article enclosed, is in
error as to the expectation of reaiiz-
/ ing large collections from the $780,
! 600 of arrearages reported to the
| last Legislature. From a careful
| investigation of the Subject it is
found that this sum covers commits
sious not yet allowed, insolvencies
and land sales not yet reported,
/ judgments and debts in suit, in fa-
| vor Of the State. where principal and
sureties are insolvent, and repre-
1 sents very small sum Of collectable
! revenue. ~ nfifAi Lo7tf3 atI
1 This statement covers all Of your
| injuries except the one in reference
to a Reputation OF the State debt. 8;
! and / do not hesitate to say that
there is not man in the State with
| the slightest claim to 7respectability
i who favors such proposition bat
/ do believe that there are many
good and wise rmenfin Tennessee
4 who believe that the bonds. OF the
State carry toe high. rate of inter
est, and hold that it would be TO the
interest Of the holders themselves, to
/ consent to SUCH a reduction of the
rate of. interest as would be .accep-
1 table to the taxpayer; this PROPOSE
/ tion cannot come from the State,
but have information that induces
/ the belief that the, large. holders OF
1 Tennessee. bonds will accept q re-
duced rate or interest. if they can be
satisfied that permanent provision
will be made to pay With promptness
the rate agreed upon, and that ali
! holders of our securities content to
this reduction. Unless such an ar.
rangement is consummated. the
shrfnkage in values in the State will
! compel the next legislature to raise
the rate of taxation from four to six
/ mills on the hundred dollars. and in
any event an confident that sink
I ing fund of some amount will be
4 provided by the next Legislature.
] for the gradual extinguishment oi
be your obedient servant, aasal
4 adi vH4i97e.s .aoiJAs. D.. PoRTER.af-