Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1875-07-01
AENPNIS APPEAL
TurE-p.Y, july 1876.
arg STATE DEBT AND IHTEREsT
PAYMENT.


editorial paragraph Of ou5s in which We
called attention 10 the fact that the dis
credit following upon failure by the
State to pay the July interest on her
bonds would rest upon the Legislature,
because il had failed to make adequate
provision therefor. This article OF the
Chronicle is pointed and severe, and
though weakened to some extent by
federalism that is even too extreme for
these days Of Capitalization, viii not be
without effect-telling effect-sgsinst
Us. And, what makes the matter worse,
We cannot say q word to ward of these
effects. The conduct Of the legisls-
ture is, IS the Chronicle asserts,
"unsccountsble and inconceivable,"
without excuse and perhaps without
parallel, when we consider all the facts
and the prosperous condition Of the
State. On the seventeenth Of March,
1873, an act was approved by Governor
Brown, who has made an enduring IT.
cord for an honest administration OF the
States sffairs, which passed into the
history Of Tennessee as the "fundiDg
act.u II was debsted fiercely snd fought
against at every successive stage Of its
massage by some Of the ablest members
of the legislature, and was discussed by
the press with an ability that left moth
ing unsaid that could or ought to be on
either side. 1t passed, however, and be-
came law, and according TO its provi-
sions bonds and coupons 70 the amount
Of 500. 249, 900 were registered or funded,
the State thus solemnly reconfrming
previous pledges and guaranteeing
prompt payment Of interest on these
bonds. OF the debt thus funded, we
find that S5,353,OOO represents turn
pike, bank, and capitol bonds or ecu
pons, and of the registered bonds,
amounting in the aggregate to
SI4,S96 600, we find that 50, 1lS,OOO
represents capitol, turnpike and railroad
bonds issued before the war, so that of
the So. 249, 900 funded and registered up
to July, 1874, Sl4, AL 900 represented the
ante.war debt Of the State, of which
there has never been any question
made. The rest, amounting to s., 954,-
600, represents railroad and renewal
bonds Issued since the war. Outstand-
ing, and not registered or funded at the
date named, we find coupons amount
ing to $500, 900 Bank OF Tennessee bonds,
due in May, 1865, amounting to $780,
600; turnpike bonds, S354,0O0; capitol
bonds, STA 900; bonds not due that may
be registered, 50, 500, 900, making total
of 5,OI7, 900, and grand total of the
funded and registered debt amounting to
S25, 1856, 600. OF this last amount solvent
railroads sre pledged to pay 50, 46l ST. rs,
and purchasers OF delinquent rail-
roads, S823, 277, leaving the State
debt proper at $50, $50, ISL %. 1t
will be seen from the above that but
little Of the debt of the State represents
railroad bonds, and that for most Of
these good or solvent property is mainly
responsible. An act Of he Legislature
which permitted the railroads indebted
to the State to pay that Indebtedness in
kind, was the first step toward the grea,
and good end accomplished by.the fund
ing bill. 1t enabled the railroads to pay
most Of what they owed, dollar for dol
lar, and SO reimburse,the State without
loss Of any kind, and also reduce the
debt. Coupled with the funding bill it
relieved the State and opened way
whereby the people could meet their re-
manning engagements by a rate of taxa
ton lighter than that Of any Of the
States, except Pennsylvania and Della
ware, and that on an increasing proper
ty value. A benefcent system of finan-
ceering the funding bill, though it has
for nearly two years been standing rs a
solemn compact between the debtor and
the creditor, is yet sssailed by carping
few as an obnoxious measure upon the
plea, utterly baseless, that it covers
q character OF Indebtedness that
was fraudulently made. The last
legislature sought to cripple it by repeal
ing the clause which made interest pay
ment primal obligation without pro-
viding for the interest; or, inde2d, max
ing any provision for any Of the
expenses OF the State other
than had been made by the preceding
legislature. Afraid to shoulder the bur-
den Of an increase of the tax rate, it was
equally afraid to fix an amount less than
that which the trainers OF the funding
m Ia FrQN "
expenses and interest under an ecOnom-
icaI administration, such as Governor
Porter has given US. It feared to assume
responsibility for taxation one way or
the, other, and in acting up to Its fears
shouldered load that will be the polit-
icsl ruin Of every member So acting and
voting. The present financial attitude
OF Tennessee is indefensible. Let Us
quote from the admirable campaign
speech Of Major Sykes, and prove this
last position by a comparison OF Tennes-
see with other States, which will enable
us to realize our condition and ability
farm products OF Tennessee amount,
according to the census OF 1870, to
Ss8, Az, SO7, while the amount necessary
TO pay the expenses of the State govern
ment, and to meet the interest on her
bonds, will not exceed s., OOO, 600, or me
forty-third of the value OF her farm pro.
ducts. The following table shows the
amount Of taxes collected, and the
value OF farm products in each Of the
States Of this Union:
States. TGres. F0TDl Products
Alabama. ............. ,O6ig6O S67,52Z,S85
ArkaUsas. .....-.-....-.... ! 2s5603 900 so
Califorrf a ...........-. 3 lO4242 49-SJ6,0Lg
Connecticut.............. 2,O54465 26,4S2, Isl
flOrlud..... -Ots-Ji oi5V5ia ~
GSOrgl a......-.....-.--.... ltb' az oufSOulZa
lllluols..-..s-. a,ol5tltb @iuroCUf0o1
lnulana.. @tl5lfJt5 iL1r5l4Foul
Iows................---...-. l,l5f998 ia. S5,4i0
Kansss........ .............. g5s 513 27,6N,65l
kentucky .-.-......-....-.. 2Olb IA N,i17,jTi
LOulsianA.....-... ...... 4y3lZ tp4 0LsOJp,b-L
Maine. ly1S1YoO1 ol,tfO,Oa4
mArN ia NJ .---...........- lscsUr3CS olFSl0,UZ4
hassac b usetts.--.-...... D 60l 20 S2,l82,j7h
Michigan -.-----......-.-.. 7S9,272 l,la3, 400
MinnesOta-................ l,gljl22 lSi,5lS,6l}
Mlssissi ppi.-....-.....-.., l,s49l99 s8,l37, 93j
Missouri .....-...........-. 3,4b7 ,52 lJS6}5 759
NebT isEs...---............. so, So 50i,753
NtNAuA dla,it- o. 40 aUJ
New Kan ps1lre....... S3o,bJ5 Z2,s73.547