Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-08-31
Union AND AMERICAN.
TrEsDAE. AUaUsT aI 50.

TUESDAY,, AUGUST 81 1870.
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WHAT MAE1Es TENNESSEE POOR,
AND HOW SHE May BECOME
RICH.
On the 23d August Hon. James E.
Bailey, Of GAINESVILLE, delivered an ad-
dress at Maryville, East Tennessee,
embodying valuable array of facts
indicating labOred and conscientious
research, and fraught with food for
thought and practical suggestions. His
subject was the present industrial and
economic status of Tennessee, and the
means for improving it. In consider
ing the present general depression, the
disordered condition of our State
finances, and the silent but ever press
ing burdens that retard recuperation,
he argues with convincing force that
the economic policy Of the General
Government must rot be lost sight Of.
On this subject we make the following
extract:
We have in Tennessee, in round num-
bers, 1,250O00 people, being about one
thirtieth part Of the whole population OF
the United States.
Estimating the sum required each year
for the support Of the Government Of the
United States, and raised by taxation, to
be $500, 000, 000-and the average sum for
the past ten years has considerably exceed
ed this estimate-and having regard "a
numbers alone as the measure Of the di-
vision Of that tax, the people Of Tennesses
would have to pay annually by their con
tribUtion the sum Of S10000,000.
Ten millions Of dollars! But although
we have within orr borders One-thiTtieth
part Of the population Of the United States,
we possess, according 20 the census returns
of 1870, only One-siXtieth part Of the wealth
Of the country. Having regard to wealth
as furnishing the measure Of consumption
and consequently Of taxation, the people Of
Tennessee pay only S5,CQO,0CO Of this
S3OO,OOO,OO0.
Having regard to numbers, we have seen
that we would pay 100000. Taking
both numbers and wealth into view, We
are warranted in assuming that our part
Of the tax is SI,50O,O00.
a part Of this tax is paid in gold, now
at a premium Of say twelve (12) per cent;
and al the goods and wares upon which
the taxes are assessed come to the con-
sumner after at least two, and generally q
greater number Of exchanges, on each Oi
which a profit mnSt be paid; and for this
premium and these profits we may safely
add 30 per cent, being $500, 600, which,
added TO the S7,jO0,00O make in all &c.
100000. / am convinced, that, if l had
the time to 20 into particulars, and you
the patience to bear with me, il could be
shown that the sum is much greater.
If anything ike a proportionate
amount of Federal expenses were paid
out in this State, the burden would not
bear so heavily; but such is not the
case, and the following estimate we re-
gard as liberal one:
Of The sum paid yearly to the Govern
ment Of the United States, but little is
paid out in the State Of Tennessee. The
total expense of the Navy and Navy Yards
and Of the War Department and fOrtifica-
lions, the interest upon the public debt, the
immense sums paid to pensioners, all or
nearly all, is expended outside Of this
State.
A part of the revenue, however, is paid
out here in maintaining the regular service
of the POstOfice Department, part in the
administration Of justice and 10 pensioners,
4 small sum to revenue officers, such as
whisky gaugeTS, etc, and something to
holders Of United States bonds. The total
amount, however, which comes back in this
way to the people Of Tennessee, Will not
exceed S1,jO0,0 600.
Paying out SIO,OOO,0 900 and receiving
back only Sl,5OO,OOO, nets an annual
loss to Tennessee Of SS,500,0OO. This
is the drain on our industries. Other
minor burdens are detailed IN their
amount and effect as follows:
We have a State debt bearing interest
reported officially 70 be about 81 100000,
and bonded debt due from cities and
counties, which, according to the census Of
1870, is ST,S22, 600, the annual interest
being S469,32O, aud a funded and bonded
debt due from our railroad companies, the
exact amount of which have not been
able to ascertain, but which certainly is
not less than S2000O,000. Part of these
bonds bear Z per cent. interest, and part
of the interest is payable in gold. When
the gold is reduced to currency, the total
Of interest 70 be paid each year by the rail-
road companies is not less THAI Sl,S00,000.
Perhaps One-half Of the bonds Of cities
and counties, and One-twentieth Of the
railroad bonds and bonds Of the State, are
held by our citizens, and the interest col
lec-ed and expended here.
From these facts and figures Col.
Bailey builds the following table show
ing the amount sent out of the State
each year on these various accounts:
United States tax and profits. S S,5OOOOO
Interest on Tennessee bonds O.. 10000
Interest Oh railroad bonds. ..... l,ZJ5,COO
Interest upon city and county
bonds. ....,...,.., ........ 2a4,6 $50
Making total of. ,lG6, $50
1t viii be noticed that the Federal
burden constitutes over 76 per cent of
the entire amount, while the State debt
is responsible for less than II per
cent, the latter item being exceeded by
the drain Of our railroad Indebtedness.
Stated in a different form, We pay to
the United States taxes and profits
$3.50 for each inhabitant. To interest
on the State debt, nearly SO cents fer
each inhabitant. To interest upon
railroad bonds, nearly 80 cents for each
inhabitant.
In this calculation the expense of
State, county, and munich