Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1875-08-11
STATE CREDIT A POSSIBILITY.

SUI
STATE CREDIT A POSSIBILITY.
The st. Louis papers, especially the
Globe. Democrat, have made some very
pert remarks lately concerning the non
payment of the July interest on Tennes-
see bonds. The paper named takes its
cue from some Of our high-tax organs
and talks Aippantly about TENNESSEE
reputation. This may console the Wall
street b~ondholders, who went into a spec
ulation on the misfortunes and wrongs
of Tennessee, but the yeomanry Of the
old Volunteer State have heard such
groundless charges nearer home without
dismsy and can listen to the feeble echo
from Missouri with complacency, know
ing that, if they are misrepresented, time
will set them right at home and abroad.
Speaking Of State debts, it seems as if
we had heard of a little elephant in that
shape in Missouri, and to protect the
people from spectators, b~ondholders
and rings, the new constitution is gar
nished with some healthy safeguards.
That instrument requires that the Legis-
lature shall make the regular a%ppropria-
tions in a certain order, the first
on the list of seven items being
the payment Of the interest on
the bonded debt of the State that may
become due during the time for which
such legislature is elected; the second
for the benefit Of the sinking fund, which
shall not be less, annually, than $3.50. 900.
1t also authorizes the Legislature, in
case of an emergency or Casual def
cheney, on the recommendation Of the
Governor, to contract a debt of not more
than $25O,OOO for not more than two
years. This secures the regular pay
ment of the interest and the reduction
of the principal, $3.50, 900, every year.
The constitution also provides for the
levy Of two distinct taxes-one to defray
ordinary expenses, and the other to meet
the payments on account of the debt.
Both taxes combined, it is estimated,
will not exceed As cents on the one hun
bred dollars. The entire assessment of
the State is in the neighborhood Of
5000, 600 ,0Oe, while the total taxable
property Of Tennessee is only $685.
089, 73s, or about one-third. Now what
is the debt of Missouri, over
which there has been so much
trouble, especially since the WARP
On the first of last January it was ST.
$780, O0, while Tennessee's debt, upon
which she is expected to pay interest,
after selling out several millions worth
Of railroad assets, is something over
$20,0 O0, 900. Our funders recklessly and
criminally made the interest a preferred
claim for forty years and made no at
tempt whatever to provide a sinking
fund. At the end of forty years, when
our children are turning gray, the prin.
cipal will be the same, if the funding bill
is enforced. The Missouri constitution,
while protecting State credit with proper
Jealousy, also protects the people from
excessive taxation and the creation of
further debt. There is no such provision
in our constitution, and the people have
no assurance That a future Legislature
may not enact another funding Job and
increase their burdens. They would
more c~heerfully undertake to carry
the load sought to be imposed
on them if they could see a pros.
pect in the dim future that it would be
lightened. Missouri is three times as
wealthy as Tennessee ever was, and yet
At is found necessary to protect the peo-
pie by a constitutional provision. The
new constitution has yet to be submit
ted to the people, by whom it will doubt
less be ratified our financial difficulties
may yet have to be settled by a constitu-
tional convention. The people are not
willing at present to be taxed 60 or so
cents to meet current expenses and pay
the interest on an intolerable debt.