Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1876-01-28
rRNNEssRR,s BONDED pRPT.

We are not inclined to tackle this sub
iect in detail or to go over the positions
assumed respectively by high State credit
aud. low tax factions of the State. The
people have seen the figures often enough
TO be tired Of them. Yet, disagreeable
as the fact is, the main issue is yet to
meet. There is nothing novel in the
situation; we are simply in debt head
over ears, and our creditors, 10 and out OF
the State, are continually dunning US
for interest and prodding our State pride
and sense of honor. In the heat of dis
c%ussion, both in the Legislature and
through the press, such epithets as repu-
diation and disbonored obligations, etc.,
have been freely used. 1t must be con-
fessed that such arguments have not
helped matters and that the great body
of the people are less Inclined to make
an exertion to meet the demands Of these
clamorers than ever before. They argue
that their heavy losses resulting
from the war, the small profits made by
hard work and the best conducted enter
prises, the stringency Of money matters,
the high price of living and the general
uncertainty Of the times greatly abate
the claims Of public creditors. Their
ability to pay has been diminished,
while the debt has steadily increased.
Men will not cheerfully submit to have
their little homes sold to redeem
coupons which they as a class had no
agency in issuing. The people are not
in favor Of reputation, but they have
been charged with it so long while strug-
Cling for the bare necessities Of life that
we are panied to confess they stand the
tsunt with more composure now than at
first. One fact is well established: the
borrowing policy is abandoned for good.
The State owes, and is paying interest
on, two or three hundred thousand dol
lars borrowed under John c. Browns ad-
ministrstion to pay off the interest which
fell due January |, 1875. The present sd-
miuistration is applying all revenues
coming 10 to the extinguishment Of that
debt. 1t will be some months before the
July interest Of Is will be met, and still
longer when we overtake the January
interest of '76. Under the Funding bill
of 1873 none Of the principal Of the pub
lie debt can be retired fo- ten years,
even if we had a sinking fund. Mean
while the interest accumulates and the
people become discouraged, if not indif.
ferent. The Governor, who perhaps felt
bound to carry out the policy of his pre-
decessor, at least for n year, while the
collection Of taxes was suspended, made
an effort to borrow enough to pay the
July interest, and was doubtless Thank.
full that he failed. In his recent letter
on the subject be indirectly suggests
hat the bondholders may End il to their
interest to propose e reduction Of the
rate Of interest, but as yet no response
has been made. Candidates for the
Legislature are already in the field
nearly all over the State, and in some
counties are publicly announced. We
have heard Of none running on 8
high tax policy, and the few papers,
sore-heads and anonymous ~scribblers
who abused the 39th General Assembly
for not having moral courage" and
brains to levy a high tax, will have the
satisfaction Of seeing another Of the
same sort, only more so, elected next
fall. We know the temper Of the people
all over the State, and sdmonish the
b~ond-holders to take time by the forelock
and make liberal concessions before the
next Legislature is elected. Let them do
this in good faith and the people will
make a united effort to meet their re-
manning obligations promptly. The
sooner SEINE step Of the kind is taken by
the b~oud-holders the better. Governor
Porter, If requested to do SO by the hold.
ers of our securities, would no doubt ap-
point a committee Of well-informed citi.
zens representing the different interests
and sections Of the State to meet them
in'conference and agree upon q basis Of
equitable and honorable settlement, TO
oe submitted to the next General As.
sembly, and if necessary and found
acceptable to the people, incorporated
into the fundamental law Of the State
and thus made forever binding and effec.
tive. We would pay il we could, but the
plain truth is that Tennessee is unable
to pay out a million and q half in inter-
est every year. We have stated the case
plainly for the benefit Of all concerned,
but more especially on behalf of the fair
name Of an impoverished but proud
spirited State, hoping that the holders Of
our bonds abroad will meet us in a just
and practicable compromise and thus put
our people in a position to build up and
sustain State credit.
The General Council acted wisely TO
retain the Health Board intact. If the
exnarianca Of nihnr nii;na f. un..L a.