Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1876-07-18
face value did not invslidste them in
whole or in part.
BENEFIIs RESULTING,

whole or in part.
BENEFITS RESULTING.
Were there any benefits resulting
from the creation Of this debt? Govern
or johnson stated them clearly in hi
messages. which have been quoted. II,
says: 'HFhey are developing our hither
to hidden and latent resources, and bear
ing off, at cheap rates, to the markets o
the world the mechanical, agriculture
| and other products of the country" tina
| they fbind the State together from Car
ter to Shelby, and make us one and thu
same people in agriculture, commerce.
and mechanics" AS consequence o
| this debt, the value of property in the
State increased from 1856, 62l ,119 in
1852, to 1888. 048, 352 in 1880. The aver
age value Of land in 1852 was s. 81 pei
acre, and in 1850, IS ID. In the county
| of Msury. the value of land was, in 1854
| S5.2IO, O52, in 1859 in was 81 1853, 279, aDC
| in 1874 it was 81, 539, $40. In Caro-
county the value of land in 1854 was
| 81. 4O7, l26, and in 1874 it was $3, 13l 289
| AS it WAS in MauTy and Carroll, 80 il
was throughout the State wherever these
| improvements were made. Governor
Johnson's predictions were fully verified
and his arguments in favor Of the sys-
tenn sustained by future events. Since
the war, appropriations to large extent
have been made to renew the railroads
that were much Injured, in fact, nearly
DESTROYED by the war. AS before stated,
the bonds issued to railroad companies
since the war have been under authority
of an act of the legislature passed in
1870, mostly returned into the State
treasury as good. The taxable prop
erty Of Tennessee, in 1865, was
Sl94 S49. 3S7, and it was in 1875, S27S,-
600 900. / shall not undertake to dis.
cuss whether the bonds issued by Gov
ernors Brownlow and Senter were prop
erIy or Improperly issued, since they
have been mostly paid, and those that
have not been paid have been recog.
nized as valid by the legislature OF
1S69'70, and by every succeeding legis-
lature which has met since that time.
To receive the benefit of bonds and
raise no question as to their validity st
the time of their issuance and afterward
to deny their validity, admits Of no de-
tense.
wHATSHALL BE DONE WITH THE DEBT?
The debt having been recognized as
valid, the serious question is presented,
what can be done with it? 1t is very
large, all will admit, and it is q heavy
burden upon the people of Tennessee.
Notwithstanding the increase in the
value of property in the State since 1852,
which amounts to near $92, 000, 900, the
net income OF property-owners and tax
payers is very small from causes which
it is not necessary here to Discus, some
of which arise from governmental ex.
travagance and Encouragement, and
some from causes under the peoples own
control, and which they can, and Ihope
will remove. We have not paid the in
terest on the State debt for years, except
twice, and unless something is done We
may not do so for years to come. What
can we then do? Can We honorably
make any agreement with our creditors
which will be just to them and salts.
factory to ourselves? Denouncing bond
holders and capitalists does no good, but
may do much harm. What we need to
improve our country is capital, and if we
denounce the men who lend US the
money, what right have We to
expect them to aid US by the loan Of
their capital. Such course tends to
drive away from US that which we so
much need, and which our people are SO
anxious to obtain. Let us deal fairly and
Justly with bondholders, as with other
men, and show disposition to pay the
debt Of the State, so far as we are able.
In this way we will get liberal terms
from our creditors, and benefit ourselves
in the future. If all the bonds were now
owned by the men who originally
bought them, while the legal obligation
would be no greater than it now is, yet
the moral obligation, or, rather, our
sense OF justice, would make us feel like
paying the whole amount, principal and
interest, without the abatement of one
lot or title. But the fact that they are
now owned principally by men who
bought them at great discount, which
depreciation was not our fault, but ow-
ing to our misfortunes, should make
them lenient in dealing with US. We
know they cannot force US to pay, but
an honest States an honest individual,
will pay what it can, although there is
no power of compulsioD. There is no
peculiar honesty in paying debt when
we Can be compelled to do ii, but he who
pays when there can be no compulsion
shows true principle. If we can make
an arrangement with our creditors, not
under ti.reGts, but upon full and free con-
sultatioD, we should do 60, and this will
be an injury to no one.
RATE OF TAXATION.
In determining what arrangement we
can make, we should consider what
should be our rate of taxation and what
our probable revenue. do not believe
that an increase of taxes will increase
the receipts into our State treas
ury. AS our laws for the col
lection of taxes now stand, we
would merely have more delinquent
tax payers. Unless we can collect the
taxes now levied, there is no use in any
further increase. The first thing to he
done is to secure the payment of the
taxes already levied, for it is unjust that
some men should pay taxes, and others,
who have as much, or more property,
should pay none. An Increase in the
rate of taxation might reduce the assess
ment, and thus no more would be raised
than under the present rate. A few
years hence, when the private debts are
all paid, as they will be, the country
will be in better condition for an in
crease Of taxation than it now is, even
If such an increas3 should become ne
The people are slowly but sure
" getting out of debt, and the very
scarcity of money is bringing this about
by forcing men to be economical in their
habits and in their expenditures. /,
however, believe the present rate will
eventually pay the debt by the increase
IN the wealth and productions of the
WHAT THE PRESENT TAX SHOULD YIELD
II the taxes are collected, as they |
should be, the present rate will bring in |
% the treasury 81, 100000 as follows:
Tax on property 81 100000
PRIVILEGES, clerks, railroads, etc...... 100000 |
...s.ss.Sl, 6OU,UOO
Less expenses and iDsolvencies.-....-.. 100000 |
500 900
With the proper laws properly ad. |
the expenses of collecting |
axes and the insolvencies will not ex- |
ICED St0O, 900 per annum, Let us now |
zee what is the amount of the debt. Ac.
iording to the report of the com ptroller,
q 1875, the debt of the State will not |
xeeed 500 600, 900; but suppose we put it
t SIS, 0O0. 900. Six per cent. upon this
mount is 81, 800 600; per cent. per an
lum, s., 10000 If we put the expenses
4 the State government at $500, 600, aud
he interest lat per cent?, $1,000, 600,
be present tax will be sufficient to pay
hat amount. The expenses of the State
government can be reduced to $500, 900
er annum with no detriment to the pub. |