Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1876-03-28
THE DEBT OF TENNEssRE-A PLAIN
STATEMENT OF THE SITUATION.

assume that q failure to meet the inter
est on eur bonds as it falls due is repu-
diation. Some Of them argue that forty
cents properly applied will meet the
emergency; others, too, argue our moral
obligation to pay whether able or not,
All of them say much about the sacred
honor and faith of the State, but none
of them, as far as we have seen, come
cut and advocate specifically an in
crease Of taxation. This may be the
ultimate obiect-iRferentially it is-but
for the present it is kept in the back
ground. They talk Aippantly about an
annual interest of over a million and g
half as a mere triae. This may seem so
to a man who pays no taxes, directly, OF
makes his living as q coupon'cllpper,
but the toiling masses feel it, and they
find it harder TO raise one dollar now
than two dollars seven years ago. Not
one Of these papers has come out and
stated approximately what rate Of taxa
ton it is supposed will be required to
wipe out the floating debt in a given
period, say two or four years, and at the
same time meet current expenses and
the regular interest falling due. When
the next Legislature meets it is
estimated by the Comptroller that
the State will be in arrears, in
round numbers, three millions of dol
lars. To wipe out this alone in one
year would require a tax Of at least
eighty cents, to say nothing of liabilities
falling due. About the time the funding
bill passed some beautiful figures were
made to prove that forty cents would he
a sufficient tax. The other side said it
would require eighty cents, and the cor
rectness of this assertion has since been
fully demonstrated. If the Legislature
Of '73 had fixed the rate at eighty cent?,
and that amount had been strictly COL
lected. It would not have kept the State
from falling behind. Now we are ex-
pected not only to meet the enormous
regular demands of the future, but to
wine out the deficit Of three millions
that stares US in the face. Some of the
debt, we have reason to suspect, is not
morally binding. But waving that
question, we cannot see how the people
can meet the accruing and outstanding
obligations. The fifty cents on the one
hundred dollars worth Of property: is
about as much as the people feel able to
pay directly to the State in the shape Of
an advalorem. Besides this, they pay
county, municipal and Federal taxes
either directly or indirectly, and also
assist to pay the double tax imposed OF
merchants capital, for the merchant t.
make a profit must charge up hi
taxes to customers in the pricl
Of goods. When we add on pol
tax, dog tax, etc., the actual rate nov
paid is nearer two dollars on the hun
dred than forty cents. What is fort,
cents?" says the advocate Of gilt-edgel
State coupons. This reminds US some
times of q distinguished United State
Senator who took his seat in a top-keav
condition during the progress Of q debat
on the national debt. Rising in his plae
he grsvely asked the Speaker how muc
it was, and running his hand into b
pocket said, II will pay it myself, Mizz'
Speaker, aud stop this unnecessary d
bate" The only difference is that
this case the bondholders advocates pr
pose hat the people shall pay it. W
are told that it is undignifed for q grei
State like Tennessee to ask her eredito
for a compromise on a debt made partl
if not mainly, to build railroads, tur
pixies and the Capitol before the wa
These promises to pay we're issued upt
the existing and prospective ability
the State to pay. Since then the "
swept away millions Of property, a
during the ten years from 1860 to Is
that the principal taxpayers were
prived of q voice in public affairs ma
more millions we're squandered a
stolen. The first Democratic Legis
ture that met otter the war in its gush
State pride, absence of experience O
plenitude Of interested councillors,
sumed to pay everything without ask
any questions. They we're willing to p
a big bonus to signalize their return
power. Money was plentiful In tho
days, and the people endured a six
cents tax without asking many question
Certain State conventions likewise
formed the world that Tennessee Won
never go back on anybody who held Al
of her paper, even as Mrs. Micawberf
quently assured her husband, that S
would never desert him or the twins. I
this sort Of stuff reads we'll on p.pI
but under certain favorable %coadiliol
as the spiritualists say, it can DO mar
featured cheap in quantities to suit c,
toners. The bondholders took advanta
of loose management in public affa
and underlined public opinion to ru
through what is known as the iundt
bill. This was admittedly the work Of
powerful moneyed ring. This was q
done without difficulty, and from III
time forward the people began to awak
to their interests. The last Legislatu
was ;nstrucfad hv the State conventi