Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1876-02-16
rHR STATE DRRr.

ards, and we're violently abusive of those
who had the temerity to ask lust how the
floating debt could be wiped out and how
the interest on the State debt aud current
expenses, amounting to over two millions
of dollars per snnum, could be met. They
said, in effect: Never mind; it has to
be done, in spite Of your foolish ques-
TONS" The other day the Comptroller
came out with a fall and detailed
statement of the financial condition
Of the State. We have looked
with interest to see what wise comments
or suggestions the high tax organs would
have to make, but, with one exception,
they are mum. They are waiting for the
cue from headquarters. The due liabili-
ties Of the State, in excess Of assets, will
be $2,446.5 51 on the first OF next Janu-
airy, and will amount to about 50, l4O,3 1926
by January |, 1878. and will, in all proba-
blity continue to increase in proportion
unless something is done. and quickly.
The Nashville American is the exception
alluded to, although it has been slow
about taking a position. In doing so.
however, we find that it comes almost to
the high ground assumed by the LEDGER
many months ago. The American Of
the 10th says:
If the next Legislature we're to treble
the rate Of taxation and apply it to the
year 1877, the LIST of January, 1878,
would find a deficit in the treasury of
more than 81, 500, 000. But it is not
probable that the rate will be 90 greatly
increased. Looking facts squarely in
the face, is it not more probable that the
struggle will be to keep it as high as at
PRESENT. Regarding it as imprscticahle,
aye impossible. to levy a tax which will
enable the State to meet its liabilities
due January l, 1878, shall the Legisla-
ture scale the principal of the debt or
scale the interest, or leave both as they
are and let the payment of interest go
by default, as before July, l8747 We do
not recommend either.
After this admission, which ought to
have been made two years ago, the
American offers its remedy:
Our suggestion is thatthe Governor 90
to New York himself or appoint a com
mission Of officials or others 10 meet
there the holders of the bonds of the
State and confer fully and freely as to
the insDcial condition OF the State and
the people, and ascertain whether any
adjustment or Arrangement OF the debt
can be made which will be satisfactory
both to the owners of the bonds and the
people Of the State, and at the same time
capable OF contamination. There let all
the facts and figures be presented and
the whole matter with all OF its incidents
and consequents be thoroughly dis
cussed. II an arrangement can be ar
rived at which will probably be satisfsc.
tory, it should be made public before or
be presented TO the Democratic State
Convention for, il need be, consideration
by that body. We specify that conven-
ton because the Democratic being the
dominant party will be responsible for
legislation.
This sounds like business aud the
most practical kind Of common sense,
an element which has been sadly want
ing on the sacred debt" side Of tue
question for the last four years. The
people are not seeking to evade their
just liabilities within their power to pay,
but they do not feel able to stand treble
taxation, for that would be cou6scation,
Republication and ruin without remedy.
1t lie true that the Governor has no
special authority to appoint a commits
sioa to 20 to New York to confer with
the bondhoiders, bat the arrangement, if
satisfactory, would no doubt be indorsed
by the next State Convention and sus-
tanned by the next Legislature. 1t will
require practical management and legis-
latien to get the State out Of her troubles,
and ome movement is necessary to Be-
cure the harmony aud support of the
people in unfolding the honor Of the
State without impoverishing the tax
payers. There must be a scaling down
sooner or later, or something worse
wholesale default Of the interest.