Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1876-09-05
THAT OPEN

written IN the latter part OF last
year, has been referred to so often
without being published recently
that we give it entire and bespeak
for it a careful reading, especially
the first and last paragraphs. 1t
will be seen that the promise to
pay is not positive, but qualified
and dependent upon conditions
that he did not seem to think, in
the body of the letter, could occur
within his term of Office. The
letter was certainly very dis
couraging to the bondholders.
In the last paragraph he holds
out an intimation and a hope to
the taxpayers that a compromise
can be effected. His proposed ac-
ton now destroys that possibility
for some time to come. We leave
it to any candid reader whether this
letter could be strictly construed
into an official notification of pay
ment in the sense claimed now by
the Governor and those who sus-
tain his course. If reelected it
will be fully a year before he can
make another semi-annual pay
ment, and the people may as well
make up their minds that if they
mean to carry out the provisions Of
the funding bill in good faith for
ever, and it runs forty years, the
next Legislature must raise the
present rate Of taxation to seventy
or eighty cents. But here is
THE LETTER.
Executive OFFICE, NASHVILLE. TEEE.,l
December B,1s75.
James Morton. Esq. New York:
SIR-Your communication con-
yeying an article from the New
York Times is received. The Jan
uary interest on the debt of the
State Of Tennessee will not be paid,
and all that can nov be promised
is that so soon as the requisite
amount Of money is paid into the
treasury it will be applied to the
payment of the interest due the
first Of July last. Before this can
be done, however, there is a balance
Of two hundred and ifty-fye thou.
sand dollars, borrowed by the State,
to pay the interest due January.
1875, and an outstanding warrant
account Of four hundred and
twenty-five thousand dollars, to be
provided for.
An effort was made to borrow
the money to pay the last July IN.
terest. / believed then that it was
unfortunate for the State that the
negotiation failed now / I'm thor.
oughly satisfied that the failure
was a fortunate circumstance both
for the State and for the holders Of
her securities, for the reason that
the January interest, due in a few
days, could not be paid without re-
sorting to another loan, and to I'M
dertake to carry an additional loan
account Of fifteen hundred thou.
sand dollars, with an empty Treas-
ury, would simply be at the sacri.
fee Of whatever Of credit is left IN
the State, The executive officers
ofthe State have heretofore resolved
to look to the resources Of the State
for the payment of the interest on
the public debt, and not to a fur.
ther loan. The article inclosed BY
yourself assumes that the resources
derived from taxable property.
amounting to 5000, 100000 wa.
dedicated TO the payment Of the
interest IN the State debt, and that
the Legislature had provided
Treasury warrants to pay the aoat.
ing debt" Neither assumption Il
trne. A tax of four mills was
levied by the Stale to pay all ex.
penses, and subsequently tbe
Legislature provided Tor The lam.
ance of Treasury warrants. re-.
eelvable in payment for All
uUpg pt tln Gfafo Eu,,i.I 80.