The Morristown gazette. [volume] (Morristown, Tenn.) 1867-1920, 1877-12-26
AN EQUITABLE BASIS REACHED
LAST


At LAST
The Nashville Banner of the 25th
says: 1t is now stated that a pro-
position will be made by the holders
Of State bonds 10 compromise the
debt at either fifty cents in the dol
lar at four per ceAt. interest, or at
forty cents in the dollar at six per
cent. The former proposition is the
lowest of the two, as very little
figuring on the interest will show,
and the Bonner does not hesitate in
the interest of the people of the
State to recommend its prompt
acceptance by the Legislature. 1t
is an equitable basis of settlement
of the question, and there can be no
good reason urged for further hig-
CLING and parleying unless, indeed.
the whole debt is to be repudiated
and wiped out as with a sponge.
Our readers will bear US witness
that the BaRner has never pleaded
the cause of the bond-holders it
has never been the organ of the
money power, but has at all times
and en- all occasions advocated the
interest of the people, and has per
mitted the people TO speak, freely
and without reserve, through its
columns. But while it has fought
for an equitable adjustment Of the
State debt, it has never favored re-
i'ation. A basis of settlement of
this question has now been suggest
ed. which is equitable and just to all
parties interested, and the Legisla-
ture should not longer hesitate TO
close the bargain on behalf of the
people. Let the terms of the agree
ment be drawn up, on the basis Of
fifty cents in the dollar at four per
cent. interest.
The Memphis A0aIaache, the most
uncompromising low tax newspaper
in the State, favor, settlement upon
this basis. 1t says.
1t is in every way desirable that the
State debt should be adjusted on basis
equitable to both creditors and taxpay-
ers. For years the bonds representing
it have been used by jobbing rings for
purposes of specializing, to the disgust
of all decent people, and the injury OF
the credit of the State at home and
abroad. An end should come to all this
and it is to be hoped, now that all re-
striction has been removed, the Legis
lature and the bondholders may reach as
understanding that the people will ratify
and that will settle the veXed question
forever. The original proposition to
settle on the basis of go cents and 6 per
cent was impracticable, as the Ar1-
Ltuche pointed out when the Governor s
proclamation appeared. 1t demanded
what the people are unable to do. For
it once dad been substituted to make 90
cents on the dollar the basis of settle
ment, but at 6 per cent. The interest
is the sticking point in the latest propo-
sition. No State can afford to pay per
cent on long time bonds. 1t is the in
terest that kills. 1t is the annual inter
est that devours the substance of the
people. 1t is worse than idle to enter
tain any proposition that does not con-
template sinking fund to grad ually
re luce the debt. Yet its creation is i'm
possible if our bonds are TO bear per
cent If the so cent basis should be ac-
cepted and per cent. paid, little or
nothing could be provided for sink
ing fund The interest and the expen-
ses of the State Government would cx-
haust the revenues. For generation
the people would pay heavy tax with
out reducing the debt single dollar.
This is not to be thought of for mo-
ment. The AraLunche will favor set
Element on the basis of fiftycents on the
dollar and four per cent. interest. This
would reduce the debt fifty per cent.
and the interest 334 per cent We
KNOW int people OCSlAC W 4SoOAllS Ptt3
| ing interest, but they are unwilling to
undertake what they can not perform
This basis of compromise, all things
considered, is just and equitable. The
present taxation rate is fixed for 1878.
By 1879 we believe the people will be in
a condition to begin payment four per
cent. interest on half the present face
value of the debt. This, in round num-
bers, will aggregate $11 100000. Four
per cent interest on this amount is
$474, 600, subject to such annual reduc-
tions as may follow the operations Of
the sinking fund.
The opportunity is now, or will be
presented to settle the debt on the
above basis. The Legislature
should hesitate no longer. but ac-
cept the above terms of settlement
at once, and 60 home and enjoy the
Christmas holidays with clear con-
science. having accomplished a great
and proper work for the people of
the State.
COnk ling VS.. Hayes.
Philadelphia Times