Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1877-03-31
TENNESsEE,s CREDITORs.
How the Question Of Settlement Is
Viewed from Their Standpoint.
A Statement of the Case to Governor
Porter.


A Statement of the Case to GoVerno
Porter.
The following letter from the heav
lest holders of Tennessee bonds, ad
dressed to Governor Porter, was pub
lished by the New York paper
recently, in connection with the Avisi
of the Legislative Commissioners II
that city: -
To his Excellency, James D. Porter, Gov
ernor of the State of Tennessee:
SIR-On the 18th of December last
we had the. honor of addressing tc
your Exeellency letter on the disor.
dered condition of the public debt. .o1
the State of Tennessee, of which we
are owners and the representatives OF
owners of q large amount, and of con-
veying to you in same an expression OF
our confidence and belief that per-
manent adjustment of the debt on a
basis equitable to the holders of it
and honorable to the State was practi-
cable, begging that your Excellency
would recommend to the Legislature
| to appoint a commission 20 come to
this city and confer with the creditors
! of Tennessee, with view If bringing
! about such an adjustment.
We have the honor to acknowledge
! the receipt of communications to US
severally addressed by your Excel
lency, accompanied by resolution of
the Legislature of Tennessee, approved
on the 9th OF January uIt., Ia which
the holders Of the public debt of the
State are invited to submit to the
General Assembly, through your Ex-
ment of said debt, and at the same
time to most respectfully express to
your Excellency, and through you to
the Legislature and people of Ten
nessee, our great regret and disap-
pointment that the Legislature did
not think it expedient to appoint
commission to come to New York to
confer with the creditors of the State
for the purpose mentioned, because
such a conference we still believe
would have developed a plan of ad-
iustment that, while doing equity toll
the creditors of Tennessee, would, by
bringing her revenues aud finances
into harmonious and easy working
order, restore her credit, and again
place it firmly on the high and solid
ground it once occupied, offer encour-
agement to capital to seek employment |
within her borders in the development |
of her unsurpassed natural resources, 4
and result in the greatest good to the
people of the State generally, enabling
them to transmit to posterity, together
with the good name which they in
herited, a heritage far richer than had
come down to them from their fathers. |
We have carefully considered the |
liabilities and resources of Tennessee. /
We know that her great wealth of
mine, field and forest are only in the
infancy of development.
We know, also, how much the future
development OF the vast, but now
comparatively latent, resources of the
State depends upon a restoration of
her credit and the re-establishing of
her financial system on sound basis,
and knowing, moreover, that the public
creditors of the State would be bene-
fitted, in common with the people of
Tennessee, by a restoration of her
credit and by giving her a healthy
fiscal system, we beg leave to submit
to your Excellency, and through you
to the Legislature and people of Ten
nessee, the following propositions as
to that can be done by the people of
Tennessee, with the cooperation of
their public creditors, for the imme-
diate adjustment of their public debt,
and for its ultimate sztinguishment in
an easy, gradual and feasible way-a
way which, if adopted, we feel very
sure we hazard nothing in saying will
be productive of the most benefcent
results to the people of Tennessee.
1t will be observed how essential to
the success of the plan we submit for
present adjustment and ultimate ex-
tinguishment of the State debt, will
be the cordial cooperation of both
debtor and creditor. and to what ex
tent we propose that the public credi-
tors of Tennessee shall contribute to
it's success. We propose:
First-That the revenue laws Of the
State shall be amended so that the
collection of taxes may be assured at
the time or times when they become
due, and that at the smallest possible
cost to the taxpayer.
Second-That the reforms proposed
and recommended to the Legislature
by your Excellency in regard to the
cost of county criminal prosecutions
be enacted into law.
Third-That the expenses of the
State Government be reduced to as
low figures as is consistent with the
maintenance Of its dignity.
Eo1rfh- That tho r1fn of
taxation be maintained, and that the
other sources of revenue be not di-
minished.
Fifth-That the State levy annually
a special tax of one mill on the dollar
of taxable property, the proceeds of
which, in every year, together with
any surplus revenue, shall be used in
the purchase, cancellation and destruc-
ton of the new issue of bonds which
it is proposed herein to issue for ex-
istig bonds and past-due coupons, and
the coupons Of July l, 1877.
Sixth-That the Legislature pass a
law authorizing the funding of all
bonds of the State, of all
past-due coupons thereon, and of the
coupons which will fail due on July l,
1877, into new bonds Of the State, bear
ing date July l, 1877, and having 90
years to run to maturity, bearing in
terest for period of five years from {
their date, at the rate of three (3) per
cent. per annum; for period of FIVE
years thereafter, interest at the rate of ;
four "a per cent. per annum for pc
riod of five years from the termination l
of the last mentioned period, interest
at the rate of five (5) per cent. per an (
mum and thereafter until maturity and (
interest at the rate of six (6)
per cent. per annum. Interest upon
each bond to be paid semi-annually,
on Jan. and July /, in every year
from and after its date, and the cou ;
pons evidencing it to be receivable by !
the State for ali taxes and dues paya {
BILE to the State said bonds to be for
500, $500 and 81 900.
The debt of the State may be readily
ascertained, will be within her control
and easy power to manage and protect
from the start, if, as we sincerely hope
may be the case, the plan herein out
lined is availed of, and we may add
that our aim has been to make it within
the easy power of the people of Ten
nessee to avail of it.
As will be perceived by your Excel
leney, the Legislature, and people OF
Tennessee, the public creditors of Ten
E,,e II /