Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1877-11-16
CAN THE PEOPLE STAND SEVENTY Oh
EIGHTY CENTS TAXI


The Avalanche must have surprised
itself as we'll as its readers by taking a
new departure on the State deb ques-
tion this morning: The Avalanche and
LEDGE we're the only daily papers in
the State that opposed the funding bill
and its tendencies, and we will net have
a controversy with our contemporary on
this question after standing almost to-
gether for so many years. The Ava
lanche favors a compromise Of the State
debt at sixty cents on the dollar, if such
a proposition is submitted by the holders
of our bonds, but at four per cent. inter
est. If our neighbor will examine Gov.
Porter's call it will be seen hat he in
tends to restrict the action Of the legiH.
ture to the one proposition: to refund
the State debt at sixty cents on the dol
lar al six per cent. interest. II any lower
rate of interest can be adopted legally a
lower rate Of compromise can be con:
sidered. The Knoxville Tribune, always
we'll informed upon legal and State ques-
tions, agrees with the LEDGER in the
opinion that Governor Porter's call will
not admit of the consideration of any
but the enc proposition. 1t is that or
nothing. The Tribune says: Ute ques-
ton to be decided by the Tennesses leg.
i~slature when it meets is simply aud
plainly whether it will accept the propo
sition of the creditors, as presented, or
reject it. viii the State compromise
and pay its debt at the rate Of sixty
cents on the dollar, or not? The propo
sition is direct, aud not susceptible Of
variation, and requires an equally direct
aud responsive answer" Our represent
atives should address themselves there
fore to this one and only question that
a come before the legislature at the
extra session. II is not at four per
cent. interest, or three per cent, but
six per cent. What does our neighbor
say to that2 Waving the question of
what we ought to pay it becomes a seri-
GUS matter to think Of just what we are
able to pay. Let us figure a little: 1t
will take all Of fifteen cents on the one
hundred dollars and privilege taxes
to pay the current expenses Of the
State. The school tax is ten
cents. There is twenty-five that
must be provided. The proposed com.
promise will reduce the State debt in
round numbers to $4,000, 900. The in
terest on that at six per cent. is $780,
900. The property of the State is ns.
ssssed at 1926, DOC, 900. To produce the
interest above annually, allowing fifteen
per cent. for cost Of collection, defslca.
tons and delinquencies, will take nearly
iorty-6ve cents; add this to twenty-five
and we have seventy rs the rate Of tax
ton which the present legislature must
levy at the extra session in order to
make the proposed compromise efec
tive, and this without providing a cent
for a sinking fund with which 10 retire
the principal. This should not be less
than ten cents, which in all is a least
eighty cents that must be raised every
year. Here then is the real question for the
people aud their Representatives to con-
slider. Those who advocate the proposed
compromise should state at the same
time the rate Of taxation it will be nee
essary to levy for many years to come