Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1877-12-06


the validity Of lhs several series Of bonds
have been recognized By the thirty. niHth
aud foriieth assembly BY being declared
receivable in discharge Of debts due to
the State, aud | assume that no Judicial
tribunal would nov pronounce against
the funded aud registered bonds.
But the New York arbiters say in the
report made to the general assembly,
after q full discussion with the legisla-
tive committee, when all the circum-
stances under which the debt was in
Cured, the peculiar condition OF affairs
in tbs State, together with its pres
ent ability aud its future resources
that the compromise recommended by
them is Just and fair both to debtor
and creditor" The adoption of this
Recommendation by a tribunal so disin-
terested and distinguished without con-
sulting the holders of our bonds, would
relieve the State of the suspicion OF un-
fairness or of the charge Of r%epudiating
an acknowledged liability. But such a
number Of the bondholders have signi-
fed their willingness to accept the terms
of the adjustment as to satisfy me that
il i. is made it will be generally accept
ed. | transmit the proposition of the
b~ondholders. The terms are liberal to
the State, the creditors voluntarily make.
the suggestion, and it is consistent with
the dignity Of the State to accept the
abatement The financial condition Of
the State is the only barrier to immedi-
ate prosperity, Its greatest want is
capital and immigration. Both will avoid
US unless the public debt is provided for.
Men do not buy where the tenure Of
property is insecure, or where public OBJ
legations are d~isregsrded. One Of the
highest duties of the citizen is the main.
tenance Of the public credit; without it
little is left worthy of public preserva-
ton.
a ABILITY OF THE STATE.
There is to my mind no question as to
the ability of the State to meet the in
terest on the debt, if adjusted upon the
terms offered by its creditors. The pres
ent assessed value of the property of the
State is $236, 000, 900 ana is an unusually
liberal one to the taxpayer. Tennessee
contributes to the market Of the world,
with her cotton, grain and tobacco as
largely, and is Us rich in soil minerals
and productions as any State in the
Union. The value of the principal crops
raised in Tennessee during the year 1876
amounted to SAT, l26, $40, not less than
one.third Of which was surplus. The
productions Of the State of Kentucky
for the same period was $2,6S7,560 less.
Tennessee produced $l7, 900, 900 more
than Virginia, $1,000, 900 more than
Georgia, more than Maryland and South
Carolina combined, more than Alabama
and Florida, and $l7, 900. 900 more than
North Carolina, while the difference in
population is in favor of Kentucky and
Georgia, and Maryland and South Caro-
lima combined. The productions of the
State for the year 1877 amount to over
$50, 900, 900, with an increase surplus of
cotton, wheat and tobacco, and the value
of farm products is greater per capita
in Tennessee than it is 10 any Of the
States named, and greater, according to
the last census report, than it is in the
rich States of New York, Pennsylvania
and Missouri. There are other %produc-
tions Of the Stste-cattle, mules, horses,
sheep, bacon, fruit, marble, iron-from
which large revenues are derived, with
an increasing area and capacity for pro-
duction.
The bonds of the State we're issued for
purposes Of internal improvement; very
many of them we're sold above par, and
are noW held by the original purchasers,
by educational and charitable i%nstitu.
tons; among the latter class is the
Peabody Institute, at Baltimore, Nd,
which has signifed through the proper
officer a willingness to accept the terms
OF the proposed amendment; the great.
est American philanthropist, George
Peabody, left as part Of the endowment
to this institute that bears his name,
1864, 600 in bonds OF the State Of TenDes-
see. Since 1868 the children Of Tennes.
see have received from the Peabody
trust fund for their education the sum of
$l9l, $50, and for the year 1873 an ap.
preparation that will make it exceed
5000, 900. The State Of Tennessee can
not, in my opinion, accept this abate.
ment, or that proposed by the holders of
bonds issued for the erection of the CAPT.
tol. those held by educational institu.
tons, by charities, or by persons whose
guardians made the investment in pur-
sdance Of our statute authorizing the in
vestment of the estate of minors in the
bonds OF the State.
If the adjustment recommended is
adopted, | recommend that the new
bond shall bear date July l, 1878, to
carry interest from that date; provision
for a sinking fund can With propriety be
postponed, but in Ease of a Surplus in
the treasury after l~iquidating the appro.
priations made by law, it would be well
to provide for the investment in the
bonds OF the State, and in this way in
augurste a system for the gradual extin.
guishment Of the principal Of the debt.
THE COLLECTION OF THE REVENUE.
The comptroller of the treasury, in his
biennial report to the general assembly,
states that "it is believed that the com
p~eusatiOn allowed trustees is inadequate
to the labor and responsibility OF the
Office, especially in the smaller counties
where there is little or no municipal
taxes to be collected" Experience has
confirmed the wisdom of this reoommen.
dation; in one of the eounties Of the
State there is no collector, no one being
willing 10 accept the office for the com
pensation allowed by law; IN several 9TH
ers designations have been rendered.
The revenue cannot be efficiently col
lected in the smaller counties for an In
adequate compensation, aud | recomr