Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1877-03-24
CREDIT OF THE STATE.

seean, who values the prosperity and
honor of the State.
One of these is a letter from the
largest holders of Tennessee bonds to
Governor Porter, stating their case and
urging State policy leading to a set
Element by honorable compromise
This document We propose to publish
entire next week. The next docu-
ment is the report of the committee,
of which Col Savage is chairman,
which was appointed by the Tennes-
see Legislature to confer with com
mittee of these associate bondholders
in New York. The third document is
the report of the State treasurer for
the last two years, presented to the
Legislature with the Governors re-
port.
From the report of Col. Savages
committee, we learn that two proposals
were made by the bondholders COM
mittee in New York.
Their first proposition was that new
bonds should be issued to the full
amount Of the present bonded debt of
the State, having 80 years to run, that
for the first five years these new bonds
should bear interest at 3 per cent; for
the next5 years at 4 per cent; for the
next years at per cent; and after
that Chat is after the expiration of ID
years. till maturity, at 6 per cent.
This proposition was the subject of
long and earnest discussion at meet
ing between the bondholders commit
tee and that of the Tennessee Legisla-
ture, the latter committee very deci-
dedly opposing the proposition, and
finally the bondholders committee af-
ter adjournment of the joint meeting
held conference with its clients, and
substituted for the above the following
proposition, viz: That the debt should
be scaled so that the State should give
her bonds for sixty per cent; of the
existing debt. To this proposition the
Chairman made answer that 1.-THE pro-
position, when reduced to writing,
would be received and respectfully
submitted to the General Assembly of
Tennessee, but it would not meet the
expectations of that body or the peo-
pie, but to prevent misunderstanding,
he thought proper to say individually
he would not sustain it or recommend
its acceptance
And there the matter rests for the
present. We cannot conceal the fact
that the action of the committee of our
Legislature is to us a source of the
deepest modification and humiliation
as a Tennesseean the conduct of our
creditors was marked with fairness,
candor and consideration for our de-
pressed condition in financial mat
tiers, and their two proposals both of
them liberal and generous were met
with an impracticable GOODNESS and
disregard of any sense of obligation,
any desire to negotiate on any terms,
which is discreditable to the commit
tee and to the Legislature and the
State which itrepresents.
1t is supposed that the Legislature
will be summoned to a special session
for the consideration of this report,
and this at least gives time for the dis
cussiou of the matter before the peo-
pie.
Is it not possible that this question
may yet be presented in its true light
before the people, so as to bring the
force of public opinion to bear upon
the Legislature whenever it may be
called to consider the proposals of the
State creditors-for many months the
people have heard only one side of this
question and that was the necessity of
a frugal expenditure of the State reve-
nues and it was necessary and salu
tary subject to urge upon their atten-
tention; but surely there is another
point of view from which this matter
should be also contemplated, that
which looks to the credit and CONNER
cial interests of the State-allowing
all that the most exacting can demand
in the way of consideration for the
depressed state Of business, the present
standing of the State Treasury surely
shows that something can be done to-
wards meeting the fair proposals of our
creditors. We desire the attentive
study of the following extract from
the report of our State Treasurer
By reference TO the tables of receipts, it
will be seen that Trustees" have, up to
December 20, 1896 paid into the Treasury
the sum of 7i,t94.l4; and the receipts from
December % to January l, 1877, same source,
amount to $40, 795.73-making total of
This leaves due and unpaid on January
l, 1877, of the levy of 1876 amounting to
Sl,U72 ,O3I.34, the very large sum of $685.
1t viii he remembered that the railroad
tax for 1876 is yet to be paid, and will reach
the Treasury early in 1877. Then cOnSId-
cradle part of the privilege tax for 1876 will
come in during the next few months. In
addition to these very reliable sources of
of revenue. to meet current EXPENSES we
have several hundred thousand dollars of
s.delinQuent taxes a large per cent. of
which will be collected. Then there Will
he a handsome revenue derived from
the lease of the PenitenlSary, should
that disposition be made of that institu-
ton.
From these different sources, there is no
sort of doubt but that we should be able to
run the State government for twelve or
eighteen months. without the levy ola dol
lar of state tax for the year 1877, unless il
should be decided that interest payments
are 10 be continued In view of the great
finanial distress OF the people of the state,
when the revenue of whole counties re-
mains unpaid, just because there is not
money enough in them to pay with, when
il is struggle for the people to provide
food and clothing, much less pay heavy
taxes the demand for relief is so great as to
force prompt recognition.
Under tn eSe circumstances, the suggestion
is respectfully offered that, unless there is
to be adjustment or compromise of the
state debt. IL would be wise on the part of
this General Assembly to say to the people
Of the state that we will levy no tax for the
year 1877, and thus give them, at once, q
reliefthat will he practical and substantial.
Unless we are going TO pay interest on the
bonds, the revenue now due and levied Tor
previous years will meet our every need,
and carry US well over Into the year 1873.
If now the funds that may be requi-
site for meeting the largely reduced
claims of our creditors for the year,
are the oqlyfaads needed for the gear
1877 and part Of 1878, what Tennes-
seean can there be who would refuse