Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1878-11-13
THE TENNESSEE STATE DEBT.


The Tennessee Legislature viii
be expected to take some sort of
action this winter, looking to a set
Element in some way, of the State
debt question. 1t is folly to sup
pose that action can be longer post
poned. The question begins to at
tract more attention abroad, and if
we would retain the good opinion of
the honest men of the country we
must deserve it by acting honestly.
The Baltimore San is a Democratic
paper, and its political sympathies
are with the party in power in Ten
nessee. In a recent issue it says:
"Our people have been very reluc-
taDt TO doubt in any way the honesty
of the people of Tennessee, for their
faith and sympathies have been al.
ways with them ia the past. They
know the extent of the great and di-
c1gDIZ ant Of the fact that il got guild
pTOgU for near about all of it, bonds.
and IIs people are ia the enjoyment of
the proceeds thereof in an extended
system of railroads, enhancing the
value OF iAUd- and sifOTding the best
facilities 10 market aud for general
tTzde-IO say nothing of the fact that
the State capital was built by the is
sue Of the bonds; that the " Hermit
tage," the home uf Jackson, was puT-
chased in tribute Ia his memory 10y
the came means, and that Tennes-+ e.
recent Legislatures have Twice funded
the interest on the pledge Of levying
proper taxes and promptly paying
coupons thereafter. Our people are
sadly aware of the fact also that at the
called session of the Legislature, a
year or more ago, TO consider the COM
promise proposed by the bond
holders, absolutely wOIse than
nothing was done towards
meeting the case. The very sensible
and practical disposition shown by
the Governor, who bad called the
Legislature together, and some other
prominent citizens of the State, " no
saw the great advantage OF honesty
getting 40 per cent. reduction of the
State debt, was OveT-Tidden by molly
crowd OF mere politicians, who thought
II would pay them better TO gradu-
ally depreciate the State credit fertilizer
and further by making still lower
offers Of settlement, one after another,
aud finally adjourn leaving nothing
done and only such a tax laid 40
cents on the SlCO) as would barely pay
the ordinary expenses OF State admin
istralion. IL l. gratifying 10 say, how
ever, that there was an apparently
healthy condemnation OF this course
in the press of the State afterwards. as
Tar a. IJ spoke at all, though il IL a Ia |
mentaDie fact that some of the leading
papers, which formerly were maufuliy
sound on the paym ent OF the debt.
now eschew The subject, and avoid
copying anything from abroad which
would enlighten public opinions in
the Safe. Subsequent To the special
legislative session the Democratic
State Convention met, nominated the
candidates for State offices lust
elected "a Legislature was also chosen
which is largely DemOcraticl, and
made a platform with the view of TAX
ing the question of the State debt and
it's compromise out of the csmpaig
by declaring in favor OF post
pODing all further payments OF
interest until the people can vote direct
on some adjustment measure that
the Legislature may propose. This is
the present status. Meantime the peO-
Pile who formerly paid a forty cents
tax on the SlG0, have become familiar
with only ten cents tax and no inter
est payment at all. 1t remains 10 be
seen what will be the temper of the
new Legislature on the subject, but il
is reasonable to hope aud believe that |
the large majority Of the membership |
not only know that honesty is the best |
policy, but, having the honor of their |
State at heart, are unwilling to see its |
ancient fame longer remain under a |
cloud, and will 90 in their Legislature
TO the full extent Of the ability of the |
people to meet the States obligations, |
and thus insure the acceptance, at /
least, of the reasonable compromise /
which the creditors so long ago pro- |
posed. Tennessee has a property basis |
OF over $500, 600, 0O0 on a very low as
and as her debt is now S23,- |
OO0, 900, il scaled to sixty cents on the /
dollar, it will be only about Sl4 100000 /
little more than it was before the
war, IL we mistake not. The interest
thereon, at six per cent, would be only
$40 600, which a tax of twenty-eight |
cents would cover; add ten cents for
State purposes, aud the whole is thirty
sight-so that forty cents would seem
20 cover all contingencies. The State
AK in Virginia, il may be added, is
ifty cents"
This is a calm statement of the
situation as seen through friendly
Ipectaeles from abroad. Can Tens