Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1878-12-12
The New Issue-What Should be
Done.

! OF the DIdIc OF tennessee TO re-
ceive the new issue for taxes was
determined, did present fairly the
States defense and the evidence
concerning the purposes for which
the notes mentioned were issued, it
will be useless for the State to make
further objection. But if the posi-
ton and case of the State were not
fairly presented, then there remains
opportunity for further litigation
with the possibility of different
result. How the facts in regard to
these matters were, [ am not pre-
pared to say from any actual
knowledge, but from the high char
acter and ability of the legal repre-
sentative of the State, doubt not
that all was done that could be to
save us from redeeming the notes in
question.
Surprising, then, the liability Of
the State to be fixed, there are two
courses it may pursue, and to these
/ beg the attention and considera>
ton of your readers, and especially
those of them who at the approach>
ing session of the Legislature will
take part in shaping the policy of
the State on this subject.
l. The State may take
no action whatever in the
matter. The effect of this
would be to compel every
holder of the new issue to institute
a suit against the Collector, which,
of couse, would have but one re-
suit, to-wit: the involving of the
State in unnecessary costs. Our
courts would be bound to follow
that Of the United States. 1t is
time that a refusal on the part of the
State to provide for the reception
of the notes for taxes by repeal
or amendment of chapter 11S of !
the Acts of 1873, would annoy and |
and put to great trouble the holders
Of the issues. But it is believed
the great State of Tennessee will
not descend to the low methods of
l spiteful and contrary litigant, es-
Decially when its controversy would
be with its own citizens. If, how
ever, it should adopt this course,
Ill the new issues which may yet,
n small sums, remain here and
here among the people, would in
and at a nominal price,
all into the hands of those who
low hold the great mass for a
small holder would not 60 to the
.rouble and expense of law suit
n order to get rid of the notes.
But it may be said the large holders
would be bothered to know what to
10 with their holdings. / think
lot. They could dispose of their
totes at small discount to all the
arge taxpayers of the State for
he large Taxpayers would not be {
by litigation, the result
f which they could foresee and
he expense Of which the State
must bear. {
2. If the State would act wisely,
nd for the benefit of all its citizens,
should pass an act accepting the !
and authorizing its col !
ectors to receive in discharge of
axes q certain amount of the new
sue. This would enable the man :
no had five or ten dollars to use it ..
t par, and the holders of large :.
Inns would unload to small pur>
lasers at the same discount as to
rye, and thus the benefit would be
)mmon.
Again, these issues would pass
lrrent from hand to hand at par in
le payment Of debts of small +,
mount, and being susceptible of l,
lch use they would not rush to the {
ollector. They would thus form
II the time being a local currency c
hich would give great relief be- "
7een citizen and citizen in the dis S
large of an immense amount of a
,ivate debt. Once into the hand .
the collector they find their way
to the treasury and there arc de- f
royed. p
[ am net arguing that people are
eneftted by having this new issue
Iddled upon them. Every mans 2
is, of course, increased
J taxes are increased. But [ in &
st that the plan suggested will =
lake the burden lighter upon all b
i'll be justice to the citizen who
Olds small amount of the notes, b
nd the best way out of an unpleas 81
ut situation. :,
There are other considerations
hich should induce the State to .
lie cause proposed. 1t would be a "
artial atonement to the creditors of
lie Bank of Tennessee for the
rong done them by the States
:fusal to make good the stock it
edged to that Institution. The
wv issue holders are preferred to
e depositors of the bank, who will
It nothing, unless the note-holders