The herald and mail. [volume] (Columbia, Tenn.) 1873-188?, 1878-02-15
Tennessee and Her Debt
ltinnOre Sun.


Baltimore Sun.
The called session of the Legislature
IF Tennessee having adjourned with
ont taking any action towards the
adjustment of the State debt, it may
he worth while now to quote the Ian
gauge of the great philanthropist,
Geo. Peabody, in his letter addressed
10 the trustees of the Peabody lnSti-
tute, Of this city, when, in Septcm-
Jler, 1869, lac donated to that institu-
ton $500. 900 of the bonds of Tenncs-
see as part of its endowment. Mr..
Peabody said:
The State Of Tennessee at the pres
eut moment is laboring under pecuni-
afY difficulties, but her great natural
RESOURCES and the high sense of honor
,sf the people of that State must soon,
rs ekemptified by the lately published
letter of tile Governor, re-establish its
rrcdit.7
IN spirit of like generosity with
that of Nj. Peabody, the board Of truIs-
tees Of the institution which so honor
ably bears his name agreed some
months since TO the terms of COM
promise Offered by the disinterested
commissioners for IL settlement be-
sWeen the State of Tennessee and the
hohers of her bonds-that is, the ac-
ceptauce of sixty cents on the dollar
for the principal and accumulated in
fercst, the new bonds, of course, to
bear six per cent. interest. When,
however, during the Late called seS-
sion, the Legislature was proposing to
nav only fifty cents on the dollar, and
with bonds at a scaled rate of interest
as low rs four and five per cent. for
portions of the term for which the
bonds should run, the Peabody trus-
tees took measures formally to advise
the Governor and Legislature of Ten
uessee that they could accept no such
terms in behalf of the trust which had
been confided to them for thE high
purposes of learning and culture 10y
the great philanthrOpist who, as all
know, left in addition n very much
Idrger fund in the hands Of other trus-
tes Tor the promotion of schools in the
South. and of which Tennessee, with
the rest, has been n beneficiary. In
taking this course the Peabody trus-
tees but indicate their hope and belief
i'm the ultimate "seHSe of honor of the
people of Tennessee" as expressed by
Mr. Peabody. They do not abandon
confidence, and expect to realize that
Mr.. Peabody's faith was both saga
,ciOus and just.
rs far as can be judged at this dis
tance of the proceedings of the
Tennessee Legislature at the recent
session il would seem that mere poll
ticians wanted to keep the question O1
the debt open until after the next
election, for the sake of the oppOrtu-
MY of making capital, as they hope,
for = Themselves, one set OutbiddiDg the
other t,,r popular favor, it is to be sup
posed. at the expense of the credit Oi
The State. bui whom, ii is to be hoped
the people will. on II better under
standing, Tepudiate. The fig'
rIres in regard to the debt of Tennes-
see have already been given in the
Sun. In round numbers, including
arrears of interest, it amounts To about
-. 900, 900. With the exception o.
some 81, ,OOO, 00O of bonds issued since
,hc war. and known rs "BrOwnlow
bonds - nearly the whole Of this debt
with its funded interest, is au ante
war debt, some of il dating back tC
1888. There are $1,000 of bonds out
standing issued i'm aid of the nioI
Bank of Tennessee, one of the nrSl
banking institutions established ia the
State. and in which the state helt
,S5OO. .OOri of stock, upon which II real
ized fully that amount of profits
Another million of bonds represent al
,>tually profitable investment on the
part Of the state in the State Bank o
Ttlucssee. Part OF the debt was i'll
CURED in building the State House al
Nashville, in which this very default.
fug Legislature held its session. Sur
l,Ti1ing rs il may seem, S4i,0Oo out o
The S4S.GO0 of bonds issued by til,
State for the purchase of the Hermit
age" the home of Andrew jackson
svlten living and the resting-place o
Flis bones, are still outstatdiUgaud ar,
Included in the debt which TeHGesse,
fails AZ vet to pay, or 10 compromise
or to make any provision for.
Itis understood that the Legislature
was divided into three factions
small minority, who were willing 4
vote for any arrangement whicl
would he satisfactory TO the bondhold
crS; "high-taX" party; and ''low
taNr party. who differed as 10 the eX
tent to which ii was desirable I
"'Scale" the creditors who had trustee
tine state. The politicians could no
fnreTo the temptation Of reserYing tn
question aS au issue for the next cleo
pion. The expectation is that tn
man who l. willing to 60 furtherest il
cheating the States creditors, unde
the sDecious plea that the debt wa
improvidently Contracted; that it i
heid by capitalists" 'Wall-stree
brokers, - and other "bIoated" repre-
sentatives of the criminal classes, am
that to pay it would involve an OF
1Mes,ive rate of taxation, will be sur
nf getting the most votes. At leaS
such is the estimate, apparently, pu
nv some politicians upon the INTEL
,,ence and honesty of their constitU
Snts. They assume that which the
.choose TO call high taxes will be III
popular, though the rate De no highe