Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1879-01-23

led founded in justice to all, it is
apparent no satisfactory result
will be reached.
Uniform legislation by the
general government IN favor of
capitol and against production,
has not only deprecated values
i'll the State, but has paralized
more or less every industrial pur-
suit. Consequently, the subject
Of the State debt presents itself
at a most inasupicious time for
adjustment, yet it is obvious that
some step should be taken to solve
the. ditticulty and remove all just
occasion, for reproach,
An Investigation will disclose
that the public debt is. divided
fnto the following branches, sta
ted III the order Of their merit :
First, the primary debt of the
State, and distinguished as the
State debt proper. This part of
the debt embraces the bonds for
the Capitol and Hermitage, the
only property now owned by the
State, as the result Of its invest
ments. Second, the bonds loan
EEL the Agricultural Bureau.
Third, the bonds loaned turn
pike and plank road companies,
before the war. AlIof this prop
erty has been sold AMI the pro-
ceeds turned over to the bond
holders. Fourth, the bonds loan-
ed to solvent railroad companies.
These companies own theS.rpads
and take all the profits. Fifth
the postwar bonds, All of the
FIR perty purchased with them
has been sold and the proceeds
paid the bondbolders.
1t appears, therefore, that al
Of the property purchased witt
the proceeds of this vast debt, ex.
cept the Capitol and Hermitage
has gene into the hands of thC
Federal Government, the bond.
holders and the railroad compa.
njes, while the State has nothing
but the debt and, the obloquy re-
sulting from her inability to pay
it. The. amount realized from
the public property in Tennessee
lby the Federal Government car
only be approximately estimated
The net earnings of the Louis
vile g. Nashville road for the
year ending in June, 1865, large.
lily exceeded 100000. L OIL
the same period, for some months
aften and for nearly two years
before, the General Government
was operating all the other roads
of the State, and took all the prof
Its, besides removing public prop
cry amounting in, value to near
lily $2,000,Q00.
All of this property aIsd its
profits had been pat in pledge
by the State, as, the primary Sc
c1rity for the, payment Of the
bondholder, and at last whatever
injury the bondholder has sus
Etained, resulted from the. injus-
Ftice of the. Federal Government
refusing to pay what was justly
fdue for the property and profits
pledged to the bondholder and
appropriated by it.
The obvious equities as TO the
Estate debt, proper, are: First, the
funded war interest ought to be
expunged and all other. funded
interest. Second, all payments
upon the war interest ought to be
Hcredited upon the principal at
their value at the tiIne of pay
ment. Third, where funded at a
greater rate of interest than the
contract originally bore, the o.
riginal rate ought to be restored.
Fourth, where interest has been
paid at a greater rate than the O.
Eriginal contract, the excess ought
Ito be credited upon the principal
of its then value. Fifth, as the
debt at the time of It's creation
was payable in gold OF silver, and
as by Federal legislation the State
has been deprived of the oppor-
tunity to pay in the cheaper met
al, the State ought to be allowed
the difference between the mar
ket value of gold and silver.
So much of the State debt
proper as is owned by the Fed
eral Government ought to be en-
tirely rejected, until it is willing
to pay the State the money just
| ly due her. The bonds loaned
the Agricultural Bureau ought
to be embraced in the settlement
of the primary debt of the State.
A settlement of this BRANCH of
the debt upon these principles of
justice will be right and ought
to command the approval of all.
The next branch of the public
debt in order of merit is that of
the ante-war bonds issued to IN
solvent railroads, turnpike and
plank road companies. All the
equities existing as to the State
debt proper, obtain as to this,
and in addition the whole loss of