Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1879-05-31
GOVERNOR MARKS,
In Letter to Hon. John A. Gardner,
Gives His Reasons for the Prompt
Settlement of the State Debt
Question According to the
Fifty and Four PropOsitiOn-The Geddes
Ring Exposed - The Interests of
Creditor and Debtor Alike De-
mand the Ratification of this
Plan by the People.


John A. Gardner and Governor Marks.
What the latter says will be found timely
contribution to the literature of the State
debt question, and ought to go far to con-
vinciBg skeptics that it is duty we owe TO
ourselves to ratify compromise offered in
good faith, and which, no doabt, is the last
that will ever be made to us.
mar, Gardeners Letter.
Governor A. g. Marks:
DEAR SIR-The supremely important SUBJ
ject engaging the attention and thoughts of
our people, at this moment, is the settlement
of the State debt question. The people seem
to desire to know IL they ratify the proposed
terms of settlement will it be fnality? To
this end, and to remove doubts insinlated in
certain quarters, they would ne glad to be
informed, by your excellency, of the accept
ance of our terms by an unquestionable suth-
cheney of the holders of our bonds, IN amount,
to comply with the law. Furthermore, am
satisfied that there is very general desire on
the part Of the people to know yOtr views on
this important question, as their chosen and
trusted executive. As personal and polItl-
cal friend, but more especially as one OF your
constituents, allow me to indulge the hope
that you will afford as this very reasonable
qualification In your answer, for publ .caton,
to this hasty note. Such an answer, think,
would be strictly in the line of official duty.
l am, dear sir, very truly, your ooedienG
Gerv2n-, JOHN A. GARDNER.
GARDNER, TENN, May II, 1879.
Governor Markss Reply.
Hon. John A. Gardner:
DEAR SIR-Within the past few days l
have received several letters propoundlng to
me the same questions embraced IN your
letter of the seventeenth instant, and while
deem it my duty, as the executive officer of
tho State, to abstain from any general dis
custom of the subject of the settlement OF
the State debt, yet l am willing, upon all
proper occasions, to give the reasons for my
official action and to declare my views upon
ali questions affecting public interests. la
| responding to
YOUR FIRST INQUIRY
| take leave to call your attention to the fact
| that there was serious DIVISION IN both
| houses of the general assembly as to whether
| the bondholders should be consulted at all IN
relation to the proposed adjustment. By the
provisions of the act proposing an adJ ustment
| of the debt, l was charged with the delicate
| duty of determining the question of fact, of
acceptance or noncompliance, on the part of
| the bondholders. In order to determine this
| question of fact, under the provisions of the
| act, it became necessary for me to ascertain
| the amount embraced in the proposition of
| sixty cent?, and whether there were bond
| holders owning an amount equal to the
| amount embraced in the sixty cents PROPOSE.
| ton willing to accept the proposed ADJUST
ment. 1t was impossible for me to ascertain,
by personal investigation, the amount actu-
| ally represented In the sixty cents proposition
| and 1t was also impossible for me to confer
| with the bondholders personally and ascer-
| tain whether they were or were not willing
| to accept the proposed adjustment. 1t became
necessary, therefore, for me to entrust this
INVESTIGATION
to others, and l assumed that it was my
| duty to select az agents to make the lnvestl-
| cation gentlemen who were known to favor
| the claims of the bondholders to be heard In
| any adjustment which might be made, IN
| order that the bondhodlders might have no
occasion to complain that they had been
msrepresented. These agents proceeded to
| New York, and they were followed by cit
| liens committee compo,ed of prominent
| gentlemen, all of whom recognized the claim
| of the bondholders to a voice In any ADJUST
| ment made, and after an investigation, and
| after conference with the bondholders,
| they returned and unanimously reported that
the requirements of the act had been fully
met. With this plenary evidence before me
that the condition precedent prescribed by
the act had been complied with, l had but
one course to pursue, and that was to submit
the adjustment to the people for their ratlh-
cation or rejection at the ballot-box. In
order that the people might have full time
for rejection and favorable opportunity to
cast their votes, l ordered the election at
| once and selected the ordinary election-day
for State officers for the vote to be cast.
THE INQUIRY
as to whether, if the people ratify the pro-
posed adjustment, it will be a fnality, is
easily answered. The act provides that the
legislature shall prescribe a specific period in
| which all bonds not presented In the time
prescribed will of course be excluded, and
hence the proposed adjustment if adopted
| will insure a certain settlement of the debt.
| You say there is general desire on the part
of the people to know my views upon this
| important question. l know the people of
Tennessee. They are Independent in thought
and in action. When they know the right
they will follow it only. They will follow the
lead of no man. They will think and act
for themselves. Hence a statement of my
| views upon this question is of but small i'm
portance. But since you have made it my
duty to state my views, shall declare them
plainly. My
| MATURED VIEWS
upon the subject of the State debt are
stated In my original message to the legisla-
ture, and as then insisted that there should
be discrimination between the bonds in
| their adjustment it follows that in this re-
| spect the adjustment does not meet my
| views. l admit, however, that in my opin-
ion by the proposed adjustment the people
| wall not be called upon to pay any more than
10 justice they ought to pay, but the ia
justice lies in paying less upon part OF
the bonds than should be paid and more
upon others than should be paid. Recog-
nizing the wide difference of opinion upon
this subject, l then stated that nothing but
| mutual concessions could lead to a satisfac-
tory result. Subsequent observation has
confirmed the opinion then expressed. The
plan of adjustment finally adopted Is the
| result of mutual concessions, and it remains
| IN bo hath hn vii
! the subject In a like spirit. have taken
some pans to investigate
| THE HISTORY OF THE QUESTION OF ADsUsT-
| MENT.
| find that the 6rst proposition was to fund
| the debt at sixty cents, with interest at SIX
| per cent, and the coupons receivable for
| taxes. This proposition was rejected. The
next proposition was to fund the debt at fifty
/ cent?, with six per cent. interest, and the
coupons receivable for taxes. This PROPOSE
ton also failed. This occurred at the pre-
| cedipg session Of the Legislature. st the
same session the senate passed bill pro-
| posing to fund the debt at fifty cents, with
interest at four per cent. for i've years, at
| fve per cent. for FIVE years, and at SIX until
| maturity, but the coupons not to be recelva-
bic for taxes. When this bill went to the
| house it was referred to committee of nine
members. They made report. Four MEM
| bers of that committee favored the senate
| Dill; TOUR members IaVoreu an dmSouuenG
reducing the interest to four per cent; the
| other member opposed both upon the ground
| that neither basis would secure settlement.
The issues made and defeated we're,
| first, whether the coupons should be
receivable for taxes; second, whether the adj
| iustment should be submitted to the people;
! third, whether the interest should be four
| per cent. or higher. 1t is perfectly clear that
! If the members of the two houses who insisted
! upon an acceptance of the proposition of the
I bondholders had yielded their convictions,
| that the debt would have been adjusted at
| fifty cents and four per cent. interest by an
almost unanimous vote. At that time the
railroads did not propose to do anything ex-
cept to avoid the payment of taxes SO far as
they could. By
THE PRESENT PROPOSED ADJUSTMENT
every question then controverted has been
conceded to the State and the people. First,
A. hnris of Hftu rants md four per cent IN