New-York tribune., 1879-09-16
PRICE FOUR CENTS.

rl'f inc war; tnat tDe rhlliDtflS, on Atcolut oA
which a large part If the debt co1tracteJ, had
benefited the State less than had been cxpcctodi
that property was already assessed very hgh and
taxed to the utmost limit, while the tax pryi-
leges extended even to tho keeping Of dog, aud.
finally. that the people of Tcnn, cviuccd great
Indifference TO whether the debt was ever paid
not VI was also stroagly urged by the committee
hat the state was not bound % pay the interest
which accrued during the war, and which was
funded after the war;
The committee of arbitrators pointed 10 Mary
land, Pennsylvania and other States whose lnan-
cial condition lad been d'spcrao than that 4
Tennessee. anl showed how those states had on-
tered upon era Of prosperity soon ~ thry set
a1out the payment Of their dobts-how tie effort 10
pay bad brought the ability to pay. II was shown
that the City of Cincinnati, with population Only
one-ffth rs great as thai OF Tennessee and atpX-
able valuation 800 OcO 900 les. was carrying debt
great that Of Tennessee, al for ths sole plr-
pose Of opening railroad communication with Tcn-
nessee. All tlcsc and many other weishty facts
were urged. but tholt effect
A proposition wa- submitted through TIE conf
mitce or arbitrator. from majority oi tHe bond
holdeIs. on rIg T. reLHluish about S7,O00,0OO Il
their claim against the etafo ol condition that NV
q per cents were issued and proyis ou made for
sinking faDd. The propos. Jon. the Lesl-latycCom
mitteo sail, was entirely madm.,,1le and would
not, probably rec i've dozen votes II submitted I'D
the Legislature. After fail conference the coui-
m.tee Of arb TRAITORS addressed c0mmuniel' on 20
the LEGISLATURE NJ tennessee, IN which tneJ sand;
After prolonged discussion with snpr commr a,
when al thc circumstances under wlcu 'he d'ni " :
incWroi tle pc uar conduon of aiuts ln thr si"i''
.Sn.ce.. were most hy snd carc'uiy e6a,ii rel to
undcrsiged hr,e come TO The deliberate conclusion tAt
20 ccrnc un TO Jnly I s77 the tcn a,srcg1' suoalt
oi the debt slouo be reioJutd by to issue y
NcW v.h-s hl inc I"ir ol rA' to' l ,."l ' ~ ~ e te
amount T. 81 Tor avery snfn ~ one tou+Hhf irl"0
Aid full settlement or sN hundred ltvOi oo.a4s' VI Tor
lie uc@ bond 20 ar interest ~ tho rate o. per ceu,
por sv4 IN ne Ie,@, ~, ne H.
principal 10 DC made payable also New-N0r, n thTiY
years from dale The interest coupons 10 b. received
by the State i0r All taxes due r. II.
The Legislature was called together in extra scs-
sion December 5, 1877. to consider proposition 10
"conpromisc' the State debt by paying the holders
60 per cent OF It's face value with accrued Interest,
in new per cent bonds. II WAC estimated that the
reduced debt under thi. ARRANGEMENT would amount
to SI30I7i4l and the yearly iuteTe,i 10 Ss3j, 900.
Ii Is said that Governor Porter las Senatorial
piratons and that he believed his prospects of elec
ton would be better If he could appear before tho
people as one who had been instrumental In reduc-
ing the debt. At any rate the extra session not
| u week ola when tile NpNeior Thought ne hdQ tls-
covered that the bpndhollers would submit to n
still greater robbery. Tie rdingly Informed the
Legislature that he believed it might safely repu-
diate one-half instead of two-ith' of the debt
ThereupOn the Legislature adjourned and was i'm
mediately recouvened. bill 20 repndilto one-haf
o. the debt and conliscac part Of the interest on
the remainder was brought forward Ia the Senate,
aud passed that body by n majority of one. Tho
bondholders were obstinate, and denounced tho
whole scheme as piece OF highway robbery. The
! Democrats Of tennessee advocated IL, as a party
measure aud the Republicans solidly opposed IL.
III 1873 an election for Governor ald a new Leais-
ature took place. and the settlement Of the S'ate
debt on the terms proposed tho absorbing issue
of the canvass. The Republican platform con-
demned liquidation. and advocated honest dealing
with the public creditors. The Democratic plat
form, which was written by Judge Marks who was
elected Governor AT the ensuing election, declared
that " we are no longer able now TO meet the
ouirements of our creditors" Not cent OF interest
had those creditors received for two years. Tho
platform also declared that "we recognize wide
differences of opinion" IA 10 the payment Of fhs
public debt, which differences, however. "aiiord
no just occasion for disturbing that unity which is
50 essential for the complete success of our party In
its great struggle for the liberation Of the country"
The pIatform-writer and embryo Governor then
withdrew his eyes from the great struggle for the
liberation of the country" long enough 10 discuss
the State debt question as follows;
We cordially unite however. in declaring that We are
opposed to The reputation OF the Just IT
of our public indebtedness; bur to tho Snd thn
this question may he put out OF politics OF the state
declare that are for the To- the people,
Tor their ratification rejection, az the ballofboN, At
separate election, OF any adjustment ~ The state deot
adjustment snail have been made and ratified 10y the
people, declare that are opposed 10 the levy OF
greater tax upon the people tnan may DC necessary
for the expenses OF the state Government, econom-
icaly administered
Comment on this would be useless. On this issne
both parties went before the people, aud the Dcino-
cratic repudators electe | their candidate by MA
jority of over 81 900. number of members Of the
new Legislature were op5n advocates of the rcpu-
diation of the entire debt, principal and interest,
but a large majority OF the Democratic members
were classified ns IOw-tax men men who he,i-
tated to repudate the whole debt, but who wero
ready enough vote against any tax TO pay the in
tercst on IL.
During the canvass n prominent East TenDcs.se
Democrat ore of the few Democrats who are In fs-
yor of the honest payment Of the debt published a
letter In which he revealed the true motive and one
If the most effective arguments Of the repudiators
lie said
W. Democrats in all our political conventions have
.olemny asserted that did nOi demand pay for cur
slaves aud vet the chef argument used Ia ui renee tie
of our ptobr anu lifNfut Tue pt, "l
debt is that t owned by Northern who freed our
negroes thus pleading the loss 81 the rOe- setO9
to the debt winch 10 Demanding payment AZ least 10
that extent which u as iar nOtr. NOud not
those no demand The non-9sy Of the debt on tAs
account logically compelled Ia demand payment u
The fun extent n there chance to obtain tf II
this l. what We mean let Us be candid aud SAY SO.
All the discussions Of the campaign showed that
one Of the chief reasons, II tho most influential
one which governed the Democrats was that de-
scribed above. The new Legislature met Ia Janu-
arv 1879, and the retiring Governor in his message
referring TO the public debt said:
The settlement OF tAii dnLt l. paramount all qust