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

lity of public creditors. 1t made
the State Capitoia military fort
ress. IT converted tie Asylum
and University buildings into
military hospitals and barracks,
and wantonly destroying a part
of them, it seriously damaged all.
1t filled the penitentiary with
prisoners. 1t destroyed the turn
! pike and plank roads in military
use. 1t stripped the branch rail-
roads of their iron and appropri-
ated il to lis own use. 1t opera
ted the main lines Of railroads
from the beginning Of 1862 t.
the close Of 1865, and appropria
ted all Of the profits. 1t took
from the State tie banking pow
en- which had been so Ir0fitable
to ii, and bestowed it upon it;
own bondholders.
With a debt to provide for at
the close of the war, and every
source of revenue destroyed save
! that Of a direct tax upon the I'M
poverished citizens OF the State,
/ the situation was perplexing, but
BY no means desperate.
4 The annual interest fer which
the taxpayer had 10 provide up
on the State debt proper, foi
bonds loaned Tie Agricultural
Bureau and turnpike ard p ank
road companies was S21l,456
! The coin assets of the. Bank Of
TsnDesseos coBvovtsa iLto ton
al bonds, yielded an annual III
terest of S45,1322.aa5 which re-
lduced the amount to lie raised
by taxation to Sl65,324.75. IN
addition to this indebtedness t e
State had issued bonds 10 eight
railroads, which Ultima e'yproyed
insolvent, amounting to 81 42S,-
/ 00l. All Ct these roads which
had not been stripped CT thei
iron, were wcrth the amount Of
the bonds Issued them. as the l.
ron was lew when purchased and
had largely enhanced in Price
If these roads had then been
sold, ard the proceeds turned O.
ver to the holders Of the bonds
issued to them, with the claim or
the Government fer iron appro-
priated, it is clear ihat these bonds
, could have been thus fully paid
But if it be assumed that the In
, solvent roads were worth no more
than one-half tic debt the annu.
al interest For which the tax-pay,
ers would have been required te
make provisions which would moi
= have exceeded 100000, an a.
mount which they could have me-
without serious difficulty.
All ef the balance OF the pub.
lie debt, was the primary deb
Of solvent companies, then aHt
now able to meet it.
; But, unfortunately, with the
: return Of peace, the government
Of Tennessee was not restored t.
5 the taxpayers. The first utter
, ances ofthe Governor and Comp.
troller in 1865, exhibited clearly
, that the lights of the taxpayers
: and the obligations of the gener-
al government were appreciated
in discussing the duty Of the
General Government to pay the
: interest which had accumulated
during the war, upon the railroad
: bonds, the Governor said: Gas
the war is for the benefit of the
, whole nation, it is not believed
that the General Government in.
tends that Tennessee. shall pay
more than her justproportion of
: the war debt" The Comptroller
after reciting the Fact that the
General Government in 1867
: took possession Of and was still
using the roads Of the State, ex-
!, ccpt the Louisville & Nashville
road, said: Chat the General
Government will pay the State
for the use Of the roads a sum
, adequate to meet the interest on
the bonds we cannot doubt. .
! The Governor recommended but
two measures ofFelief. The first
was to repudiate all bonds held
by "Rebels, and the last to have
the General Government to pay
its debt to the State. The one
was found imrracticable, and the
other refused. The war interest
WAS then funded. To demand il
under the circumstances was
cruel, and to coneede it was a
crime. There was a precedent
directly in point. BY the treaty
which concluded the Revolutions
airy war, there was stipulation
that the debts due British SUBJ
/ jects before the war from citi-
zens Of the United States should
be deemed valid, and the Courts
Of the States should be open for
their collection, Al the States
declined to have interest. The
British Minister called Mr.. JEFF
ferson's attention to it, and upon
the point, among other things, he
said: Sand we may add, once
for all, that there is no instru-
ment or title to debt so formal
and sacred as to give right to