Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1879-06-28

idle fear It is real danger. 1t is quite
too common to ignore these dangers until
they come. Prudence will avoid them by
doing justice, and at the same time COM
promising no p rineiple. If the Federal
Courts should render judgement in favor
of the bondholders against funds of the
State in the hands of the State officers, at
least thirty cut of the thirty-eight States
would applaud and the decree would be
enforced. By this wise and equitable set
Element, which meets obiigatio rs accord
ing to ability and recognizes the imp over
ishei condition of the people, this compli-
cation can easily be avoided.
This settlement provides, also, for the is
suance between four and five millions OF
small bonds, which will readily circulate
as a medium of exchage. With measures
for the promp: pay ment of interest, these
notes will soon be at par, and the holders
will be at once DESTROYS of negotiating them
in the Stale, where they will become cir.
culating medium to be used in develop
ment, to add to the opportunity of enter
prise and industry, to improve the condi-
ton Of labor by affording employment and
means of payment. It is very easy to see
how they will be taken up in Tennessee.
| Those who have a little money will readily
| buy them at the discount as soon as it is
| proclaimed that the interest will be met
The object Of the buyer will be to procure
the interest and the advantage of the small
discount. = man with a hundred dollars
he will not need for year will buy a
| hundred dollars in small bonds. When
| he uses this as a currency, he will have
made the discount, and received one or
two payments of interest, while it
becomes a circulating medium per-
manentlY added to the local circu-
lS,ion, and not like green blacks liable, on
| on any need for money in the East, to be
drawn away. It will remain here until
taken up by the State at par so long as the
interest is paid, circulating and adding 10
the material growth of the State. As to
our ability 10 meet the interest it is certain
that our taxable property will not decrease
and now, according to a fair and liberal es-
innate Of the Comptroller less than a forty
cents tax VIII meet the interest. Thus we
lating medium and to do that we can for
the next few years when we will 50 much
need circulation, well afford TO pay the in
terest on the entire debt to obtain it. v g
only pay interest, however, on practically
one-third Of the debt. We obtain the ad-
vantage OF this circulation, and at the same
time obtain all reduction the low tax party
have ever demanded.
These are sound reasons, but they are
not all We at once preserve our credit
and restore tho conditions necessary to im-
migration, to development, to an influx of
capital. If we are honestly poor and with
hold pay ment on that account the result
will demonstrate it. If we accept this
compromise and then m eet the interest on
the balance remaining, we at once demon
strate our disposition TO Jay and maintain
our credit. without which we can not ex-
pect capital and immigration to any great
extent to develop our resources. The bal
ance Of the debt is the blackboard on
which we demonstrate our determination
to meet our obligations, and by which we
restore our credit. 1t certainly will not
be claimed by any low credit man that this
is an objection. If in obtaining all they
have asked they at the same time main
tain the credit Of the State. it is certainly
not an objection. We think they have
attached too little Importance to that
which we regard IS Of first importance,
but it will surely not be contended by any
that it is desirable to destroy the credit o.
people and their reputation for good faith.
The settlement both secures all they have
demanded and restores the credit of the
S. ate, the prime condition of future pros,
peTity."