The Milan exchange. (Milan, Gibson County, Tenn.) 1874-1978, 1879-01-23
THURSDAY, JANUARY %, 1879


taxpayers had to provide was COM
paratively small, while the debt of
the solvent roads was large, but by
manipulation the solvent railroads un-
dertook to transfer their debt to the
Taxpayers and relieve themselves.
Under duress from the threatened
overthrow of the State Government
oy Federal Interference, and believing
they had the ability to provide for the
payment Of the entire debt, the tax
PAYERS submitted to the gave wrongs
which had been done them, rather
than imperil :heir liberties, and sub
ject themselves to unfriendly crit
cisms. But a debt difficult to bear in
the beginning, and constantly aug
menting by fraud and funding, while
Ill values were rapidly depreciating,
became at last zoo great for them to
bear, and they went down in the hope
less effort.
At 10 tine since the FIST funding
act have the taxpayers been able to
pay the interest upon Tie nominal
public debt. An examination will
disclose the fSct that there was no le-
climate payment of interest before
1870. The interest was paid by bor>
rowing money, by approp.iating the
assets of the Bank of Tennessee, by
selling bonds to raise money, and
partly by taxation.
In 1878, when the payment of in.
terest was resumed, it vas estimated
that the taxable Property of the state
would now be 100000, 900. In fact,
it is but a little over 5000, 100000.
The bondholders appreciate the fact
that the debt cannot be met, and long
since a compromise would have been
had but for The fact that the holders
of the bonds of the solvent railroads
regarded their bonds still lien upon
the roads, and until that question is
settled adversely to them, they will
never offer compromise within the
ability Of the taxpayers.
An Investigation will dis lose that the
public debt is divided into the follow
ing branches, stated in the order of
their merltj First, the primary debt
of the State, and disting Ished a h
State debt proper. This part of the
debt embraces the bonds for the Cap
itol and Hermitage, the only property
now owned 10y the State, as the result
of It's investments. Secon |, the bonds
loaned the Agricultural Bureau.
Third, the bonds loaned turnpike and
FLANK road companies before the war.
All Of this property has been sold and
the proceeds turned over to the bond
holders. Fourth, the bonds To solvent
railroad companies. Fifth, the post
war bonds. alIof tie property pur-
chaseu with theh has been sold and
The proceeds paid the hondholders.
The obvious equities as to the State
debt proper, are; First, the funded
war interest ought to be exPunged,
and all other funded interest. Second,
all payments Upon the war interest
5ught 10 be credited upon the plind-
pal at their value at tie tilhe of their
pavnient. Third, where funded at II
greater rate of interest than the con-
tIact originally lone, the original rate
ought to be restoreI. Fourth, Where
interest has been paid at a grea .er rate
/ nm the original contract, the eX-
cess ought to lie credited upon t. {
principal At lis then value. Fifth, as
The debt at the time of its creation
Was payable in gold Or silver, and as
hy Federal legislation the State has
leen deprived Of the opportunity to
pay in the cheaper metal, the State
ought 10 he allowed the difference be-
tween the market value of gold and
tiiier.
If an adjustmeEt is made Tie coup,
ons ought not to he made receivable
tor taxes. Famine Or pestilence inay
beflll and cut of revenue, and then it
will happen to us as elsewhere, where
this demand was conceded-that the
public schools will be closed, and the
administration Of the Government
paralvzed in all of its functions, for
re want of necessary means.
Ifany plan of adjustment is Adopt
ed. il ought - he submitted 10 tie
people Tor ratification o, rejection at
the ballot box, and if it is approved
hy the people at the polls, the Legis-
l.ture will be convened. if necessary,
for the purpose OF enacting it into II
lav. That pledge las bean made to
the people, and ought to be respected.
q rora-nor MarkS stronCly urpes