Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1879-03-11


For one half OF the accrued Interest, amount
ing to about four million dollars, the State
was to issue its bonds, to the amount of
about two million dollars, bearing two and
one-half per cent. interest, these bonds also
to include the differences between four and
five per cent. on those issued for one-half of
the amount of the old bonds. Upon the adj
justment of its debt, the amount assumed
was as follows:
Amount issued in funding the old bonds
Amount issued for funding the interest
two and one-half per cents. ....... 1,S32.341
Six per cent. loan for the completion of
TOTAL %, 160,o4l
For an equal amount the revenues of the
canal were to be made chargeable. 1t was
assumed that these were adequate for the
payment of the accruing interest and of the
principal made chargeable upon them. The
debt was in fact dIvided-one-haif absolutely
assumed by the State and ore-haif made
chargeable upon the canal. This work, how
ever, proved almost wholly unpr0ductlVe, SO
that the creditors lost one-half of their debt.
When the settlement was made, ii was be-
lieved that they were fully provided for The
adjustment at the time was regarded as en-
tirely honorable to the State as it was entirely
satisfactory to the bondhoders. The State
Immediately entered upon a career of I'M
wonted prosperity, which has been uninter
rupted to the present time. Capital lmme-
diately flowed into 1T from all sources, con-
structing among other things over four thou
| sand miles Of railroad, costing over two hum
dred millions of dollars. There can be no
doubt that the advantage derived by the
State from this honorable adjustment of its
debt has exceeded tenfold the whole amount
paid. From the date of the adjustment, in
terest on the debt was promptly paid, the
greater part Of the principal having been re-
tired. At the time of the adjustment, the
State was wholly without The means of send
ing Its products to market, while the amount
for which its bonds were issued was almost
wholly lost, the only work constructed being
the canal, which was speedily abandoned
from the d fhcuty and cost Of maintaining it.
The people Of the State may be said to have
derived no advantage whatever from the ex-
pendture made or for the sum paid on the
adjustment with its creditors
/ have been thus particular with these de-
tails because they are full of encouragement
to the people of Tennessee, as sho wing that
other people and other States have been bur
dened like themselves, and have sustained
more considerable losses, without the benefits
enjoyed by Tennessee, and have paid their
debts, and are among the most prosperous
States of the Union. OF the debt of Mary
land, of about SIC, 900 900, for public works
two. thirds of it was an entire loss. Its popu-
lation in 1850 was 583 034, the debt per capita
was 1927. The population Of Tennessee is
now l ,25S, $50. Her debt settled upon the
terms recently offered through General Roger
A. Pryor, would be $12 per capita. The ca
nails made by Pennsylvania and Indiana were
abandoned, and the money expended in their
construction was an entire loss, while the
bulk of the debt of the State of Tenness .
was created for the construction Of turnpikes
and railroads, now used and operated, that
have contributed more to the increase Of
population and to the general development of
kl,aS kaAA Ill Ill
bined.
THE POVERTY OF THE STATE.
1t is not true that Tennessee is too poor to
submit to greater tax than ten cents on the
one hundred dollars of taxable property The
State has more abundant resources than Ala
bama, where one hundred is paid, with no
exemption whatever from taxation; or
Florida, where ninety cents is paid; or Louisi-
ana. where one dollar and forty FIVE cents is
paid; or South Carolina, where seventy cents
Is paid. Tennessee escaped congressional
reconstruction, and was never subjected to
the lgnomIuy of carpet bag rule, and yet we
shame the State that bore the heat and
burden OF that disastrous time with claim
OF inability to meet our obligations that is
not we'll founded. The State tax in Texas is
fifty cents, in New Jersey it is thirty-6ve
cents on the hundred dollars of property, and
no State debt to be provided for in either, and
In the golden State Of California the State
TAX Is seventy-three and half cents, IN
Kansas fifty cents, IN Ohio twenty nine
cents, and in all of the States named
the local or municipal tax is equal to
cur own. Times are hard alike in ali of
these States, agricultural productions bear
the same price that they do in Tennessee.
Labor is no more nor less remunerative, while
the business of manufacturing has brought
better returns in Tennessee than in the States
north of US. These twelve States pay an
average State tax of sixty five cents; it is not
put upon them by any foreign or despotic
the ballot is as free there as it Is with
US, and their governments are administered |
by their own chosen officials. You ask for |
an explanation of our indifference to public |
obligations In the face of an ability superior |
to that OF most of the States named. l an
swer that this Indifference is only apparent, |
and if the public debt is not adjusted now |
upon terms that are Just and acceptable to |
the people and to the creditor, the State will |
rouse herself like strong man after sleep |
and vlndlcate her own good name. have |
the honor to be, very respectfully,