Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1879-04-09
MEMPHIS APPEAL
WEDNESDAY, APRIL 8, 1879
WILL THE BONDHOLOERs AZ
CEPTF


1t Is to be hoped that the State credit men,
who propose visiting New York with the view
of urging upon the bondholdels TO accept the
terms Of compromise agreed upon by the
legislature, will succeed in their mission.
The creditors of the State, in hesitating to
accept the terms agreed upon, are actuated
by the belief that the arrangement will not
be faithfully carried cut; that it will be re-
pudiated by subsequent legislators; that
Oflice-seeking demagogues will reopen the
question, and probably elect majority to the
legislature hostile to the fifty cents compro-
mise, and that they would thus endanger
their entire debt There is some ground for
these apprehensions. In a recent speech In
the Virginia legislature, General Bradley I.
johnson predicted that the proposed settle
uent of the Virginia debt would be no set
Element of the vexed question only fora
time. He showed that the legislature Of
1867 promised to pay the whole debt
of forty-fve million dollars. The !egis-
lature of 1871 settled the debt question again
by disclaiming ITS liability for fifteen million
dollars, and reducing the amount of the
State Indebtedness to thirty r.illiOu dollars.
In 1879 a new settlement at d reduction
which General Johnson states to be "equiva-
lent to fifteen million dollars" is made. 1t
would not, therefore, seem improbable that
this last amendment will fare as badly as
previous ones. The spirit Of repudiation
which has been at work II all these attempt
ed settlements will not be satisfied with d
half triumph. The people Of Virginia who
have been crying out against high taxes be-
fore the settlement, will not cease their COM
plants with the passage Of this last debt
bill. As General johnson says, the agitation
will soon begin for fresh reduction IN taxes
takes reduced, our present revenue will be
insufficient to support the government, main
tain the schools and pay the interest OF the
debt. And then, again, six or seven years
from now, another readjuster's party viii rise
up like the Genii from the casket which
would not go back when ordered" Nlrgini-
ans would do well to remember that it IS not
only the moral character of the State which
is injured by any dishonest or unfair settle
ment, but the business reputation of her peo-
pie suffers from the constant fluctuations IN
her financial policy. AS General Johnson
we'll says, "a people who do not know their
own minds or their own condition sufficiently
to make the ordinary business arrangements
for paying debt, will not take high rank
in the world for sagacity and forecast. Such
conduct will be taken as proof and con
fession of incapacity for civil administration
and Virginia will for this generation be re-
mitted to the fourth-r,te place occupied by
Egypt with her finances administered 10y an
English receiver, or Tunis, whose affairs are
controlled by French administration, o.
Peru, or Paraguay, or any one OF the broken
down and incapable governments of either
hemis phera.' General johnson made the
strong point that the policy OF depreciating
the State, of decrying her condition, and OF
asserting that she cannot stand any increase
of the prese mt rate OF taxation,' (Gfty cents
OH the one hundred dollals) was most dan
gerous one, and, like a two-edeed sword,
would cut both ways. 1t might compel
creditors to reduce claims that they imagined
could never be paid. and Virginia might
thus escape a large portion Of her Just debts;
but the same argument which induces the
bondholder to have mercy will, for 4 gen
GRAFTON to come, crush her beneath the odium !
of poverty brought on by incapacity; capital
will shun her, population will fly from her,
the young energy and hope from which a na-
ton draws its parental supplies of develop
ment and progress will seek other States, and
the flowers of Virginia transplant themselves !
rs fast as they grow to more vigorous org&ui- !
cations" The Tennessee bondhoiders saar
that the fate Of the Virginia State deL5 Will
be repeated in Tennessee, and hence they are !
reluctant to accept the proposed compromise,
which in all probability will be repealed 10y
a subsequent legislature clamoring for re-
adjustment. But If the boudholders will
accept this fifty cents compromise with four
per cent. interest, it will be ratified, indorsed
and voted for by the people, and they could /
not neutrality-suspicious. their own action. More |
over there is a reaction in the State against !
the loose spirit Reputation which had gained !
such a strong foothold in Tennessee as to /
alarm men who foresaw the ruin such Il pei !
icy would entail upon the State. a l0ftier !
standard of public sentIment-tha1ks 10 |
Hanson, Clapp and Smith--has been erected !
in Tennessee, and if the bondbol1ers should !
accept the terms proposed by the legislature,
the people would crush cut the readiusters
and the demagogues who are indisposed !
to give up a hobby which they have |
straddled for lhe purpose OF riding !
into Office. As General Johnson |
showed in his able speech in the Virginia
legislature the policy of depreciating and de- :,
crying the condition Of the State is fatal
10 its prosperity. Such policy is equally rls
fatal to Tennessee. Our condition is bad
but it is no worse than other south |
ern States which made honorable and salts |
factory arrangements for the payment Of |
their Indebtedness. Capital will shua our |
State, population will abandon it, and immi- |
grafton will avoid it as pesthouse, SO loHg
rs We continue TO disparage cur resources and |
advertise our poverty. The people viii vote |
for a compromise at fifty |
cents with four per cent. interest, and IA fu- |
ture elections they will crush out the rapuji |
ators and their establishments.