Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1879-03-18
THE STATE DEBT
Question in the State Senate - Able
Speeches Made Yesterday Urging a
Settlement of it upon a Basis
that will be Equitable,
Just and Fair
To the BOndhOlders, as well as to the
PeOpIe-Great Interest Manifested
In Judge Clapps Speech to be
Delivered TO-Day-The
Regulators Gone.
Special to the Appeal

Special to the Appeal
NASHVILLE, March 1.-THE greatest pos
sible interest is manifested regarding the
speech Of Mr.. Clapp to be made In the SEN
ate Tomorrow morning. 1t is thought that
the senate chamber will not hold all the spec
tators who will be present. Everybody is
going to hear the speech of this Legislative
session, and this is the best evidence yet
made manifest of the great reaction IN favor
of settlement OF the State debt. Public
sentiment seems to have changed the tactics
of the low credit men, who now propose to
attempt to compromise the debt at fifty cents
and four per cent. interest.
SenGte.-The following new bills were
introduced: By Senator Shearen, to settle the
debt, provides for funding at fifty cents,
with four per cent. interest, to be submitted
to the people for ratification. Referred to
committee of the whole.
By Mr.. Smith, OF Meigs, to settle the
State debt: 1t provides for a commission,
to be composed of nine members of the
house of representatives and three members
OF the senate, to be appointed by the COVER
nor, said commission to receive propositions
to settle the State debt, and to set during the
session of the legislature or after, and the
result of their deliberations to be submitted
to the people for ratification.
The following senate bills passed on third
reading: To amend an act Incorporating
Gardner; to declare the law and to prevent
the exercise and abuse of inquisitorial powers
by persons other than grand Juries; confin-
ing the power OF subpoena to grand Juries
and attorneys general. The house bill to
abolish the corporation of Rogersville passed
on third reading.
Upon the State debt Mr.. Shearon said that
while there had been many irregularities In
the issuance OF State bonds, he was also sat
listed that the State vas bound for the debt
The bonded debt being binding on the State,
any proposition from the bondholders was
entitled to respectful consideration. The
idea of the States sovereignty precluding
any consultation with its creditors was not
tenab.e, for settlement implies a contract be-
tween two parties. Legislative action should
conform, as near as possible, to the wish of
the bondholders, with the will and ability of
the people. With the. latter it was not so
much a question of right as of ability, and to
this point he addressed his main line of argu-
nlent. A forty cent tax would pay the cur
rent expenses and the interest on the bonded
debt, and leave balance for a sinking fund,
If we fund at fifty cents on the dollar, with
four per cent. interest. He estimated the
debt, with accrued interest at four per cent,
funded at fifty cents on the dollar, to be
twelve million dollars, IN round numbers. He
estimated the expenses of the government at
100000; school fund interest, $3.50, 900; in
terest at four per cent on funded debt, $780,
600; total all expenses and interest, 81 $780,
900. He then estimated the taxation, at 40
cents on the $780, at the present assessment,
i. e., assessment 70, would yield 1871 ,242 So;
rent of penltentiary, $4,000; privileges,
$260,O00; from clerks, $40 700; from insu-
rance and express companies, $25, 900; from |
railroads; $4,000 making a total Of ST. |
226, 742 So. Take from this estimate the La |
bilities as above, viz: $l,130,000, and there |
Is left for the sanitary fund $96, 742 So. The |
people could pay the forty-cent tax without |
being overwhelmed, and if at ony time their |
necessities required a reduction, they might |
reduce the sinking fund; but they must not |
lose sight of the prospective increase |
of population and resources in the future. |
As to the proposition of the bondhoders, he !
objected to the coupon feature, which could |
not be entertained, but as is shown, 1t |
would take forty-cent tax to meet four |
per cent. interest on fifty per cent of the |
present debt, it would take a seventy-cent |
tax to meet the ffty-cent proposition at six |
per cent, it would be folly to submit any |
such proposition to the people. In answer |
to an inquiry from MIR. Savage, Mr.. Shearon |
said that In his estimation ne had made due |
allowance for at least fifteen per cent. of de- |
Gnquent taxes.
Mr.. Lands was next speaker, and dis |
cussed the question as to the States inability |
to pay the debt, claiming that the class of |
people most entitled to consideration was |
the tax-paying and producing class. The |
taxes were mere bagatelle it people were |
able to meet them. Besides the bondholders |
there were other creditors of the State who |
were not to be ignored, If, indeed, they had |
not prior claim. He referred to the deposit |
tors of the bank of Tennessee being kept ont |
of their mooey twenty years. The bene- |
fciaries of the school land fund holders of |
Torbitt's issue to railroad employees. To |
meet all these accumulated liabilities would |
require for the relief of the |
is embodied in the bill introduced |
by himself. which comprised the non-inter- |
est bearing treasury warrant feature. He |
maintained that bond was just as traosfer- |
able as a treasury note. If one is void, all |
are void. To fund at fifty per cent of the |
entire debt would require fve-mill tax in |
order to have a balance for sinking fund |
Mr.. Patton said that there could be no re- |
lief until basis had been agreed upon-no |
compromise until agreed to by the bondholG- |
ers. We cannot repudiate. We may refuse |
to settle now, but other legislatures can ad- |
Just the debt. We should do our duty, and |
save our people from humiliation and |
dishonor. If the gentlemen pro- |
coed, as every move indicates, the |
scepter will depart from Judah, and the |
Democratic party will soon be in hopeless |
minority, struggling for life crushed by its !
own adherents. never to rise again. | favor |
the lowest possible com promise that can be |
effected, but not forced one. In refusing |
to entertain the proposition submitted some |
weeks ago, you proclaimed to the world by |
that act that you intended to settle at your |
own figures. Such is the glaring truth, !
truth, and the vote there recorded, to remain |
written upon those pages, places this beyond |
cayil The debt created has been adjusted, |
was recognized, legalizad by the Democratic |
party, and paid. The present debt is the |
ante war debt, and though our people are
81 ola
the holders of Tennessee bonds to our own
figures. The citizens of Tennessee are hon. |
est. They demand that something be done, |
and if we leave without accomplishing their |
dearest wish, we transmit burden intoler- |
able, and with it the truth that we are inca |
pable to legislate for good.
HOuSe.-Three resolutions providing for an |
early adjournment were offered. The follow |
ing house bills passed third reading: To al |
low partial redemption of real estate. To |
render more safe the travel on ubc roads |
by requiring them to erect four-feet fences or
barriers on all dangerous fills. To authorize |
plaintiffs on petitions to select commissioners |
to sell real estate. To prohibit minors |
from playing billiards, pool and ten pins. |
For the prevention OF fraud by the sale of
patent rights. To allow majority of the !
trustees of educational institutions to change
the names of the latter. To more effectually |
collect taxes on privileges by requiring magis- |
trates to report every person do |
ing q privileged business. To regulate |
the manner of collecting interest. |
To tax all State, county and municipal inter-
eat bearing bonds as other personal property;
to repeal the charter of Purdy, proposing an
amendment to the constitution so as to allow
the people of M'Farity counto to vote with
reference to the removal of Its county site
to effect uniformity in taxation.
A COnfab with Chief Moses.