The Pulaski citizen. [volume] (Pulaski, Tenn.) 1866-current, 1880-09-23
The State Debt,

greatly beloved by the people.
The State Debt.
EDIToRS CITIZEN: The state debt
is the all-absorbing subject in this
state canvass. and after mature con
sideration l have arrived at the con-
clusion that it can not be settled by
the next Legislature upon either one
of the four platforms, that will be,
in fact, a settlement. Should the
republicans have the legislature
they would agree to the terms of
the creditors, which would be upon
the basis of the whole debt being
paid, and in this the people would
not acquiesce, and in consequence
it would in effect be no settlement,
for the proper legislation would not
in future be had to carry out the
provisions of the settlement, and
the cry of GLOW" and "high" tax
would be persistently used at each
succeeding election. Should the
democrats have the Legislature, ]
could not expect them to be more
successful. They, too, recognize
the validity of the entire indebted
ness and being averse to the eXer-
else of coercion they would also
have to accede to the terms of the
creditors, and with the repudiating
plank in the platform as to the cou
pons they could get no reduction in
the amount of Indebtedness. In
stead of exchanging for bond at
lower figure l doubt whether they
would surrender the existing bonds
for others at the same figure with
that plank referred to staring them
in the face. Nor can we expect a
settlement should the other two
parties have the legislature. L don't
understand that they propose to set
tie with the creditors further than
to pass a bill that would by one fell
swoop wipe out about nine tenths
of the debt. To this act neither
the creditors nor the people would
accede. Under neither platform,
then, should we expect a settlement
by the next legislature. Indeed, /
think it is entirely out of the ques-
ton for the legislature to settle eX-
cept initiatorily. The people must
have an agency in the settlement or
their assent will not be given. A
settlement, or a proposition to set
tie, like the 50-4 of last year, can
not, any more than any other leg
.isla.ive act be referred to the peo-
pie under the constitution, nor does
either one of the platforms propose
to do so. / think the only possible
way to settle is by a constitutional
convention of the people, or by
constitutional provision or amend
ment passed by two legislatures and
ratified by the people. This may
seem to some a slow process, but
we should not be in such haste. Let
US go slow and do our work well,
for the work is for generations to
come. The settlement can be eff
fected by this method by March,
1888, at which time probably the
present railroad case instituted in
the federal courts by the bondhold-
ers will have been decided.
would have all genuine bonds,
that have been issued lawfully, share
alike. Those bonds suspected of
fraud l would have determined by
a tribunal created for that express
purpose, and the VdLidity only, not
the payment, should be by that tri
bunal considered and determined.
l should insist upon the best set
tlement possible-should insist up
on a material reduction in consider
alton of a large portion of the prop
erty that existed when most OF the
bonds were issued being now swept
away as such; in consideration OF
the stringency of the times by a
great shrInkage in the values of the
property and the inability of the
people to pay in full; in consIdera-
ton of a large portion of the bonds
having gone into second hands at a
greatly reduced figure; in consider
alton of large amount having been
issued at n time when the great
mass of the white people of the
of the officials; and especially in
consideration of the improved char
acter of the bonds l would give for
the existing ones. l would have
the constitutional provision secure
the payment of the interest semi
annually, by having the coupons re-
ceivable for taxes. This would be
to the creditor a valid considera
ton, without which we could not
reasonably expect a material reduc-
ton. 1t is unreasonable for US to
hope for the creditors to exchange
the bonds they now hold for others
of the same character at less fig
ure. We must give them n consid
Grafton. Would A. who holds BIS
note for 800 give TO b. less note
therefor of the same character If
b. is insolvent and offers A. good
security. A. would gladly then ex-
change for the note with security at
about I of the old note. SO Ten
nessee Is virtually insolvent, for her
obligations cannot be enforced
under the law, and it would be
absurd for her, through her leg
islature or otherwise, to expect the
bondholders to surrender their
bonds now held by them for others
of a less figure without some secu-
rity, such, for instance, as l would
offer in a constitutional amendment,
making the matnred interest or
coupons receivable for taxes. This
provision would satisfy the credit