Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1881-08-25
The Mistake Of the Tennessee
LEGISLATURE.

The Little Rock Gazette, the CEN
trail Democratic organ and leading
paper Of Arkansaw, is what would be
called a high credit paper in this
State. Yet in the issue of the 23d we
find the following editorial tOuchine
Tennessee affairs: B
During the late session Of the Ten,
nessee Legislature a bill passed to
provide for settling the State deb.
Without reference to the strictly legal
aspect of the case, it can be asserted
without fear of successful contradic-
ton hal a fair, equitable settlement
would have reduced the principal 80
per cent and the interest to 3 or 4 per
cent. But the bill as passed left the
principal untouched, reduced the in
terest to 3 per cent, and added a pro-
vision making coupons receivable for
taxes.
This basis of settlement. which is
harsh and unjust, is n Of the unfor-
tunate results Of a protracted refusal
to deal in a business way with the
debt. The bonds, disputed and uu-
disputed, existed. They were in the
hands ofmen willing to expend more
money in the hope OF realizing largely
on their already heavy investment.
They relied upen the activity andtaet
of a lobby whose managers were sup
posed to know how to place money
where it would do the most good. 1t
is openly charged that corrupt means
were used TO secure the passage of the
measure. BE this as it may, a bill
whose terms are harsh and unjust
because totally disregarding the equi
ties due the people, became a law.
The validity Of the new law was at
once attacked, An effort to restrain
the State officers from refunding the
old bonds failed. Then it was sought
to secure an early decision through a
special term of the Supreme Court.
| But the members Of that tribunal
declined to regard the case as one OF
sufficient urgency to require action.
The Legislature levied a tax for pay
ment Of interest; and as the constitu
tionality Of the law is to DO determined
by courts; as the vast sum of money
for interest will be necessary only in
the event that the court affirm the
validity of the law, and the time for
tax paying is just ahead, a new ques-
ton has arisen. 1t is whether the tax
shall be collected until the fate of the
act shall be determined, Several
Tennessee journals-among them pa
pers that oppose the settlement only
because of the coupon feature
advocate that a special session of the
Legislature be called to postpone
collection Of the interest tax for the
current year. Pending the legal
issue, they do not desire the accumu-
lation Of a large sum in the treasury.
Governor Hawkins, however, is a
staunch supporter of the bill. with
faith that its validity will be affirmed,
and is no doubt as anxious to collect
the taxes for the first payment as are
the persons Of opposing views that tax
paying be postponed.
The mistake made by the Tennessee
Legislature was in fixing a basis whose
terms bore injustice on their face.
Had the measure decreed a settlement
at fifty cents, and, at the outside, 4
per cent interest, the coupon clause
would have caused little opposition
The danger lurking in excluding any
classes Of bonds which a subsequent
Legislature might order refunded was
avoided; but while thus recognizing
existing equities in favor of the bond
holder, those on behalf af the people
we're entirely ignored, except in a re-
duction in the volume Of interest. II
is next to impossible to enforce a law
opposed by public sentiment and that
the masses Of the people ip Tennessee
regard the 1898 basis Of settlement
unjust will not be for a moment
doubted by persons familiar with the
agitation OF the public debt question
in that State.