Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1881-03-16
THE CREDITORS NEW OFFER.
An Estimate OF the Taxation
Needed to Pay 3 Per Cent. ln.
teEesl on S27, 100000 and Run
The State government.
To the American:


1913. Are we any poorer than in
1878? In 1874 the valuation was
S2S9, 533,565. Are we near as poor
as in 1874? The truth is, the State
of Tennessee and her people are to-
day richer and more prosperous than
at any time since Jan. l, 1851.
Bua let us see what changes have
taken place, not only since
1873 but in the last two
years. In two years the city
of Memphis has been placed in
q position as to health and possible
future financial soundness, she has
never in many years possessed. tits
true that large quantities Of cotton
were lost IN the fields from wet
weather, but without that large
crop was saved. Middle Tennessee
wheat has brought good prices and
not IN many years have stock sold SO
well, The same will apply to farm.
ing in East Tennessee.
In the iron industry one large fur
mace has been started in East Ten
nessee, two small ones built, and
another in course of construction.
These will add, directly and lndle
rectly, at least 100000 to the taxable
property of the State. All these en-
terprises give employment to men,
who, with their families, are not pros
ducers but consumers of the farmer
products. They are but an item Of
what will be built and operated IN
the State If the State debt is settled
at the bondholders proposition. 1t
is directly the interest Of every
man who owns an acre of coal
land or q ton of iron ore to
have the State debt settled, and is
equally the interest of every farmer
who has anything to sell, cotton,
corn, wheat, hogs, mules, or vegeta~
bles, that capital should come in
and work our mines of iron and
Of coal, build furnaces to work up
both, and factories to make cloth for
tue laborers to wear. This capital
will come, only if the stain of repu~
diation is cast from us, and we hon
estly agree to pay our debt and stand
by the agreement.
Again, in the last two years, the
Cincinnati Southern Railroad has
been completed, adding greatly tc
the value Of property in Scott, Nor
gan, Roane, Rhea and Hamilton
counties. Land in Scott and Nor
gan, which was dear at a few cents
per acre few years ago is now
worth 81, So and IS per acre. Tue
McNinnvlIle road has been extend.
Ia, tue DtnoL Rivnr Valley road II
large part con structed; the Tennes.
see and North Carolina road nearl,
finished, and all our roads vastly i'm
proved. They all add to the value
of the taxable property of the State
Yet it is claimed that the State il
not able to pay tax of 40 cents OF
the 500 valuation, which she did fol
1873, 1874, 1876 and 1876, during
one Of the most trying periods il
the history of the American nation
and that paid, too, On q valuation o.
property from fifty to ninety-iv
million dollars more than the pres
ent total.
The net current expenses of the
State government per annum for the
past two years have been &509,9
l These are outstanding warrants
! amounting to S112,1098O, much tn,
/ largest part of which were ISSUED
!. previous to 1876. These should b.
made payable in bonds at 3 pc
3 cent, the same as the other debt
Q and be no longer tax on the treasu
~. There was on December 19
1878, an unexpended balance on Tia,
comptroller's book Of $94,568 IA
Fund the warrants above named il
, bonds and deduct this from amour
in treasurer's hand, and we have {
net surplus in the treasury of Sl27,'
! $685.. This represents the sun
, that the present rate Of taxation
= Ia ses over and above the necessar,
expenses of running the State gov
). eminent; therefore, we need add t.
? the present rate of taxation only s.
!. much as will raise q sum that, witt
the $127,955.95, will make th
amount necessary to pay the interes
- on the bonds.
p The railroads now pay only s.,
77668; it is stated that they ar
willing to pay 100000 if the Stat
debt is compromised on the basi
: proposed. This would be q fai
proposition for them, as at fort
. cents on their whole capital stocl
;. and bonded debt the amount woul
/ be $144,000, and in all fairness the
6 should not be taxed pro rata nor
: than real estate, for rs is we
= known the stocks Of none of theI
g are actcally worth the face value
g Then, if we make the tax O
:, real and personal estate 35 cent
i on the 500 valuation, and increas
the tax from other sources in til
e sum of 100000 we shall have:
q Present income over s s.te goV-
eminent ex peDses..e............. 1927. 95
q From the FAIR NEUTRALITY-SUSPICIOUS.. lu0 Oh
From S2l1 768 439 at gesl aud
Personal estate al Is Gel Is All
Gitl0nal Observation-Disclosures. 500 a
= 1857 4.