Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1881-01-07
The state Debt.

AL lHtOAllSSut correspondent VI Tue
Appeal makes this analysis of the
oontgariety of opinion in regard to the
state debt, which we commend for
its fairness and practical direction.
First-The b~ondholder, naturally
enough, thinks he should be paid in
full.
Second-Tho repudiatio1ist, that
nothing ought to be paid.
Third-The body of state credit
opinion, that not exceeding COG, nor
less than 5O-4 should be paid.
Fourth--Many low tax democrats
maintain hat no part of the railroad
debt, as it is denominated in local pol
itics, should be paid.
Fifth--Stste credit men think that
no settlement should be made which
the creditors do not, voluntarily,
agree to.
Sixth-A large body of opinion
maintains that whatever settlement is
made should be submitted to the
people.
Seventh-The hostility to making
coupons, for interest, receivable, in
taxes, and the unwillingness of cred
itors to exchange a promise to pay
one hundred cents on the dollar, which
promise is not kept, for a promise by
the same party, without some guaran-
tee that it will be kept, is another Sc
rious ground Of disagreement.
How to harmonic all these oon-
hictiDg views is q perplexing ques-
ton. We think it can be- done in
this way.
l. Take foS a basis Of settlement a
rate of principle and interest, low
enough to unite the low tax democrats
on it in a spirit of harmony and con-
cession from their standpoint.
2. Yet high enough for state credit
men, by like concession, to come down
to.
s. Levy a tax sufficient to pay the
rate thus fixed, beginning with the
year 1882, and to be in force every
year until the debt is paid at the rate
fixed. Let this rate be forty cents on
the dollar, with four per cent interest
per annum, payable semi-annually,
4. Let the tax be solely for the use
Of such creditors as are willing to ac-
cept the benefit Of the terms Of the
settlement. On the deposit of their
bonds, with an agency to be established
under the act, to carry out the settle
ment, give that agency power to issue
liquidating scrip to be paid out OF tic
special tax, with coupons, receivable
in payment Of such special tex. And
as Q guarantee that the tax will be
kept in force and regularly collected
and paid over, provide that a failure
to- do so shall entitle the creditor 10
demand and receive his bond, and be
restored to his rights as they weEe be-
fore he agreed to tho composition. In
this way the creditor will have a solid
assurance that what is promised vii
be paid. The public will not be nurt
as the coupons will be payable out Of
the tax levied for the composition o.
the debt, and not otherwise; and the
creditor will only get back his bond.
in tho event of the default of the
public in matters as to which there
| can be no default exeept bv :
willful affirmative act, done with
a view to produce a default
The plan relieves the transaction Of
the odium Of a compulsory settlement
as no creditor will be bound to accept
it. Indeed, as far as the composition
may be accepted by creditors, TO that
extent it will be a composition at the
lowest rate that the creditors viii
assent to, thus being voluntary on
both sides, In order TO satisfy a de.
mand for a reference TO the people, lot
the bill for the composition and pay.
ment Of the debt be printed and q
copy sent by each representative and
senator to his constituents, With the
request that the people assemble snd
express their approval or dissent,
Finally, she surplus raised By the
taS should be applied in buying VI
and retiring such debt - shall dect.in.
the composition at a rate not exceed
ing thirty-tbgee and a third cents OF
the dollag. Az outline Of a bill EN-
bodying tbis plan is submitted. III,
anxiety we feel TO close This runninl
sore in our local politics in a way tia
the public can bear, and that will, .,
far as possible, protect the credit O,
the state, is our apolggy for this sYti.
Gle, if, indeed, apology he needed on 4
matter Of such near and high concern
in the nannle of this nnmmnnm.al.L