Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1882-09-02
REPLY or 4 BoRDB0LDEB
To an Open letter of Aug. from the Nash
vilie World to the Creditors OF
tennessee.

REPLY or 4 BoHDBOLDE8
To an 0pen letter of Aug. from the Nash
Viife World to the Creditors OF
Tennessee.
Your letter to the creditors of Ten
neSsee, coming from party organ
which is supposed to present the
ideas of Bate, receives careful at
tention and calls for a respectful re
ply viii you, therefore have the
goodness to publish in the World
the following brief answer:
You are pleased TO state that the
salvation of Tennessee bonds is in
volved in the preservation OF the in
tegrity of the Democratic party in
your State. You also give bond
holders Eotice that the settlement,
now rapidly progressing under your
existing law by the,issueof compra-
mise bonds for sixty cents on the
dollar, is an abortive attempt that
will result in the repeal Of the law
which authorizes it. To tins ! beg
To reply as follows:
THE BONDS AND WHO SHOULD PAY
THEM.
The bonds III question are the
bonds OF rich State of more than u
million and half inhabitants,
which in its dignity is separated
from, and far above all political
parties within its borders. You
have yourself noticed the fact,
which Governors, Legislatures and
conventions in Tennessee have oft
reiterated, that these bonds were
issued by the State in the exercise
OF her unquestioned rights, and in
the eyes of civilized people she is
rightly held liable for them. Under
this state of facts it j. perfectly evil
dent to bondhOldCrS-an think il
would he 10 you were you one of
them-that the Government which
borrowed the money and has re-
ceivcd the vast advantages of its eX-
penditure, should pay il back in
good faith, irrespective of parties.
The rise and preservation or the fall
of political parties are mere incl
dents in the life of "A State, and they
cannot be recognized by creditors ITS
having anything legitimately to do
with the question of the payment OF
the State debt, or the salvation of
its bonds. The question rests upon
the honor OF Tennessee, the preser-
walton of that honor through gener-
atiOns, and il bears alike with sa-
cred power upon all the inhabitants
who compose the various parties
withia her borders. The bonds
have passed into the hands of limo
cent purchasers, who bought rely
ing on the credit of tennessee, and
every principle of law, of equity
and of horror demands their pay
ment by the State, irrespective of
the rise or fall of any party.
ABILITY TO PAY.
The business of the debt being adj
United, the ability of the State to
pay is the next question. To this
most important question you do not
refer, and take it for granted that
you admit the States ability. Two
facts have here an important bear
ing; iirst, blythe present cOmprO-
mise reduction of more than
eleven millions principle and of
about half the rate of interest has
been voluntarily made by bOndhol-
ders and second, without harmony
restored regarding the debt, four
per cent. per annum is the highest
rate OF interest which Tennessee
would have to pay after the date
when she has the right to redeem
the compromise bonds, Jan. !, 1897.
With these advantages secured by
AN act of the bOndhOlderS, no intel
ligent person can doubt the States
ability to pay. a broad forecast
and Statemnnlike view settles this
question Of ability forever, for with
stable finances, the peaceful eXecu-
ton of the present law would soon
give To- Tennessee a high credit and
would enable her to borrow all the
money, at 81 TO t per cent. per an
mum, required 10 pay OF her present
debt.
The States population would an
nually mere use as it never had be-
fore. Her industries would become
enlarged and every years taxation
being shared by a larger number of
VirtuOuS inhabitants, and assessed
upon vastly Increased values, would
become every year lighter and light
cr to all. But, on the other hand
we should not shut our eyes 10 the
fact that while the providence of God
has opened the way for this i'm
proved condition of things in Ten
ncSScC, a rejection of this beneiicent
compromise now, just after credit
OrS have surrendered their Old bonds
for TcuncSSCe's new obligations,
would inevitably sink the credit OF
the great state TO the lowest ebb
ever reached by people in whose
pledge of good faith no confidence
whatever can be placed.
THE VALUE. REUELvEp by THE
STATE.
We have seen that the debt to the
creditors Is a just one, and that the
State has the ability To pay il. Now
il is proper To consider the value
which Tennessee has enjoyed for
many years from her outlay i'm aid
ing the railroads. Ii is no eXagger-
atcd claim, which careful writers
have proven one of the most, and
probably the most, signal instru-
mcnts Of civilization which the his
tory Of the world has yet developed
at has been computed that not
withStauding the limited return to
stockholders of most railroads, the
actual addition to the worlds
wealth yearly is not less than 10 per
cent. upon the outlay for the CON
structiun of roads
If the estimates of these statiSti-
ciunS are anywhere correct, you
readily perceive that Tennessee has
received much more than the face
value and 6 per cent. interC5t for all
OF her outstanding bonds. Ii is Il
low estimate TO say that she gains
this year more than 81, 500, 900 in
the additional value Of her wheat
crop alone in consequence OF the
railroads. No possible plea of want
of value, then, is admissible in this
case.