Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1882-01-18

or 60-6, at 50-4, or some one of the
various bases which have been
discussed in connection with
this vezed question. We know
of men who are talking thus
who opposed the 50-4 settlement
on the ground that the creditors
would not accept it, and that it was
not enough, and if they have ever
favored settlement on any one OF
these plans, they have done it
passively. We do not expect to con-
vince any one of these that the 1908
settlement ought to be accepted and
carried out in good faith, because
they will not be convinced. So long
as the discussion of this question
keeps them before the public in any
way, they do not wish the question
settled. But there are those who
honestly believe that q settlement on
the basis of CO.'S would have been
better for the State than 1908, and
for the views of all such we have a
profound respect We, ourselves,
heartily favored a settlement on that
basis. When the question was pend
ing before the Legislature, we
supported it through these
columns, and as, ct that
time, We believe the creditors would
have been satisfied with it, we still
regret that it was not accepted.
We have always been ready to
adopt any basis which would satisfy
our creditors. Anything else is re-
reputation, Just to the extent that
the creditors of the State are forced
against their will to accept it. When
they, with absolute unanimity, 50 far
as they could be heard from, agreed
to relinquish half their interest, we
were in favor of accepting these
terms, and consequently were for the
1908 bill. So far as the present
generation is concerned, it is better
than 60-6, as the figures will
demonstrate to any one capable OF
understanding the fundamental rules
| of arithmetic. Let Us see: Sup
| pose, for illustration, the State debt
is, in round numbers, $26, 100000, it
is something more than that. On
the basis of 60-G,
The principal would SIS, 500, 900
Annual interest. $4,000
On the basis of 1908:
The principal. ..................$26, 600, 900
Annual interest. 100000
Thus it will be seen that our an
nual interest account will be $156,.
600 less on the 1908 basis than OF
the COS.
But the directors have g grea+
| deal to say about the debt running
ninetyanine years, and tbey
are shocked that we should b.
willing to entail a burden
of such weight upon posterity. The,
forgot to tell, however, that th'
! 100 8 bill provides thai the Stat
may take up its obligations az an,
time after five years. But if it dI,
not, there viii be ample opportunit
to reduce the principle if we shout
desire to do so. A 3 per cent Stat
bond, especially a Tennessee bono
will not be regarded by capitalist
as q gilt-edged investment, an
: the new bonds will not Sc
7 in the market for exceeding rs pc
J cent. of their face value. Then
we are anxious to pay the principa
. we may levy the tax which woul
} have been required to meet the in
terest on the thirty year bonds, ha
2 the debt been compromised at CO..
: and use the $l56,000 per annun
= the excess over what is required t
!, pay the interest on the basis Of 100;
4 for the liquidation of the principa
/ and at the end Of that time it will /
t extinquished with the exception {
= about 100000. There is no reaso
5 unless some extraordinary and III
t forseen calamamity should befall II
why we should not wipe out the Ell
g tire debt at the end of thirty year
Q and it can be done with a rate
g taxation, after ten years, much lowe
t than we are paying now. There
0 very little difference in the two pro
t portions, SO far as the Taxpayers
l. the State are concerned, certainly NJ
5 enough to risk the general democrat
n cation, excitement and strife whit
I is bound to attend the reopening
+ the question.
Farmers Sons