Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1882-12-12
As OTHERS SEE Us
A Prominent Bostenian On the Situa-
ton In Tennessee.
The RendhoIders Will Refuse to Fund
- on Any Other Basis than that OF
the Recent Settlement

on ANY Otnef BASIS IMAM Thai Vi
the Recent Settlement
A prominent capitalist of Boston
writes letter to a gentleman in this
city, from which We are allowed The
privilege of making the following ex-
tracts:
I believe I acknowledged yours of
the 5th- have since received yours
of the 18th, sent me yesterday. I
cannot conceive of so short-sighted
a policy on the part of the victorious
party IN Tennessee as TO inaugurate
themselves by such a direct and
downright policy Of reputation as
is intimated may be attempted. I
cannot believe it yet; and believe
when they quiet down and the sol>
emn second-thought of the more
sensible and conservative people
takes place, they will come to a very
different conclusion Il is certain
that with the State-credit people and
the Republicans there is a msiors
ity of people in the STATE who would
prefer to maintain some credit. I
think, if they commence to
repudiate the debt that has
been so recently funded, they may
as well consider that they will have
shorteIived success, to say nothing
of the howl the Republican party
will set up as to the effect of the
change, and it viii be of great dam
age through the whole country, and
be used extensively as an argument.
The Republicans are not only waits
ing for Just such action but are pre-
dieting 1t, and appear very little con
cerned about the future. They are
banking on just such mistakes as the
Tennessee Democratic Legislature
propose to commence, and it is be-
ing talked of IN New York already,
and you viii see great noise made
when the question comes up. /
know that the bondholders Will re-
fuse to fund on any other basis; it
viii be too much of farce after the
funding of their bonds into so per
cent of the old and take 3, 4, and 6
per cent. interest within q year after
that, and with only one coupon
paid, to come on and take so per
cent. and 8 per cent interest. Per-
haps another Legislature may ask
you to take 40 and 2, and why not
keep your old bonds, until there is
some way found by which State
can be made to be decent and do as
they agree I don't believe thay
will make any money out of it, even
looking to that side of it. Their in
ternal improvements and develops
ments will require capital which they
will ind they are not going to get
readily. People cannot act IN that
manner and ga1 up a reputation as
repudiating their State debt the
second time and expect capital to go
into their State for any purpose.
They may try It, but I know the
New York financial people and pa
pers Will make it come home to them
if possible, and the politicians
OF the Republican party will make
the most of it, and will insist that 1t
is only the beginning of what
We shall see of the fruits Of the great
tidal wave. They have got to bank
on Democratic blunders which have
never failed them heretofore, and it
looks, from what you say 1t was, not
to be different now. | am sorry, but
l don't know as I can help it. Much
Is am glad at the recent changes
on political matters, I shall hope for
still further changes, or even a
change back of the action proposed
by the State Legislature Of Tennes
see If carried out. This country
can't stand any party that repudl>
ates and with its vast interests and
investments IN every direction, and
the most tender spot, that can be
touched by the Democrats is this
same question of Reputation, and it
will produce terrible reaction, and
make a very short career for the par
ties who propose to indulge IN it.
As soon as it is decided on and
takes that shape, let NE know. as I
suppose what Tennessee does we
may consider a fair sample Of what
will be done all around Nashville
Banner, (Democrat.)