The Morristown gazette. [volume] (Morristown, Tenn.) 1867-1920, 1882-05-24


pay more than the creditors have
offered to take. Somewhere between
the lowest proposition the creditor:
have made and the. highest terms
they have offered, in my opinion
the true basis of settlement.
What that is l cannot exactly say
and it is a matter Of compromise and
! concession. This can be done with
out any sacrifice Of principle and
without any injury to the financial
character Of the State.
Tn determining tRe basis of settle
ment, the question: 4 tax of Is
cents on the hundred dollars worth
Of property with onc-half Of the
| privilege taxes and and other
sources Of revenue, will bring into
the treasury each year 100000,
should there be an increase Of tax
able values it would bring more.
This would be a tax Of S15 on S1O,-
000 Of assessed property, which is
generally $4,000 true value.
Ifthe settlement be made asabove
indicated, then a tax Of this amount
applied exclusively to the debt
would pay the principal and interest
within thirty years. To this there
would be very little objection !
have seldom seen q taxpayer who
did not profess to be willing to pay
that much towards the liquidation
of the debt. If the debt was settled
at 90 per cent of the principal with
, per cent. for ten years, 4 per cent.
for ten years, and 5. per cent. for
ten years this tax would pay the
entire debt, principal and interest,
within thirty years or less time. BY
the time the ) per cent. interest
would commence the debt would be
so small that the interest would be
very little. There is no very ma
tcrial difference between this propos-
ition and q Sc proposition, with
this advantage in favor Of the go
cents, that it requires 4 less amount
at the beginning to pay the interest
and gives Us larger sinking fund.
This calculation is made upon the
supposition that the funds now on
hand and those to be raised will be
used after paying the expenses of
the State, in the liquidation of the
principal Of the debt.
4 settlem mt at 60-4, and 6, ten
years each, woul !, perhaps, require
q tax Of twenty cents to liquidate the
whole debt within thirty years. This
latter may be the best that y can DO
but in my opinion, the former prop
osition, COS, and ), ten years each,
Is best, not only for the State, bu,
for it creditors. ] am not giving
my individual views as to what Is
best, abstractly speaking, but as to
what is best under the surrounding
circumstances. Some of our politi-
cal brethren may say that it is too
much and othe will say it is far
too little. 1t should be remembered
that nothing can be considered Il
settlement which our creditors will
not accept.
Suppose we offer such low terms
hat they will be rejected by our
creditors, we will be worse off than
if we offered nothing. The debt
will still be on us with all its dis
tracing cares, its ruinous effects. /
We know not what may happen in /.
the future. The burden may b Il /.
great Deal heavier and far more diff /.
fcult TO get clear Of Let us be wise
in time. Put not off evil day.
Whatever rate OF ftaXation is agreed
upon should be made a art OF the
constitution in rider that the peo
pie may have n constitutional guar
antee against any increase of taxa
ton. and that the creditors may feel
that the settlement is permanent
and not liable to constant huctua-
tions. 1t is to be hoped that the
convention may be conservative, oX-
hibiting a proper respect for the
opinions fall and adoptin a policy
which may unite the party and pre-
serve the State.
Whilst it is not my desire or in
tention to take any part in a polit
ical contest, especially among mem
bcrs oftha same political household,
I cannot refuse to express my opin-
ions frankly and respectfully when
urged to DO 50 rs l have been by
vou.-WM. J, SKIES LETTER.
The Cincinnati EHqairersays that
during the last thirty years the
United States Government has given
away to railroad corporations not
less than 191 ,653, 401 acres OF public
land, 21,554,201 acres more than
compose the great State Of Texas.
And yet there is scarcely case on
record where a railroad has fulfilled
its part Of the contract made with
the governmentw when the land grant
was made. Hopes are still en-