Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1882-05-25
The Old city Debt.


Represeutativesin the Legislature and
understood at home that the radical
change was an act of self-preservation
for the time being, and not for the
purpose of ultimately evading or
repudiating any just obligation
within our ability to pay.
In other words, it was expedient to
escape relentless creditors for the
time being, we asked for breathing
spell and got it. The Taxing Dis
trict, simple and an admirable form
Of local government, when in the hands
of such men as now and heretofore
have administered affairs, is the crea-
ture of the Legislature, as was the old
municipality; but it lacks the quality
of sovereignty which inheres in the
State. 1t can be sued, like any other
corporation or an individual. Thus
far the new government has not suf-
fered for the debts of the old. A re-
ceiver was properly appointed to wind
up the affairs of the latter, to collect
what he can Of back taxes and assets
and distribute the same equitably
among the creditors. There is no
legal relationship or blood kin between
the old and the new governments.
But the most thoughtful minds incline
to the belief that eventually the cred
itOrs of the old city government will
find remedy and processes that will
reach all the property in the city
either through the Legislature or tho
Courts. The decision in the O'CoDnor
case points that way very strongly.
Let US look at this matter from a
moral and business standpoint, and
zee whether it is not best to
effect a compromise with our
creditors as soon as possible. The
sympathy Of the world enabled us to
repeal the charter to get beyond the
reach of a mandamus, and also to
secure much other favorable legisla-
ton. This sympathy will wear out
after awhile; it is getting thin already,
and few bold lobbyists could turn
the legislature against us, like as not,
any time. The validity Of this heavy
debt for which so little benefit was
received has never been questioned
unless in one case incidentally. II
is hardly worth while to discuss the
legal aspects Of the question. The
plea of inability has been raised and
recognized, but even that cannot al
ways defer settlement. The bond.
holders are clamorous, some of them
unconscionable, but all having rights
equities and resources. The debt i,
bearing interest right along, day and
night, at the rate of C per cent pei
annum on the face value. Thus the
principal increases at the rate of a
thousand dollars day. If we stavt
it off a couple of ye-rs longer it will
have increased nearly or perhaps more
than a half million dollars. The bill
lately passed is not to our fancy. II
is wordy instrument, and may be
intended to mislead and entrap. But
before its provisions for compromise
are rejected, the main question should
be given very thoughtful attention II
the bondholders will come forward
and agree to something like 80 4 for
the first ten years and manifest their
good faith by depositing their bonds
with responsible trustee or bank to
be funded, it is a matter of serious
doubt whether such a proposition
should be rejected. After the
compromise is once agreed to and
the great bulk of the bonds are re &.
funded it would make no difference if
the new government were to become
liable for carrying out the contract,
provided we mean to pay what we
promise. If anything is to be done it
must be within forty days from the
passage Of the act. Time is slipping
by and nobody seems to be doing any
thing. Technically we are some other
fellow-the Legislature has changed
our name from John Doe to
John Smith, and some people
seem to think that on this
account nobody can make anything
out of John Doe. This will prove to
be a mistake, if we are dishonest
enough to try to prove an alibi. The
| plea Of three epidemics in a decade
and other misfortunes has been set
down to the credit of Memphis, but it
has not extinguished the old debt.
Capital is ever active, vigilant and
cunning. Five millions cannot be
put to sleep or appeased by
the doleful music Of hard times,
played by discordant band of deliu-
queat tax payers. 1t is time to quit
growing aud go to work. Memphisii is
fairly prosperous, quite healthy and
altogetherable to tackle this miserable
everlasting debt question in business
like way. There is no excuse fol
waiting for the Federal Courts to gel
III Il -. - -, L.. Al ...,.n.. n.