Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1882-11-04
THE STATE DEBT PROPER.
EXTRACTS FROM THE SPEECH
OF THE HON WIN. M. DANIEL.
DELHVEREDINTH THE STATE
SENATE ON THE 2sth
OF MARCH, 1881.

OGate ueDG aL 1UO-o, MI, OstAAels amOni
other things, said:
at is to my mind, always unfortu
nate when single subject shall over
shadow all the legislation required b,
a great State like Tennessee, with va
ried resources, mineral, commercial
and agricultural. 1t is, however, more
unfortunate, more provoking, in my
estimation, when that one question il
one that affects the fair name and the
honor of the State and the integrity
of the citizen. 1t has, as ! have said
Overshadowed the legislation at this
| term; it has for months absorbed all
interest in political circles, and this
question is to-day burning, wither.
ing, bhghting curse resting upon every
interest in the State"
Then after giving history of the
Constitutional Convention and legis-
lation upon the subject of internal
Improvements, he said:
The result of that legislation was
that in the State of Tennessee about
500 miles of turnpike were built, in
which the State was a half owner, at
a cost of $1,5OO,OO0. That million and
a. half dollars, raised by the issue and
sale of bonds, is what is to-day called
the turnpike debt of the State of Ten
nessee. Well, it is a pleasure to state
that the turnpike debt is very small
fitch. There are only a few of the
bonds outstanding. Allow me to say
in this connection, that the State of
Tennessee has never paid single, soli-
tary nickel of the principal of that
debt, yet it was the State debt proper.
I will undertake to show the fact
that it has not been paid. I agree that
the bonds are not outstanding, but
they have not been paid. Wen, to
hasten along. Bonds were issued for
the purpose of building the capitol of
the State, and those bonds, the exact
number / do not now remember-I
think it was a million and half dol
lars-these bonds were sold upon the
markets of the world, and are called
part of the State debt proper. Not a
dollar of the principal has ever been
paid. The agricultural bonds and the
Hermitage bonds were also issued;
part have been taken up, however, not
by the payment of the bonds. The
turnpike and the capitol bonds make
together about $3,0O0O00. Then there
were issued to make the capital stock
of the Tennessee and the Planters
Bank about 100000, and that, be-
lieve, is called part of the State debt
proper-six millions and some hun
dred thousand for the purposes have
mentioned; They are classed as State
debt proper, which some of our people
are willing to pay dollar for dollar.
In this connection l invite contradic-
ton of the statement that the State of
Tennessee has ever paid a nickel of
the principal of that. / agree there is
about a million outstanding Il agree
to that, but, Mr.. Speaker, they have
been paid, or they are represented in
other bonds that have been issued bv
the State that are outstanding to-day.
The matured bonds went into the.
Funding Act of 1866, the Funding Act
Of 1868, and the Funding Act OF 1873,
They were not paid. Not only that,
but some 80 per cent. more of interest
upon those bonds which are to-day
called the State debt proper went in
the same direction, making to-day the
State debt proper somewhere be-
tween seven and eight;milions of dol
lars; and the State has not. paid it
Some of them are included in the
bonds paid to the State by railroad
companies, and every bond issued on
account of improvements and which
are included in the State debt proper
that is not outstanding to-day has gone
either into the funding bonds or been
paid into the treasury of the State by
the railroad companies under the
laws of 1S69-70. This is part,ef the
debt we owe now. ....as...-
Now taking the items of the State
debt proper, the railroad Indebtedness
of the State and the funding bonds,
and we had, in 1869-70, something above
forty millions of bonded Indebtedness.
Was there a difference or distinction
between these bonds? Did bonds is
sued on account of railroads differ
from those issued to build
the Capitol? Do we find a picture of
a locomotive on one corner and on
the other do we find the big green seal
of the railroad company? / say, Mr..
d1bCI I'LL IASICCttOil vi lllC
bonds, that every bond whatever, issued
by the State of Tennessee. is exactly
in the same language except the clause
which refers to the act under which it
was issued. 1t reads "The State of
Tennessee acknowledges" and not the
turnpike or railroad company. 1t
reads, "For its security the faith and
honor of the State is pledged for its
->.asE
1t is signed by the Governor and Sec
rotary OF State, and if there is differ
ence between them, so far as our obi
cations are concerned, | confess my
TO discover it. No one who
will take the trouble to make an eX-
of the matter, will seriously
contend that the State debt proper is
no more than two millions. 1t is to-
day between seven and eight millions,
because it has never been paid. 1t has
never been redeemed. The funding
bonds were issued for those that were
past due. ..... .-.
Mr.. Daniel is known to be man of
accurate information upon the debt
question, aud no man has at any time
been able to contradict his position as
taken in that speech upon the amount
Of the so-called debt proper. The
original bonds have not been paid, but
have been refunded. The Bate plat
form proposes to pay this and Mrs.
Folks bonds, less war interest, in full,
and the remainder of the debt at 80
cents on the dollar, which estimating
the entire debt at $2S,000QO0, which is
in round numbers correct, makes the
proposed settlement by that party
about $1S,0O0O00, which is more than
81 100000 greater than the present set
Element at 60 cents on the dollar. The
people have to decide at this election
they will allow the present
to remain undisturbed and
put the question forever out of politics
or whether they will disrupt it to
make another at a larger figure. This
is a correct statement of the case as
any one can see by reference to the
above authority. They also have to
decide whether they win endorse the
discrimination and class legislation
proposed by the Bate platform in pay
ing some creditors in full and others
lt n less rate Democracy is enual