Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-02-28
LETTERS FROM THE PEOPLE.

A Plan TO secure the Unity of the Party.
To the Editors of the Memphis Appeal:
In order to pave the way for the two wings
of the Democratic party TO unite, i respect
fully suggest that we narrow the differences
to the question Of the rate Of tdrakon to be
borne by the people in settling with the
bondholders, and to the payment of the past
due interest on the bonds. Suppose we put
the question in this simple business way:
We, the people of Tennessee, are not able to
pay our public debt, principal or interest, in
full; but we are willing to pay according to
our ability, having just regard to the in
dispensable burden of local self-government
and a subsistence for ourselves and families;
and it now being settled by the Supreme
Court as part of the fundamental law of
the State that one legislature has no power
to bind the succeeding one, we are willing to
be taxed each year, through our representa-
tives, according to our ability to raise, an
annual amount, to be paid TO the bondholders
in compromise and settlement; and evil
dence of our good faith we will begin to pay
now. Through our next legislature we will
paw the amount in the State treasury collected
under the 1908 act on the past-due coupons
at 80 cents on the dollar. This money
was collected under Accent tax to pay the
interest at the rate of 3 per cent, which is
what we now proposes50 cents on the dol
lar of the coupons. We will instruct our
next legislature to lay a reasonable and fair
tax according to our ability to pay-40 cents,
or more less, according to our ability to
pay-and the taxes, when collected, to be paid
on the past-due coupons, and so on from
wear to year until the interest shall have
been paid And after the interest is paid we
will provide for the principal according to
our ability. As distressed debtor this is
the best we can do at present. In the future,
If we are able TO pay more, We will pay more;
if able TO pay less we will pay less. The
bondholders are not required or even re-
quested to accept this proposition. They are
left perfectly free to accept or reject without
prejudice to their rights. We will tax our
selves according to our present ability to pay
taxes, and set apart the money 10
such coupon-holders as will present them for
payment at the discounted rate of per
cent. interest, or 30 cents on the dollar.
If it were an individual debt of my own,
this is the way / would settle it: and l am
satisfied the creditor would accept, because it
would be fair and reasonable, besides it would
be a great satisfaction TO be getting his money
al once In support of this measure, it may be
urged that it is our duty to pay nou, and con-
tinue to pay annually according to our abil-
ity, and not to postpone that payment mere
" because we cannot agree on other ques-
tions of funding, scaling the principal, etc
And perhaps it ID true that we are at present
able to pay by iustallments the past-due in
terest at the discount OF 80 per cent, and as
our creditors are willing to take that sum
there is no Reputation in such payment, it
being optionary with the creditor to take that
amount, or to wait in the future until we are
able to pay more, there being a promise on
our part at the same time to pay more in
the future, If ire are able to pay more
For the present, leave the principal for the
future. 1t cannot be paid now for two rea-
sons-frst it is not due; next, We are not
able to pay it if due. If we become
able, by reasonable taxation, it would be bad
faith in US now to repudiate it in advance.
So let the principal alone until we settle the
interest. We can now settle with the bond
holder on his own terms for the interest,
without mourning Justly the charge OF re-
pudiation, and when he has his interest to
his satisfaction on his own terms, he viii be
more ready to make favorable terms for the
principal when its turn comes for settlement.
As a business matter it is the bsst policy for
protested or distressed debtor, who means
to pay out, to continue paying according to
his ability and keep down the interest. II
We adopt that course l feel an abiding con-
fdence,ths in the atursl,andlprobable prog
ress to prosperity, and in the development
of our resources, We will be able to come
ont Of our present financial Difficulties with
out dishonor on the name OF our State. II
the two factions OF the Democratic party