Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1883-02-09
TENNESSEE'S DEBT.

The Message OF Gov. Bates to the LegisIa-
ture of that State the Subject-His
Views of the Necessity of the Repudia-
ton of Last Year, and Recommendation
that the Unsettled Balances be Funded in
the Same History of the Various
Issues of Bonds-Otber State News.
NASHVILLE, Tenn, Feb THE message
of Gov. Bates was read before the legis-
lature this afternoon. The greater por-
ton refers to the settlement of the state
debt, the payment of interest on bonds
funded under the 60 and act, together
ernor says has left the treasury COM
paratively empty. The funding of
the debt has frequently been
subject of legislation from 1866 to 1882,
but under none of these acts has the ma
jority of outstanding bonds been funded
nor has the entire Indebtedness under all
of them taken together, been found A
large number are yet in their original forme
The first funding act was by request or
consent of the creditors, and when passed
and put in operation, three-fourths of the
voters and tax payers were denied the right
to vote or hold Office. The funding act, of
1873 was so Objectionable to the people
that subsequent legislation made no pro-
vision for the payment of interest. The
100 and act was declared unconstitution-
al and void by the courts. The
CO. and 6 act, passed by the
same legislature, fell short of its
| aim, as official reports show that owners of
more than one-half of the outstanding
bonds declined to fund under that act
| Since July, 1875 DO interest has been paid
| on any bonds save those belonging to edu-
| cational and charitable institutions and to
| Mrs. Polk. The interest paid out by the
| state treasurer was from funds not col
lected for that purpose, but of funds pre-
| viously in the treasury. The Governor
maintains that none of the. five funding
acts grew out of an expression of popular
| will, nor was acquiesced in by the people
otter their passage. The people seeing
the constant and systematic efforts to foist
upon them laws touching the state debt
and witnessing the schemes and prac-
tees of corrupt spectators and lobbyists
| preying upon the crippled credit of Ten
nessee, took the matter in their hands and
for the first time expressed their will
through the ballot box last November, to
| tender terms of settlement to our credit
ors, which every disinterested right think
ing man must regard as just to all. The
| duty of the state is to tender settlement
and let each creditor act on it as he deems
best. The governor then reviews at length
the history of the creation of the debts,
and states that $14,OOO,OOO of bonds
were issued to railroads Immediately after
the war, when majority of the citizens
were disfranchised, and it is a part of pub
lished history, in connection with the issu-
ance of these bonds, that purchasers were
put upon their guard as to dealing in
Tennessee securities. The evidence of the
previous Investigations show that many
bonds were issued wrongfully. The devas-
tation of war, the usurpation and
misrule of the state government,
the tardy recuperation therefrom,
the doubtful authority of the state gov
ernments which issued certain of the
bonds, has been recognized and acted on
by holders of other Southern securities, as
a just and equitable reason for the abate-
ment of the amount of the debt, and the
governor doubts if any Southern state has
settled this class of Indebtedness upon
more liberal terms than those proposed by
Tennessee. In accordance with the will
of the people he therefore suggests ten
| der of settlement of the state debt as
proper in full, less the war interest, with
| the same interest as the original bond;
also those held by educational and char
liable institutions, and twenty-nine bonds
of Mrs. Polk, and he suggests that the
remainder of the contingent debt be settled
at fifty cents on the dollar, principal and
interest, and to bear interest at 3 per cent