Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-01-21
The whole Quesli0a OF In . Debt of N em.
Phis CaDdldly Consider eu.

The whole Quesiios OF the Debt of M em.
Phfs Caodfdiy Considered.
To the Editors of the Appeal.
Do our creditors offer terms, or are we
hunting them? There eeems TO be some
want of knowledge in the public mind on
this point.
The debt should not be paid in full. Do
the creditors concede this?
If so, then that opens the way to a com.
promise.
Great wrongs and doubtful law questions
lie at the bottom of much of the debt.
Grave legal questions now await decision as
to the validity of about $4,000, 600 of it.
Much of it cost the present holders less than
fifty cents on the dollar.
The debt,-in tull, is about Sc 00O, 900; and
$14.000,O00 of taxable property cannot pay
that amount, with other burdens that are
unavoidable, without destruction. The effort
10 enforce payment, with decision by the
courts in favor of the creditors, would as
certainly break down as an ordinary country
bridge would break down under an engine
and train OF loaded freight cars.
Let the creditors drive us out of existence
what then? There would be no taxes for
their debts. They would get nothing. We
would have our lands. and houses, and
streets, and would find way to keep them
up. In any event, non-existence would hurt
the creditors worse than the people. Better
die as a local government than live only to feed
the rapdcity of unjust demands.
We agree that some part of the debt ought
to be paid. Nor do we wish 10 be understood
otherwise, in stating that we have remedies
in every exigency-desperate, perhaps. but
terrible to the creditors as we'll as trying TO
US. This agony is two-sided. Both parties
would suffer, but the creditor side most.
The creditors are deeply interested in our
prosperity and groUth; for without these we
can never pay them.
1t strikes me as unwise, even from the
creditors standpoint, TO overload or break
down this local community. 1t was done in
1878. 1t is safe TO cay that the experience
of the people, under the new departure (In
1879, has been thus far more comforting to
them than has been the experience of the
creditors.
The creditors should not, by extreme or
impra cticable conditions, either force an
other new departure, or embarrsss and
cri pple the present tendencies 10 solid
growth and prosperity in the coming future.
1t is to the interest of both sides to settle.
Not to settle endangers both sides, but the
greater danger is to the creditor. Now,
keeping these premises in view, let us con-
slider the matter from them as the proper
standpoint for reaching the basis OF a COM
promise:
Fira.-Any settlement should be finality,
and, if possible, not to be attended with
further litigation.
Second.-It ought not 10 violate the "bsd.
rock" policy of the Taxing District govern.
ment by forcing it to issue bonds or levy
taxes, except as hereafter stated as to taxes.
1hrd.-The revenues of the Taxing.
District should not be open to absorption by
coupons, but they should all be under the
control of the Taxing District for it's current
wants. A tax, however, far The old debt and
no other purpose should be imposed, sufficient
to raise revenue to meet il according to the
terms of the settlement, with guaranty that
it would certainly Be Leried, and with power to
the creditor TO coeree a levy If the people
undertook to defeat proper and adequate
levy.
Fourth.-The basis of settlement to be fifty
and-six, to be met as follows: Three per cent.
interest for three years, four per cent. inter-
for four years. At the end of the first ten
years capitalize the difference between these
rates and six per cent. and add it to the prin-
cipal. At the end Of the frat len years put
the sinking fuud principle in operation in
such manner as to meet the whole principal
in thirty years from that date.
The debt already funded at ffty-and-six,
and known as the Flippin compromise bonds,
with their due interest, to be paid in full on
this basis, so as to place all upon an equal
footing.
Ey0s-4SSt ooiJ SniPoWef g settt$sy uSssSs
for and on behalf OF the extinct city of Mem
phis make coupon bonds, to be satisfied upon
the terms stated; provided, that If any con-
test is made as TO the validity of any Of such
bonds, an amount of the original bond or
liability equal to that secured by the new
bond shall be recoyesed if the new bond il
declared invalid; 80 that, in any event, a
judgment shall be had for sum equal to
the new bond and interest, and make the
of the validity of the new bond
pay all costs and counsel fees, and the judg-
ment stand 10 lieu of the new bond and be
satisfied in the same way that the bond or
bonds for which it stands would have been
satisfied if there had been no contest.
Siz&.-Make it the duty of the settling
agency aleoys TO ssk levy of taxes by the
Legislature in an amount 10 meetthe interest
asd debt according to the terms Of the seiils-
nent. II the Legislature at any time taiis
to make such levy, LET there be power in The
uettiins agency, whatever nsy be IL fonn,
md make it the duty thereof 70 IMPLY fAs
onission or failure Of the Legislature -