Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1883-02-22
PUBLIC LEDGER.
THURSDAY EVENING, FEBRUARY p 1855
Tennessee Not in Favor of RePu-
dialtOn.

Munford. is a brilliant young lawyer
who removed last year from Clsrks'
vile, Tenn, TO New York
To the ktttor Of the NAtisn
SrR.-As reader Of your Journal, 1
am familiar with its we'll known will
ingness to hear all sides of all ques
items. in order that your readers may
know the truth. | cannot torbear,
when so much is being said at this
time against the people Of Tennessee,
to say word in their behalf They
have been greatly misunderstood
by many, and Wiley slandered by the
railroad monopOlists. state it upon
nv honor as man land | form.
erly lived in Tennessee, and know
what | say to be true) there has never
been q party in that State in favor OF
reputation; aud in this lam sustained
BY the Hon. John L. I. T. oneed, ex-
Judge of the supreme Court OF that
State, who made the same statement
in a recent speech delivered in Boli-
var. Tenn. All of the people are in
favor OF paying the State debt proper
that is, the debt from which the
people received the direct beneft-in
full; and the only trouble has arisen
over the railroad debt, which is now
in dispute and litigation, and awaiting
argument in the Supreme Court Of the
United States. The bonds are hen
upon the railroads uutil they are paid.
The railroads regularly paid the in.
terest on the bonds before the war,
and should pay now. Many good men
and true have long held that, inasmuch
as the railroads received the direct
benefit from the railroad debt, they
in good conscience and equity
should pay it; and | rejoice to say that
the recent decision OF the u. s. Cir
cult Court in Arkansas, in regard to a
similar debt, contracted in a similar
way, triumphantly vinlicates them
fron the charge of reputation, and
sustains their position.
But, waving the question of the
liability Of the railroads, aud consid-
ering the equities on both sides. the
people now say: We will pay the State
debt proper dollar for dollar, and we
will settle the railroad debt al 80 cents
on the dollar, with bonds bearing
interest at 3 per cent. Ever since the
war, bills Tor settlement of the debt
have been regularly "railroaded'
through the Legislature, but the people
couldn't be forced to swallow them. In
the last election in that State, the
people for the first time took this
matter into their own hands, and now
tender the 1905 and SOB settlement
as 6nality This is a settlement
upon a true State credit basis, and
the bondholders should accept it, be-
cause it is one which the people can
aud will maintain. | venture the
prediction that when the present
Legislature shall have recorded the
will of the people by passing the 1906
and 50-3 bill, and the position of the
State shall have become thoroughly
understood, the bonds will rise in the
market, and Tennessee credit will
stand as high as that of any other
State in the Union.
Very respectfully yours,
Louis G MUNFoRD.
Fifth Az, New York, Jan. 20, So
Editorial comment of the Nation:
We cannot, on our correspondent S
theory, account for the widespread
delusion on this subject. The present
struggle between Tennessee and her
creditors began in 1877, when the lat
ter submitted to an arbitration advis.
ing the issuance Of new six per cent
bonds at the rate of sixty per cent Of
the total amount of principal and past
due interest" and a special levy to
meet them. The Legislature met ex
pressly to consider this compromise
but failed to agree, and its non action
was universally regarded as proof of a
popular majority 10 favor OF repudia-
tion. Postmaster General Key con-
tended at the time, in a letter to Gov
Porter, that the debt was Justly due,
that in lis capitol and its railroad sys
tenn the State had got value received
for its bonds, all Of which, even those
considered wroDgfully issued, were
issued under laws providing Tor theil
issuance, by public officers selected by
the people ofthe State" He declared
it an ineOntrovertible maxim that
there is more of honesty aud honor in
paying debt not Justly incurred than
IN repudiating and refusing to pay one
justly due. :" In 1879 the Legislature
refused to entertain the adjustment
still offered by the States creditors
or even & 80 4 compromise. Las
year, however, the bonds were issued
at sixty, but the question Of payment
was so far from being closed that the
fall electoral campaign Whose verdict
the deIauting State Treasurer sc
serupulOusly regarded) vas fought
aud carried in favor OF nothing better
than SOB.
But it is we'll to recall what preced
ed ls77-the doleful era OF Virgins
readjustment and the Bland bill in
Congress. We quote from the Nash
vile correspondence Of the Tribune
(December q, 1917:
In 1866 Tennessee, instead eff pay.
ing the interest on her bonds, merely
funded it. She repeated it in 1868.
From July, 1869, to January, 1874
she paid not a dollar of interest II
1873, she fupded her past due bondi
aud coupons, allowing no interest OF
bonds past due FIVE and ten years, o.
upon coupons past due four years
The Interest thus openly repudiated
amounted, am informed, to upward:
of $l,l2lO00. On January 20. 1875
she repealed so much Of the Bundinl
Act as required the Treasury to SCI
apart reyeaue to pay the interest on
the funded bonds. Her last perform.
anoe was to send commission to New
York to delude the bondholders By
significant suggestions that half a loa
is better than no bread, and that they
had better offer voluntarily to accent
civtv NOR cnnt in fill % a. a.. -