The comet. (Johnson City, Tenn.) 1884-1916, 1894-05-10
our state Debt.

Our state Debt.
The people oil Tennessee haVd livery
reason to congratulate themselves on
.he substantial proof of the States ex-
,ellent credit as evidenced by the re.
cent sales OF her new bonds.
The last Legislature authorized the
issue of 81 10000 of Az per cent.
bonds, 100000 OF which were to be
sold for the purpose of building a new
penitentiary, and the remaining
100000 to retire outstanding 5 and
6 per cent. bonds, aggregating like
amount, and which were redeemable
at the pleasure of the State on sixty
days notice.
Immediately after the new bonds
were authorized panic OF almost un"
precedented severity swept over the
whole country, threatening even the
national credit, and completely
paralyzing all lesser financial interests.
Under these circumstances it was ut
teIly impossible to make immediate
sale OF our bonds but the States fiscal
agents, Messrs. Latham, Alexander &
Co., bankers, New York, encouraged
the Governor and his official associates
to believe that failure OF sale was due
solely to prevailing conditions in the
financial world, and that MS soon as
improvement set in the bonds would
be disposed Of
Subsequent events have fully DEM
onstrated the wisdom of this assurance
and show conclusively the ilattering
financial standing which we now oc'
cupy.
Signs Of partial recovery from the
panic were first noticeable about the
beginning of the new year, and within
less than sixty days thereafter Latham
Alexander 4 Co., reported the sale o.
all the penitentiary bonds in one lot
and few days ago they sold the mil
lion to Blair & Co, which were
authorized to redeem the outstanding
fves and skies.
This last negotiation reduces thu
maximum interest rate on any OF thu
State debt to AZ per cent, and, in view
of the fact that the 5 and per cent
bonds and nineteen years yet to run
the saving in interest by refundini
them into the lower rate bond
amounts in the aggregate to $4,000
Gov. Turney and his associates ar
entitled to most unqualified com
mendation, and every loyal citizen O
Tennessee, without regard to politics
differences, should applaud the pres
ent administration for the admirabl
way in which the States finances ar
being managed.
For the past year the State has bee
Obliged to borrow no money, and wit
her debt adjusted on the present favor
able basis we can conceive OF no futur
complication in her finances, excep
through the grossest mismanagemen
High credit means substantia
foundation for material prosperity, an
without it industrial development an
commercial progress are impossible.
The vast resources and natural aC
vantages of this highly favored con
monwealth can never be thorough
tested, except through the powerfr
agency OF capital, and capital is a
: ways shy of field where the standar
of either personal corporate, munic
pal or States credit is low.
Tennessee stands 10 day safe from tn
; handicap of onerous interest, fire
from anything like burdensome del
and strong in the triumph Of highl
: restored credit.
This splendid achievement whic
|
has come swiftly must be guarded jea
ously.
We can not afford to take chance
in matters of finance. Every homes
| obligation must be protected to the u
7 termost, and no room must be above
+. for the slightest doubt either as to OF
ability or intention to meet every jul
= claim.
a Credit, like character, is too sens
tive to bear even the breath OF su
picion. Nashville american.