Year: 1879

"uOh thS cbdIO WIS uOJ aOle a0O


willing to pay the interest upon her


just indebtedness. but by uniting


all. payment has been made impos.


sible.


The bonds which represent the
several branches Of our State debt
can at least be approximately dis
tinguished, and il so, they ought to
be distinguished, and permit each
branch of the debt to stand upon its
own merits, and be adjusted accord
ingly and for this purpose an ap-
propriate committee should investi-
gate all the facts connected with the
debt, and report thereon, in order
that the justice Of the case Of the
State may be exhibited and intelli.
gent action bad. All efforts Of an
adjustment Of the debt heretofore
have failed, and that failure has re-
suited from the fact that the meri-
| torious debt and the unjust debt
have been equally recognized, and
until plan has been adopted found
ed in justice to all, it is apparent no
satisfactory result will be reached.


Uniform legislation Ly the General
Government in favor of capital and
against production, has not only depre-
ciated values in the State, but has par
alyzed more or less every industrial pur-
suit, Consequently, the subject of the
State debt presents itself al most inau-
spiciOus time for adjustment, yet it is
obvious that some step should be taken
to solve the difficulty and remove all
just occasion for reproach.


An investigation will disclose that the
public debt is divided into the fc,,,ovvI
ing branches, stated in - '.,s ordsr Of their
merit Flre. -. the primary debt of the
state, and distinguished as the State
debt proper. This part of the debt en-
braces the bonds for the Capitol ana
Hermitage, the only property now own
ed by the State, as the result of its in
vestments. Second, the bonds loaned
the Agricultural Bureau. Third, the
bonds loaned turnpike and plank road
companies before the war. All of this
property has been sold and the proceeds
turned over to the bOndholders. Fourth,
the bonds loaned to solvent railroad
companies. These companies own their
roads and take all the profits. Fifth,
the postwar bonds. All of the proper
ty purchased with them has been sold
and the proceeds paid the bondhOlders.


1t appears, therefore, that all of the
property purchased with the proceeds of
this vast debt, except the Capitol and
Hermitage, has gone into the hands of
the Federal Government, the bondhold-
ers and the railroad companies, while
the State has nothing but the debt and
the Obloquy resulting from her inability
to pay it. The amount realized from
the public property in Tennessee by the
Federal Government can only be ap-
prOximately estimated. The net earn
ings of the Louisville g. Nashville road
for the year ending in June, 1865, large
ly exceeded $4,000, 900. For the same
period, for some months after, and for
nearly two years before, the General
Government was operating all the other
roads of the State, and took all the prof
its, besides removing public property
amounting in value to nearly s., ,00O, 600.


All of this property and its profits had
been put in pledge by the State as the
primary security for the payment of the
bondhOlder, and at last whatever injury
the bondholder has sustained, resulted
from the injustice of the Federal Gov
ernment in refusing to ray what was
justly due for the property and profits
pledged to the bondholder and appropri-
ated by it.


The obvious equities as to the Stale
debt proper, are First, the funded war
interest ought to be expunged, and all
other funded interest. Second, all pay
ments upoa the war interest ought to be
credited upon the principal at their
value at the time 0f their payment.
Third, where funded at ? great rate of
interest than the contract originally
bore, the original rate ought to be re-
stored. Fourth, where interest has been
paid at a greater rate than the original
contract, the excess ought to be credit
ed upon the principal at its then value.
Filth, as the debt at the time of its orea.
ton was payable in gold or silver, and
as by Federal legislation the State has
been deprived OF the opportunity to pay
in the cheaper metal, the State ought to
be all..GCiwed the difference between the
market value of gold and silver.


So much of the State debt proper as
Is owned by the Federal Government
ought to be entirely rejected, until it is
willing to pay the State the money just
ly due her. The bonds loaned the Ag-
ricultural Bureau ought to be embraced
in the settlement of the primary debt of
the State. A settlement of this branch
of the debt upon these principles of JUS
tice will be right and ought to command
the approval of all.


The next branch of the public debt in
order of merit is that of the ante-war
bonds issued to insolvent railroads, turn
pike and plank road companies. All the
equities existing as to the State debt
proper obtain as to this, and in addition
the whole loss of the iron appropriated
by the Federal Government upon which
these bondholders had lien, ought not
in justice to be thrown upon the State,
but as matter of right those bondhold-
ers ought to have an assignment to
them by the State of the claim, if they
have confidence in the ability and will