Year: 1876

From these figures it will be seen
that it will require more than double
the present rate of State taxation to
meet the current expenses and pay
the interest on the State debt. The
present rate of taxation is nominally
four mills; in addition to this is one
mill levied by the State for school
purposes and about two mills raised
br the counties for the same pur-
pose over and above the amount re-
quired for their ordinary expenses.
No one familiar with the present af-
fairs Of the State will for one mo-
ment entertain the belief that it
would be possible to greatly increase
the present amount of taxation at
least sufficient to meet the interest
and pay the current expenses of the
State. At the present time there
are more lands forced on the market
to pay taxes than there are pur-
chasers for them.


1t will be for the bondholders to
consider whether il would not be for
their interest TO accept q lower rate
Of interest-a rate that could be
paid rather than have a further ac-
cumulaiion of debt and run the risk
of having the entire amount lost to
them. | do most sincerely believe
if the bondholders were to act in
this matter at once it would give en-
couragement to the honest men OF
the State and would subdne the re-
pudiating spirit that has heretofore
shown itself. | believe that such a
proposition from them would be en-
tertained by all parties, and that
they would on the subject of financ-
es drop all differences and all would
work together with a hope of once
more placing the name OF th-ir State
on the roll of honor where In the
past it was to be found in T. mar
kets and exchanges OF the word.


In later letter to the editor Of
the Post, Mr.. Henry says:


In my letter to you on "Tennes-
see fnances," / omitted to say that
the revenues Of the State over and
above current expenses this year
will be absorbed in paying the ex-
isting floating debt. Having no pri-
vate interest to serve, or any end to
accomplish that is not for the bene-
fit of the bondholders. 1 published
for general information the financial
condition of the State, and in the ar
ticle made suggestion which I be-
lieve and know to be for their inter-
est to act upon. 1t is now for them
to decide whether they will act upon
it or not, and for that purpose |
send this communication that | NAV
be Informed. If delinquent State
stood in the same relation as an or
dinary creditor it would be from the
delinquent that terms should be pro-
posed, but the officers of the State
having no such powers could not
make proposition, and If they could
it would injure both the credit and
honor OF the s. ate. 1t is therefore
highly proper that the bondholders
should propose the terms they are
willing to accept. The terms that
have been considered as the best
that can be attained and are accpta.
BILE to many OF those who have a
large interest in the debt (persons
having a thorough knowledge of the
condition and affairs OF the STATED are
these: That the entire debt of the
State Except the school aHd college
fund.- be consolidated into new bonds
bearing three per cent. interest for
the first five years and four per cent.
thereafter, payable semi.anuually
the bonds to be payable after forty
years or sooner at the option of the
State; a sinking fund to be created
after ten years. 1t is highly impor-
tant for the bondholders that prompt
action be taken so that the measure
can be popularized before the selec-
tion Of the next Legislature.


EDWIN HENRY,


. Greeneville, Tenn.


The School Fund bond, amounting 10 s2sI2oOo,
was crested 20 restore the enme nxnount belornsny