The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-08-29
MONEY MARKET.
sunday, August ass p. nj

SUNDAY, august XS-6 II. M.
Is the Bank Commissioner take any steps in investi-
eating the authority under which officers Of the Me-
chanics Banking Association refundng the capital of
that concel What right have they to give one stock.
the choice OF mortgages in exchange for the stock
he holds Who gave them any authority to refund any
OF the capital stock The proceeding is gross outrage
and if tolerated would open the door to the grossest
abuse An association Of people subscribe bonds and
mortgages form the capital of free bank the
comes heavily deprecated in the market and then the
officers in the pay of those stockholders take upon them
selves to refund TO avorte stockhoder not the same
property which he put In but choice piece of property
worth in the market $1,000 cash. than the amount Of
stock he returns for it. The bank officers attempt
the transaction, by saying that they received greater
number of shares FOR the property than was originally
issued for it, Carrying out this principle the oc may
mismanage and depreciae the stock and buy all back
for per cent of the banks Who own the re-
mander Are the servants of stockholders to use the
joint funds of the bank to cheat the propreors out of their
property and then plead their profit in ustc alton
Such preences either the of folly or the most
| bareface ed attempt at imposition
We recently made remarks upon the debt of the
State Of Kentucky. The State of Tennessee bonds are
also exceedingly low in the market without adequate
cause, that to say the State is in sound condition. and
there why it should be lower than that of
Massachusetts, New York. The present outstanding
debt of Tennessee is as follows =
TENNESSEE STATE DEBr
State Bonds issued and proceeds invested in
Stock OF the Union Bank of Tennessee
bearing an interest Of per cent, which is
paid semiannually by the Bank 49,. $500 900 90
State Bonds issued and proceeds inv esed in
capital OF the Bank of Tennessee bear.
ing an interest of per cent. 49,. 49,. 100000 90
State Internal Improvement Bonds bearing
an interest Of 81 per cent. ........ 2ea,lee esi
State Internal Improvement Bonds bearing
an interest OF per cent. ......... 1,253,750 90
sa,ole,sls eei
The 100000 of State Bonds bearing an interest of
per cenissued for the Improvement of Rivers but not
sold are not included in the amount Of the State debt
The debt has many years run before II falls due and to
meet it the State owns:-
Stock in the Union Bank of Tennessee rSsse soo m
Capital in the Bank of Tennessee being
proceeds of Bonds sold, and exclusive OF
the School Fund. ............. lO0O o0o On
Stock paid in to the Internal Improvement
Companies by state Bonds issued. 49,. SIG OILS ga
ss,les,sis e6}
now deposite with the State should not
be recalled by thc.United States that sum
may be added. ................. l,ssa 20e IS
s4sis,7as 2Is
With these added to the annually accommodating
profits of the Bank of Tennes ee under prudent and pro-
per management there be but little danger that
sort taxation be necessary enable the State
meet it at its maturity.
The whole annual OF the arising the
Bonds of Tennessee does exceed $4,000 and be-
fore stated the prompt Of this interest likely
any time to fall ample and certain have been
apart for that purpose
But should such failure any time occur, that u.s.
should the specific thus provided any time fail
then the faith ofthe State is pledged for Its paymenhe
of the State resulting from its ordinary revenue,
would be su bstituted in its stead and holders
promptly satisfied But may question both the ability
and disposition OF the State do few facts ought
put such doubt at The State Of Tennessee
nothing save the amount of these Bonds. Taxation is
very light in Tennessee much So that it is scarcely
felt Its government is administered with degree of
economy which makes its annual expenditures
rfe The result is that there and there has been
for many years past and there likely to be for years "a