The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-10-14


Total liability % ;s., ss 49, Sss
Excess Of liability. ................ SAXON
1.-THE appropriation to the East and West Tennessee rv
ers is paid capital OF the Bank there an annual
deficit of $ssl43 TO be met To this taxation 10
proposed. The original subscription of the State to the
Union Bank was 100000. No other provision for this
made than the profits of the Bank. Their profits
hitherto have suced to pay the interest and accumulate
surplus, which, being invested in stock has raised
the amount held by the State to S646 OO0 The institution
now declines making any further dividend alleging that
restrained by its charter from doing until the ORR
gina capital stock contemplated by the charter 10
pleted The State is thus left without the of meeting
the interest those bonds The Bank to pay the last
nsalmen advanced SAT 1885, which is due the Bank
by the State Hence the amount be raised the State
is as follows:-
For deficit Bank of Tennessee liabilities $ssl43
arrearage paid by Union Bank. 1895
interest on 100000, per cent bonds $4,000
Totalto be raised. .............S l4O,bss
The Governor remarks as follows:-
There several modes in which this fcit may be
met but to each and all them objections may be urged
constant dminuon Of the capital Of the Bank would
enable that institution to meet the interest might be
provided part by essenug the number of branches
the appropriations to schools and academies may be
duced and lastly the State taxes may be increased
to provide sufficient fund. TO consume the capital OF
by diminishing its ability increase the evil il was ntene-
I'd to obvate; to attempt to reduced the number of
branches may be regarded act OF INJUSTICE TO Jesse
the appropriation to schools and academies would re
considered by many but little better than political sacri
lege to impose additional taxes the people at time
OF great pecuniary embarrassment could only be justified
by the sternest necessity choice OF Of these alter
natives on the one hand and the honor Of the State ON the
other constitutes difficulty of ordinary character
Great as these difficulties are the necessity is urgent
The only safe escape the path duty and OF honor Let
the credit and character Of the State be maintained at
ry h8Zardet be honest If be only reward
Much might deplore the necessity that would lead
me to adopt either OF the above expedens Objectionable
as each and all Them yet between any Of these
last severe resorts wisdom fail to suggest better and
OF the honor and faith OF the State am free to
declare my readiness resort emergency to save
untarnished the honor and name OF Tennessee"
Suppose instead Of any other proposition, the State
to sell its stock In the Union Bank, and thereby not only
pay its present debts, but prevent from accumu
latng, what right has State government to be bank
or to participate in the profits of any trader If there
are profits the people to be taxed to pay losses
Now what is the history of the State connection with this
bank? The 900 bonds originally subscribed by the
State capital, negotiated in Baltimore and large
proportion lost to the bank by the failure Of the Bank OF
Maryland The bank pcid large bonus to the State be
sides, which, with the surplus profits amounted in jan
1887 TO 40o since then the bank has paid the
the bonds and given the State S4s 900 surplus
ngs which has been invested In stock which now yields
no income. The State has never, in all this time re
ceved dollar of benefit The bank has earned money
from the people of Tennessee the Atlantic border
pay the interest State bonds for which it never re-
ceved dollar and to pay dividends to the private
stockholders. The capital of the Union Bank OF Ten
nessee was ewned as follows, July, 1857