The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1849-10-12
GOVERNORS MESSAGE.
EXECUTIVE OFFICE,
Nashville, October LIST, 1919. :
Gentlemen of The Sendte,

YOU have been invested, under The Consul
union and Laws Of the Stale. And il il
gratifying on such an occasion to be asSur'
ed Of The general health and prosperity
which ..gw mark the condition of our gom
muniiY. For these blessings we are ,lan
under new tribute Of gratitude TO lht
Great DiSpoSer OF all human events.
The reports from the different Depart
ments of the Stale, and from the inSltu
lions under It's control, will arquaint you
with their condition respectively, and tht
manner IN which they have been admins
tered. am happy 10 believe they have
all been managed with fidelity, and tina
their operations have all heen reasonably
successful.
The Bank of Tennessee has at all times
since lis erection, formed a subject of deeT
interest to the State. Much depends upor
il. Ii is the great paymasler tor all iht
public obligations. So far. II has certainly
met all demands against it--bas in thu
main, been well conducted; and its profit:
have been equal TO those Of most othe
Banking institutions Of the day. But
,I,nlt it-san be dom neuntvd th"t th"re ha'
been loss OF the capital OF the Bank L
the amount Of near eight hundred ihod-
sand dollars. If not more. | mean IL ha
taken that much, together with its mel
profits, to discharge the obligations tina
have, from time 10 time, been imposed up
on it. If this be so, the result sooner oil
later, and al no distant day, cannot be mis-
taken-il must end dlsaslrousy.
To determine whether there has been
this loss of capital we need only refer to
the history OF It's operations, and the re-
ports made from time 10 time. Whether
the amount Of loss upon the capital Of the
Bank is correctly stated or not, it is certain
there has been loss, and that on the LIST OF
January. 1913, II amounted to SIT $50 SO
according TO the report Of the JOINT select
committee OF the last session OF the GenrT-
al Assembly. This is state Of things that
ought not to be permitted TO continue. the
evil arises from the fact that the Bank has
been required 10 do ImposslbfIlllrs. 1t has
made an average profit Of about seven per
cent, taking the whole term of years
since It was organized; but to meet all the
Liabilities imposed upon II, would require a
profit Of about ten or eleven per cent
This it cannot. and ought not to be expect
ed to accomplish. II the present line Of
policy is continued, we must look forward
TO the time when the whole capital OF the
Bank shall have been expended. Tae
capital, as is known, embraces the Common
School Fund. and the surplus revenue fund
deposited with the State by the General
If the latter should ever be
called for 1t would present TO US a melan-
chuly aternatIve-whlie there is but little
probability that the former would ever be
supplied, however sOIemnly it has been
pledged by the Constitution, and however
ardrnly il has been cherished by the friends
of education. The real capital Of the Bank
at present, does not exceed $4,000 900; and
If we assume that the nett profits will here
after amount to seven per cent. per annum,
1e would realize an aggregate profit OF
Sl75, 900 per annum. With this sum. ac-
cording to The slated liabilities in 1917, we
would have TO meet S27l ,7l2 81, which
shows a deficit at that date OF S96,7l2 81.
This calculation allows nothing for the
liabilities Of the Bank Tor The last
two years, nor tor the reduction OF the cap.
ila BY the current dram, The Bank be,
gan lis operations on the lst Of July, 1898,
with capital Of S3,226,976 80, and by
tn" LIST of July, 1919, has lost the sum OF
$500 ,000, as is believed. Now, a. this rate
pE loss, it can be demonstrated that in six
teen years the hole capital will have been
expended. No man who wishes well to
The prosperity OF The State, desires such
result. And yet tits to me most manifest,
if tie Bank is continued with the present
ancumbrances upon il. The policy Of grad
nal liquidation has heretofore been tested
by your predecessors and was zealouSly
advocated by many. Others there were,
while they conceded the evils connected
with the institution, were deferred from
fixing period to lis duration, by the fear
Of what they deemed greater evils. The
Bank then, as now, with It's numerous
Branches, furnishes a large portion OF the
medium OF the country, and is
for many purpuses--borh to the
State and 10 ihe people. The public mlRd
was not then prepared for its withdrawal.
Whether it is now, you viii determine. a
more intimate acquaintance IN the lat two
years, with the history and operations OF
the Bank, has satisfied nc, that the pubic
interest requires that 1t shOnld either b.
discontinued, or rha, it should be so far re.
leFcu lIOill rs UulIpdllOuo do W save us
capital from further reduction.
InGwposed at all times to favor a radical
change upon questions of mere domestic
policy, while any reasonable grounds OF
success remains, | would be willing 10 see
he Bank continued for The present, il the
relief indicated, is extended 10 it. This !
hink can be accomplished by making the
Treasury chargeable with all the Liabilities
which now rest on the Bank; and respon-
sib!e Tor any deficit in the means of pays
ment. In this way, whatever profits the
Bank may realize, will go into the Trcasu-
~, and upon accounting with the Treasury
for its profits, let the Bank be discharged
rom further obligation. Under lie pres
ent system, if the profits of the Bank are
inadequate, as they have been, the capital
is made TO supply the deficit; and thus we
are presented with policy, which, in the
case of an individual in private life, would
be universally condemned, and lead nevi-
ably TO poverty and bankruptcy. This pol
icy is also recommended by its simplicity,
irrespective Of the condition of the Bank.
Il would render the state Of our resources
ess complex, and manfes, at all times,
dispute or cavIl, the precise amount
If available means. And what objection
ian be taken to this course of policy p
Let US not be startled at the idea Of an in
,rease OF taxation TO make up any deficit.
believe no such necessity will arise. But,
{ II does, we ought TO know it IN due tine
md rot walt until the whole capital of the