Loudon free press. (Loudon, Tenn.) 1852-1855, 1853-04-02
TENNESSEE CREDIT.


The following paragraph, copied from the N.
York Express of the 22d, appeared in the True
Wing and the Union yesterday morning:
The cupons of Tennessee, payable in New
York. have not been met to-day, in consequence
II is said. of charge in the Bank account As
soon as it is aScertained at what Bank the new
account has been opened, the cupons will I'M
doubleday be paid. Tennessee is State in high
credit, but this difficulty just at this moment
creates anxiety.
The circumstance noticed by the Express
seems to oe accidental and temporary, and if
there is fault any where it is certainly with the
Bank of the State of New York. The follow
ing facts have been communicated to u.s. The
interest which was not promptly paid, was the
March instalment of interest on $35O,OOO bonds
of the State of Tennessee, loaned to the East
Tennessee and Georgia Railroad Company;
which company is required by law to pay the
accruing interest on their bonds; and in default,
the State is required promptly to meet it. The
Railroad company accordingly RENTED SIS, APO
to the Bank of the State of New York, to meet
this instalment, as early as the 22d December
last, and the company has evidence that the
money acaS received IN Ne,o York.
Being appraised by telegraph that there was a
failure to pay this interest, the Bank of Tennes-
see, on the evening of the day the failure occur
red, promptly telegraphed its agent in N. York
to pay the interest, which was done; but not in
time it seems to kept out of the ewspapers.
The Bank and the State Com oler also
promptly sought an explanation from the Rail-
road company the substance of which we have
given above. These facts show that there is no
blame to be attached to any party here. The
State is deservedly in high credit, having i'm
mense resources, and a rigid rule of promptly
meeting all its moneyed engagements.
BSgn The above from the Nashville Banner,
of the 30th, and similar article in the Union
of the same date, are sufficiently explicit so far
as the credit of the State is concerned; but the
facts are not so fully stated by either as to do
the East Tennessee and Georgia Railroad Com
pany full Justice. This istrue of the article in
the Nashville Union, especially. 1t says
"These coupons were loaned to the East Ten
nessee and Georgia Railroad Company, and
have heretofore been paid by this company
From some cause, either of neglect on the part
of the company, or miscarriage of the mails,
this payment failed" Now, we can assure the
Union and all others, that the Company did, on
the 22d of December, as stated by the Banner,
remit the .fuU amount falling due upon the
bonds of State, beside near one hundred dol
lars to cover contingencies, and have subsequent
ly received acknowledgment from the Bank of
New York that the money had been duly receiv-
ed. This is evidence that the Company" exercis-
ed every precautOn to protect its credit" well
as that of the State
A change in the Bank account is given as the
reason for this failure. We learn that no new
account has been opened with any other
Bank in regard to these coupons. We are
inclined to the belief that this so-called
failure occurred in this way. Some time
since, a Mr.. Hamilton, of Philadelphia,
became the owner of six coupons loaned to the
East Tennessee and Georgia Railroad Compa-
ny-he subsequently made affidavit that these
bonds had been lost or stolen. Application be-
ing made to the Legislature, an act was very i'm
properly passed directing the Comptroller to is
sue a warrant in favor of Mr.. Hamilton, which
was executed, and the Company gave orders to
the Bank in New York to pay the warrant, and
refuse the coupons said to be lost, if they should
be presented. If these are the bonds refused,
the New York Bank did right and acted accor-
ding to instructions. We are confirmed in this
belief from the fact that the Bonds fall due in
January and July, and there was no installment
to be paid in March as the Banner enormously
states. 1t is not probable that the Bonds due
the first of January would be kept back until
the 22d of March. 1t is more reasonable to
suppose that the interest on the Bonds has been
punctually met, as the State and Company each
had more money on deposit in New York than
was required to pay the interest due. 1t must
have been the six bonds lost by Mr. Hamilton,
that was presented on the 22d March and re-
fused.
sas~ The name of the steamer "Loudon"