Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-10-14
GOV. JOHNsONS MESSAGE - STATE CREDIT
AND INTERNAL IMPROVEMENTS.

Tennessee legislation. 1t merits, therefore, NOR
than ordinary attention. Upon all the leading mat
tiers and questions of internal pOlty, and which ar
peculiarly interesting to the public at this time, tn
message is full, thorough and complete The re-
liable and important data which it contains is o
itself sufficient to make it q useful paper even will
those who may not concur with the Governor in hi
conclusions.
The State Of Tennessee has embarked upon al
extensive system of Internal improvements. What
ever may have been thought Oftbeir praccability il
the start we have in many instances gone far t.
turn back now out, at least endeaYoring t
make available snt safe the aid which the State ha,
already given.
Gov Johnson informs us in his message that the
actual Indebtedness of the State is little upwards
Of S4,00O,000 That the stock owned by the State
in banks, internal Improvement companies, &c.
amounts to upwards of $4,000 O00 and can be sold
In the market at their estimated value for upwards
OO,0O0-whiCh, if applied to the liquidation 81
the actual indebtedness of the State would reduce
our liability to nearly $1,000, 900; and he recon.
mends that this course be pursued that the State
may become entirely disconnected with all corpora.
lions whatever, either partner or stakeholder.
The prouriety of this recommendation will, we
trust strike the minds Of the members of the Legis-
lsture with proper force. No public officer familiar
with the facts, will question the accuracy of Gov
Johnson's statement, that the six per cent which
could thus be saved upon the bonds would amount
to more than ali the dividends that will be paid up
on the stock so long it is owned by the State
Even that which is profitable in the hands of indi-
Tiduals is seldom so when held by the State; and
it is the duty Of the Legislature TO relieve her ss
much as possible from all such alliances
One of the prime objects with every Legislature
should be to strengthen and maintain the credit Of
the State. As this has been fatally neglected for
several preceding sessions the duty is the more i'm
perstive with the present body. They have not sim
ply protect but to restore her credit to its orig
nal and legitimate position. To this end the first
suggestion of The message is a wise one.
In addition to the foregoing actual debt. the
State has incurred liability of SS.OOO.OOO for,
bonds endorsed for and loaned to Railroad and
Turnpike Companies. 4 portion Of these bond.
are still in the hands Of the Internal Improvement
Companies and undisposed of, ewing to their pre-
sent deprecated condition. The companies u,
whom many Of these bonds were issued have pro
inous to them, and advantageous to the Stale m
stop where they now are They must 20 on and Dc,
more work and receive more bonds, until our Stat,
liability may swell to S20,OOO,OO0
1t will be wisdom in he Legislature to bear con-
stantly in mind our critical condition. We are II
the middle, not at the beginning, of system O I
railroads. The question is, not shall we comnsu. 80
them, but shall complete what have been alreaG,
commenced? We like the man who. bsvini
swan to the middle Of The stream md, nearly e,s
haHsted, looks back, but sees that il is not more
difficult to 60 forward than to return
Our bonds are upon the market and can only be
sold at greatly Deprecated price. The last quo.
tstions in New York we're as low as 81 cents for
Tennessee skies. And yet we must con- lime n is
sue them as the different railroad comp anies Dro-
gress or we must suspend every Intern Al improve
ment enterprise in the State
In view Of this condition Of afairs, Gov. Johnson
proposes that the Legislature shall ad,Dt policy
which will give confidence and tone to our credit
abroad and create to some extent u arket for our
bonds at home. lie says:
The want of information on tho part of those
who are willing TO invest their capf Il in State Sc
curties, TO the amount of bond 8 that can he
otherwise would make investm en,s in Tennessee
Bonds II Is bsiersd uTf # the Legislature lr5ld rr
upon dtHue and kHoUH limit 10 rEicH STATE credit
Is 10 be srteEded and especially SO if that limit is
clearly within the financial abiit o. the State it
will have immediate in iuence Ip0u the rriep and
sale OF the bonds now in market and those that
are to De thrown upon it hereaf ter for sale which
viii greatly relieve those Int rnal Improvement
Companies which now have there bonds hypotbesa-
ted and which are entitled TO E issuance of bon is
hereafter r7gia therefore recommend that the
O0gadTVgt our grypfrt5Us pull alIr be rsT HsfarE
and hat be reIvr7 the Iov -f limit ca ig,eut7 gaL
the interest and crsa Of ir S fe The credit of he
State be sustained b. ID aid of a Hide timely
and iulcious legislation q q manner alrgrdv in
dicated 10 uOld also add 10 the r-arF.9r. lgE
credit Of tie State, i ve & ~ TU2u lra SO 1fge.IF
i7hi5H any future Ls ms f1fre from the erection
Of any public drbt bwoHd I EaHaE amount r-iIow
first submitting tie propo1 ION 10 tie people for their
approval rejection, unless III some great emergcuc-
such Instruction, rebe ID on, OF invasion A nrg
position Of this character at the present time 10
amend the Constitution Of the State would be an
indication 10 capitalists that the public mind
was healthy and sound in regard TO state indebted
ness and its ultimate adoption would secure the
people in the future against imprOvident logroIiug
legislation, and the creaG of heavy and exces sive
State Indebtedness without at least first obtaining
the peoples consent"
We cannot believe that these timely suggestions.
in view Of all the circumstances, Will fail to receive
the sanction Of the Legislature. They are eminent
ly sound AM practical, and, if acted upon, would
be of incalcuable benefit Let 1t be shown TO The
world that we have determined upon a safe and
prudential poicy-that our disabilities afg limited
and not subject to improper increase from improvi-
dent and reckless egislat ors, and the effect will be
in short time to place the bonds Of Tennessee up
on par with the bonds of our sister States, that
now maintain better credit in the market.
Gov. johnson proposes further, in another branch
of his message, to create home market for these
bonds. Urging the proIr:ety of q gradual Iguida-
uon Of the Bank Of Tennessee. ne saws:
at is believed that it would be safer and better
and more profitable, IN the end to convert the entire
capital Of the Bank, and all the real estate owned by
1t, into SIX per cent. bords, as recommended in nv
former messages, and ST. bseuuen Nv bv tho President
and Directors of the Bank Igv coDvar,i,r Tho on
tire capital Of the bank into State bonds he whole
machinery now necessary carry ii on successfully
might be dispensed with, which would resu1t in a
saving OF some thlrytye OF forty tuous nd dollars
per annum 20 the State
There can be no question that the Bank Of Tonnes
see has failed of its original purpose aad has been
an improbable institution to the State It's losses
can never be ascertained until 1t is wound up. u
stands today iads5tsd 10 The Treasury, and lis warmcst
Trends admit that II would have been u0re profit
able for the State had its capital been invested in
bonds yielding six per cent interest
Let this policy be determined upon now. and we
will create thereby home consumption for a large
portion Of these bonds. Their being taken up at
home will be additional means Of increasing con
fdence abroad; and by lesseuing the number
upon the foreign boards, We will simulate tie de-
maud for them.
By such policy three fold good will he accom-
Plished for the stare: her financial Interests viii be
more safely guaried-her injured credit viii he /.
restored to its proper basis-aud the numerous i'm /
portant works Of internal Improvements, now in /
course of construction, will be relieved from The .
threatened failure and bankruptcy which othcrwi Sc
hang over them.
Wetrustthat gentlemen of the Legislature viii give I
these things proper consideration. In no other .
respect can they do so much to sreagthen and .
relieve the various interests of the State from the
difficulties that now surround them.