The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1858-03-12

to So or 20 on the dollar and this, too, during
period OF the sevefest financial arrangement
and pecunisry pressure Il Il not apparent
that the reason Of this appreciation IL to be
found In the fact OF the distinct and unequiv.
ocsl declarations Of both political parties In
the State prior to, and about the commence
ment Of your present session, that tho liabili-
ties OF the State should not be increased.
But let the Legislature require the issuance
OF 81, 100000 State bonds, to be hawked and
peddled upon the money markets of the
world to raise capital to invest in the uncer.
tain and hazardous enterprise Of banking,
and all the confidence which orr pledges and
declarations have inspired, is at once destroy
ed. Although the amount is comparatively
small and not sufficient OF itself to produce
any great amount Of evil, yet, capitalists will
regard IL rs violation Of our pledges against
an increase of State liabilities, and lust in
proportion to the doubts that they may en-.
tertain as to when and where we will stop
this increase Of liabilities, just in that pro.
portion will all of our State securities depre
ciate.
The bonds cannot be sold except at ruin.
Gus discount, and the fact Of your having au.
thorized their issuance, will depreciate the
bonds now held by the various Internal I'm.
proyement Companies, thus gripping and re
tarding their progress, If not defeating their
enterprises.
As to the necessity of the Bank of Tennes.
see, as fiscal agent, have only to say that
do not consider it at all necessary to the
successful management Of the financial af
fairs Of the State.
Under the present system, IL the State has
to make payment within her own limits,
the Treasurer makes the payment by check
ing upon the funds of the Treasury on depos.
lite in the Bank; so the only agency the Bank
has in that payment, is to pay the check Of
the Treasurer, just as she pays the check Of
every other deposition. and If the payment is
to be made beyond the limits of the State, il
is made out Of the money Of the Treasury,
with the current rate of exchange, and In
many instances half per cent. commission to
the Correspondent" Of the Bank in New
York; so the only agency the bank has in
This case, is simply to transmit the fund to
the place of payment
In making the payment within the State
the Treasurer could count the money due the
creditor and pay it to him, as easily as he
can count out his deposites to the Bank, and
then check for the amount due each creditor
And in making payment in New York, or
elsewhere beyond the limits of the State, he
could purchase the exchange and forward it
himself II would only cost him the current
rate of exchange, and the State pays that
under the present system, or he can ship the
coin If necessary.
The only agency the Bank has in the first
case is to pay the checks of one of her de.
posltors, (the Treasurer,) and in the second
case, to transmit the funds provided by the
Treasury, to the place of payment, and this
could certainly be done as well by the &C.
counting officers Of the Treasury, as by the
officers of the Bank.
Will regard to the payments which our
several Railroad Companies have to make
in New York, the Companies
are bound to furnish to the Bank the money
with the current rate of exchange, fifteen
lays before the interest falls due in New
ork; and if they fail to do so, it is the duty
,f the Bank to report the Company in default. |
As none have been reported IL is fair to pre-
ume that they have, up to this time, complied |
with the law in this respect. Now, If the / all.
Dad Company furnish the Bank with the |
money and the current rate Of exchange, with |
per cent commissions, fifteen days before |
he interest falls due in New York, could they |
lot within that fifteen days just as easily pur. |
hase the exchange and transmit it them.
elvesf 1t would cost them very little
rouble to do so, and not one cent more than
t costs them to make the payment through
he instrumsntalty of the Bank.
Therefore, in no point of view that can
conceive, is the Bank necessary to the State,
md, from the foregoing, it is evident that its
apital could have been more proftably in.
'ested in any reliable 6 per cent. securities
n the winding up Of which there could have
,een no risk; but when you come to wind up
he Bank, and restore to the State the CAPT.
al invested. it will require the work of years
o accomplish it, and. of course, her deposi.
ors note holders, &c., must be first paid
aking the most available of her assets, ieav.
ng the State to look to the most doubtful of
Ter means with which to repay the capital.
For these, and other reasons assigned, | am
atisfied that it is impolitic for the State to
ssue bonds TO increase the capital of the
Bank. All of which is respectfully submitted
o your consideration.
ISHAM G.. HARRIS.