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

to So or 90 on the dollar. and this, too, during
period Of the severest financial arrangement
and peeuniary pressure. Is it not apparent
that the reason of this appreciation is to be
found in the fact Of the distinct and unequiv-
ocal declarations Of both political parties in
the State prior to, and about the commence
ment of your present session, that the liabili-
ties Of tie 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 our 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 it as a violation Of our pledges against
an increase Of State liabilities, and just in
proportion to the doubts that they may en-
terrain 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 a 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
provement 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 at
fairs of the State.
| Under the present system, if 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
| tie 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 depositor, and if the payment is
| to be made beyond the limits of the State, it
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 1t would only cost him the current
! rate of exchange, and the State pays that
under the present system, or he can ship the
| coin il necessary.
The only agency the Bank has in the first
case is to pay the checks of one Of her de-
positors, (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 ac-
counting officers of the Treasury, as by the
officers of the Bank.
Witt regard to the payments which our
several Railroad Companies have to make
| semi.annually in New York, the Companies
| are bound to furnish to the Bank the money,
with the current rate OF exchange. fifteen
DAYS before the interest falls due in New
York; and if they fail to do so, it is the duty
of the Bank to report the Company in default
| As none have been reported it is fair to pre-
sumo that they have, up to this time, complied
with the law in this respect. Now, If the Rail
road Company furnish the Bank with the
money and the current rate of exchange with
per cent commissions fifteen days before
the interest falls due in New York, could they
not within that fifteen days Just as easily pur.
chase the exchange and transmit it them
selvesi 1t would cost them very little
it costs them to make the payment through
the fundamentally of the Bank.
Therefore, in no point of view that can
conceive, is the Bank necessary to the State,
and from the foregoing, it is evident that its
capital could have been more proftably in
vested in any reliable 6 per cent. securities,
in the winding up Of which there could have
been no risk; but when you come to wind up
the Bank, and restore to the State the capt
tai in vested. it will require the work Of years
to accomplish it, and, Of course, her deposit
tors, note holders, de-, must be first paid,
taking the most available Of her assets, leav.
| ing the State to look to the most doubtful Of
her means with which to repay the capital.
For these, and other reasons assigned, am
satisfied that it is impOlitic for the State to
| issue bonds TO increase the capital of the
Bank. All of which is respectfully submitted
to your consideration.
ISHAM G. HARRIS.