Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1858-03-11

see! The last census report shows
that they are not. Why this differ
ence then, in the market value Of
thesecuFities Of the two Statesf The
answer is to be found IN the fact 4
that Kentucky has issued very few
State bonds; while we by our sys-
TEN Of Legislation, have issued and
authorized the issuance of near
twenty milions--an amount SO large,
that we have to some extent, shock
ed the confidence of capitalists in
our ability meet our heavy constant
ly increasing liabilities.
Our State securities have, however,
within the last few months advanced
from about 70 to SO or 80 on the
dollar, and this during a period of
the severest financial arrangement
and pecuniary pressure. Is it NOT
apparent that the reason of this
appreciation, is to be found in the fact
of the distinct and uneqniyocal de-
clarations of DO tn political parties
in the State prior to, and about
the commencement of your present
session, that the liabilities of the
State should not be increased?
But let the Legislature require
the issuance Of Sl,250,000 State
bonds, to be hawked and peddled
upon the money markets of the
world to raise capital to invest in
the uncertain and hazardous enter.
prise of banking, and all the conf.
dence which our pledge and declara--
tons have inspired, is. at once des-
ttreyed. Although the amount is
comparatively small and not suffi.
cieut of itself to produce any great
amount Of evil, yet, capitalists will
regard it as violation of our pledges
against an increase of State liabili-
ties, and just in proportion to the
doubts that they may entertain as
to when aud where we will stop this
incre ase Of liabilities, just in that
proportion will all Of our State Sc
curities depreciate.
| The bonds cannot be sold except
lat runineus discount, and the fact
of your having authorized their is
suance, will depreciate the bonds nov
held by the various Internal I'm.
provement Companies, thus Grip
ping and retarding their progress,
if not defeating their enterprises.
AS to the necessity Of the Bank
of Tennessee, as fiscal agent, ]
have only to say that do not con-
slider it at all necessary to the sue
fsl management of the financial at.
fairs of the State.
Under the present system, if the
State has to make payment with
in her own limits, the Treasurer
makes the pay ments, by checking
upon the funds of the Treasury on
deposit in the Bank; so the only
agency the bank has in that pay
ment 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 :he. State, IL IS made out of
the money of the Treasury, with the
current rate Of exchange, and in ma.
ny instances half per cent commits
sion, to the Correspondent Of the
Bank in New York; SO the only agen
cy the bank has in this case is SIM
ply 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
lit to him, as easily rs he can count
out his deposits to the bank, and
then check for the amount due each
creditor. And in making pay
ment ia New York or elsewhere, be.
You'd the limits Of the State. he could
I purchase the exchange and forward
it himself. 1t would only cost him
THE current rate of exchange, and
1.-THE State pays that under the
present system, or be could ship the
coin if necessary.
i The only agency the bank has in
the first case is to pay the checks Of
one Of her depositors, (the Treasurer)
Iandin the second caseto transmit the
funds provided by the treasury, to
the place Of payment, and this
could certainly be done rs well by
the accounting officers of the treasu-
|ry-as by the officers of the bank.
| With regard to the payments
which our several Railroad Com.
lpanies have to make semi-anuually
10 New York, the Companies are
bound to furnish to the bank The