Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-10-06

separate lot Of bonds received BY them, falls due
Eve years from the day upon which the bonds we're
received.
II this be the proper construction Of the act, it
imposes the necessity Of q number Of settlements
with each company every year, necessarily result
ing IN the collection Of small portion OF ibis fund
each settlement. and balances TOO small for invest
meSt thus produced lying idle ia the hands Of the
Commissioners, to the injury o. the company.
therefore respectfully recommend the passage
OF q law liking day upon which the entire sinking
fund OF each year shall be paid. This willObsiate
the necessity Of more than one settlement With each
company annually, and secure the collection Of
sums sufficiently large for investment.
If the companies continue TO psy their Striking
fund IS they have done heretofore, Of which have
no doubt, the present mode Of investment will ex-
ngush the entire Railroad debt Of the State before
maturity.
1t is to be regretted, however that nOtwi,hssaad-
ing the entire success Of internal Improvement
enterprises thus far, and the fact that the inter
est upon cur bonds, aud the bonds themselves as
they have mstured, have been in every irslanse
punetuay paid. yet Tennessee bonds are selling in
the market at discount Of ten per cent. oW-
ing in q great measure, as believe, 10 the large
number Of them thrown upon the market, which
has tendency to shock the confidence Of capital
ists Who know tie extent Of our liabilities, and
know very little Of our immense resources. And
sold BY inexperienced holders Who know lutte or
nothing Of the stock market, ct just such prices as
they will commend npon forced SALE is well caicu-
lated to deprecise the credit Of the State and has
unqu-stiouahly had that eject to some extent
lnyew Of which facts cannot too earnestly re-
commend that the liabilities Of the State be net in
creased.
Undtr The present revenue laws, it is held thai
the bonds Of the State ia the hands Of individuals
are tIxable. The policy Of sKing our own bonds
may we'll be doubted, as it Is certain thai to the
tent they are taxed their value viii be diminished
and certainly we should adopt no policy which
would tend TO discredt or depreciate them at home
The Comptroller's Report shows that St.228,-
356 GO of the actual Indebtedness Of the State
contracted for stock in Turnpike roads, upon which
amount the State pays an annual interest Of SOL
16O 20. while the dividends upon the ock psid
into the treasury the last year. amount to the sum
Of $50 844 76, which shows an excess OF interest
paid over tSe amount Of dividends received. Of
S4O,9l5 SO, annually, to say nothing OF the prinei-
pal, which must be provided for and paid at ma
turity Governments are never pro6tted by invest
ments Of this character. partnerships With indi-
viduals, corporations or stock companies. They
never manage such enterprises or interests IN them
successfully, as well as individuals, aud in my
opinion. the sooner the connection Of tie govern
ment with those corporations is dissolved the better
for the people Of the State.
therefore recommend the passage Of law au-
thOrizing the Commissioner OF Roads, or Secretary
Of State, by and with the consent OF such other
officers OF the government as may be deemed ad-
visabe. to cell the stocks owned By the State in all
internal improvement companies, and appropriate
the proceeds to the exlingushment OF that much Of
the actual Indebtedness Of the State"
The Act Of 9th February. 1854. Gu. Al, Sec. l,
provides 'that after psying the interest on the
bonds Of .he State, issued FOR stock in the UniOn
Bank, the balance Of dividends aud bonus shall be
paid on The order Of the Governor and Comptroller
for per cent. bonds Of the State.
The Sd section Of the Act requires the Governor
and Comptroller to cancel the bonds purchased with
this fund, until the amount shall equal the paid
cut Of the Treasury for the redemption Of Union
Bank bonds"
Under this Act my predecessor aud CnmptrO'lsr
Crozer resolved of this fand che $l56. SI6 "a.
Which they invested as follows: