Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1859-10-06

f,on OF noe years from ne date Of issuance or en-
dorsement.''
The general internal Improvement act re-
qulrrs all bonds TO bear date the LIST day of
January ofthe year in which they are Issued.
under which, all bonds Issued within the
year must bear the same date, though IN
point OF fact. portions of them are being is
sued and delivered to the companies every
month in the year.
10 avoid the necessity of frequent settle
ments with the various companies, and The
collection Of Sums too small for investment
IN bond. and inasmuch as the bonds all
bear date the first of January. / have fixed
that as the day upon which the annual in
stalment is due and payable. Some of the
companies contend with plausibility, if moi
indeed. correctly. that the first instalment of
The sinking fund upon each separate lot of
bonds received by them. falls due five years
from the day upon which the bonds were re-
ceived. -
If this be the proper construction of the
act. II imposes the necessity of a number of
settlements with each company every year.
necessarily resulting in the collection of a
small portion of this fund, each settlement,
and balances too small for investment. thus
produced. lying idle in the hands of the
Commissioners, 10 the injury of the com
pany.
therefore respectfully recommend the
passage Of law fixing day upon which the
entire sinking fund of each year shall be paid.
This will obviate 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 paw their sink
ing fund as they have done heretofore. of
which have no doubt, the present mode of
investment will extnguish the entire Kali
read debt of the State before maturity.
1t is to he regretted. however, that notwith-
| standing the entire snccess of our Internal
| improvement enterprises thus far. and the
| fact that the interest upon our bonds, and The
| bonds themselves as they have matured. have
| been in every instance punctually paid. vet
| Tennessee bonds are selling in the market at
a discount of near ten per cent, owing in a
! great measure, as believe. 10 the large num-
| Der of them thrown upon the market which
has a iendancy to shock the confidence OF
| capitalists who know the extent of our La
bilities, and know very little of our immense
resources. And the manner in which they
are hut too frequently sold by inexperienced
holders who know little or nothing of the
stock market at just sucb prices as they will
command upon forced sale. is well calculated
| to depreciate the credit of the State, and has
unquestionably had that effect to some ex-
tent
In view of which facts Icannot too earnest
| ly recommend that the liabilities of the State
be not increased.
Under the present revenue laws, it is held
| that the bonds Of the State in the hands of
individuals are taxable. The policy of tax
ing our own bonds may well he doubted. as
it is certain that to the extent they are taxed
| their value will be diminished. and certainly
we should adopt no policy which would tend
to discredit or dcpr, ciate them at home.
The Compiroller's Report shows that ST.
| 22S, 356 &c of the actual indebtednt s. of the
| State was contracted for stock in Turnpike
| roads. upon which amount the State pays an
| annual interest of $6I760 IS, while the divi-
dends upon the stock paid into the treasury
the last year, amount 10 the sum o! 500
| S44 76, which shows an excess OF Interest paid
over the amount of dividends received. OF
| $40.9l5 80. annually. to say nothing of the
principal which must be provided for and
| paid, at maturity. Governments are never
pruftted by Investments Of this character or
| partnerships with individuals. corporations or
stock companies. They never manage snch
enterprises. or interests in them, successfully.
| or 50 well as individuals. and in my opinion,
| the sooner the connection OF the government
with those corporations il dissolved, the bet
ter for the people of the State.
| ! therefore recommend the passage of law
authorizing the Commissioner of Roads, or
Secretary of State. 10y and with the consent
of such other officers of the government as
may be deemed advisable. to sell the stock
owned by the State in all internal improve
meni compani 8, and appropriate the proceeds
to the extinguishment of that mach OF the
| actual Indebtedness of the State.
| The Act of 9th February, 1884, Oh. A,
Sec. L. provides " that after paying the inter
est on the bonds of the State, issued for stock
| in the Union Bank. the balance OF dividends
and bonus shall be paid on the order of the
Governor and Comptroller for 6 per cent
bonds of the State rGrrE
The Sd section of the Act requires the Gov
| ernor aud Comptroller to cancel the bonds
purchased with this fu nd, until the amount
Shall EQUAL the sum paid out of the Tr,asnry
for the redemption of Union Bank Bonds.
Under this Act nv predecessor and Comp
troller Crozirr, received of this fund the sum
of $l56,376 81.
Which they invested as follows: