The Union flag. [volume] (Jonesborough, Tenn.) 1865-187?, 1867-12-13
STATE OF TENNESSEE,
EXECUTIVE DEPARTMENT
Nashville. Nov. 81, 1867.

EXECUTIVE DEPARTMENT !
Nashville. Nov. 81, 1867.
Gentlemen of the Senate and House o.
Representatives L:
l deem 1t my duty to call the atten,
ton Ofthe Legislature to the neces.
atty Of yielding Il prudent but liberal
aid to the railroads of the State, to
place them in u condition to be pro-
ductive and enable them to meet here.
after the interest OIL the loans made
by the State tn the roads. The State
owns 4 substantial aud valuable inter
est in the railroads, and that interest
is one of the main basca 6f tho credit
Of the Stats. Unless timely aid is ex.
tended TO the railroads, the impcr.
tant interest the State has in them
will depreciate, and this great proper.
~ %depreciate by decay and by reason
Of the inability to use them proita6ly
A comparatively small aid now
promptly'cxtended to them will pre-
serve and save the interest of the
State. Ifsuch aid is not given, the
State will lose much more BY de-
probation of the property, and their
inability to operate proitabIy, han
the whole aim Unit required by judi
cious expenditures to place the roads
in a condition of prodncLivencss.
The whole amount of aid the State
may 10 extend to the roads to rem
der them useful and profitable, if
honestly and faithfully applied, will
become aud remain a security for the
loan. Without such aid to the road,
the State may lose many times in
value the amount of the loans asked
tor by the roads
The indebtedness of the State will
Justify the extension of aid to the
roads. The income from the roads
ard from taxation will enable the
State to meet all the liabilities. The
railroad Indebtedness is the principal
liability ofthe State. The revenue
from the roads and from taxation.
by %judiciOus economy, will defray all
the expenses of the State, and dis
charge all her liabilities, if the revenue
is not collected on tho issues of. the
Bank of Tennessee, and doubtless,
when the State is in u moro prosper
Gus condition, be rendered, and so far
as the property and assets ofthe Bank
can be made available, they will be
applied IN that way. But important
questions, invoicing. the rights
ant Interests of the State, are pend.
tho highest courts of tho coun-
and until a final decision in the
case, the revenues will be collected as
heretofore Persons holding the issues
Of the Bank of Tennessee desire the
State should liquidate whatever may
be the liability Of the State for them
bv funding the amount of the issues
IF the bank. This would be- unjust
and in%expedient. Unjust because the
holders of tho notes of the bank
b pught or received them with the
understanding that the assests of the
were to be applied to their re.
1empiiOh, and they should postpone
The demand for redemption until the
can be converted and made
available for their redemption, or, at
east, for such reasonable time as will
Enable the State to realize from the
lsscts the most she can. Tnexpedirnt
because the funding OF the amount of
he issues of the bank will render the
State less able to give such aid to the
'GilrOads as her best interests reonire.
The notes of tho bank are held by n
banks, brokers and Spectators.
md we're bought up at low rates, and
persons will suffer by delaying
heir redemption until the questions
flaw are settled By tho courts, and
be assets of the bank, as fast IA pos
ible, realizing and used in cancelling
he notes. The people of the State
Sire to see their railroads iostered
md preserved and rendered valuable.
nd but few persons are urging tho
Indebtedness of the bank. No n will
Materially sBffer by delaying the set.
Of the affairs ofths Bank of
Tennessee until the matters involved
n litigation are settled by tBb courts.
nd the assets Of this bank collected
nd applied TO the liquidation or lis
liabilities.
The great interest Of tho State il
.er railroads, and these we should mid.
and render them valuable and
] have submitted these views in M
pirit Publication, but from a sense Of
N.Y. desiring to place myself upon
record in respect IN our ,ailroads
nd The issues Of the Bank Of Tennss.
70 W G. DH0wMsv.