Brownlow's Knoxville Whig. [volume] (Knoxville, Tenn.) 1866-1869, 1868-01-01

down the outstanding issues at S9,S00,OOO. The
taxes, as every one knows would be paid in the
notes Of the Bank of Tennessee, for even IF those
issues should 90 to 70 90 cents the dollar and
even though the larger proportion of them should
be held by monied arstocrats" the poorest of the
tax payers would find it to his interest to buy these
issues in the market and pay his taxes with them,
instead of paying his taxes in greenbaeks. Let US
look at things they may be. II there are 81 500,
goo Of the bank issues outstanding, and the State
Legislature at the present session shall levy a tax
sufficient TO meet the current expenses of the State
government, and the interest on the State debt ma
turing the Let of July, 1868, and Ist of January,
1869, estimated at 100000, of course these taxes
being paid in the issues of the Bank of Tennessee
will not furnish dollar of means available in pay
ing such expenses and interest, and there will have
to be an extra session Of the Legislature in 1868 to
levy an additional tax sufficient TO redeem the en-
tire amount Of the issues Of the bank and to raise
fund to pay the current expenses of operating the
State government and the interest on our bonds
there would be no escape from this for failure to
do this would lock the weeels Of the present State
government, throw everything into confusion, and
would result in 4 convention of The people of Ten
nessee and condition of things which I apprehend
neither Judge HOuk or any other friend of the State
government would like to see brought about.
After the cause alluded to was argued in the Su-
preme Court the writer, who was profoundly inn
pressed with the Importance of some legislation
looking to gradual retiring of the issues Of
the bank by taking one-fourth Of the taxes
in each year for four years in these issues which
then entirely practicable, went to members Of the
Committee on Finance, at the last session Of the
Legislature and urged the importance CT prompt
action the subject. In the same spirit the bill
introduced by Mr.. Doughty, the Chairman on Banks
at the present session. was prepared. That BILL so
numerically denounced in Judge Houk's commu-
nication, provided for the redemption Of bona hde
issues Of the bank in the bonds Of the State of Ten
nessee, which bonds it was believed the holders of
the issues would readily take though worth in the
market only SO to 65 cents. If the bank issues
were to be redeemed by the State at ALL the State
having no money in the Treasury to redeem them,
the only way in which it could be done was by the
issue of State bonds. The people Of the State in
their present depressed and depleted condition, it
was believed, could not afford 10 pay a tax Of from
100000 to 100000 per annum for four years to
redeem the S2soO,o0O of outstanding bona fde is
sues of the bank.
Even If the holders Of the bank notes would stop
the litigation and accept the offer, should such an
offer be made, to take one-fourth OF the taxes in
notes of the bank annually for four years. especially
as 81, 24500O Of our bonds mature in 1863 The is
suance of bonds being the only practicable means
of redeeming the bank issues, a provision was in
serted in the bill introduced by Mr. Doughty that
when thousand dollars of the bona de issues of
the Bank Of Tennessee, which had been issued in
the regular course Of business Of that bank prior to
the 9Th day of May, 1861, were presented to the
Comptroller, that he should deliver to the holder a
bond Of the State Of Tennessee for $1,000 bearing
SIX per cent interest, with coupons of interest at
tached, and payable in the year 1890, which was
done simply because one thousand dollars was the
established and uniform denomination of State
bonds, the State never having departed from that
rule as to the denomination of bonds under any cir
cumstances, No doubt capitalists own the issues of
the bank in considerable sums. Brokers and bank
ers are dealing in it every day, buying to-day and
selling tomorrow. But the provision for the issu-
ance of bond when $1,000 of the bank notes was
presented, not inserted for the exclusive benefit
OF these capitalists, but because it not supposed
Tor an instant that any would be willing TO see
State bonds of the denomination Of five, ten, fifty,
or one hundred dollars issued and thus destroy the
uniform'r ule which the State had observed since
her bonds first went upon the market Besides so
far as the holders of the bank issues were concerned
they could form combinations make up the 81 600 |
and obtain State bond. So far however, the ma
terial interest Of the poor man, who holds small
amount Of the bank ISSUE is concerned that inter
est would be subserved snd secured by the bill even
though he never converted his bank notes into a I
bond for the very obvious reason that the passage
OF the proposed law would certainly appreciate the
value OF his bank notes 10 an amount equal 70 the
current market value Of the State bonds, less a
slight commission paid by him 10 those who would
purchase the notes for the purpose of converting
them into bonds. The market value of the notes /
would most likely exceed the market value of the I
State bonds because many desiring to convert tbe
notes into State bonds and lacking notes necessary
20 MAKE up the amount desired 10 secure bond for I
,l'oOo, would pay for them something more than ?
me market value Of our bonds. Since July, 1866,
ne state has funded $685. 1870 Of interest and
he coupons have always sold in the market at a 4
1gher rate than the bonds and SO would be with
ne notes OF the bank even in the hands Of small
holders Tor the reason above given and because 81
oIvent debtors Of the bank WILL as the notes ap Il
orecate with certainty Of their not going below p
he value Of the State bonds, begin TO look these n
lo'e7 up instead oi waiting, as they are now doing
or the notes to 60 still lower So there is nothing
ealIy IN the sweeping allegation in the commupi. il
alton referred to, that the provision in the Dob Il
nj that $1,000 Of the bank issues shall be rea,sJ
o entte the holder TO State bond shows ifs sara o.
aced iniquity, or shows that the measure is for
he benefit OF rich spectators or monied ariscrstz
Il does not become me 70 say how The Question ,f
which has gone to the Supreme Court Of the T,oI at
states, will be decided. Judge Heuk disro.os -
be question, but my opinion would be worth NJ ~
more than his.
The action proposed by Mr. Doughty's hin A.
would, think, end costly and vezatious tiosHo Of
which will consume large smount Of the asset If
BIO bank would settle the intricate question a. - H.
he school fund as connected with that bank. and
bove sll would give citizens who hold the "
ank Issues, and capitalists who hold and would in.
TEST in our bonds, an earnest Of the good faith Of
ur State.
The recent appropriation IN favor Of our Rail- =
Dads tho most important interest in ho State has ~
zen liberal But it has not caused our bonds to dr.
epreciate Men who have the power 70 control
he value Of our bonds in the market, and many Of
ur citizens who are neither rebels Or monisd arts =
ocrats would regard the failure 70 redeem the notes
+ the bank as amounting virtually 70 reputation.
desire to see our State do nothing ere. ia tie d.
eetion Of repudation, and that tie party in power
will rebuke tho spirit which Judge Hoak and the ~
o-oc-s.;c ,ertr ara now fostering under the spe- n