Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1868-08-05
TENNESSEE FINANCES.
The JuIy Interest, and why il
was Not Paid.
Report Of Judge Watson.

Judge Watson, President of the State
Board of Finance, has made a highly
important report on the loan which he
was sent on to New York to negotiate
for the payment Of the interest on the
State debt, and the reason why said in
terest was not paid, as well as the BAL
anee of debt to the Fourth National
Bank Of New York. After explaining
why the completion Of the loan was de-
lAyed, he says:
The condition of this lean was that the
State should have $500 eco in the Fourth
National Bank by the 9Th OF June.
While the Comptroller was in New York
there was only S75. 600 IN the bank
There were three East Tennessee Rail-
road Presidents in New York while the
Comptroller was there, owing the State
for their interest about $3.50 900. These
railroads were permitted to delay their
payment till the Both Of Jule, three days
sitter tue 9th. Tue Comptroller started
home from New York on the 205h of June,
stopped a day in Washington, stopped
day in Rockville, knew tna3 he would
have to stop half day ia Chattanooga,
and did not reach home in time for
remittance TO reach New York until
BfIer the bill against the State was filed.
There was another unfortunate mistake
made by the Comptroller. He remitted
after I went to New York nearly Sl00,
0O0 to pay off the balance of loan to the
Fourth National Bank. It was expressly
provided in q resolution passed by the
Board, while the Comptroller was a mem
Der of 1t, that the balance due the Fourth
National Bank should be paid out of the
Loan that was TO be made by the
Board OF Finance. The same thing
was provided for in the resolutions,
appointing my agent to negotiate
loan, and the Fourth National
Bank was not asking for this money.
Why pay it then contrary to the inten-
tons and Instructions OF the bank when
it WAS so pressingly needed for the July
interest? Had TINS amount been remit
ted to fulfill the conditions Of the loan,
Snd Lad the amount lying IN the Treas
uTy while the Comptroller was in New
York been duly RENTED, We should
have the greater part Of the S400, 600. L
should have required the railroad Presi-
dents in New York TO pay their money
which they informed me that they would
have done, il they had supposed 1t to be
necessary, and II they had not | could
have easily have raised it. The loan
would have been completed long
before the filing the bill against
the Stats, the proceeds OF it |
would have been deposited ia bank, and /
it could not have been attached, and the |
payment Of your July interest would /
have been secured. Having no remit |
tsnce from Nashville on the 18th June, !
and despairing Of any from them on the (
railroads, l went TO work, raised $685. |
600, the amount necessary to make up |
the s40O, 600, went to the Fourth Ma
tiona Bank to complete our loan, and |
when reached there was met with /
dispatch from the Comptroller counter
mandiDg the loan, and, at the same time /
wRs met with the Injunction against |
making the loan. | know not where
the Comptroller gets his authority either |
to make or eountermsnd loan.
But my efforts for the State did not /
cease. The hands of the Fourth Ma
tiOnsI (which had uniformly come TO the
aid OF the State being tied ub, applied
to other sources to secure tAe payment OF
our July interest. Finding strong psos-
pect Of success, immediately wroLe to
the Comptroller that L could pay [
our interest still, If be would give
me his cordial support. l went on
with my negotiation, snd found
that l could succeed beyond doubt. l
waited some days for an answer, from
the Comptroller. Receiving none, and
fearing thst the same difficulties might
be intSrpOsed IN the way Of the nego-
Liation as had been in my negotiation
with the Fourth National, l suspended
my negotiations aud returned to Ten
nessee.