Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1868-05-26
TENNESSEE FINANCES.
The Governor, President Of
the Bank of Tennessee
and Treasurer vs.. the
Secretary of State
and Controller.
The Dissolution of the Board
of Finance.

In order to fuller understanding Of
the finances of the State, we below con-
dense the recent action of the Board OF
Finance, body established by the last
Legislature, to devise means to defray
the interest on the State indebtedness. 1t
consists of the Governor, Secretary OF
State, Controller, Treasurer and Presi-
dent of the State Bank.
The latter Samuel Watson, Esq, at
meeting on the 18th inst, offered the fol-
lowing resolutions:
Be IL resolved, That it is to the inter
est of the State to purchase Immediately
one million dollars of its bonds, to be
paid for by the issuance of gold.bearing
bonds, at rate of interest not exceeding
seven per cent, provided the purchase
can be made at such price as will GER
tainly reduce the debt of the State.
Resolped, In order to relieve the pres
ent pressure upon the treasury to meet
the wants of common schools, it is the
interest of the State to sell an amount OF
gold bearing bonds sufficient to pay the
balance now owing the Fourth National
Bank of New York, and sufficient to pay
the amount of interest maturing In. July
next, that the railroads may be unable to
pay; provided that such bonds can be
negotiated at par, at rate OF interest
not exceeding that authorized by the act
creating the Board of Finance.
Asa substitute, Secretary Fletcher, at
meeting on Monday, submitted the
following:
Ordered by the Board, That the Con-
troller be authorized aud required to bor-
row as much money as, in his Judgment,
may be necessary to pay the July interest
on the State debt, and the debt owing to
the Fourth National Bank of New York;
and that to enable him TO do so, he may
contract for the delivery Of the bonds OF
the State bearing such rate of interest in
gold or currency as will command par
price.
Controller Blackburn offered the FOL
lowing in lieu of both:
Ordered by the Board That the Presi-
dent Of the Board be, aud he is hereby
authorized and directed to call on the
Governor Of the State to issue sufficient
number of seven per cent. coupon bonds
of the State for one thousand dollars
each, dated July lst, 1868, and to fall due
January lst, 1900, interest payable semi
annually in New York-both principal
and interest payable in gold--to supply
the deficit due on the July interest, 1868,
and for no other purpose, after paying on
said interest account every dollar that is
collected from the railroads, and every
dollar that can be furnished from the
revenue of the State; provided that said
bonds can be sold for currency at par
provided further, that the said President
be required to report to this Board the
terms and manner of sale, before said
bonds are delivered.
They were severally discussed, ard the
schemes presented by Messrs. Fletcher
and Blackburn were each rejected by
tie vote. That of the President Of the
State Bank, Mr.. Watson, was adopted,
the Governor and Treasurer concurrlng
in his views. Thereupon Messrs. Fletcher
and Blackburn filed a protest against this
action, and resigned their seats as mem
bers Of the Board.
MR.. FLETcHKR's ARGUMENT.
The objections Of the Secretary OF
State and Controller to the plan adopted
are set forth in an argument submitted
by the former, Of which the following is
tne Iltt huu euVctouSC-
The preamble of Mr.. Watson's propo-
sition raciies that We have an oppor-
tunity t15orrow money 10 buy two mil
lions Of our bonds, and the member who
introduces it tells us that bis arrange
menis are elready made, the money
ready, and that We have only 70 tele-
graph TO our friends in New York 20
close the transaction BY agreeing TO de-
liver the gold bonds hereafter. The
resolution only proposes 70 buy one mil-
lion now, from which / infer it is in
tended 70 take the bait at two bites The
gentleman has also produced 10 the
members Of The Board q uumber Of let
ters from heavy bondholders in New
York. urging the adoption Of The policy
Of selling gold bonds, and buying IN our
six per cent. currency bonds
The principal object aimed At IN AZ
thsss letters and arguments Is expressly
70 enhancs our bonds IN ne market
One OF these gentlemen owns a million
of our houds. and IA IL likely, together,