Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1869-06-26
RADIO ALIs Nj.
We are among the Breakers, Look
Out.
Alarming Financial Condition Of the
State.
The Comptroller uuable 10 Meet the
July Interest.
Tennessee State Bonds at so cents
on the Dollar.
The Threatened Crash Come at
Last.

From the Nashville Banner of Thursday
The letter we printed yesterday
from the Comptroller of the State intl-
mating that the railroads of the State
would certainly refuse to pay their
interest, rendering extremely doubt
ful the ability of the Comptroller to
meet the July interest on the public
debt iOr this year, created no little eX-
citement. But this morning we have
still more alarming developments,
threatening the credit of the State.
The State officers have heretofore
been quite reticent and evasive on the
subject of the State finances. But
Yesterday our reporter called on the
Secretary -of State, and found him
quite willing to impart all the infOr-
nation we desired, ans to give his
views on the situation as well. He
permitted us to copy the following i'm
portant correspondence between the
Comptroller and himself:
COMPTRoLLER'S OFFICE.
NASHVILLE TENN., June %, 1869.
Hon. \. J. Fletcher, Secretary of State:
Dear &I'-SectiOn y of an.act passed
March / 1869, entitled An act to
amend the revenue laws Of the State"
authorizes the Comptroller, with the
advice and consent of the Governor,
Secretary of State and Treasurer, to
borrow upon the faith and credit Of
the State, such amounts as may be
necessary to meesa the necessary
demands upon the.erreasury of the
State. upon such terms and conditions
as may be agreed upon. Under the
provision of this law, one hundred
thousand dollars have been borrowed
i'm New York, for school purposes,
and fifty thousand dollars for the
militia-rate Of interest per cent. per
annum. Time four months. Bonds
of the State as c0llaterals at fifty cents
on the dollar.
The State has no assurance OF get
ting a loan on more than six months
time, with interest probably at not
less than per cent. per annum on
any further loan.
If the July interest is paid, 81, lO0,-
600 In currency will have to be bor-
rowed, on y, POO, 900 in the per cent
coupon bonds Of the State as collatPr-
ais.
Besides which, / learn the present
greenbacks for the militial Now
after promising, by stating the facts
that the State owes in New York
about SOFA, 600, nearly due, as security
for which 81 l00,0 600 in our bonds are
deposited, and may be sold at once if
the debt is not paid-and that the
probabilities are that the railroads
will nearly entirely betray the State
i'm this, our great hour of need-the
question presents itself, ought the
State under the circumstances, to bor-
row any more money for any purpose?
If so. how much? and for what?
especially Seeing that the militia was
not necessary expense, but simply
retained, in my opinion, as political
expedient.
4 reply is respectfully solicited at
your earliest convenience.
Yours truly,
G. w. BLACKBURN, COmptr.
SECRETARY OF STATES OFFICE, !
NASHVILLE, JUNE %, 1869.
Hon. g. w. Blackburn, Comptroller o
Tennessee:
,Siy-I have the honor to ackrow-
ledge the receipt of your communities
ton, referring to the act of March /,
1869, authorizing you with the advice
and consent of the Governor, Secre-
tary State and Treasurer, to borrow
money to relieve the Treasury.
After the dissolution of the BoarC
of Finance, of which the Secretary
State was &c O6iciO a member, l earn
estly hoped that my Office, whilst
should fill it, would not again bt
burdened with financial duties. Bu
the Legislature have seen proper t
order otherwise, and it is the duty 0
the Secretary State, by the law defin
ing his general duties "tO perform
such other duties as shall be enjOineC
upon him by law" l recognize tn,
right of the Legislature to impose thi
responsible duty upon me, and vii
not shrink from its performance.
In 1867, when it was proposed to US
the remnant of the school fund to pa.
this interest on the State debt, Will
the revenues of the State were applies
to the support of militia, / feared
would be bad precedent, and so /
has resulted.
For over two years, at each semi
annual crisis, we have resorted to tn
policy of hypothecating our bonds
issued for the purpose, as collatera
security 6floans to meet the interes
on the State debt, while our Ordinar,
revenues have been applied to tn
payment of militia, the support of a.
i'll devised school system, Claim Com
missioners and other profiigate meas
ures.
From s200,0 900, our first loan, eacI
semi-annual borrowing has increase
in amount until you now inform m
officially that s1,100,000 will have t
be obtained TO meet the July intereS
at q rate of not less than eight pc
cent, and thus open a new issue {
collaterals amounting TO $4,000, ,o0l
with cOllaterals now out, for simila
purposes, amounting to s1,l00,00I