Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1869-06-25

inc Governor wants $40, 600 in green
hacks for the militial Now, after prom
;sinr. by stating the fact that the State
owes in New York about $500, 900, nearly
dine. as security for which 81, 100 600 IN
onr 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, In
this our great hour efneed-the question
nresents itself, ought the State, under the
circumstances, borrow any more money
for apy purpose II so, how much Z and
for what especially seeing that the mill
tia was not necessary expense, but
simply retained, in my opinion, as po'
litical expedient
A reply is respectfully solicited at your
earliest convenience.
Yours truly, G. W. BLACKBURN,
Controller.
SECRETARY OF STATES OFFICE.
NASHVILLE, TENN, June q. ls63.J
Hon q w. Blackburn, Controller Of Ten
nesfee:
Sal have the honor to acknowledge
the receipt of your communication re-
ferr;ng to the act of March l., 1863,
authorizing you with the advice and con-
sent of the Governor, Secretary OF State
and Treasurer, to borrow money to re-
lieve the treasury.
After the dissolution Of the Board OF
Finance, of which the Secretary OF state
was er.oficio member, i earnestly
honed that INV Office, whilst | should fill
it, would not again be burdened with
financial duties. But the Legislature
have seen proper to order otherwise, and
Il is the duty OF the Secretary OF State,
nv the law defining bis general duties
Tto perform such other duties as shall
he enioined upon him by law. Ire
oogniEe the right of the Legislature to
impose this responsible dHty upon me,
and will not shrink from its performance.
In 1867, when it was proposed to use
the remnant of the School Fund to pay
the interest on the State debt, while the
reysnues OF the State were applied to the
support OF militia, 7 feared it would be
a bad precedent, and 80 it Lss resulted.
For over two years, at each semhan-
anal crisis, we have resorted to the pol
lev of hypothecating our bonds, issued
foy the purpose, as collateral security for
loaus 10 meet The interest on the State
debt, while OR orainSrT feyenues have
been applied to the payment OF militia,
the support of an ill-devised school sys-
tenn, Claim Commissioners and other
prosigate measures.
From $500 300, our frat loan, each
semi-anuual borrowing has increased ~
amount until you nov inform me Off
cially that 81, 10000 will have to be OBJ
tanned to meet the July interest 81 6 rate
Of not less than eight per cent, and thus
open a new issue Of collaterals amount
ing 10 s2,200,0 900, with collstersls now
out, for sinilsT purposes, amounting TO
81 loo. 600. The ordinary revenues OF
the State are barely sufficient to defrsy
the current expenses of the State Gov
ernmeat. and our people are taxed to
their utmost capacity. To hypothecste
new bonds on six months time, fscaiyIng
oue,half the amonnt 10 currency, and
paying eight per cent on that bali, VIII
certainly be 70 better than selling oui
bonds at fifty cents on the dollar, snc
NAV be much worse, for it is extremely
doubtful whether our collsterals, when
brought to forced ssle, as they certainly
will be il issued, will bring so much a.
fifty per cent. The January Interest il
only six months in the fnture. II we de
sire to repeat the same disgraceful opera
ton Of borrowing upon oellsterals ct tftJ
cents on the dollar, and at ~ on shor
time. the sale OF the collatersls issued
for the July interest would defeat Us iron
obtaining any loan for January, even or
the terms mentioned. The thirty yea
bonds we now issue will have TO be psit
IN gold, or lie equivalent, for no one ex
poets to see the present Deprecated car
rency perpetnated. The interest on thes'
bonds will also soon have TO be paid u
RDecie or its equivalents. To accept hft.
cents in greenbacks now, aud agree Y
nav therefor one dollar with interest II
cold for thirty years, ia 90 shocking as 7
make one feel disposed TO cha5acterize
az a crime sgainst posterIty. There J
danger that the nszt generation nigh
not feel bound in Law or morals TO exc
cute such a contract 10 ny judgment
10 negotiate q losB on the terms 20
mention, will be more disgraoelul an
more injurious 10 the credit Of the Stat
than q simple failure 10 psy the JulJ
and even the January, interest there
fore decline 70 advise and consent 10 th
borrowing Of Eorsy on The terms 70
suggest
With regard 10 the Governors demsn
for $40, 900 for the paying Of Of the mil
tia, / am more at loss TO advise. The
are q nightmare upon the prosperity
the State, and IL We can have an assorsnc
that we can get rid Of them BY Fsisln
this sum, you might well do 80 on slmoi
any terms. II, however, they are not
be finally disbandsd, or Il disbsnded
r be called out again upon soy trining ser
!. aatiou, or for the improper motives 20
. indicate, the case would b, very dihe
ent, aud yoar duty in the present eris
= of bfairs might be very diferent 70
!, are IN q position 10 inform Toarssli gu
on this subjeci, and hereby give n
= consent to whatever you may do upc
= being assured.
The railroads having failed 10 come
: time with their interest, you are pove
, less to manage a1y portion Of the Ju
interest on the State debt should ID,
/ yet pay up before the LIST Of July, Il "
, be your duty 10 apply the fluids they p'
TO The releasing OF the collaterals nov on
have the honor 20 be, most respes
r fully. Al FLETcHER,
o.