The weekly North-Carolina standard. [volume] (Raleigh, N.C.) 186?-1869, 1869-01-13

81
/, of collaterals., In my report in November
/ last. / proposed that coupon bonds of the
State payable to bearer should be author
|. izea to be kept in the Treasury, and used as
.colaterals whenever temporary loans should
he needed. But an assault was afterwards
made upon the bonds issued under author
ity Of d law passed in August last for the
benefit of the Chatham Railroad, on the
ground that they were unconstitutional.
This assault. although probably it was not
so intended by the assailants, produced
such profound distrust of all issues under
recent acts, that the Stock Board of New
York refused to regard as good deliveries
any North Carolina bonds dated sinceApril
/; 1st, 1868. 1t was too late to prepare and
issue new bonds to be used as collaterals,
and then take steps to procure revocation
of this resolution of the Stock Board.
Therefore, actuated by an intense anxiety to
avoid the disreputc of non-payment OF in
tcrest, 1 was forced to seek for other securi-
tics which might be available.
was assured that suoney might be raised
on pledge of the interest owned by the
+ State in various Railroad Companies. l
could not, and cannot now, see how such
a transaction could inf1ct loss to the State,
prooided tile General assembly intend to pass
an. adequate rerenue act. Nothing is more
common than to borrow money on collater
ais. Indeed, this has become favorable
mode of effecting temporary loans in all our
commercial cities OF course the collatcrals
are required to be of greater value than the
amount of the loan Twas bound to assume
that after the General Assembly had passed
an act in August last directing me to begin
paying interest in October and to continue
thereafter without interruption, it was their
bona tide intention to provide the necessary
funds fer carrying into effect such directions.
And the Revenue Act reported by me, or
one calculated to raise a like amount, should
be passed, it is absolutely certain that /
would be able to pay the sums borrowed
out of the receipts from taxes. The bill re-
commended by me was carefully guarded
to prevent loss to the State. 1t provided
that money might be borrowed from time to
time, because in the first place the interest
matured from "time to time" and in the
second place, if from any cause money should
not be in the Treasury exactly at the matur-
ing of any loan, sufficient to meet it, either
an extension could be procured or else loan
effected with other parties on similar
pledge. All danger of loss was averted
(supposing always an adequate tax bill
-passed) by the provision that no sale of the
stocks or bonds pledged SHOULD take place before
October 1st, 1869, By uhich time all the tores
are payable Iadmit that if no revenue act is
to be passed there is danger under the bill
of having the said interests sold, but surely
1 was not presumptuous in supposing such
omission to be impossible.
mention these considerations in explana-
ton of my recommendation in regard to
pledging the Railroad interests of the State,
because much sharp criticism of my action
has been made. Certainly it was no part of
my intention or expectation that the public
property should be sacrificed or even endan-
gered. The plan was offered in the last re-
sort as the only means of ayerting a very
great calamity, still further prostration OF
the public credit. This evil has fallen upon
us and hope may be pardoned for saying
that unless it shall be promptly removed.
abundant reproach will he heaped upon all
responsible for it, and upon many who have
lahored to prevent it.
therefore again respectfully but urgently
press upon your attention the necessity of
prompt action to begin the restoration of the
public credit. Already have uncertainty
and distrust been engendered in the minds
of our creditors Longer delay will render
it impossible to restore their confidence.
respectfully recommend that part. perhaps
one-half, of the taxes he made payable the
1st of April, burden which can easily be
borne by the people as their crops will then
be sold
In my opinion it will still be necessary to
authorize me to pledge as collaterals. part
of the interests owned by the State in Rail
road corporations. Ifit be deemed that the
powers granted me in the bill heretofore
proposed were too great, let amendments he
offered making such restrictions as Will, In
your view, guard the public interest. 1t ls
necessary not only to provide the sum suffi
cient to pay the january interest, but also
that To becomc due on the 1st of April
Money is likewise needed to carry on the
State government. 1t becomes my duty to
inform the General Assembly that the Treas
ury is now nearly empty-in fact, with the
exception of the sums deposited by delin-
ouent Sherffs to their credit the Treasury
is exhausted Money is tight in all the fnan-
cial centres, and must have powers atle-
uuate to the emergency or it will be impos-
sible to provide all necessary funds.
have the homer to he,
Very respectfully,
Your oDedient servant,
D..A JENKINS,
Public Treasurer.