Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-06-25

terly oppose a convention to restore
the right of the ballot to the white
of the State. IA
HOW TIE sFAFa TREASURY HAS
BEEN BANKRUPrED.
Comptroller Blackburn publishes
a card addressed to the public, in
which he tells some unpalatable
truths touching the financial con
dition of the State. lie states that
he had 10 borrow 100000 to pay |
the January interest on the States
indebtedness, and that since then
"the demands against the State |
treasury on account Of the militia
have far exceeded the State reve-
nue.; the demands of the schools
have fully equalled it, and the other
expenses of the State government
would by themselves have absorbed
it." He has also had to borrow
100000 to replace that amount
borrowed from the school fund, and
$4,000 to pay the militia. This
makes the total borrowings $780,
600, for which he pledged as collat-
eral security 81, 100000 Tennessee
six per cent bonds. This s55O,OOO
with accrued interest, has to be pro
vided for in a few days. In addi-
ton to which, 81, 100000 has to be
provided to meet the July interest
on the State debt, and $4,000 more
TO pay the militia. There is moth
ing in the treasury with which to
meet these pressing demands, for
the Comptroller says in his card to
the public that since the LIST of Jan
nary, the demands on the treasury
on account Of the militia alone have
far exceeded the receipts of reve-
nue.. The situation is thus por
trayed by the Controller ..'
"To darken the picture of an immedi~
ate financial surrounding, and that too,
at time when | was anxiously awaiting
and expecting heavy remittances rom
the railroads, that would enable me to
solve the problem Of the July interest
and the redemption Of our collatersls on
the loan due July l, 1869, information
reaches me that / consider undoubtedly
true, that nearly all the roads that pay
interest on the bonds loaned them, have
determined not to pay their interest as
the law required, that is, on the 18th
instant, in par funds, but 10 withhold it,
let the July interest go by the board
and when by the treachery of railroad
i companies for whose interest the tax
payers OF the State have been made 10
| bleed freely-even to the verge Of con-
templating the subject Of reputation
the coupons have sufficiently deprecated
to buy them up and offer them to the
State instead Of money for what they
owe" .
The Comptroller declares his de-
termination to refund to the Fourth
National Bank Of New York the
money heretofore borrowed with AZ
little delay "as the facts in the case
will at all permit, that the faith and
credit of the State there is thus
kept inviolate J." He says:
"Being fully determined to fulfill my
lawful engagements made for and in th,
name of the State, hereby give notice
to all whom it may concern, that | shall
| now proceed to redeem the pledges of thu
| State made to our fiscal agent in New
York, by paying what we owe, or in my
efforts to do SO, will wind up my cOnnoc'
ton with the Office
The Comptroller says that "tC
do this, some Of our citizens vii
have TO wait for q short time fol
their claims against the State" Sc
there is to be stOppage Of thu
payment TO citizens of their claims
Notwithstanding they are required
TO pay their taxes promptly.
The Comptroller addresses a not
to the Secretary of State, who's
"advice and consent" with that 0
the Governor and Treasurer, i
made a prerequisite ''tO borrow
upon the faith and credit Of tn
| State" in which the situation i
thus stated: ..
"The State has no assurance Of get
ting q loan on more than six month
time, with interest, probably, at not les
than 8 per cent. per snnum, on an,
r l further loan.
"If the July interest is paid, 81 100,
OOOin currency will have to be borrowed
on 81 100000 In the six per cent. coupon
= bonds of the State as collalerals. Be
sides which, learn the present actin
Governor wants $4,000 in greenback
| for the militia Now, after promising
| by stating the facts that the State owe
l in New York about 5000, 600, nearly due
as security Tor which 81 100000 in Oul
bonds are deposited, and may be sold a
once if the debt is not paid, and that tn
| probabilities are that the railroads viii
| nearly entirely betray the State in this
, | our great hour of need, the question
presents ITSELF, ought the State, unde
the circumstances, borrow any NOR
} | money for any purpose ? If so, hoy
| much? and for what? especially seeiu
that the militia was not neces
sary expense, but simply retained, i
| nv opinion, as a political expedient.
The Secretary of the State cay
in his response: -....I ... o."
an 1867, when it was proposed to us
the remnant of the school fund 10 pa
the interest on the State debt, while tn
revenues OF the States were applied I
the support of the militia, ! feared
would be bad precedent, and so It Ia
resulted. .
For over two years, at each semi~an
pual crisis, we have resorted TO the polio
of hypothecating our bonds, issued 70
the purpose, as collateral security 70