Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1871-10-24
THE MESSAGE.
Governor Browns Inaugural Mes
sage to the Legislature.
Ehst He Says Of State Finances
and Taxation.

and Taxation.
Special to the APPRALl
NASHVILLE, October 2S.-Ths following
is that portion Of Governor Browns In
suguraI which refers to the financial con-
dition of the st ue:
The only reliable
sources OF information In regard to the
| State finances are the oomptroller's and
| treasurer's offices. and by an act Of the
| Assembly these officers report directly TO
| your body, and their reports pass delay in
/ printing before they reach the executive
office. hence you sre fully advised as to
the finaocial condition of the State before
can officially obtain such information.
| The duties awsiting you are not only i'm
/ portaut but most responsible. Your leg
| jslation will determine the question
whether Tennessee will provide for the
payment OF the large debt entailed upon
her by casualties and results OF the war,
or whether 1t will be indefinitely post
poped until our credit is broken down
and the debt becomes so large by the so-
cumulation of interest that its payment
will bankrupt the people. The legislation
of the past two years, as II appears 70 me,
precludes any discrimination in our bonds
uDou Eny assumption of illegality in their
1869. as amended by the act of the 10th OF
January, 1870, section forty-four, permit
ting railroads indebted to the lStste by
reason of bonds loaned 10 them to cancel
their obligation with bonds of any series
or number, in effect acknowledges the lis
bility OF the State to pay all outstsnd-
ing bonds not specially excepted by the
sct itself or amendments thereto. The
act Itself makes no exception to the act
of December, 1870. Il prohibits the comp
troller of the treasury from receiving
bonds issued to the Mineral Home rail-
road company, snd the act OF the ZIth OF
June, 1870, forbids the redemption OF
bonds issued to the insurance company Of
the valley OF Virginia, and by inteTdicting
the reception OF no other bonds issued.
Authority is thereby given to receive all
bondR not eXcspted in those acts, and this
is an unmistskable declaration to the
world that all other bonds issued under
the semblance OF law are regarded as obli-
gatory upon the State. Accordingly,
bonds to over IS 900, 900 have been re-
tired and cancelled, nearly all of which
are bonds issued since the war. Other
roads have purchased, and are now pHr-
chasing bonds with which to cancel their
lisbin les to the State, under the same
act, which is unrspealed. Il would seem,
therefore, that the State has, IN inphca-
ton ST least, admitted its liability for th6
payment of all outstanding bonds other
than those specially interdicted. The
bonds outstanding are all OF them doubt
less in the hands of innocent holders.
These considerations are alone suihelent
to determine the question that Tennessee
must and will redeem its entire Outstsnd-
ing bonded debt, with the exception
stated. Bot indE5llendent of this, and as
question of sound State policy and
iustics to the holders OF our
securities, some of whom are
minors, some subjects of foreign gov
ernments, and many more Of our own
citizens who made the investment under
the existing laws, relying upon the good
faith of the State, as implied by its lssis-
lstion. We cannot discriminate between
these bonds, and therefore it is only ques-
tion as 70 when we will resume payment
OF the interest after eXhsustlDg all other
sources. The balance of the bonded debSs
including interest to the LIST of January,
1872, as will be seen elsewherss is ABOUT
SIG 493 I73 Sc, OF this $l5 coo 600 is principal
and 81, ,493, ,I7S 66 accrued interest. The in
terest on this debt must be paid altogether
ont of the revenue of the State. With q
floating debt of 81, ,666, All q, besides the
current expenses of the government-say
$500, 900 per annum-We cannot reduce the
payment of the interest until the floating
debt is wholly absorbed, and, of cOurse,
the current expenses must be psid az they
accrue. The laudRble desire of the people
for retrenchment in public expenditure
and the consequent diminutiOn of the rate
of taxation, ought not to be construed
into q desire to evade the provision for an
economical administration OF the govern
nsnt or the pRVment of the obligations OF
the State. The immense loss of property
sustained during the last ten years, ana
the unsuccessful efforts in agriculture for
the Dast two wears, make IL most des1ra-
bic that the burden of taxation, If possi-
BILE, be alleYisted; but the people are de-
termined to preserve the honor OF the
State by meeting fairly all her obligations
and paving all her necessary expenses.
This Is their first desire, and second
sry and subordinate to this is their
wish to reduce the rate Of taxation.
This question was fully discussed through
out the state in the canvass which result
ed in our election, and the declaration
that the whole debt must be paid met
with the unauslified Endorsement of the
people, and IL is now submitted to your
wisdom and patriotism. ask your wis
dom and just sense of pride whether
the present aggregate revenue csn
be diminished. II the current ex
peness of government are not provided
for the machinery must stop, and society
will be unprotected against crime. The
citizen cannot obtain redress of his wrongs
nor enforce his contracts in the courts OF
Justice Under the decision of the highest
| Judicial tri unal in the government We
are required to redeem the legal eirculs-
ton the Bank of Tennessee in the hands
of taxpayers, which makes 1t primary
charge upon the revenue, snd takes prece-
denoe, practically, of the current expenses
| ~ the Government. Our securities already
bypothecated for the loan of over 100000,
/ TO support the State government, Will be
| saorifced by forced sale If We fail 70 make
provisions for its payment. The tressury'
warrants now outstanding, many OF them
issued to the present judiciary and other
! officials OF the State for their salaries,
/ which the law requires to be pald IN
monsy. and many more of them for the
/ school fund, dne TO various counties out
of the revenue heretofore collected by the
/ State. under every legal and p-OrRl con-
Alteration should be paid without delay
/ The prseticsl question then presents IL
self, Can We pay the 9osting debt, 70
gether With the current expenses o. tne
] State government. with diminished rate
| OF taxation, and resume payment of inter
est at az early dsy. This can only De
| answered BY q careful examination OF the
sources Of revenue and the aggregate 70
| be feall8sd, as compared with the hsDl1'
ties to be met. ] beg to call your atten-
ton 10 the financial condition OF the state,
Is shown by the comPtrollers report, s.lt, Ine
| entire Indebtedness OF the State, including
| the floating debt and interest on the
bonded debt, January = l, 1872, after deduct
ing the amoaRt Of ipdorsed bonds, which
are solvent, togstbeR with the BONDS
( lsjd In, is $32, ,l52, ,l68 10; deduct tie in
| ds6te69ass Of solvent roads which psy
/ their interest, With interest added to an
| uary 1, 1872, s., ,776, ,6S9 7e, leaving s-bsl-
anos Of 81, ,S75, ,622 90. From this deduct
/ the balance due from the purchasers o.
| delinquent roads, a ia ,0S2, leaving bal
/ snos Of 81, ,66l, $50 90. Deduct from this
the estinasfea value of delinquent roads
not vet sold, SCI, ,O90j balance OF the
/ dabt 81, ,l6l 500 eS. Deduct the floating
| debt proper, Sl66. .s4I. III; actual balance OF
bonded debt saS interest, SIS, 49S, ,l7s 90.
ThRs it appears that sitef deducting re-
liabis assets and securities OF tae State
other than taEos levied and uncoIeeteo,
there remsins an actual Indebtedness OF
S2l, I6l, $50 9S, which mast be provided Tor.
With these figures it needs no argument
70 prove that 1t is q most disastrous pohey
| postpone the resumption OF Interest
payments. While hsYe earnestly hoped
and sincerely believea thai by adopting
the policy Of funding the interest On the
bonded dept ap TO and including July l,
1873, we could discharge our floating oepI
and resume the payment of ipterest al
that date, and at reduced rate OF Taxa
ton, vet, sfter a careful examination OF
the whole question, cannot $50 how any
material Fsduntion can be made nnfess