Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-10-24
GOVERNORS MESSAGE.
Genttenea ofthe Senate and ofthe House Of
Representatives:

Gentlemea ofthe Senate and ofthe House O
Representatives:
Fully impressed with the delicate task i'm
posed by section IL, article 8, of our State
Constitution, approach it with full con-
vietion that you win appreciate the difficult
ties that have attended me in the discharge
| OF that duty, both Immediately before and
since my induction into Office.
! The only reliable sources of information
of the State finances are the COmptroller's
and Treasurer's Office, and by act ofAssem-
bly, these officers report directly TO your
body, and their reports pass the delay OF
printing before they reach the Executive
office.
Hence, you are fully advised of the finan-
cial condition of the State before can Off
! cially obtain such information.
The duties awaiting you are not only i'm
! pOrtant but most responsible. Your legis-
lation will determine the question whether
Tennessee viii provide for the payment of
the large debt entailed upon her by the
casualties and results of war; or whether it
win be indefinitely postponed until our
credit is broken down, and the debt becomes
so large, by accommodating interest, that its
payment win bankrupt the people.
The legislation of the past two years, as
it appears to me, preeludes any discrimina-
ton in our bonds, upOn any assumption of
illegality in their issuance.
The act of the 18th February, 1869. as
amended by the act of Goth January, 1870,
chapter A, permitting railroads indebted to
the State by reason of bonds loaned to
them to cancel their obligations with bonds
of any series or number, in effect acl1nowl-
edges liability of the State to pay all out
standing bonds not specially excepted by
the act itself or amendments thereto.
The act itself makes no exception. The
act of the 9th of December, 1870, prohibits
the Comptroller of the Treasury from re-
ceiying the bonds issued to "The Mineral
Home Railroad Company" and the act of
the 29th of June, 1870, forbids the redemp-
ton Of the bonds issued to ''The Insurance
Company ofthe Valley ofTvirginia.
And by interdicting the reception of no
other bonds implied authority is thereby
given to receive all bonds not excepted in
those acts.
And this is an unmistakeable declaration
TO the world that all other bonds issued
under the semblance of law are regarded as
obligatory upon the State.
Accordingly bonds to over eight millions
ofdollars have been retired and cancelled
nearly all of which are bonds issued since
the war.
Other roads have purchased and are now
purchasing bonds with which to cancel
their liabilities to the State, under the same
act, which is unrepealed.
Il would seem, therefore, that the State
has, by implication at least, admitted its
liability for the payment of all outstanding
bonds, other than those specially inter
dicted
The bonds outstanding are, all of them,
doubtless, in the hands of innocent holders.
These considerations alone are sufficient
to determine the question, that Tennes-
see must and will redeem the entire out
standing bonded debt, with the exceptions
stated.
But independent of this, and as a CUES
ton of sound State policy and justice to the
holders of our securities-some of whom
are minors, some subjects of foreign govern
ments, and many more our own citizens
who made the investment under existing
laws, relying upon the good faith of the
State as implied by its legislation-Ye can
not discriminate between these bonds. And,
therefore, it is only question of time as to
when We will resume the payment of in
terest.
After exhausting all other sources, the
balance of bonded debt, including interest
to the 1st of January, 1872, as will be seen
elsewhere, is about SIG, 1913, 1885.
OF tbs, Sl5,0OO,0O0.00 is principal, and
81, 493, 1896 is accrued interest.
The interest tho haht ,nnSt ba old oil
together out of the revenues of the State.
With floating debt of 81 ,G6S,417.27, be-
sides the current expenses of the govern
ment (say 100000 per annum), we cannot
reduce the PAYMENT of interest until the
floating debt is wholly absorbed, and of
course the current expenses must be paid as
they accrue.
The laudable desire of the people for re-
trenchment in the public expenditure, and
consequent diminution of the rate of taxa
ton, ought not TO be construed into desire
TO evade the provision necessary for an
economical administration of the govern
ment, or the payment of the obligations of
the State. The immense loss of property
sustained during the last. ten years, and the
unsuccessful efforts in agriculture for the
past two years. make it most desirable that
the burthens Of taxation, if possible, be al
leviated
But the people are determined to preserve
the honor of the State, by meeting fairly all
her obligations, and paying all her necessary
expenses. This is their first desire, and
secondary and subordinate to this, is their
wish to reduce the rate Of taxation.
This question was fully discussed through
ont the State, in the canvass which resulted
i'll our election, and the declaration that the
whole debt must be paid, met with the I'M
qualified Endorsement of the people.
And II is ROW submitted to your wisdom
and patriotism, as well as 10 your just sense
of State pride, whether the present aggre-
gate of revenue can be diminished.
If the current expenses of the govern
ment 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 hisScontracts in the
courts of justice.
Under decision of the highest judicial
tribunal in the Government we are required
to redeem the legal circulation of the Bank
of Tennessee in the hands of taxpayers,
which makes ii primary charge upon the
revenues and takes precedence, practically,
Of the current expenses Of the Government.
Our securities, already hypothecated for
the loan of over two hundred thousand dol
lars to support the State Government, will
be sacrificed by a forced sale if we fail to
make provision for its payment.
The treasury warrants now outstanding
many of them issued to the present judi
ciary and other officials of the State for
their salaries, which the law requires to be
paid in money, and many more of them
for the school fund due the various coun-
ties out of the revenue heretofore collected
by the State, under every legal and moral
consideration should be paid without delay.
The practical question then presents
itself: Can we nay the floating debit to-