Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1871-10-24

act of the 25th of February, 1869, a.
amended by the act of goth of January
1870, chapter four, permitting railroads
indebted to the State by reason OF Dohdi
loaned to them, to cancel their obiga
itions with bonds Of any. series OF mum
] her. in effect acknowledges the liability
| of the State to pay all outstanding bondi
not specially excepted by the act itsei
or by the amendments thereto, The &C
| itself makes no exception. The act o
the 9th of December, 1870, prohibits thu
! Comptroller Of the Treasury from receiv
ing bonds issued to the Mineral HOME
Railroad Company, and the act OF thu
29th of June, 1870, forbids the redemption
of the bonds issued TO the Insurance
COMPANY of the Valley of Virginia
And by interdicting the reception OF NJ
other bonds. implied authority is thereby
given TO receive all bonds not excepted
In those acts. and this is the unmistakabl'
declaration to the world that all othel
bonds issued under the semblamee OF th'
law are regarded as obligations upon, th'
State. The outstanding bonds are all o
them doubtless in the hands OF innocent
holders. These considerations alone are
sufficient to determine the question thai
Tennessee must and will redeem the
entire outstanding bonded debt, with the
exceptions stated.
aBut Independent Of that, as question
of sound State policy and justice TO the
holders of securities, some OF whom are
minors, some subjects of foreign gov
ernments, and many more our own citl'
zens. who made investments under eX-
listing laws, relying upon the good faith
of the State, as implied by its legisla-
tion. we can not discriminate between
these bonds; and, therefore, it is only a
question OF time MS to when we will re-
sumo the payment of the interest. The
laudable desire of the people for re-
trenchment in public expenditures and
consequent limitation of the rate Of
taxation ought not to be construed into
a desire to evade the provisions neces-
sary for the economical administration
of the Government, or the payment OF
the obligations of the State. The i'm
mense loss of property sustained during
the last ten years, and unsuccessful
efforts in agriculture for the past two
years, make it most desirable that the
burthens of taxation, il possible, be al
leyiated. But the people are deter
mined to preserve their honor by meet
ing fairly all obligations and paying all
necessary expenses. This IS their hrst
desire. and secondary and subordinate
TO this is their wish to reduce the rate OF
taxation. The question was fully dis
cussed throughout the State in the can
yass which resnlted in our election, and
the declaration that the whole debt must
be paid metwith the unqualified indorse-
ment Of the people.
Governor Brown then enters into an
elaborate explanation Of the financial
condition Of the State, as shown in the
Comptroller's report From this i'm
portant document II appears that after
deducting the reliable assets and seeur-
tiles Of the State other than taxes levied
and uncollected, there remains the ac-
tuaI indebtedness, $2l ,lGl, $50 80, which
must be provided for. OF this amount
81, 6Gs.sl'7 q is floating debt, and the
bonded debt, with interest 20 the LIST Of
next January is Sl9,493, l73 &C. Of this
latter amount, about $4,000 600 is prin-
eipal, or bonds with no interest added.
Until the accrued or aceruing interest is
funded, and the payment Of current in
terest is provided for, the debt will. in
crease every year on the balance of the
bonded debt about 100000 in the way
of interest. With these figures it needs
no argument to prove that tits the most
disastrous policy to postpone the re-
sumption of interest payments.
The Governor then considers the best
method of meeting the interest, and re-
marks that he cannot see how a material
reduction Of taxation can be made unless
new aud reliable sources Of revenue can
be made available, sufficient to supply
such a deficit as may result from a re-
duction.
He recommends taxation Of State,
county and corporation bonds; also that
cases before justices of the peace be
taxed, as we'll as the bonds of all trus-
tees. The floating debt, together with
the current expenses of the State gov
ernment can, he thinks, be paid by the
the LIST of July, 1873, out Of the taxes
heretofore levied, but yet uneollected,
with an assessment Of FIVE mills or fifty
cents on the 800 for the year 1872.
Then, II the uncollected taxes, together
with the ievies of 1872, will pay The float
ing debt and the expenses for this and
the ensuing year, he confidently
believes we can fund the accrued int
rest on the bonded debt and resume the
payment OF interest on the FIRST day of
January, 1874, at the rate Of fifty cents
on one hundred dollars, or even a less
rate, IL necessary reforms in the revenue
system are effected, and the source Of
revenue made available. He therefore
recommends the funding Of all coupons
matured or maturing to the LIST Of July,
1873, as well as all bonds due or matur-
ing, by authorizing the issuance Of bonds
with coupons attached at a rate OF int
rest not greater than six per cent 20
mature thirty years after date, and that
they commences 10 bear interest from
aud after the first day of July, 1873,
providing that the funding commence at
The Governor concludes this part Of
his message by saying that Tennessee
can no longer submit 20 the humiliation
Of having her securities Auctuaung By
speculation by rings. whose loud sym
pathies with an oyertaxed people Il
measured by their desire to buy bonds at
a sacrifice and sell at a profit.
He makes a strong appeal in behalf Of
n good system Of common schools
He recommends the establishment Of
county warehouses;, 10 save the State
the expense incurred in the prosecution
Of criminals, amounting to $4,000 per
annum. That can be done by so amend
ing the criminal laws as to provide for
the punishment OF petit larceny, as well
as other offences Of the same grade and
all cases Of misdemeanor, BY conhne'
ment and labor in the several counties
where its laws may have been violated
by labor upon the public roads, build
ings and bridges Prisoners may be
made 10 reimburse the county for the
expense Of their confinement and cost OF
conviction, which ought, in the first IN.
stance: ~ De paid Out Of the county rev.
enue.
On account Of the embarrassed condi-
ton Of the State finances, the repeal Of
the Law permitting solvent railroads %
pay in coupons the interest on the bonds
loaned them ~ the State is recon-