Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1871-01-19
Failed to Borrow.
State Treasurer MOrrow's Inehect-
ual Effort to Negotiate the $780,
O00Loan.

The folio ring communication
was submitted to the Legislature
on Wednesday, the llth:
To the General Assembly of Tennessee
/ have to report a failure to
negotiate the loan of S300,000l
authorized by joint resolution OF
your honorable body, for the rea-
son that could not find any re-
spousible parties willing TO lend
US upon long time, with bonds
alone as collateral, without the
passage OF proper revenue laws
The publication OF the notice
that we would resist all bonds ille-
gally issued operated very greatly
to impair faith in our future good
intentions, and although the pres
eat price of our bonds has not
been changed very materially.
yet they are not available as a
basis upon which to effect long
3oans I; they argue that State
which owes near 100000 in
bonds, and will not pass laws SUI
ficient to defray current home ex-
pen-es, does not intend to pay
s,onos or interest, and money can
not be had upon them, except
from parties who would take them
at about 40 cents, then sell our
bonds and lend a part of the pro
ceeds, keeping wide margin in
their own hands; then when we
gat ready to pay back the money
borrowed, we should probably
have trouble IN finding the bonds.
! did not suppose the Legislature
contemplated sach loan, and |
avoided all such. Sought respon-
sible parties who would accom-
modate US, but without success.
The loan we now owe In New
York would not have been pressed
had we given an indication of
future ability to pay. But seeing
that we had nothing with which
to pay, and were not expecting to
pay except by borrowing, they
decided to demand payment. We
have until February l, an extern
sion of one month, to meet this,
and will arrange it some how or
other; the passage of the Senate
tax biIl-S0 cents-would place it
in our power to save this loan and
get what money we need. When
we show a disposition to help our
selves by imposing a proper tax
we will have no further trouble.
/ herewith in this connection
present an estimate of the De.
mands npon the treasury for 1870
aid 1871, remarking that it is not
a fancy estimate. but really under
the actsal amount:
Outstanding warrants January !.
1871 8 80o, 900 90
ce-d. 10000 %
loan in New York and interest ll5,O00 90
Insane, Blind and Deafsnd Dumb
Asyiu@s. january i, 1871 $4,000 90
Estimated amount Yet due COM
mon tchOols out OF the tax OF
Isss 100000 co
Current expenses FOR 1871 $4,000 20
1887 100 90
To ihls add Tennessee money out 10000 90
TOTAL ssls7 900 90
At so cents on 800 we would
have a revenue of about 81, $780,
600. two-thirds of which proha.
bly, would be paid in Tennessee
money. but, under a proper law,
most of the Tennessee money
would be absorbed by the NOR
chants and others, privilege taxes,
20 that we could possibly, under
stringent collection laws. collect
enough out of a tax OF so c,nts
and out Of back taxes, to manage 10
meet current expenses, and take
up all outstanding warrants. To
meet all these home expenses, and
paw interest, would take a tax OF
81 so on the hundred dollars.
M The Southern Farmer of
Memphis, presents an excellent
mass of reading for December
This work is the best agricultural
publication that Tennessee has
had since the war, and we have
no hesitation ia recommending 1T
20 the public.
81 The Nashville Weekly
Bonner ii q mammoth sheet,