Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-09-09

Past Liquidation and the Present
LAVA Letter from the COmptrOI-
Ter.
We have been permitted to copy and
publish the following from the Comptroller
to Philadelphia paper:
CoNPTR Oilers OFFICE, NASHVILLE,
Tenn, Sep. 3, l873.-TO the Public Re
cord, Philadelphia, Penn: A copy of your
issue of the 18th Of Aug. has been for
warded to me, in which / f0d an article,
marked, commenting on the funding CT of
our last Legislature, and includ ng in its
comments, q circular published by me rels-
tive to the manner and matter Of funding.
In that article you say:
In answer to mercantile house in this
city, holding a considera le amount Of
CTenn.l bonds, the Comptroller sends a
printed circular which contain, the follow
ing extraordinary paragraph: 'The fund
ing act does not allow any lnterest upon the
past due bonds or coupons since their me
turity."
Again you say: "What guarantee have
the holders of the new funding bonds, that
the interest on mem viii not be pudiated
Ii some emergency with the same facili; y
and coolneSs by the officers of the State,
charged with the administration of its f.
DanCe..1'
me whole tenor of your article is So
Tere criticism upon "the officers of the
State, charged with the administration of
It's finances" and especially upon the Comp
troller. While cannot admit the correct
ness of your reasoning on the facts befo g
you, am sure you must confess Its fallacy
when You have further information upon
the subject.
First: The language of the Funding act
lie: Gan the outstanding, legally issued
bonds of the State Of Tennessee, due, or
to become due before Jan. LIST, 1874, as well
IS all past due coupons, and coupons ms
turing on or before Jan. LIST, 1874, may be
funded in six per cent. coupon bonds of the
State of Tennessee"
Section 2 says: "When any of The past
due bonds aforesaid sre presented to the
Comptroller, or when $1,000 in past due
coupons are presented" they shall be fund
ed. Nothing is sad of interest on bonds
past due. .--..
Under that maxim of law he express
sion of the one is the exclusion of the
other" "the officers of the State charged
With the administration of its financss"
might reasonably have concluded that the
Act having expressed that the past due
bonds and coupons were fIlndable, interest
en- bonds since their maturity WIS there
fore excluded. This view is strengthened
indeed confirmed 1y the fact that the G v
error, In his message 10 the General As
sembiy, in speaking of the Indebtedness OF
the STATE and the proposition to fund, called
particular attenti TO the matter Of your
disspprob2tion, as follows: 81 recommend
thai you declare whether or not, the S ate
shall pay interest on bonds after their mstJ.-
rity, until funded. There is no legislative
recognition Of such liabilities by
the State, and the authorities on
the subject are conflicting" How
was that recommendation responded to-?
Several Funding bills we're in
froduced in the General Assembly.
Every one of them, 1 believe, had proVis-
ion authorizing the funding of interest on
past due bonds after maturity. The bill
which finally became the present law, had
the following provision: ':Aud all past due
bonds shall bear interest at. the rate of six
per cent to January, 1874, and no longer"
This provision, which allows interest on past
due bonds, was stricken out by direct
vote on that single proposition (See Senate
Journal, page 29S), and the bill, without
this provision, became the law. rhe Leg
islature thus expressed It's intention that
interest should not be allowed on pas. du1
bonds in manner too clear and emphatic
to be dsregarded by ''the Officers who have
charge OF the finances of the State" The
whole question was thoroughly examined
and discussed by these ''officers," and sub
mitted to the Attorney General of the State
for his legal opinion. He coEcurred that it
was the evident purpose of the Legislature
to not allow interest on past due bonds
since maturity.
The Comptroller is not the law-makiug
power, nor Is it bis duty to explain or &C
count for the motives Of Legislators. II
may not be improper, however, for me to
refer briefly to the past legislation Of the
State upon the subject OF funding; especial
ly as one of the arguments by those opposed
to allowing interest on bonds, or coupons,
after maturity, was that The bOndhoIder
had been neglectful Of their IN interest In
failing TO take advantage of past legislation
intended for their relief and benefit.
By aci Fof Feb. 81, 1852, chap. So, the
Governor was directed to have prepared cOu.
pom boats of the State, of 81, 900 each, SIM
liar in language to the tonds previously
issued without coupons, and on spplica ion
of any person holding any of such bonds
wi bout coupOi s, who desired 10 exchange
any of said bonds for the coupon bones
therein dir cted 70 be prepared, 1t was made
the duty Of the Governor, Secretary OF
State and Comptroller TO exchange the DsW
coupon bonds for the old b0n-s without
coupons.
By act of Sept. 5, 1868, coupon bonds Of