The Pulaski citizen. [volume] (Pulaski, Tenn.) 1866-current, 1874-12-10
How the State Debt was Gre
ated.

How the State Debt was Gre
ated.
We gave last week the first portion
of an elaborate article from the jackson
Wig and Tribune reviewing Gov
Browns administration and defending
the Democratic party from attacks
made upon il by its enemies. We con-
tinue the publication of the article this
week and will give its close in our next
issue. The Wing and Tribune says:
'The subsequent issue of bonds to in
solvent railroad companies is the cause
Of our financial difficulties. Had no
bonds been issued to any except the
great through lines with important con-
nections, they would have been able to
discharge their liabilities and have
saved the State harmless. The amount
of debt which the insolvent railroads
owed 70 the State in October 1870, was
$40, 100000. Had all the insOlvent roads
been given away in 1865, and no aid ex-
tended to other insolvent roads, the
whole loss on railroads by the State, as
before stated, would only have been
50, 1888, l2l; but unfortunately bonds
were issued to insOlvent railroad COM
panies to such an amount as TO deeply
thing of consequence to the value of
these roads. In this way the debt of
the State was increased from 1865 to
1870 under republican administration
sixteen millions of dollars.
In lSG9-70 the Legislature passed an
act authorizing railroad companies to
pay the debts which they owed the
State, in bonds of any series except the
Mineral Home and Valley OF Virginia
Insurance Company. The object of this
act was to cause the railroad compa MES
to buy the bonds issued to the insolvent
railroad companies during the Republic
can administration, because they were,
OH account of their suspicious charac-
ter, selling lower than any other bonds,
and i'm this way all of these bonds eX-
cept 81 100000 have been returned into
the State Treasury, and even those out
standing have been recognized by the
Conservative Legislature of 1869.
In this way the debt of the State was
contracted, except $2,000,0O0 of Tennes-
see Bank notes which the Supreme
Court of the United States decided TO
be receivable for taxes.
1t was this debt which Gov. Browns
administration had to contend with.
The credit of the State had been seri-
ously impaired, capital had been drawn
away by our failure to meet our Obliga-
tions, since no State which fails to meet
its just obligations can ever be prosper
Gus. States that are either unable or
unwilling to comply with their con-
tracts, do not present an inviting field
for either capital, labor or immigration.
Never did any Governor have a more
difficult task to perform than Gov.
Brown at that time. He comprehended
the situation and acted with decision.
He found bonds and coupons to the
amount Of near six millions of dollars
due and falling due, which the people
felt themselves unable to pay, since they
had to redeem Immediately $2,000,000 of
Tennessee Bank notes. Either the
credit of the State had to remain at its
low rate greatly to the injury of the
people, or tax amounting TO three OF
four per cent. had to be levied or the
bonds and coupons due had to be re-
newed.
Gov. Brown preferred the latter
plan, and so stated in his first message
In 1872 he was again nominated by the
Democratic party, with a full knOwl-
edge OF his views on this question, as
well as of his action in regard to the
lease of the Penitentiary; and they
passed the following resolution:
"Inasmuch as the administration of
Gov. John Q. Brown, by its prudence,
moderation and wisdom, by the fidelity
displayed in the discharge of every trust
imposed by the Constitution, or by Leg
islative enactment, upon the Executive,
and by the vigilant care with which the
rights and interests of the people have
been guarded and protected, has fully
vindicated the wisdom of the people of
the State in calling him to the Guber-
Material chair; and believing that such
honesty, fidelity and capacity in pub
lie trust, deserve, in these times, to be
specially recognized, and that the well
fare of the State demands the retention
of Gov. Brown in the Executive office
for another term; we do, therefore,
unanimously present the name of Gov.
John G. Brown to the people Of Tonnes
see as our candidate for reelection to
the Office of Governor; and in so doing,
pledge to him our united and most
cheerful support"
He canvassed the State in 1872, advO-
eating his policy without any objection
on the part of the Democracy, and
even the Republican candidate for Gov
ernor took no issue in the view in re-
gard to the funding policy. An issue
was made in regard to the lease of the
Penitentiary, and although there was an
unhappy division in the Democratic
party which resulted in the election of
Horace Maynard to Congress, from the
State at large, Gov. Brown was re-elect-
ed by large majority under the circum-
stances.