Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1874-08-22

Dy complying Will our request yOl
will oblige, very respectfully
1.-THE above letter is signed by one
hundred and seventy-two Of the lead,
ing merchants and professional men o.
Memphis.
Gov. Browns Answer.
MEMPHIS, July "a, 1S74.-Gentle-
men: For reasons, in which the pub
llc are not especially interested, | am
induced to decline, for the present,
your very fattering and complimentary
invitation to address the people OF
Memphis, ON the subject of State
finance and taxation, the Civil Rights
bill. [ hope, in short time, to do
myself the honor. to respond ful-
ly to your request. In the meantime,
having no disposition to maintain ST.
lence on the vital questions when thus
called upen, and recognizing the right
of a constituency to demand of their
public officials a free expression of
public sentiment, as well as an account
of their official administration of pub
lie affairs, l will briefly express my
views, reserving q full discussion of
them to such time as may be more con-
venient and appropriate to address the
people. To that portion of your let
ter requesting an address upon State
finances and taxation, | presume /
cannot give any reply that will be
more satisfactorily than a simple re-
cital of the history of the State since
the people acceded to power in 1870,
and an exhibit of the true condition
of the finances of the State at the
present time. This is not the time
nor occasion, nor can | see the neces-
sity for commencing or criticising the
legislation which has shaped our fnan-
cial policy during that period; wheth-
er the ABSORPTION of the issues of the
Bank of Tennessee was polite or not ;
whether the liberty given the railroad
companies by the General Assembly of
1e6J-70 to ay their debts to the State
in new as we'll as old bonds; whether
the passage of the funding law was
wise or unwise, or whether these meas
ures were all dernier resorts forced by a
combination of circumstances which
we could not control, it Is not necessa-
ry now to inquire. Nor could justice
be done them in the circumscribed
limits of letter They have passed
into. and form part OF, the history of
the State. The General Assemblies
which shaped these measures, after
mature deliberation, were animated by
the highest and purest motives, and
adopted them as af1ording the best So
luton, under the lights then surround
ing them, of the financial questions
then embarrassing the State.
Some of these measures, and especi-
ally the one known as the funding
bill, have provoked much criticism.
Postponing to future occasion a full
discussion of all the causes which led
to and made this legislation necessary,
brief reference to the financial con-
Iition of the State, the provisions Of
the bill, and what has been accom-
plished by it, will afford the impartial
reader sufficient evidence by which to
estimate its merits.
THE FIRST GENERAL ASSEMBLY CON-
vENED AFTER THE RESTORATION
of the ballot to the people, were con-
fronted, on the first of January, 1870
with an ormous debt, amounting, ac-
cording to the most reliable estimates
to the appalling sum of $43, ,052, $50. %
more than three-fourths of which had
its origin in the internal improvement
policy of the State, under which bonds
of the State had been loaned to rail-
road companies, to aid the construc-
ton of various roads within her bord-
ers. Many of the companies had be-
come insolveut, and had entirely ceased
paying interest, as required under their
contract. The roads and property of
these companies had been placed in
the hands of receivers, under whose
management they were charge upon
the State Treasury, as reported by the
Comptroller and other officers, of over
81 900 per day, without taking into ac-
count the aceruing interest upon the
bonds loaned, or the rapid deprecia-
ton of the value of the States lien, IN
the wear of the roads. 1t was. then,
as now, charged that a large number
of these bonds had been. recklessly OF
improvidently issued, and sold at ru-
inous rates by the companies to whom
loaned. However these charges may
have been, yet that General Assembly
after an elaborate investigation of the
facts. passed an act. with only three
dissenting votes In the Senate and
eight in the House, authorizing all
railroad companies to whom bonds
had been loaned to anticipate the ma.
turity of their debts paying into the
Comptroller Office bonds of any series
number or date, interdicting only the
Mineral Home and the insurance com.
pany of the Valley of Virginia. Tn.
der the provisions of this law the
Comptroller could refuse no bond is.
sued under the forms Of law. HI
could not inquire into the wisdom Of
the legislation that created the obliga
gion, nor whether the bond was sole
in the market at par or at rulDOu:
rates. This was the act of Genera
Assembly of the people, by vote al
most unanimous. The same body, by;
large majority vote, directed the salt
of all the insolyeDt and dclinquen
railroads upon which the State helt
statuary mortgages, to secure the pay
ment of bonds loaned to them, anC
by the same act and amendment
thereto, appointeda a commission to di
rect the execution of the law. Unde
the first mentioned act all the solven
railroad companies purchased bond
and paid them into the State Treasur.
in cancellation of their debts excep
| The Memphis and Charleston,
| which vet owes bonds....... al $40
| Interest in litigation. lO3r3l0
/ The Mississippi Central which
owes ,l9y,loO
| The Tennessee and Mississippi,
which yet etowes....-.-.....-------.-..- az 500
Under the last named act, the insol
vent and delinquent railroads wer
sold, as contemplated by the law, am
the larger proportion Of the purchss
money collected in bonds. Under thi
legislation of the General Assembly 0
lS69-7O, the State debt was reduced :
ist January, 1871, 539 500
Ist January, 1872, to--~-...-......- % .l90.93S
lst January, 1873, to---.-.-----. ~, $50 200
lst of July, 1874, q go 1856