Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-10-08

luC pcoI o0C 4AbCAtoN $1,000
loaned to it until the road paid its debt.
So with the Nashville and Chattanooga
road, the East Tennessee and Virginia,
the Mobile and Ohio, the Mississippi
Central, the Nashville and Decatur and
all other solvent roads of the State.
The amount of the debt due from these
roads and which they were amply able
to provide for, but which was needless
ly assumed by the State. was more
than two millions Of dollars. Under
the act of 1873 not a coupon from an
endorsed bond has been funded, and
the solvent roads have been required to
pay their interest as it matured, In.
stead of leaving it to be assumed by
the State. The result is that while the
act of 1866 increased the debt over two
millions of dollars on this account, the
act of 1873 did not increase it one cent.
The second funding act was passed
on the 18th of March, 1868, at Especial
session called for that purpose. Under
it, the Governor, Secretary Of State,
Comptroller, Treasurer and President
of Bank of Tennessee were made a
Board of Finance" to provide for the
payment of interest on State bon s
and for the payment of 80 much of the
State debt as should mature prior to
March, 1871; and the Governor, in aid
Of this scheme, was directed to issue
the bonds of the State bearing such
rate of interest, not esoeeding nine (9)
per cent. and payable in ssseh currency
as the Board might deem best for the in
terest of the State. This was the act of
a RepWbLicaR General Assembly and
passed by large vote of that body.
Reckless as was this legislation, it
promised, at the hands of the Board of
Finance, to become an engine of OPP
preston, if not of fraud, unheard of in
the history of any State. f
The character of the act and the OPP
erations under it were such as to alarm
even the members of the Board. 1t
was charged by the Comptroller, that
the President of the Bank, taking a
copy of the law, left for New York as
soon as it was enacted, without even a
conference with his associates, and that
the scheme was to issue gold bonds
indefinitely either TO be sold for cur
rency, or given in exchange for out
standing bonds; that he was cores
ponding with capitalists here, as to the
certainty Of bulling the bonds, that
some of the parties here had UeHtstred
on them and that certain Spectator
had beeh telegraphed for to meet him
in New York. The Comptroller, Geo.
w. Blackburn, said at the time: "Un-
der these circumstances, viewed the
situation with intense anxiety" He
adds: "a short time before the 18th of
May, 1 heard that the Governor had
decided to sanction Mr.. Watson's plan"
This plan was, on the 18th of May,
modified and developed, so as to require
the issuance Of seven per cent. gold
bearing bonds, sufficient to purchase
one million of the States bonds, and
to pay the balance due the Fourth Ma
tional Bank of New York, and the in
terest maturing in July; and also TO
require the appointment of an agent to
carry it into effect, and to visit New
York for that purpose, with authority
to adrance the credit Of the State, by
Publishing through the press and By UiS-
iting IN person, bOHdholders and Others
interested in the State OF Tennessee
Comptroller Blackburn saws further,
that for this proposition the Governor
voted, and adds: II .oGs per -es.J IS.
tonished. My heart g.,v sck, and 1
felt that these were truly evil days"
Again: "Mr. Watson's resolution was
carried by the votes of himself, the
Governor and Col. Henry. Being fully
imbued with the spirit of the case on
that day, and fully understanding
the situation, 1 could not, and 1 did
not, otherwise look upon the spectacle
before me than with unutterdble aud an
deseribabIe Ioathing and contempt and
disgust
The Comptroller, in his next report,
SAID to the General Assembly, "the
interest of the State demands an IN
slant repeal of the act creating the
Board" and at the next session the
Board was abolished and the act re-
pealed.
The act of Sept. ), 1868, was the next
funding bin of the Republican party.
1t authorized the issuance of bonds by
the Governor to the Comptroller sufi-
cient to pay the debt due in 1868, 1863
and 1870. The Comptroller was fur
ther authorized by the sixth section of
the act to borrow such sums of money
as might be necessary to providefor the
payment of interest then or thereafter to
become due on the State debt, and to use
the bonds of the State as collaterals.
Under this act, S2,2OO,OOO in bonds
went into the hands of Comptroller
Blackburn. OF these about $1,000
900 were used In renewing the bonds
falling due in 1868, 1869 and 1870, and
the remainder IS coIIateraIs. These
collaterals, since the accession of the
Democratic party to power, and during
the present administration, which Mr..
Maynard delights to honor with his
abuse and Misrepresentation, have
from time to time been redeemed and
cancelled.
These are a few scraps from the
history of the recklessand improvident
financial legislation during four years
of Radical rule in Tennessee. Com
ment is absolutely unnecessary. Nav