Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-07-28

KNOXVILLE anu hEnluGkN lNs..ss A-fo'o ~
Tennessee and Pacific II. R.. 10000 90
Interest on all of abOve............ 125s5ZG 20
Knoxville and Charleston X. r.
unsold, valued. ..-.....- IOo5Uvo W
Total sS28 III %
Total amount due State. 5, 49, ,5Is 81
Balance. .s2i as, So 10
INT not Cancelled. ......... 5ol, ss6 As
Net amount for which the State
must provide. .s9o,se''s7l .
While the bonded debt has thus been re-
duced from S43,O52, 62S.26 to S20,9S0,S51.
%, the floating debt has not been neglected.
The old issue of the Bank of Tennessee,
amounting to S2,179,375.10, has been re-
ceived into the Treasury and Cancelled. The
floating debt, consisting in part of out
standing treasury warrants amounting
October 1, 1871, to S752,411.27, has been
reduced, up to January /, 1873, TO S4I6,-
S34.72, and since that time, up to July ],
1874. to S232, O66.O1. The loan account,
amounting, January 1,IS73, TO 10000,
has been reduced to Sl21 ,0O0, making a to-
tai amount paid, in addition to the current
expenses of the State Government, and in
Guiding the interest due July, 1874, 81, 49,
1866, and leaving unpaid, at this time, a
floating debt, including balance of loan ac-
count, of S:}53, 066.01, with large part of
the taxes for 1873 uncollected, and the rev.
enue of 1874 untouched. As early as
THE GUBERNATORIAL CANVASS OF 1870
it was apparent that the finance question,
and the management and control of the
State debt, would, for some time, be the
most important and difficult measure, ad-
dressing itself to the executive and legis-
lative departments of the government. 1t
was necessary for the State, in divorcing
herself from her railroad system, by
the sale of the delinquent roads,
10 provide interest upon so much
of her bonded debt rs was left I'M
Maid out of the sales ofthose roads, and the
payment of loans by solvent companies;
and at the same time she was receiving
into her treasury from her sources of reve-
nue., almost exclusively, the issues Of the
Bank of Tennessee. With no assets TO
meet the accruing interest, it had matured
and been allowed TO remain unpaid since
JANUARY, 1859. IL was the unmistakable
policy and purpose of both the Democratic
and Republican parties, to resume the pay
ment of interest so soon as the notes OF the
Bank of Tennessee were extinguished,
and the floating debt provided for. At
the date Of the first message | had the
honor 10 transmit 10 the General Assem-
bly,, on the sd of October, 1871, the past
due bonds and coupons of the State
amounted to over five millions Of dollars,
and was increasing at the alarming rate Of
over one million dollars per annum. l re-
commended to that General Assembly the
necessity of an early resumption Of inter
est payments, and in order TO enable the
State to do so, suggested that the past due
debt should be taken up by issuing new
bonds, at par, to the holders Of the matured
debt. The convention which met at Nash
vile in May, 1872, to select a State ticket
for the Democratic and Conservative vO-
tiers, did me the honor Of unanimous re
nomination, and, without a dissenting
voice, Endorsed the policy Of my admins
tratiOn in a most complimentary manner.
In the canvass which followed, the ques-
ton of State policy which Overshadowed
all others was the solution Of our financial
troubles, with a view TO put the State
again upon the highway to prosperity. The
floating debt, which was the great obstacle
at the previous session Of the General As
Sembly to the adoption of any general and
had either been paid or provided for out OF
the taxes collected or assessed; and follow
ing not only my own convictions of the
true demands Of the hour for the redemp-
ton of nv State, | reflected the desire of
the people, as then unmiStakably mani
tested, in advocating the early resumption
Of interest payment. And L could not
then perceive, nor have l since learned,
4, 4, 1,o
payment of accruing interest without first
Tedeeming in some way the debt that was
past due, some of which matured before
the war. There were but two modes of
redeemiUg the past due debt. One was TO
pay il by taxation, and the other TO renew
it by giving new bonds, bearing interest,
which is called funding" 1t could not be
paid by taxation without an addition to
the ordinary levy that would have ruined
the country by its OppreSSivenesS. thought
the other mode-that is, taking up the past
due Indebtedness, by new bonds, to be
issued at par-could be adopted, and cur
rent interest paid on the whole debt with
out increasing but very little, if at all, the
rate of taxation. Therefore, with the high
est and most disinterested motives, L made
THIS POLICY
the burden of my address to the people
throughout the entire canvass. One of my
competitors Endorsed this position, and the
other, without discussing il, declared that
he saw no other more feasible remedy.
The result of the canvass is known. | re-
neWed the recommendations, previously
made, on this question, and the General As
sernbly passed what is known as ''the fund
ing bill, by which it was provided that the
bonds and coupons, due, on or before the
first day of January, 1874, and none other
than those due on or before the first OF
January, 1874 should be redeemed by the
issuance 10 the holders of new six per
cent. ten-forty bonds. And that the bonds
not due should be presented to and ex-
amined by the COmptrOllerand Secretary OF
State, and if valid and legal should be
registered and stamped. Ii further pro
vides that the payment of interest be re-
sumed on the first day of July, 1874, but
that no interest shall be paid except the
coupons of the new bonds and of the regis
/ tered bonds, falling due on and after the
/ first dav of July, 1874. These are the lead
| inc rrorisions of that act. Under its pro-
visions, the officers charged with the duty
of its execution have registered Sl5,072, OOU
| unmatured bonds, and issued, of new bonds,
1
| s., 562, 900, to take up past-due coupons,
making altogether S20,633,0O Of which
there have been since paid in and Cancelled
| S3S5. 600, leaving outstanding, inst of July,
| 1874, of the registered and funded bonds,
$50 600, which fully appears from the
following statement taken from the books;
| CHARACTER AND AMOUNT or sECCM-
TIES FUNDED.
| PaSt-due bonds, issued prior 10 the
| war for turnpike, bank and cspl-
! tol purposes, which have been re-
| r,cwed under the act of 1S1S..... 1880 "
| Nutilated bonds issued prior 70 the
war. but not vet due, renewed I'M
| der the act of IS66-7.............. 5000 q
Past-due coupons funded. 49,. 4,6Sl,O5O &
| cash paid into the State treasury 10
| make even bOnds-................... l'44s o.
iI bond siou,,' ~" -. So, 900 q
| OF which there have been since can -. -, =,
| celed- -'0'OVO "
Total outstanding July ], lSi...s5yS5S,ooo y.