Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-07-16
TOUR STATE DEBT.
A Comprehensive Exhibit OF lis Origin,
Progress and Present Condition.
interesting FACTS and Figures from the
Official Records:
TIE Total Amount Requiring Interest
To-Day $21, ass, $3.50, Exclu-
sive OF the School Fund.

Inc lOidl AluOuut hcquiEluS INTEREST
To-Day $21, 4S2, S37.50, Exclu-
siTe OF the School Fund.
There Is perhaps no subject ubor which
The peopie Ol the state are more generally in
terestel than the State debt and the means
for its payment. Unfortunately informal
tiOn upon this point is not easy Of access.
Previous TO the war the State was not bur
dened by the debts for which she went Sc
curitv. The rsilrOsd COMPANIES promptly
paid tie interest uiIon bonds loaned to
them, but little Of the debt had matured,
and the profits of the Bank of Tennessee
and the Union and Planters Banks were
efficient to pay the interest on the school
fund ard srrh poisdS as matured. In that
general era Of prosperity the people forgot
the amount of the States liability, and to
day they are in a great measure ignorant of
the character Of our debt and Of its origin
and history.
To obtain facts from reliable syarees
up;n these Joints, our reporter Yesterday
| called upon Nal. JnO. ). Wilkes, Gov.
BUwn's Private Secretary, who has in the
discharge of his duties been called upon to
investigate mere closely than Otl3rs the
matters about which We desired Informal
| ton.
Our investigations have been to-day CON
fined to the origin Of our State debt and to
| the parties who have been benefited by il,
and we shall hereafter give somewhat the
/ History of the debt, what bonds have been
cancelled and what are now outstanding
and such other facts IS will show its pres
ent condition. The Estate debt proper"
as it is styled in the ComptToller's Reports,
embraces all bonds issued prior to 1852
and 10 these we first devoted otir attention.
THB FIRST ISSUE or STATE BONDS.
The State Of Tennessee commenced the
issuance OF bonds in 1888. The first bene-
ficiary Of her generosity was the Union
Bank. In it, under the act of the General
Assembly passed Oct. Is, 1882, the State
became a stakeholder TO the amount of five
hundred thousand dollars, and bonds TO
that amount signed by VIM. Carroll, Gov
| ernor. and Saml. g.. Smith. Secretary Of
State, were issued and delivered to the
President and Directors Of the bank in full
payment ef the stock. 1t was provided hy
the &c. extending this aid that all profits
| arising from the States stock should be
first applied TO the payment of the States
bonds and the surplus profits, together
with the bonus which the bank should pay
TO the State for the privileges concerted in
! IFS charter and all interest upon public
MONEYS deposited in the bank, was apprO-
priaied to the benefit of comIfiOn schools
| throughout the State. These bonds all is
sued on the Isl OF January, 1898, and ma
tured 10y equal installmenis at the eXplra-
| ton Of fifteen, twenty, twenty-five and
/ thirty years-One hundred and twenty-five
thousand dollars thus falling due on the lSt
day Of January, lS4S, 1853, 1858 and 1863
respectively.
These bonds, with the exception OF the
last laiNed, were paid oil a. maturity, the
first and third installments being paid by
the Bank of Tennessee, and the second by
the Union Bank out of its dividends aud
bonus. The last installmeni, due Is.
January, 1868, has never heen paid, and
the bonds are now held by the Secretary Of
tie Interior, in trust for the benefit Of the
ChiCkaSaw Indians. Interest is due upon
these bonds, from LIST of July, 1869, at the
rate Of ) per cent. per annum.
THE FIRST TENNESSEE BONDS.
The Nashville. MurfneesbOro and Shell
byville Turnpike Company were the next
bene6ciaiies under the States bounty, and
received It's bonds TO the amount Of 500
666.66s. leaving interest at the rate Of q
per cent, and maturing July -, 1851.
These bonds have experienced some of the
viscissitudes Of our individual fortunes.
They were in the hands Of Jesse Thomas,
Surveyor Of the port Of Nashville, at the
breaking out Of the late war, were seized
by the State Government and carried
South.
After the close of the war they were ne-
turned with with the essetts Of the Rank
Of Tennessee, and were turned over subse-
quently to Samuel Watson, Trustee, and
by him to the Secretary of the Interior, and
are now held by that department in trust
for the Indian tribes. These bonds have
been due since 1851, and interest is now
due and unpaid since 1868.
Following close upon this was the aid
extended to the Gallatin Turnpike Com
pany, TO the Lebanon and Nashville Turn
pike Company and to the Lagrange and
Memphis Railroad.
TIE OLD TENNESSEE BANK.
Under the act of 1888 the State Bank
was founded, and bonds to the amount Of
s., 100000 issued to il. Soon after, how
ever, SI,jOO,0gO of these bonds were re-
turned to the State and cancelled by Gov.
Polk, leaving the State Indebtedness on
this account 81, 100000, maturing in May,
1868, and bearing interest at the rate Ofsix
per cent per annum.
RIVER IMPROvEMENTs-AN INCIDENT.
At the same session of the General As
sembly, 100000 was appropriated for the
improvement Of the rivers in East, Middle
and West Tennessee, but after the bonds
of the State were prepared, the policy of
the Stale was changed and the bonds were
cancelled, never having been put upon the
market. These bonds have never been
mentioned as part Of the State debt, and
are only referred TO here as forming an in
cident in the financial history Of the State.
THE GENERAL TURNPIKE SYSTEM.
Under the act of January 10, 1888, the
State through its General Assembly in
augurated the policy Of general extension
of aid TO turnpike companies throughout
the State, and bonds to the amount Of ST.
124, 200 were issued between that date and
the lst of January 1852. These bonds
were of uniform series, bore interest at the
rate of . per cent. per annum, and were
payable thirty years from the date OF
their issuance. The larger portion were
issued to turnpike companies; the East
Tennessee and Georgia and .he Hiwassee
Railroads receiving a liberal share, how
ever.
THE RAILROAD SYSTEM.
Under the act of Jan. 80, 1850, there was