Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-01-09

shall take the liberty Of speaking Of
these in detail to the members Of the
General Assembly, and especially to the
Committees of Finance, WAYS and Means,
rs opportunity permits or occasion requires.
or THE PUBLIC MONEY.
Difficulty has arisen in the conducting
Of this Office from the wide discretion that
seems to be bestowed upon the Comptroller,
and the doubts which exist in the minds Of
some Of the officers Of the Government rel
alive to the payments 10 be made with the
public money.
The Constitution, article ?, section "A,
provides that "NO money shall be drawn
from the Treasury but in consequence Of
made by law"
The Code, sec. 207, sub-sec. II, requires
the Comptroller, amongst other things, to
report sthe unexpended balances Of the sew
eral appropriations.
The Congress Of be United States, IN
der clause identical with that above cited,
makes specific appropriations Of money Tor
the various purposes Of the Government.
1t seems to me that such was the intention
of the trainers of our Constitution with re-
gard 70 appropriations by the Legislature.
The legislative construction, as expressed
in the Code, evidently points in the same
direction, for how can the Comptroller re-
port the unexpended balances Of the sever
al appropriations when no specific appr0pri-
alton has been made for any purpose? The
duty imposed upon the Comptroller IS plain
and unambiguOus, but it is imDOSsible Of
performance, unless the Legislature follows
out its own construction Of the COnstitu-
~
necessities Of the various branches Of the
public service. Il must be obvious how
great a check is in the hands Of the Legs
latUre upon a wasteful expenditure Of the
public money in this power to limit absO-
lntely the amount Of expenditure By re-
fusing to appropriate beyond certain fixed
sums. Nor is il perceived that any other
check can be eifectUal. The TisOm Of the
constitutional requirement. is apparent, and
no period Of our financial history has ever
more strongly called for enforcing its pro-
visions.
BANK OF TENNESSEE.
1 recommend, as a measure Of revenue,
the re-establishmenr Of the Bank Of Ten
nessee, with branches suitably located in
the three divisions Of the State. This is
prohibited BY the 3lst section Of Article II
of the State Constitution, but section Of
Article XI points out two ways in which
the Constitution may be amended. In my
opinion, the quicker the better. An OBJ
lection urged against this measure is a pro-
vision in a revenue law Of Congress, which
imposes a penalty Of ten per cent. on the
circulation of all other than National
banks. That this provision, originally en-
acted as a war MEASURE to sustain the
credit Of the Federal Government, and az
forwards repealed while the war sentiment
still controlled Federal legislation, would
now be declared unconstitutional, cannot |
doubt. 1t is uncertain whether such q pro-
vision can, undsr our constitution and
form Of government, be enforced in time Of
peace against an individual, certainly not
against State
am aware that Judge Chase, who, as
Of the Treasury was the f8ther Of
this provision against State banking, deliV-
cred an opinion sustaining the constitution
atty Of the law. But Justice Nelson, the
senior Justice Of the Supreme Court and
the Oldest Judge in length Of service in the
world, used this language, which il would
be well for our statesmen anu our judiciary
to remember:
True mat ne NEE1GAA 0IlA1A4u 1AEAAca
only at the power 70 create banks, but no person
can fail to see that the principle involved affects
the power 70 create any other description OF cor
pOrations, such as railroads, turnpikes manu-
featuring companies, and others. This taxation
OF the powers and faculties Of the State govern
ments, which are essential 70 their sovereignty,
and 70 the efficient and INDEPENDENT management
and administration Of their internal AFFAIRS, Is,
Federal authority. II finds DO support OF cOun-
tenancs in the early history Of TIE Government,
or in the opinions Of the nlUsriOas statesmen
who founded IT, These statesmen sCrupulOuslT
sbstained from any encrOschments upon the re-
served rights Of the States; and within these
limits sustained and supportedthem assoTereign
states"
Whether this law would or would not
now be held to be constitutional, it is eFi-
dent, judging from the recent manifesto
tons of public sentiment in every portion
Of the Union, North and South, East and
West, that it cannot much longer remain in
force upon the Federal statute books.
To establish that the revival Of the State
Bank would prove a wise measure Of reye-
nue., and greatly relieve the people from
the burden Of taxation, it is only necessary
to refer to the operations Of the old bank.
When the capital stock Of that institution
was 1875, 900, it could make an annual
net profit Of $4,000. Then, too, the
Union, and Planters Banks, with numer-
Gus other State institutions, were in exist
ence, having a very large circulation and
business, and necessarily limiting the Op-
eratiOns and profits of the State Bank. The
circulation Of the State Bank and branches
July 1, 1861, was only 1896, 13S.
Nv plan would be to re-establish the
bank on the same general principles upon ]
which the old bank was established,
making its issues receivable for taxes and
all other dues Of the State. To procure /
necessary banking capital, issue s., OO0, 900 /
of six per cent. fOrtv year bonds. To Sc
cure a prompt sale and high price for these
bonds, l would not only pledge the faith,
honor and credit Of the State, and the as
sets Of the bank for the prompt payment Of
both principal and interest," would also
appropriate and set apart the profits Of the |
bank. first, for the semi-anDuai payment Of /
the interest on the bonds, and after the 1
lapse of a suitable time, would, from the |
same source, provide an annual sinking |
fund for the payment Of the principal Of the /
bonds. Thus, I believe, these bonds might 4
be sold for ninety cents on the dollar, and /
the sum Of S4,5OO,OOO realized for banking /
purposes. In making this calculation as 10 i
the probable sale of the bOndsaI take it for
granted that the Legislature will not viO-
late the faith, honor and credit Of the State,
now pledged for the payment Of the princi-
pal and interest. Should be mistaken in
This expectation, 1 cannot tell how value
less Tennessee bonds and Tennessee credit
will become.
Under the old and safe banking rule Of
issuing three for one, we could, on bank
ing capital Of S4,5O0,000, issue a circula-
ion of S13,500,O0O. In field demanding |
yreat banking facilities, and comparatively
InOccupied, We might safely calculate upon
zeeping St0,OOO,OO0 Of this circulation in
.ctiVe employment l think it probable
hat at the reasonable rate Of six per cent.
interest, and it should not be higher, every
lOllar Of the circulation could be constant
Y and probably employed.
quote the following from I report Of
Ion. Cave johnson, then President Of the
ank, under date Of February p, 1855:
HFrom the first Of July, 1858, to the first Of
January, ISIS, the profits OF the bank amounted
D 81 ISL g72.45, making over four and one quar-
sr million Of dollars made BY the bank for the
se OF the State, beyond It's expenses. The bank
As instructed it's correspondent in New York 70 /
az the interest on any bonds Of the State As |
resented, and keeps funds on hand for that
urpOse, and pays the check OF the Treasurer
without regard 20 the amount Of his deposits,
aorf,or the Treasury Oftan in Arrears with the L