Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-01-09
Investigation into the Circum-
stances of His Appoint
ment Challenged.


OFFICE OF COMPTROLLER OF THE
TREASURY, NASHVILLE, Dec. 10, 1874
To His Excellency, John c. Brown, Gov
ernOr of Tennessee.-Sir. By section I Of
chapter ,, Of the Acts of 1873, it is made
the duty Of the Comptroller Of the Treasury
to prepare and submit his report to the
Governor Of the State, at least ten days be
fore the assembling Of the Legislature. In
obedince to that law, herewith submit the
following statement of the business of this
Office, from Jan. l, 1873, 10 this, the 18th Of
December, 1874, bo,h days included.
As your Eycellency is aware, eX-COmp-
troller Pennebaker held this Office until
February /, 1873. He was succeeded by
Major W. w. Hobbs, who had been elected
Comptroller by the Legislature. Major
Hobbs continued in Office until May ],
1873. when be resigned, and l was appoint
ed by your Excellency to succeed him.
This report, therefore, contains the trans
actions Of the Office during the last month
Of Mr.. Pennebaker's term, and during the
three months Of Maj. Hobbs incumbency,
as well IS during the time which have
occupied the Office.
In the form Of an appendix to this report,
submit tabular statements as follows:
1. Financial conditioned Tennessee Dec.
70, 1874, p.
2. Receipts from Jan. 1, 1873, to Dec.
IS, 1874, inclusive, p.
;. Disbursements from Jan. l, 1873, to
Dec. IS, 1874, inclusive, P.
4. Statement Of warrants issued and Of
warrants paid, P.
3. Statement Of taxable property for
1915 and 1874, P.
q. Revenue recei red from privilege tax, P.
:. Delinquent Revenue Officers, p.
:. Statement Of bonds issued by the
State, arranged according to series. show
ing the number Of bonds issued, for what
purpose, how numbered, when due, TO
whom issued, how many registered, the
number of bonds funded under the act OF
1873. anG what securities were thereby
tax u 5up; also showing maturity Of bonded
debt, ?.
9. Securities cancelled since March
1873, p.
10. Certificates Of the Governor, showing
operations Of the Office under the funding
act, P.
ii. Proceedings Of Judicial Conven-
tiOn, ?.
By reference to the table showing the
financial condition of the State, it will be
seen that the recognized bonded indebted
ness Of the State Is S22.90S, 400, and that
the assets CT the State on bond account are
SSH, S95 %, leaving an excess Of i&bili-
ties over assets Of $1,000, $500. The
liabilities on floating, or current debt &C
count, amount to Sl,O35, 540.49. The as
sets are S2,Zjj, 7G4.25. The assets exceed
the liabilities 81 ,220,l63.76.
The outstanding Treasury warrant &C
count Jan. 1, 1873, was sag, S34T2. It is
now S2S3, 29O.49, showing a reduction Of
Sl93, 544.25. This, too, notwithstanding
the amounts issued IN October, 1873, and
in APRIL and October, 1874, for interest on
school fund, Tor poll taZ, for public schools,
for insane asylums in East and West Ten
neSsee, and for July interest on public
debt-aTgregating the sum Of S99S. 15S 90.
None Of these items have for several years
past entered into the account Of warrants
issued; some OF them never before. The
loan account as reported Jan. /. 1873, was
100000. Ii is now only $4,000; showing
q reduction on this statement Of S235.00O.
But the amount reported Jan. l, 1873, was
evidently only an estimate, and fell far
short Of the fact. The books Of this office
show that during the months Of January,
February, March and April, 1873, there
was paid on loan account S330,5l5.lj. and
that during the same months there was
borrowed on loan account S23S,41T.OS:
showing diminUtiOn Of So, O96.O7 in the
loan account. This last sum deducted
from the $4,000, reported to be Outstand-
ing Jan. l, 1873, would make the total out
standing loan account May l, 1873, when
went into Office, S2OT,9Ol.93. During my
81 l.
loan account S2TS,053.30. There has been
no new loan made, and but one renewal,
May /, 1872, Of $4,000. Adding this Sl0.-
900 to the amount above stated as due May
l, 1873, aud we should have as the out
standing loan account al that date S2l7,-
g0l.93. There has been paid since May !,
1913, S27S, O53.3O, or $50, l5l.5T more than
there appeared from the report Jan. l, 1873,
and the receipts and payments Of the first
four months Of 1913 to be due. Yet S6j,-
900 is sill due on loan account, making a
total discrepancy Of Sl25, 1877 in the loan
account. This is accounted for by the de-
fsctive or negligent manner in keeping the
books of the office. several years ago, which
prevented the lOtaI Of the loan account be-
ing brought forward into Comptroller Pen
uebaker's report.
where, that, owing to the high rate Of in
terest which L found our loan account bear-
Ing, ten per cent, and because Of the very
great stringency in money matters in the
State. occasi0ned By the financial crisis Of
September, 1873, and the almost total fail
ure of crops Of 1874. l thought that the pub
lie and private interest Of our people, de-
manded that the loan and outstanding way
rant accounts, one bearing no interest, the
other bearing a high rate, should both be
reduced as much Is possible. In one sense,
it would have been financial policy to d.
minish as much and as rapidly as possible,
the account bearing the high rate Of inter
est, and TO leave untouched, OF increase, If
necessary. the account which was nOn-in-
terest bearing. But the necessities Of the
people of the STATE, who alone held our
nOn-inteTest bearing Indebtedness, ALSO
lutely required that the indebtedness which
they held should be paid at almost any
cost. How TO accomplish these desired re-
suits, and also Meet the January interest
on the State debt, when the State credit
was at a low. ebb, and taxes were being
paid very slowly, and when il would have
been ruiuOus to have pressed more urgent
Is the collection Of taNcs-this was a prob
lem Of difficult and doubtful solution. 1
determined, however, TO endeayOr to aC-
c0mplish all three objects: the reduction Of
the loan account, the reduction Of out
standing warrants, and the payment Of the
January interest.
With the concurrence and appreciation Of
your ExcellenCy and the Treasurer, l made
an arrangement with the Fourth National
Bank of this city, the State depository,
that whatever balance should be needed
over and above the amount the State had
in hand to meet the payment Of the Janu-
ary coupons, as presented, would be adj
vanced at a less rate Of interest than we
were paying on the loan account, the bal
ance so advanced, to be paid of by the
State as rapidly as possible, certainly in
three mOnths,) from the incoming reve-
nue.. What amount will be needed for
this purpose, and the length Of time for
which il Will be needed, will depend upon
the progress that is made in the collection
of revenue, and the lTomptness of others
than taxi payers, who are indebted TO the
State. We hope, with fair returns from
revenue officers, Jan. l, and with reasona-
bic collections during that month, to pay
most Of the amount advanced, by Feb. l,
and with proper management Of the