The herald and mail. [volume] (Columbia, Tenn.) 1873-188?, 1875-01-15

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,
as opportunity permits or occasion requires.
APPROPRIATIONS OF THE PUBLIC MONEY.
Dililculty 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 to be made with the
public money.
The Constitution, article ,, section "a,
provides that NO money shall be drawn
from thu Treasury but in consequence of
appropriations made by law"
The Code, sec. 2O7, sub-sec. il, requires
the Comptroller, amongst other things, to
report 'the uneXpended balances of the sew
eral appropriations.
The Congress Of the United States, I'M
der q clause identical with that above cited,
makes specific appropriations of money for
the various purposes of the Government.
Ii seems to me that such was the intention
of the trainers of our Constitution with re-
gard to 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 uncXpended balances of the sever
al appropriations when no specific apprOpri-
alton has been made for any purpose? The
duty imposed upon the Comptroller is plain
and unambiguOus, but it is impossible Of
| performance, unless the Legislature follows
| out its own construction of the COnstitu-
! ton, and makes appropriations to meet The
necessities of the various branches of the
! public service. 1t must be obvious how
great check is in the hands of the Legs
lature upon a wasteful expenditure OF the
public money in this power to limit absO-
| lutely the amount of expenditure by re-
| fusing to appropriate beyond certain fixed
sums. Nor is it perceived that any other
| check can be efiectual. The wilson, 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.
l recommend, as a measure Of revenue,
! the re-establishment of the Bank of Ten
ncssee, with branches suitably located in
the three divisions of the State. This is
prohibited by the LIST section of Article ii
of the State Constitution, but section , OF
Article N 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 pro-
vision in 4 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 legis alton, would
now be declared unconstitutional, | cannot
doubt. 1t is uncertain whether such pro-
| vision can, under our constitution and
form Of government, be enforced i'm time OF
| peace against an individual, certainly not
against State.
| am aware that Judge Chase, who, as
| Secretary of the Treasury was the father 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 it would
/ be well for our statesmen ant our judiciary
| to remember:
at is true that the present decision strike,
only at the power 70 create banks, but no person
can tail to that the principle involved affects
/ the power to create any other description OF cor
Iorations, such railroads, turnpikes, mann
/ featuring companies, and others This taxation
! Of the powers and faculties of the State govern
ments, which are essential to their sovereignty
and to the fticient and iudepe ndent nagement
! and administration Of their internal affairs, IL
/ for the first time, advanced as an attribute OF
/ Federal authority. 1t finds 10 support cOun,
! tenance in the early history Of tae Government
! or in the opinions of the illustr!Ous statesmen
! who founded it. These statesmen scrupulOusly
! sIStained from any encrOachments upOd the re-
| served rights of the States and within there
! limits sustained and supported them as sovereign
| States"
Whether this law would or would not
| now be held to be constitutional, il is evil
| dent, Judging from the recent manifesto.
! lions 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-
| me, 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 $3.G79,OOO, It could make an annual
net profit Of 100000. Then, too, the
| Union, and Planters Banks, with uumcr-
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. Tie
circulation Of the State Bank and branches
July I, 1861 was only Sl,0G6, 1875.
My 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 S5,OOJ,oOO
Of six per cent. forty year bonds. To Sc
cure a prompt sale and high price for these
bonds, would not only pledge the faith.
honor and credit Of the State, and the as
=
both principal and interest," would also
appropriate and set apart the profits Of the
bank, first, for the semi-annual payment of
the interest on the bonds, and after the
lapse of suitable time, | would, from the
same source, provide an annual sinking
fund for the payment of the principal of the
bonds. Thus, | believe, these bonds might
be sold for ninety cents on the dollar, and
the sum Of 81, 100000 realized for banking
purposes. In making this calculation as TO
the probable sale Of the bonds, 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, | cannot tell how value
less Tennessee bonds and Tennessee credit
will become.
[ nder the old aud safe banking rule of
issuing three Tor one, we could, on BANK
ing capital Of Sf,5OO,OOO, issue a circuld-
ton Of ST., 100000. In q field demanding
great banking facilities, and comparatively
unoccUpied, We might safely calculate upon
keeping SlO,0O0,0JO of this circulation in
active employment. l think it probable
that at the reasonable rate Of six per cent.
interest, and it should not be higher, every
dollar Of the circulation could be constant
~ and proHtably employed.
/ quote The following from a report cf
Hon. Gave johnson, then President Of the
bank, under date Of February %, 1858:
"From the first Of July 1853, to the first Of
Jauuary, lob, the profits Of the bank amounted
to 3 ,3S4, J72I5 making over four and one quar-
ter million of dollars made by the bank for the
use Of the State beyond iJs expenses. The bank
has instructed its correspondent in New York 20
pay the interest on any bonds Of the State as
presented, and keeps funds HAND for that
purpose, and pays the check of the Treasurer
without Tegsrd to the amount of his depositz
leaving the Treasury often in arrears with the
bank rs il is Oh this day, to the amount Of $780,
ooC. IN addition TO tn aid thus afforded the
Treasure il may not Ice amiss to state that i'm
bay Id A.,