Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-01-07
THE STATE DEBT.
Important Financial Measures
Introduced I'm the House.
Messrs. Gibson and Head Pro-
pose Remedies for Tennessee's
Embarrassments.

In the House, yesterday, MIR. Gibson in
trOduced a bill for the payment Of the
State debt. Section first provides for the
repeal Of section of the s'act 10 fund the
past-due bonds and coupons of the State,
and to sustain the credit thereof,n ap-
proved March II, 1873, with the exception
of the two proYisos to said section, relating
to the coupons Of bonds owned or held in
trust by educational Institutions and 10 the
interest on the school fund.
Section second provides that, after nav
ing the current expenses Of the State Gov
ernment, the interest on the common
school fund, and all other sums due the
common schools and academies Of the
State, and the interest on the bOrds now
held BY the East Tennessee University as
the agricultural college fund, the Cover
nor, Comptroller and Treasurer, who are
constituted Finance Board, shall invest
the surplus money in the State Treasury.
other than Tennessee Bank money, on the
first day Of January and July, in The pur-
chase Of legally issued Tennessee bonds,
with all the under-due coupons attached,
and Of the overdue coupons Of legally
issued Tennessee bonds, and in making
said investment, the Finance Board must
purchase such bonds and coupons at the
lowest rates at which they may be offered
by bona fde holders, and shall advertise
for proposals, stating in the advertise
ment The amo9ut of snnlns
money then in the treasury TO be
invested in said bonds and coupons, Provi-
ded, however, that in no event is the Fl
nance Board to buy bonds or overdue cou-
POns at higher rate than sixty cents on
the dollar.
Section third provides that the Finance
Board shall publish insome newspaper pub
lished at Nashville the name of each bid
der, the amount in bonds and in overdue
coupons by him bid, and the price be offer
ed TO take for the same, and shall show
whose bids were accepted.
By section fourth, the Finance Board is
also required to make full report OF its
action in the premises TO each General As
s7mbly, including in the report the adver-
tisements and publication Of bids; and fur
ther, all the bonds and coupons purchased
by the Board must be cancelled in the
manner now provided by law. The lawful
expenses Of the Board are 10 be paid BY the
Treasurer, on the warrant of the Comp
trOlleI, when the warrant has been approved
by the Governor.
Mr.. HEADS BILL.
The bill introduced BIZ Mr.. Head is en-
titled san act to provide for the speedy
payment Of the Just Indebtedness Of the
state, to preserve her faith and credit, and
TO relieve the people thereof"
The first section provides that It shall be
/ the duty of the Treasurer of the State, af-
ter haViug first arranged for the payment Of
| the current expenses Of the government, to
| set apart annually, out of the revenue Of
/ the State, the sum Of one million dollars,
to constitute a fund to be used exclusively
in the payment Of the bonded indebted
ness Of the State.
| Section second constitutes a Board Of
/ Commissioners, consisting Of the Governor,
/ Comptroller and Secretary Of State, who
are to expend said fund in paying of the
bonds Of the State in the manner provided
/ by this act. Ii is also made the duty Of the
| Commissioners to give notice, in one daily
| newspaper in each division of the State,
sixty days Immediately preceding the first
| Monday in July Of each year, that they
will receive proposals from the holders Of
State bonds for the payment of the same.
The bill then goes on to describe the
| manner in which these proposals shall be
made and how the bonds shall be paid.
| Section seven provides that, if after az
ranging for the current expenses Of the
| government, there should not remain in
the treasury the sum Of 100000, it
shall be the duty Of the Treasurer to set
apart whatever surplus Of revenue may so
remain to be used by the commissioners in
the payment Of the bonded indebtedness of
| the State.
The DILL repeats so much Of the act pass
ed March Is, 1873, entitled san act to fund
the past-dUe bonds and coupons Of the
| State, and to sustain the credit thereof, as
is in conflict with the provisions Of the
! bill; provided that nothing in the bill is to
be construed as intended in any manner to
! increase, hinder or prevent a decrease Of
| the present rate of taxation.