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

OFFICE OF COMPTROLLER OF THE
TREASURY, NASHVILLE, Dee. 10, 1SI4.-
To His EXcellency, John G. Brown, Gov
ernOr of Tennessee.-Sir: By section of
chapter 2, 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, to this, the 18th OF
December, 1874, both days included.
As your Excellency is aware, eX-Comp-
troller Pennebaker held this office until
February 4, 1873. lie was succeeded by
Major W. w. Hobbs. who had been elected
Comptroller by the Legislature. Major
Hobbs continued in Office until May l.,
1873, when he resigned, and was appoint
ed by your Excellency to succeed him.
This report, therefore, contains the trans
actions of the office during the last month
of Dir. Pennebaker's term, and during the
three months of Maj. Hobbs incumbency,
IS well as during the time which have
occupied the office.
In the form of an appendix to this report,
I submit tabular statements as follows:
l. Financial conditioned Tennessee Dec.
10, 1874, p. -... ..-.
2 Receipts from Jan. l, 1878, to Dec.
10, 1874, inclusive, p.
}. Disbursements from Jan. j, 1873, to
Dec. 70, 1874, inclusive, p.
/. Statement Of warrants issued and OF
warrants paid, p.
5. Statement of taxable property for
1878 and 1874, p.
+. Revenue received 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, and what securities were thereby
taken.up; also showing maturity of bonded
.. 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, p.
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 81, zoos, 400, and that
the assets of the State on bond account are
S3,SI1, S95.29, leaving an excess OF liabill-
ties over assets of $l9,090,5O3. -. The
liabilities on floating, or current debt ac-
count, amount to 81 ,035 ,540.49. The as
sets are s., 25J, TO4.25. The assets exceed
the liabilities 81 POO 1863. 10.
The outstanding Treasury warrant ac-
count Jan. l, 1873, was S4TG, S34.T2. 1t is
now S253, 290.49, showing a reduction Of
Sl93, 544.23. This, too, notwithstanding
the amounts issued in October, 1873, and
in April and October, 1874, for interest on
school fund, for poll tax, for public schools,
for insane asylums in East and West Ten
nessee, and for July interest on public
debt-aggregatingt the sum of 1908, 1888.
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. l, 1873, was
$3OO,OOO. It is now only S65, 900; showing
re luction on this statement Of $235.O0O.
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.l5, and
that during the same months there was
borrowed on loan account S23S, Altos;
showing a diminutiOn of S92 ,09S07 in the
loan account. This last sum deducted
from tue 100000, reported to be outstand-
!ng Jau. l, 1873, would make the total out
standing loan account May l, 1873, when l
went into office, O7,9Ol.93. During my
/ lcumbency, there has been paid on the
Dan account S27S,O53.3O. There has been
n new loan made. and but one renewal,
May 4, 1872, of $4,000. Adding this SlO,-
90 TO the amount above stated as due May
nj ChnY1lH hlyn rs the
Standing loan account at that date S2I7,-
9O1.93. There has been paid since May l.,
1878, $27S, O53. 80, or $50, l51.37 more than
there appeared from the report Jan. /, 1873,
and the receipts and payments of the first
four months of 1878 to be due. Yet $685.
900 is still due on loan account, making
total discrepancy of SIPS, 1871 in the loan
account. This is accounted for by the de-
fect!ve or negligent manner in keeping the
books of the office, several years ago, which
prevented the total of the loan account be-
ing brought forward into Comptroller Pen
nebakers report.
1t may be as well to state here as else
where, that, OwingtO 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, occasioned by the financial crisis of
September, 1873, and the almost total fail
ure of crops of 1874, | thought that the pub
lie and private interest of our people, de-
manded that the loan and outstanding war
rant accounts, one bearing no interest, the
other bearing a high rate, should both be
reduced as much as possible. In one sense,
it would have been financial policy to di-
minish as much and as rapidly as possible,
the account bearing the high rate of inter-
est, and to leave untouched, or increase, If
necessary, the account which was month";
terest bearing. But the necessities of the
people of the State, who alone held our
non-interest bearing Indebtedness, abso-
lutcly 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 low ebb, and taxes were being
paid very slowly, and when il W Ould have
been ruinOus to have pressed more urgent
ly the collection of taXes-this was a prob
lem of difficult and doubtful solution. |
determined, however, to endeavOr TO az
cOmplish all three objects: the reduction of
the loan account, tie reduction Of out
standing warrants, and the payment Of the
January interest.
With the concurrence and appreciation of
YOUR Excellency aud the Treasurer, l made
Am 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 Jauu-
airy coupons, as presented, would be adj
yanced 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
.nree months,) from the incoming reye-
nue.. What amount will be needed for
Chis purpose, and the length of time for
which it will be needed, will depend upon
the progress that is made in the collection
of revenue, and the lrOmptness of others |
than taxpayers, who are indebted TO the |
State. We hope, with fair returns from |
revenue officers, Jan. l, and with reasona- |
BILE collections during that month, to pay
most of the amount advanced, by Feb. I, |
and with proper management OF the