Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1877-01-13
THE GOVERNORS MESSAGE.

the UONeIuOI > luccsdg6 do IStcIo " GiiO
proposals of committee of bondhold-
ers to meet financial commission au-
thorised by our legislature to compro-
mise the State debt. Other portions
of the message will be commented
upon as the topics come before the
legislature for practical consideration.
FINANCIAL CONDITION OF THE STATE.
The funded and registered bonds
outstanding, amount to so, 81, 400; the
bonds belonging to East Tennessee
| University, not required to be regis
tered, amount to 1896 600; the funda-
| Bile bonds and coupons not presented,
amount to 81 ,021 600; the past due
| interest amounts to $2,080, 756; these
sums constitute the State debt, and
amount to $26, 310,156; from this sum
is to be deducted 1.671 GIG, loaned to
| the Memphis and Charleston Railroad;
81 $50, loaned to the Mississippi
Central Railroad. $316, IA. loaned to
the Miss. and Tenn, r. R.; $14, $50 due
from purchasers of the Tennessee and
Pacific Railroad; $51 ,123, due from
purchasers of Knoxville and Charles
ton Railroad, and $204,000, due from
purchasers of the McMinnville and
| Manchester Railroad, aggregating s.,
45S. 145, all of which will be paid, lea3-
ing as the debt to be provided for,
$50. 852,O11, less $95,636.10, interest
from solvent railroads due Jan. |, 1877.
The outstanding warrant account
amounts to $129,06021, and there is in
the Treasury the sum of $l39, 322. 19 in
cash, with taxes due and unsolicited,
amounting to 81 ,570,659.50
For a statement In detail of the
financial condition of the State, refer
ence is made to the comprehensive re-
ports of the Comptroller and Treasu-
rer, which are herewith transmitted.
1t will be observed that in the two
years past a meterial reduction has
been made in the current expenses of
the State, and the estimate made by the
Comptroller for the next two years,
shows that a further reduction will be
made these estimates are based upon
existing statutes. In considering this
subject, the fact must be remembered
that the shrinkage In values has re-
duced the assessment roll in two years
$50, 425. S35, causing reduction of
$S1, 703. "a, per annum, in the revenues
of the State; this reduction in values
is not alarming the taxable property
of the State is now $26S,002, 4S5; this
is only four millions and fraction of
half less than it was in 1872; it is
nearly sixteen millions more than it
was in 1870 and is forty-fve millions
more than it was In 1869, and fifty
| 49,, 1000
The borrowed money account due at
my Inauguration, the warrant account,
the interest on the school fund, and
the interest on bonds of the State held
by schools and colleges, has been paid
from the revenues of the State. In
June preceding the maturity of the in
terest on the bonded debt, due July 1st,
1873, after it had been ascertained that
it was impossible to meet it out of the
revenue Of the State, under my direc-
ton the Comptroller of the Treasury
undertook to negotiate the loan of a
sum sufficient for that purpose; the
! terms offered to the State were harsh
and unreasonable, and the interest de-
manded was so exorbitant that is was
determined by the Executive officers
to let the payment go by default, and
TO rely for the future upon the reve-
nues of the State since that time nc
money has been borrowed for any pur,
pose. Default was again made IN the
payment of the interest due January
lst, 1876, and again for the interest due
January 1st, 1877. When the money
for the payment of the interest due
July 1st, 1874, and January 1st, 1875
was provided, there were balances
amounting to about 100000, not pre-
scented at the time, and the payment Of
these balances was deferred until Sep
TENDER 10Th, 1876; in the preceding
month the Comptroller Of the Treasu-
ury, under my direction, announced
the readiness of the State to pay these
balances at that time, together with the
instalment interest due July 1st, 1915
the Treasurer commenced the payment
at the time appointed, all the coupons
registered to that date that have been
presented have been paid.
The present rate Of taxation will not
pay current expenses and meet the in
terest On the State debt, and the de-
termination on the part of the people
is fixed and settled not to increase it.
This Conclusion results from want OF
ability on the part Of the Taxpayer.
The creditors of the State realize the
the magnitude of our difficulties, and
will make such a concession as will
make future interest payments easy and
certain. Their readiness to adjust the
debt is disclosed in the following COM
municatiOn:
NEW York, Dec, 1876.-To His
Excellency James d. Porter, Cover
nor of Tennessee: Sir-The under
signed holders of bonds of the State
of Tennessee, believing that the best
interests of Tennessee and of her pub
lie creditors will be served by an early
permanent adjustment of the claims of
such creditors, on a basis honora bic
to the State and equitable to them, re-
specially ask your Excellency, in the
full belief that such settlement is
practicable, to recommend that the Leg
islature of Tennessee, as early may be
| possible at its ensuing session, appoint
IA commission to come to this city and
confer with holders of bonds of the
State of Tennessee, for the purposes
mentioned herein.
I'VE remain your Excellency's most
| obedient servants,
GEO. SMITH, London England.
by GEDDEs & SMITH, Agents, &c.
Brown, Bros. & Co. Agents.
"DREXEL, MORGAN & Co, Agents.
II d. MORGAN & Co,
WARD, CAMPBELL & Co,
JAMES @. KING'sSONs,
Agents for Holders.
GEORGE w. STANTON,
'P. GEDDIE."
The parties represent several mill
ions of dollars of the bonds of Ten
nessee, and are gentlemen authorized
to speak and act; and [ am assured
from my correspondence with other
creditors of the State, that this pro-
position will be generally acceptable
| earnestly recommend the adoption
of the suggestion for conference with
the creditors of the State. The pro-
position comes from the largest holders
of Tennessee bonds. 1t had its origin
with them, and the State can enter the
negotiations with confidence, and with
out sacrifice of her good name. 1t
is of the first Importance to the State
that this vcxed question shall be set
! led and removed from the politics of
the State. 1t is the one great barrier
to present and future prosperity