The Pulaski citizen. [volume] (Pulaski, Tenn.) 1866-current, 1879-01-23
GOVERNORS MESSAGE.
Gentlemen of the Senate and House OF


the performance of the duty imposed
upon me by the Constitution.
THE STATE DEBT.
The subject first in importance claim
ing your attention is that of the State
debt.
IL is obvious that it is impossible for
the State to meet its Ostensible obliga-
tiOns, and this inability has resulted in
a total cessation of payment. Payment
upon no part OF the debt can be renew
ed until there shall have been an adj
justment of il upon such basis as will
bring the debt within the ability of the
taxpayers to meet it. This subject is
EN- barrassed by great difficulties, and
until they are solved, the State must
continue TO suffer from discord at home
and TepTOach abroad.
An impartial investigation of the
financial history of the State will show
that, when her government was in the
hands of her people, in financial integ-
rity and forecast Tennessee was second
to no State in the Federal Union that
all of her embarrassments have resulted
from the late war, and the usurpation
of her State government following the
war, and that all imputatiOns upon the
honor of the State proceed from malice.
interest or ignorance. That history Will
also testify that Tennessee never ere
ated a dollar of debt without, at the
time of its creation, providing a safe
and sufficient mode of payment, and
that, too, without calling upon the tax
payers for the slightest contribution.
Ii has been asserted abroad by those
whose purpose it is to injure and defame
the State, that while she is enjoying
the benefits of the investments made
with the proceeds OF her bonds, she
willfully refuses to provide for her Just
obligations, and is, therefore, willful
and dishonest delinquent This asser-
ton is not only without foundation IN
truth. but, on the contrary, the facts
show that the only occasion Tor reproach
to which the State is subject, is that at
the proper time she failed to assert
the rights of her Taxpayers. AS defam-
alton can contribute nothing to the SO
luton of the difficulties which embaI-
rass this subject, but instead tends to
aggravate them, it is to he regretted
that it has been emp Oyed.
A thorough and exhaustive examina-
tiun IF all the facts connected with this
subject, and a firm adherance to the
principles of truth in its adjustment
will solve it, permanently and satisfac-
Judgement from its property; if justice
is to be defeated by accident or occa-
sion if unjust advantages are not to be
surrendered if WI ong is OF to be cured
by time, then indeed the future is with
out promise.
The proper fimits OF this communica-
ton will not permit that ex- nded anal
ysis of the subject which its Importance
merits. The salient facts only Will be
presented as briefly as possible, with
such recommendations as appear to be
appropriate.
when the war of 1861 began, the
debt for which the State was primarily
liable consisted of the following ele-
ments:
/. For stock in turnpike companies
in the sum of$l ,227 $50 &c. Nearly the
whole Of this debt bore interest at the
rate of per cent, and the remainder at
81 per cent. This investment was Sc
cared by a lien in favor of the State
upon the roads and property OF the sew
eral companies, and also upon the usu-
fruct arising therefrom,
2. For stock i'm certain railroad COM
panies i'm the sum OF $685., $50. Nearly
the whole OF this debt bore interest at
the rate of . per cent, and the remain
der at 514 per cent. This investment
was secured by like lien.
3. By six per cent. bonds, loaned the
Bank OF Tennessee, in the sum OF
81 ,00O,O
4, By six per cent. bonds, for the pur-
chase of the Hermitage, in the sum of
$4,000.
8. BY six per cent. bonds, for the
building OF the State Capitol, in the
sum of $65S,000.
The whole amount of this debt, then,
was $3,76S, sO6,66. Its annual interest
was $206,236. The revenue paid into
the State treasury annually, arising
from these Investments exceeded the
annual interest on the whole by about
100000.
The debt of which the State was then
secondarily liable was as follows:
l. By six per cent. bonds, loaned the
Agricultural Bureau, for the sum of
$50, 900.
?. By six per cent. bonds, loaned
turnpike and plank road companies, for
the sum of $57 900.
3. By per cent bonds loaned Rail-
road companies for the sum $l3, 739, 900.
After the 9th of May, 1861, there
were issued to the Rome and Carthage
turnpike company six per cent. bonds
to 5000, and TO the Ohio &
Mobile railroad company six per cent.
bonds amounting to $l72, 900 These
bonds were repudiated in 1865, but still
the Comptroller included them in The
execution of the Funding Act of 1866,
as part of the public debt.
The Agricultural Bureau, part of
the plank road, and turnpike compa-
MES, and two of the railroad companies
were then in default. The whole
amount of the bonds was 81 1885,, 900,
bearing an interest of SSO,l00. With
out estimating the measure of the de-
fault, and assuming that no part of the
interest was paid by the principals in
the debt, the whole interest for which
the State then had TO provide was $685.
1886; and after paying it all the State
still received into the treasury annual
", over 100000 from its investments
in excess of the interest it had to pay to
public creditors.
But i'm fact, all of this debt except
SS7 900 was the debt of the two delin-
quent railroad companies, AMI as other
roads with equal debt and less business
facilities continued to pay their interest, !
it is obvious the delinquency was but |
partial and temporary.
The debt recited comprehends the en-
tire liability of the State existing ut |
the time, both primary and secondary, |
except a contingent liability as endor- |
ser upon the bonds of certain railroad /
amounting to 81, 207 900.
IL appears therefore, that when the |
war began, the public debt was not only |
no burden upon the taxpayers, but, on |
the contrary, the investments made by /
the State contributed largely to alleyi- |
lte the burden of taxation tor the ordi-
nary purposes of government.
The credit of the State had been so
cautiously extended To the railroad COM
panies that the possibility of loss was |
The internal improvement act /
If lS5l-52, with its subsequent amend
nents, not only provided abundant in
lemnity for the STATE, IL faithfully adj
lered TO, but IL made the preparation
If fraud upon the State impossible -
The cost of the railroads OF the State
was estimated to be from $4,000 to
~, 900 per mile. The law limited the
AMOUNT Tor which the State could be-
,ome surety for the company To about
I'll 900 per mile for all purposes, with a
len upon the whole property and its
isufruct for its indemnity. Nor was
lid in any case to be extended until the
Dad was so far completed as to insure
Is completion by the application of the
mount guaranteed by the State, and TO
he end thai the road, when completed,
hnulR no NJ sunh xrn1na "a ta a fortI nm, ]