Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1879-01-19
GOV. MARKS, MESSAGE
To the Forty-hrst General Assembly o
Tennessee.

~'~~-~
TENNESSEE
Gentlemen of the Senate and House Of
Representatives.
The able and exhaustive communication
of my immediate predecessor IN office IN
great measure relieves me in the perform
ance ofthe daty imposed upon me by the
Constitution.
The subject first claiming your attention
is that of the State debt.
tits obvious that it is impossible for the
State TO meet its ostensible obligations, and
this inability has resulted in total cessa-
ton of payment. Payment upon no part
of the debt can be renewed until there shall
have been an adjustment Of it upon such
basis as will bring the debt within the abili-
tv of the taxpayers to meet it. This sub
iect is embarrassed by great difficulties, and
until they are solved. the State must con-
tinue to suffer from discord at home and
reprOach abroad.
Animpartial investigation of the financial
history ofthe State will show that, when her
government was in the hands of her people,
in financial integrity, and forecast, Tennessee
was second to no State in the Federal | MON;
that all her embarrassments have resulted
from the late 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 crea-
ted dollar of debt without, at the time OF
its creation, providing safe and suthclent
mode Of payment, and that too without call
ing upon the tax payers for the slightest
contribution.
1t has been asserted abroad by those
whose purpose it is to injure and defame the
State, that while she is enjoying the bene-
fits of the investments made with the pro-
ceeds of her bonds, she willfully refuses 10
provide for her Just obligation, and IS, there
fore, willlul and dishonest delinquent.
This assertion is not only without founda-
ton in truth, but on the contrary the facts
show that the only occasion for reproach
TO which the State is justly subject, Is that
~ the proper time she failed to assert the
rights of her tax payers. As defamation
can contribute nothing TO the solution OF
the difficulties which embarrass this subject,
but instead tends to aggravate them, 1t Is to
be regretted that it has been employed.
4 thorough and exhaustive examination
of all the facts connected with this subject,
and a firm adherence to the principles OF
Justice in its adjustment will solve 1t, per-
manentlv and satisfactorily. But if passion
is to frighten judgment from its propriety;
if Justice is to be defeated by accident or
occasion; if unjust advantages are not to
be surrendered; if wrong is to be cured by
time, then indeed the future IS without
promise.
The proper limits of this communication
viii not permit that extended analysis OF
this subject which It's importance merits.
The salient facts only will be presented as
briefly as possible, with such recommended
lions as appear to be appropriate.
When the war of 1861 began, the debt
for which the State was primarily liable
consisted of the following elements:
First for stock in turnpike companies in
the sun. of $l,227 ,556.66. Nearly the whole
Of this debt bore interest at the rate of )
per cent, and the remainder at 81 per cent
This investment was secured by lien IL
favor of the State upon the roads and prop
erty oftbe several companies, and also upor
the usufruct arising therefrom.
Second for stock in certain railroad com
,anies in the sum of SS35,25 Nearly tn
7hole of this debt bore interest at the rat
Of ) per cent. and the remainder at ST pc
cent. This investment was secured by
like lien.
Third, by six per cent. bonds loane,
the Bank of Tennessee, in the sum o
81 ,OOO,OOO.OO.
Fourth, by six per cent. bonds for tn
purchase of the Hermitage, in the sum
S4s,OOO.OO.
Fifth, by six per cent. bonds for the build
ing of the State Capitol, in the sum o
S658,OOO.OO.
The whole amount of this debt, then, wa
S3,76S, SO6.66. Its annual interest wa
S2O6, 236.O0. The revenue paid into tn
State treasury annually, arising from thes
investments exceeded the annual interes
on the whole by about 5000, 100000.
The debt for which the State was thel
secOndarIlY liable was as follows:
First, by six per cent. bonds loaned tn
Agricultural Bureau, for the sum of $50,
10000.
Second, by six per cent. bonds loane,
turnpike and plank road companies, 10
the sum of So, 100000.
Third, by six per cent. bonds loane
railroad companies, for the sum of $I3
739,0O0.0O.
After the 9Th of May, 1861, there wei
issued to the Rome and Carthage Turnpik
Company six per cent. bonds amounting I
SS,OO0.0O, and to the Mobile and OH
Railroad Company six per cent. bono
amounting to SI72.OOO.6O. These bond
were repudiated in 1865, but still ii
Comptroller included them in the execute
of he Funding Act of 1866, as a part
the public debt.
The Agricultural Bureau, part of IL
plank road, and turnpike companies wei
then in default. The whole amount of ii
bonds was 81 1876, 100000, bearing an int
est of $50, 10000. Without estimating I'll
measure of the default, and assuming tn;
no part of the interest was paid by II
principals in the debt, the whole interest f(
which the State than had to provide VS.
$3.50. 1886 90; and after paying IT all ii