Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1881-02-27

has been nicely adjusted, but the "motive
power to move this machinery to grand
and glorious results is insufficient.
As guardians of the best Interests of all
the people of the State especially of the
children Of the State, it is incum bent upon
you to provide, in every way practlcahe
in your judgment, the means which alone
can mske this system a blessing to our
State and pride of all its people.
In the Interests of higher education
than Can be given in our common schools.
you will not fail to extend your fostering
care to the University of Tennessee, am
give 1t such aid as its necessities may re-
quire and the condition of the State per-
NIT. 1t is truly gratifying to note the zeal
and liberality displayed By the various re-
glous organizations of our country Ii pro-
vlding for the educational wants of the
people, and especially in the higher
branches of learning.
Tennessee can point with pride TO the
various universities. colleges, Summaries,
ETC., under the auspices OF the d.ffere Mt
branches of the church, and realize the
truth of the proverb, that Righteousness
| exa!teth nation"
Allow me to call your attention to, and
commend to your most favorable copsld-
GRAFTON, the State normal college, located
y
for the education of teachers, this institu-
tion an not fail, if properly sustained, to
confer substantial benefits, by training and
qualify ing young ladies and gentlemen for
the arduous and responsible positions Of
| teachers III our public schools.
CHARITABLE INSTITUTIONS.
The various public charities of the State
Will, of course receive at your hands The
full share of attention TO which they are
entitled, and be the recipients of such lib
| era!ity as their strong claims upon an en-
lightened philanthropy may justify.
STATE DEBr.
In calling your attention to the bonded
deot of the Stste, AN aware Of the very
serious diff culties which surround the sub
ject, and the great importance of we'll con-
sldered and wise legislation TO regard to the
whole matter.
FIom the report of the Com ptroller it ap>
pears that the total amount OF bonds here
tofore issued by the State is S49, l69, Bio &c.
The amount now outstanding as a liability
against the State is $40, zoo, 800 To this
msy be added contingent liability of
s7S5 C00 on account of tonds Issued which
have never been presented for registration
| or renewal, and which are supposed to have
| been lost or destroyed. The total interest
nov due On the debt outstanding is
| IS 336 $50 which sum being added to
| amount of Outstanding bonds known or
| believed to be IN existence, makes u total
liability of S26 542,65J
La consequence of the agitatiC which
has prevailed in Tennes ZEE for the past few
years in regard to the proper adj uslment Of
| this debt and the widely variant views
which have been advocated in reference
thereto, it is perhaps proper that [ should
briefly review the history of its creation.
The first bonds of the State Issued were
dated January l, 1888. and amounted to
| $500, GOO; they constituted q basis for the
establ shment of the Union Bank. Suisse
quenty, bonds were issued in payment OF
subscriptions made by the Stale for stock
in certain turnpike companies. Also tt
the bank of Tennessee, S25C0.OU0 fol
building the capital, $780,, coo; for agricul
tursl bureau, $50, COO for the purchase o.
the Hermitage property, .48.OJO.
In our financial reports thesA items Ct
ind obtedness have been known as the
State debt proper" in contradistinction
from the debt created under the genera
internal improvement law of 1871 AT
1~5Z and ac-s amendatory and subse quen
theI elo. which has be known as 'tnt
railroad debt" of the State The only rea
s,n for this distinction, it is believed, il
found in the fact that on account of tht
b md known IS RAILROAD bonds tnt
State had indemnity. while on account o
: hose known as the State debt proper"
: d none. They were all alike the bond
; of the State. Under the general fundiu:
act of 1878 the distinction between the tW
: classes Of bonds was no longer preserved
d 1t Is believed thrre Is now no means q
ascertaining to which class any one OF tn
funding bonds Issued under that act be
longs.
; Under the general internal improvement
act OF 1851 and 1852, and acts amendator.
thereto, the State provided for lean of it
credit to certain railroad companies an
; the issuance of the bonds of the s ate |
= said sp cited companies to the amouC
of $4,000 per mile for the purpose {
ironing and eqiipping said roads, togethe
with such specific amounts tor bulldln
certain bridges, as were directed by Sal
! ac's.
:, These acts provided that these bon
l should be ISIS Led and delivered to the raj
road companies upon the performance b
the companies of certain conditions prec
n dent and reserved 10 the Stale the righ
:, by its officers, to determine when the
"a conditions precedent had been compile
q with.
y And although the evidences of sue
: compliance may have been lost, we mu
2 presume they were fu. nished to our go'
h ernors before the issuance of the bonds,
d else that our own hOnored agents acte
I. corruptly and in vic alton of law In the
/, issuance, and I take it for granted no we
/, informed man will for one moment mail
L tain the latter proposition.
3, The constitution tf 1884, ratified by OF
J. f,thers, declared "a well regulated syste
= of internal improvements Is calculated
@ develop the resources of the State, AID
% promote tue happiness and prosperity
: the people, therefore it ought to BIZ e.
u couraged by the general assembly,"
81 1t was under this plain mandate of OF
/" own Constitution the various acts REFER,
70 to were passed and the bonds issued. /
g tue time of the passage Of these acts al
u the issuance ofthese bonds, tits believed
le intelligent man anywhere questioned Il
liability of the State on account of sue
l. bonds. Upon their face they recited til
ID the State acknowledged to owe, al
S. promised to pay TO the holder the sum
ID $l,OU0, with interest thereon, and for Il
is performance thereof, according to Il
It. terms, the faith and credit of the Sta
~ indemnifylng the State against loss {
Il account of these bonds. loaned to Il
of various railroad companies, the acts a
r thorIZLg their issuance provided TINT
is should constitute a first Len upon the roa
st bed, iron, rolling stock, and franchises
of the company.
or The com paniea receiving these bon
re were required TO pay into the treasury
~ the Sale, fifteen days in advance of Il
st days upon which interest became due,
be amOuut sufficient to meet the same, or
It, produce satisfactory evicence that t
ty same had been provided for. They we
Id also required, after the lapse of certa
ID time, to pay into the treasury certs
III per centage on the amount of the bon
rs issued for their benef., as a sinking ful
for the pay nent OF the bonds at maturiL