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

were projected and constructed within th,
borders OF our State. AS rapidly as the
| several companies could meet the condi-
| lions Of the law, the bonds we're issued
| placed upon the market and sold. Oul
State Immediately, as if awakened to new
lie, took rapid strides in prosperity. the
| aggregate value of taxable property in the
State as shown by the Comptroller's report
for 1915, was S2l9, 0l2.05l6l In 1861 it had
| increased 10 1858 2J2.0j being gain o.
Si49, le9, 995 IN SIX years, or an average OF
sG4, 81. 81 per snnum.
nave assumed that events Transporting
after the projection of our system o.
lnternsl I'm improvements in Tennessee had
demonstrated the wisdom of its authors, La
the iight OF experience, and in the ordinary
course o1 human events the indemnities
| ihtehoed to protect the State against loss,
were deemed by The most sagscieus as
amply sufficient. No one then dreamed of
Inc approaching civil war No human
sagacity could have forescen if. r- 4.
p to the time that Tennessee became in
vowed In this war, bonds to the amou of
9lo, 3U9, UUO had been issued in aid of the
various railroads in the State, and so far
out lew OF them had failed to prom,tly
PROVIDE tor the Interests accruing upon the
bonds loaned them, and no doubt was then
ielt put that the lien held by the State was
auplS security against ultims-e loss.
Suddenly however. the cup of pros
perlty was dashed from our lips, the calam-
| tiles OF civil War overwhelmed our State,
our labor and commerce were broken up.
society Was dlsOrgan.zed, armed no IL
traqe sed our country, leaving desolstion
III their track; our railroads were de-
stroy ed, bridges burned, and. in some in
| stances, the iron carried off; the rolling
cob "a H.,
pie were Impoverished, and genera
| wreck and ruin alone remained.
| In 1865, as our State began to emerge
| from the darkness and horrors which had
| so long hung like a pail over its fortun es
Us II came forth crippled, bleeding, and
| mourning the loss of many of Its strong
supports, the general assembly, looking
| around for means to restore our former
| prosperity, and to save the State from The
| loss Of the large investments it had made
IN loaning its credit to the various railroad
companies, determined to restore the credit
| of our State and to reconstruct and rehabil-
| ltate our roads. In this determination il
| but reflected the general desire of the great
| body OF the people of the State without
dlstih ction OF party. .-.
But how was it TO be accomplished. In.
tere8t had accumulated upon ous bonds
during the war, and remained unpaid
| The railroad companies were utterly una
/ ole to proVld9 for the liabilities Tht
| State itself was without revenues, and wa
! again compelled to resort to its credit il
the money markets Of the world. Tn,
good name Of our State aided in this emer
geucy. The past due Interest was fuoded
| the honor, faith, and credit of the State be
ing solemnly pledged for the payment O
prime pal aud Interest OF new bonds issue
| 10 rebuild our roads, and peace them one
more IN condition to aid in building up til
great agricultural, CONNER, lal and indus
trial Interests OF tue country. s-
The tun0ing and rev bonds issued I'm
der this pressing want of the counlr,
swelled our bonded Inability as reported b.
the comptroller at January lst. 1871, in
ciudl g claims of the United States 70
rolling stock, material, etc, purchased b,
; the State for the use of the Edgefield anC
Kentucky Railroad Company, and tn
Mem .hls, GAINESVILLE aud Loui vile Rail
road Com any, and all unpaid interest t
tnat dat, S37, 9O4,O 80 This sum ais
included bonds eudo. sed by the State 70
various railroad companies to the amour
Of ~ l72,00O.
DeductIng from the aggregate sum tn
bonds L cid by the United States Govern
ment before mentioned. SOL ,O45. Do, IN
bonds endOr ed by the State as before men
toned, 81, 1870 0, leaves the actual bonde
+ debt of the State at that date, on aecOuI
of bonds issued TO railroa companies, il
GLIDING interest S35, 0Gl, O52 45.
= The funding act OF March l7th, 1877
', authorized the funding of all past d.
bonds and coupons, and for registering q
F bonus not then due. Since the passage
= this act, the debt has been largely reduce
. by the sale Of delinquent roads. under d.
crees of the chancery court at Nashville.
As the scCount now stands, includin
, interest TO January 1st, 1881, it amounts
r26,3i7, $50.
4 Until comparatively recent period Il
0 moral and legal responsibility of the Sta
t for the payment Of these bonds, and Il
# interest thereon, has not been seri Jus
r questioned. They were issued in purs
2 ance of he plain provisions of law. Tn
d bore the great seal of the State Of Tenne
see, and the sign manual of her honor
s governors. The various political part
l. We'd with each other in form .rlating pc
y tive and euphatlc deciaTatlO S in tuvor
a. maintaining The faith ard credit of t
t, State Cur public press-s and other {
% gans of public opinion in Tcnnes ee ga
ID ex preston to tbs same views. Capitali
have been induced, by our sacred pledge
;, 10 pay the bonds and by our repeated q
:, knoWled cement of their validity, TO lnvt
60 their money liz them. We are 10 the fl
- | enjoyment OF the blessings cOntemplat
- by their issuance.
They were once regarded as the bt
- of securities. therefore guardians holdir
- the funds belonging to their infant war
were authorized to invest the same in the
securities. Many of them are tod
II owned by our citizens. Until recent
n perhaps, no insult would have been mo
% keenly felt by an Intelligent citizen of 0
20 State, proud Of her good name, than t
u insinuation Of purpose upon the part
l. the people to repudiate her just OBJ ig
| tiOnS A lthOuph we have maid no intpPl
IT upon our public debt, except upon q f,
ID specified bonds, for period of five yea
IL l yet have confidence in the integrity
ID the masses of the people of Tennessee, q
10 their willingness to bear all just burdens
e the extent of their ability.
u This estim tie of the herOism and sense
81 justice Of our people is strongly fortified
ID the f ct that their representative IN t
OF general assembly of 1928 while adm
lie ting our inability for the prompt PAYNE
le of the interest past due, and providing t
te the funding itinto new bonds, made tt
Of following strong declaration THAT Il
N faith, honor, and credit of the State
le hereby pledged for the prompt payment
l said bonds at maturity, and for the pr
y vidng a sinking fund for that purpose, 81
l. for the prompt payment of interest on sd
Of bonds, as we'll as the interest on the reg
tered BONDS hereinafter provided for, co,
is mencing with the interest to fall due on t
OF lst day OF July, 1874" -.----
le Now it must be remembered, that und
IN this solemn pledge. made with all t
to formalitles of law by the legislative q
10 thority of the State, and approved by It
re Governor, the holders of past due bon
in and coupons surrendered thea and accel
in ed our new obligations, and nearly /
ID upon the basis of this solemn declaration
2. | uDlic faith.