Year: 1868

THE RUIN OF THE CREDIT OF THE


STATE.


Private dispatches received from
parties i'm New York state that there
was great deal of excitement in re-
gard to the attachments levied upon
the funds provided by the authorities
to pay the July interest ON the State
debt, and the heavy decline of four
cents i'm the price of our bonds shows
the nature of the excitement. A dis
patch received after the close of the
public board, shows that the decline
was still heavier late in the afternoon.
One dispatch, referring to the excite
ment produced by these suits, saws
"the bottom of tennessee credit has
been knocked out" This Is the light
In which sagacious capitalists in New
York regard the credit of the State of
tennessee to-day. And this is the
condition to which our Radical rulers
have reduced this State. When the
bill was being passed to provide for
the issuing of 81 600, ,OO0in bonds with
which to take up those falling due in
May, we cautioned our authorities
that this plan would not work,
that the holders of the May bonds
would not likely take new and deprc-
ciated bonds in their stead, and that
they would expect some provision
made for their redemption. 1t turns
out that only about 100000 of these
bonds have ceen taken up with the
new bonds, leaving about $4,000, 900
outstanding, theholders ofwhich were
unwilling to accept the new bonds in
in their stead. On Monday parties
holding about $500,OO,OOO of these
bonds attached the funds provided by
the State to pay the July interest,
and yesterday other attachments
were levied upon these funds, but for
what amount we did not learn. The
July interest amounts to nearly 81,
100000, and about 100000 of this
amount had already been provided
and was in New York. All this has
been attached, and even should these
attachments be vacated, it cannot be
done in time to pay the interests and
save the credit ofthe State. There IL an
impression here that these attach
ments will not hold, but that is ques-
ton to be decided in New York. tits
hardly probable that the parties in
terested would have commenced these
suits without q reasonable certainty
that they can be sustained. But they
have not stopped with these attach
ments. The Board of Finance was
yesterday notified that application
will be made to the Judge of the Uni
ted States District Court for this State,
on behalf of the holders of the over
due bonds Of the State, for an injunc-
ton to restrain them from making
any appropriation or disposition of
the money which they have already
realized or which may hereafter come
to their hands under the provisions of
the act of March 13, 1868, creating
the board, otherwise. than in accor-
dance with the requirements of that
act and of the trust thereby created,
and especially from preferring or pay
ing any one class of creditors of the
State in preference or to the exclusion
of any other class of such creditors,
and appropriating such funds to the
payment Of interest hereafter to ac-
crue and become due and payable
unpn bonds of the State the princl-
pal money of which Is not yet due, in
preference and to the exclusion of the
past due bonds of the State now out.
standing and unpaid, and the interest
of which has accrued and become
payable thereon. And in like man
ner to restrain the board from making
any sale, loan or hypothecation OF
bonds issued or to be issued under the
authority of the act of.March 13, 1868,
without concurrently paying Off out
standing bonds and interest to an
amount equal to the amount of such
bonds so issued or to be issued, and
sold, loaned or hypothecated by them.
1t VIII thus be seen that the parties
who hold the over due bonds of the
State are in earnest in their efforts to
secure the money to which they are
justly entitled, and which the State,
under the heavy taxation imposed
upon the people since the Inaugural
ton of the Brownlow administration,
would have been amply able to pay
but for the outrageous extravaganza
and mismanagemento of the State au-
thorities. The people of Tennessee
will now see whittier they have been
carried by the present State admins
tration in the wild hunt for Office that
has characterized the leaders of the
Radical party. From the Governor
down to the most insignificant oflici-
al, they have been too intent upon
perpetuating their power and reward
ing partisans, to care for the material
interests and creditof the State. The
taxes imposed upon the people have
increased year after year at a fearful
rate, until they haveassumed propOr-
tions which would have appalled, this
people, eight years ago, and notwith.
staiiding these taxes have been close.
ly collected, they have all gone, and
with them the money received from
the Bank of Ttnn6sssee and constitu-
ted "sacred school fund.- not to
liquidate the Indebtedness of the
State, but into the insatiate nav of
Radcalism, that favorites may be re-
tanned in sinecure offices upoii large
salaries. Such has been the manage
ment of the Brownlow administra-
tion, and to-day the credit of the
State Is ruined. VIII the people
never. arouse to n full realization of
these terrible facts? Here we are at
most critical period in the history of
the State, without n dollar hi the
treasury and our creditors importu-
nately clamoring for what is due
them, and taking such steps as must
inevitable result in utter ruin to the
credit of the State, and this dire ca
lamity is justly chargeable TO the in
efficacy of the Governor and those by
whoffi he Is surrounded.


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TENNEssEE-FUNDs ATTACHED IN
NEW SORK.-A number of private
4 II II A..