Year: 1868




Judge Watson, President of the State
Board of Finance, has made highly
important report on the loan which
he was sent on to New York to nego-
tiate for the payment of the interest
on the State debt, and the reason why
said interest was not paid, as well as
the balance OF a debt to the Fourth
National Bank of New York. After
explaining why the completion OF
the loan was delayed, he says:


The condition Of this loan was that
the State should have $4,000, in the
Fourth National Bank 10y the 9th OF
June. While the Comptroller was In
New York there was only $4,000 In
the bank. There We're three East
Tennessee Railroad Presidents in New
York while the Comptroller was
there, owing the State for their inter-
est about $4,000. These railroads
were permitted to delay their paw
ment TIL the 3Oth of June, three DAYS
after the 9th. The Comptroller
started home from New York on the
10th of June, stopped in Washington,
stopped a day In Knoxville, knew
that he would have to stop half day
in Chattanooga, and did not reach
home in time for remittance to reach
New York until after the bill against
the State was filed. There was an
other unfortunate mistake made by
the Comptroller. He remitted sfterI
went to New York nearly 100000 10
pay off the balance of loan to the
Fourth National Bank. 1t was ex.
pressly provided in resolution passed
by the Board, while the Comptroller
was a member Of it, that the balance
due the Fourth National Bank should
be paid out of the loan that was to bt
made by the Board of Finance. The
same thing was provided for in the
resolutions, appointing my agent tC
negotiate loan, and the Fourth Ma
tional Bank was not asking for this
money. Why pay it then contrary
to the intentions and instructions o.
the bank when il was pressingly
needed for the July interest? Had
this amount been remitted to fulfill
the conditions of the loan, and hat
the amount laying in the Treasury
| WhilS tiiS SOiuptiOllcI Wup III NeN
York been duly remitted, we shoult
have the greater part of the $400, 900
l should have required the railroat
Presidents of New York to pay thei
money, which they informed me tba
they would have done, if they hat
supposed it to be necessary, and /
they had not could have easily hav,
raised it. The loan would have beef
completed long before the filing tn
bill against the State, the proceeds 0
it would have been desposited II
bank, and it could not have been at
tached, and the payment of your Jul,
interest would have Aeen secured
Having no remittance from Nash
vile on the Goth June, and desparinj
of any from them OH the railroads,
went to work, raised $325, 5,O0O, tn
amount necessary to make up tn
$4OO, 900, went to the Fourth Nation
al Bank to complete our loan, All
when reached there was met with


dispatch from the Comptroller coun
termanding the loan, and, at the sam
time was met with the injunctio


against making the loan. l kno,
f not where the Comptroller gets hi
authority either to make or counter
mand loan.


But my efforts for the State did no
cease. The hands of the Fourth Ma
tional (which had uniformly come t
the aid of the State) being tied up,
applied to other sources to secure tn
payment of our July interest. Find
ing strong prospect of success, / i'm
mediately wrote to the Comptrolle
that / could pay our interest still,
he would give me his cordial support
went on with my negotiation, an
found that l could succeed beyond
doubt. l waited some days for an an
swer, from the Comptroller. Receiy
ing none, and fearing that the sam
difficulties might be interposedin tn
way of the negotiation as had been i


my negotiation with the Fourth Ma
tiOnal, / suspended my negotiation
and returned to Tennessee.