Carroll_Letter_161_49742

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Fellow citizens of the Senate and of the house of Representatives.

The circumstance of your assembling together, clothed with authority by a free people, to deliberate and decide on their dearest interests, is a spectacle calculated to excite the most pleasing emotions in the breast of every real patriot. This high privilege is only enjoyed to the same extnet by the citizens of our great Republic; and if it furnishes a happy illusstration of the principle that the people do in fact govern themselves.

In your deliberations you may rely upon my cordial support in all measures that are calculated to advance the happiness and prosperity of our beloved country. And the opinions which I entertain upon the subjects which I shall bring to your consideration, shall be offered briefly, but with candor. It will be for you to determine upon their correctness, and to sustain or oppose them as your better Judgements may direct.

In the communication which I made of the last sessions of the commencement of the last session of the General Assembly, I urged the propriety of a strict examina -tion of the affairs of the State bank, from a conviction that many of its officers and agents, had disregarded the trust reposed in them, by using the public funds for their own private advantage. The Joint committee to whom was refered [sic] the duty of enquiring [sic] into the condition of the bank discovered that the officers of the principal institution at Nashville were defaulters to a large amount; but the near approach of the termination

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of the session, when this information was obtained, rendered it impracticable [sic], at that time, to ascertain the precise deficiency. The new directory however were authorized to bring the business to a close as soon as possible; this they have not yet entirely accomplished altho [sic] great diligence has been used for that purpose. Nearly two hundred thousand dollars have been obtained from the cashier and clerk, and it is to be [feaned?] that there is a still a considerable sum in default. When it shall be accurately known, a hope is entertained, that the securities of the cashier, will be disposed to settle, in a manner satisfactory to the State. Although there is every reason to apprehend; that a loss will be sustained at the principal bank in Nashville , yet it is believed that a much greater proportionable [sic] deficiency will be found to exist at the agencies. The report of General Smith, of the examination which he has made of the agencies in West Tennessee is now before me, and it exhibits extensive insolvencies on the part of the debtors, and great inaccuracies in the transaction of the public business by most of the agents. The amount due at the agencies in West Tennessee is about two hun-dred and fifty thousand dollars, and of this sum at least sixty thousand dollars, and probably more, will be certainly lost. The gentleman appointed to examine the East Tennessee agencies has not reported; but it cannot be otherwise than that some loss will also have to be sustained in that end of the State. From this view of the subject it is palpable, that the State

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has already incurred a heavy injury, and that most of its funds are in great jeopardy. What then can be done to secure the interest of the country? The answer is obvious. Measures must be immediately adopted to close the affairs of the bank with as little delay as possible, taking care not to oppress the debtor part of society. The better to secure this purpose, I would recommend that an agent of industry and talents, be appointed to visit the agencies, fully authroized to settle with each debtor, allowing a reasonable indulgence for payment, to all those who may give unquestionable security for the discharge of their debts. Where the debtor should refuse to accede to those trms, [wit?] should be instituted against him, in order that a period might be looked to, when the affairs of the bank might would be finally closed. No - objection can well be made to this course, more especially as the community, can receive no benefit from continuing the operations of the institution, as it is at present organized. And the great expense at the principal bank and its numerous branches imposes a heavy tax upon the industry of the people without the least equivalent. It is a principle well supported by experi-ence that the farmer engaged in the peaceful cultiviation of the soil cannot afford, by the small profits of his labor, to pay the ordinary interest of six percent. How then can he borrow from the State banks without almost certain ruin, when the lawful interst in most instances is not half the charge to which he is made liable. He can borrow but a small amount, and when he obtains

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the money, as well as at every renewal, he has to pay for a blank note and a power of attorney. In addition to this the borrower and his two securities lose twelve days labor in each year, by attending as the agents every three months to renew their notes. And on failure to comply with the requisitions of the bank, the president is authorized to confess Judgement against the principal and his securities, which in some instances creates a charge for costs equal to the debt. The farmer who wishes to be propserous and happy must neither borrow money nor contract debts founded upon the anticipated proceeds of his labor. His sucess depends upon industry and economyupon his living almost exclusively within his own means and manufacturing at home, most of the articles of clothing essential to the wants of his family. There is an additioanl reason for closing the affairs of the bank entitled to great weight. A very laudable spirit prevails throughout the State in favor of internal improvements; but this cannot be accomplished without the aid of money. Sound policy would therefore seem to dictate the propriety of collecting the funds of the bank, as speedily as possible, and applying a portion of them at least in the construction of roads, and improving the navigation of our rivers. There is no State in the Union where the materials for making roads are in greater abunance; and yet at that season fo the year when the produce of the country is brought to market, our present roads are almost impassable. With a view to thier

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improvement, I would recommend the propriety of incorporating companies, imposing such restrictions and extending to them such privileges as approved by the experience of other States, where such companies have long existed; and for the purpose of incouraging [sic] that kind of associations the State should be authorized to subscribe for one half or at least a third of the stocks. This plan has been succesfully pursued in Pennsylvania for the last fifteen years, and the extent of her improvements during that time has been without example in the history of any county in proportion to her population. Good roads and the certain navigation of our rivers have such an important bearing upon agriculture, commerce and the growing prosperity of our State, that I cannot but earnestly recommend to your attention, the propriety of adopting such a system of internal improvements as we can certainly acheive [sic] by our own resourses [sic]. The commissioners appointed at the last session to constitute a board of internal improvements held their first meeting at Nashville in May eighteen hundred and thirty. Measures were then taken to employ an Engineir [sic], for the purpose of making surveys and estimates of the expense of constructing roads and improving the navigations of our rivers. A gentleman was engaged for that purpose who was expected to enter the service of Tennessee on his having completed some work he had prevously undertaken to perform. It was contemplated that he would be able to commence his labors for us, early int he past sum-mer; but owing to ill health he was obliged to decline all attention to business of which fact he advised us