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Title:[Circular] 1838 Sep. 18 [to] Directors / Newton Cannon : a machine readable transcription of an image
Author: Cannon, Newton

This work is the property of the Tennessee State Library and Archives, Nashville, TN. It may be used freely by individuals for research, teaching, and personal use as long as this statement of availability is included in the text. For all other use contact the Tennessee State Library and Archives, 403 Seventh Avenue North, Nashville, TN 37243-0312. (615) 741-2764.

Date: September 18, 1838
Extent: 1p
Summary:This document is a circular dated September 18, 1838 from the governor of Tennessee, Newton Cannon. It concerns conflicting provisions of an act passed by the state legislature on January 19, 1838 regarding the establishment of a State Bank, a fund for internal improvements, and the establishment of a system of education.
Collection:Governor Newton Cannon Papers
Document: sl641

Page 1  view page image

[added: CIRCULAR.]

EXECUTIVE DEPARTMENT, Nashville, September 18th, 1838

To the Directors in behalf of the State, acting with the Internal Improvement Companies, in which the subscription on the part of the State, has been, or may hereafter be made, under the provisions of the "act to establish a State Bank, to raise a fund for Internal Improvement and to aid in the establishment of a system of Education," passed the 19th of January, 1838, and the supplement to the same; in relation to the provisions of which, it is apparent, that a diversity of opinion exists amongst the stock-holders in the Companies, that have been organized under said law, produced by the conflicting provisions of the law itself, in some parts, and its deficiencies in others.

This unfortunate state of things has produced much difficulty with those acting under its provisions, which may be obviated, to some extent hereafter, by the prescription of some uniform rule of action, calculated to carry into effect, as far as practicable, the designs of the Legislature. The Stock-holders are required by the law, to pay first in all cases, ten, five or fifteen per cent, (as the case may be,) before the subscription on the part of the State can be lawfully made, or the bonds issued. The Legislature doubtless meant that every stock-holder in the company should pay to the Secretary or Treasurer of the company, (as the case may be,) in money, (to with,) the notes of the chartered banks of our State, or its equivalent, in such other notes, as may be current in the State. An actual payment in money, by the stock-holders, was meant, in all cases, without evasion, in any manner whatever.

Hence, neither the subscription on the part of the State, can be lawfully made, or the bonds issued by the Governor, until the provisions of the Law are fully and fairly complied with, on the part of every Stockholder in the Company.

You will therefore perceive the propriety, that such certificates as are required to be made to the Governor, by the President and Directors of the respective Companies, should be ample, and full, on every point, showing, honestly and fairly, the per cent. on the amount subscribed which has been actually paid in money, by each, and every Stockholder in the Company, also the aggregate amount paid by said Company, showing the part of the same, that has been expended on the work, and the amount of money remaining in the hands of the Secretary or Treasurer subject to applied to the same. In placing the works under contract it is important that the State should be equally represented by her directors, after proper notice being given to all who might be competitors for the same.

The observance of this course by the Directors, in all cases, will no doubt, tend to facilitate our progress in the improvements, as well as the security of the interests of the State, to the utmost extent possible, under the existing Laws.

[added: Very respectfully Your ob't sev't N [obedient servant Newton]. CANNON]

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