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terest as it matured. I have deemed it proper to thus detail the history of the action of the State with reference to the "new issue" of the Bank of Tennessee for the reason that it involved so much, and it was so long a matter of concern, and has at last been determined. I will only add that the State has issued certificates up to date, for this money as follows:

Under the Act of 1883...........
Under the Act of 1885..

$651,980
320,505

There were paid out of the assets of the Bank of Tennessee in the hands of the Receiver in 1885 and 1886, $216,584.96. Of these "Treasury Certificates" there have been taken up in lieu of other money for taxes, and a few court judgments in favor of the State-$529,810. There are outstanding, yet to be taken up, $442,675, distributed as follows: In 1887, in 1888, in 1889.

CLAIMS HELD BY THE UNITED STATES AGAINST
THE STATE OF TENNESSEE.

I have received a letter from the Hon. James D. Porter, Acting Secretary of State of the United States, of which the following is a copy:

"DEPARTMENT OF STATE,
"WASHINGTON, October 9, 1886.

"To the Honorable William B. Bate, Governor of Tennessee:
"SIR-I have the honor to call your attention to the in-
closed copy of a letter to-day received from the Treasurer of
the United States in regard to the withholding of any moneys
due certain States, as provided in section 3481 of the Revised
Statutes, said States being in default in the payment of money
due the United States by reason of stocks or bonds issued by
said States and held in trust by the United States-which is
sent you for your information.

"I have the honor to be, sir, your obedient servant,

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The inclosure is as follows:

"TREASURY OF THE UNITED STATES, "WASHINGTON, October 8, 1886.

"To the Honorable Secretary of State:

"SIR-Referring to Section 3481 Revised Statutes of the United States, providing for the retention of moneys due from the United States to any State that may be in default in the payment of principal or interest on stocks or bonds issued by said State, and held in trust by the United States, I have the honor to call your attention to the following States whose bonds are held in this office in trust, on which principal and interest are due and unpaid; and to request that moneys due any of said States be withheld, and this office advised of such action: Arkansas, Florida, Louisiana, North Carolina, South Carolina, Tennessee, Virginia.

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In reply to a letter addressed by me to the Assistant Secretary of the United States asking information as to what stocks: or bonds issued by the State of Tennessee, as to the payment of which, or interest on the same, the State is in default, I have received a schedule prepared in the office of the Treasurer of the United States, herewith transmitted, and which shows the following statements:

Bonds of Tennessee held by the United States.

for the Indian Trust Fund.....

Bonds of Tennessee owned by the United

$314,666.663

States...

Total......

21,000.00

$335,666.66%

Amount due the State from the United States, and withheld,

$10,699.49.

THE BLANK 100-3 BONDS AND PLATES.

Pursuant to House Joint Resolution No. 35, passed March 19, 1885, directing the Funding Board to have the blank bonds printed under the 100-3 Act sent to Nashville, and to cancel the same; also to have the plates from which said bonds were printed sent to Nashville and kept in their custody, subject to the orders of the General Assembly, the Board caused the blank bonds and the plates to be sent to Nashville and deposited in the basement of the Capitol, where they now remain in security, boxed in thirteen large boxes, and awaiting the action of the General Assembly. The Board regret that they have not canceled the bonds. The reason is that it would have required several months to do so. They would have performed the duty, however arduous, but, at the time set apart for the work, Treasurer Thomas, one of the Board, became sick and lingered several monthis. After his death there was not sufficient time in which to do the work.

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I suggest that these blank bonds and plates be destroyed under orders of the General Assembly.

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I received a short time since, as Governor of the State, notice of the protest of $300 of coupons upon certain Memphis city bonds. Upon my sending these notices to the President of the Shelby County Taxing District (Memphis), I am informed by him that there are only some $15,000 or $18,000 in Memphis city bonds outstanding that are indorsed by the State, and that arrangements will soon be made to retire the same.

CONSTITUTIONAL AMENDMENT.

The Forty-fourth General Assembly, at its regular session of 1885, by a joint resolution, which was agreed to by both the Senate and the House, having proposed an amendment to the

Constitution of the State, and as Article XI., Section 3, of said Constitution required said proposed amendment to be referred to the General Assembly next to be chosen, to be by them agreed to by two-thirds of all the members elected to each house, before being submitted to a direct vote of the people; and as required by law, the publication of said proposed amendment was made under the direction and by the authority of the Governor, in proclamation form, six months previous to the election for members of the present General Assembly. The matter is now in due form before your Honorable Bodies for their action.

It will be observed that no special appropriation was made by the Legislature to defray the expenses of advertising the proclamation, and it being a question affecting the organic law of Tennessee, I, as Executive, had it advertised as extensively as practicable, and the expenses therefor paid out of a general fund in the treasury, trusting to your approval, the vouchers. for which accounts are on file in the Comptroller's office.

THE PENITENTIARY.

The report of the Superintendent, together with the reports of the Warden and Deputy Warden, show that there were on the prison rolls on December 1, 1886, the date of the report, the names of 1,216 convicts, distributed as follows: Main prison at Nashville, 561; Tracy City, 313; Inman, 196; Coal Creek, 146. The greatest number of prisoners in the penitentiary at any one time was in 1883, when the total reached 1,427. This number had decreased to 1,323 on December 1, 1884. Those now in confinement are therefore 211 less than in 1883, and 107 less than on December 1, 1881.

Since my last message to the regular session of the Legislature in 1885, the lessees have paid into the treasury the amounts falling due on the lease, in regular quarterly installments, the amount of revenue received from that source during the two years, being the full sum of $202,000.

The report of Dr. Deering J. Roberts, physician of the Penitentiary, is full and complete as to the matters under his charge. It shows, among other interesting facts, the death rate at the prison is steadily decreasing, and is much lower than it was in past years.

From the reports of the Inspectors of the Penitentiary and of the Superintendent and subaltern officers, as well as from personal inspection, I am pleased to note the very marked improvement in the management and discipline of the main prison and its branches; and I have, in order to improve the morale of the prisoners, and to add an incentive to good conduct, exercised the pardoning power to a limited extent, on one or two of the National holidays, upon the recommendations of the prison officials.

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For greater particularity touching the condition and government of the Penitentiary, I refer you to the report of Superintendent T. C. Cain, and the reports of the Assistant Wardens and Surgeons made to him; also to the report of A. J. Hooper, Warden of the main prison at Nashville, and of Dr. Deering J. Roberts, Surgeon of the main prison, which are made directly to me. In connection with the reports of othes officials, I refer to the report of the Chaplain, Rev. Dr. C. D. Elliott, which speaks for itself, and to which I especially refer.

I cannot commend too highly the present management of the main prison and its branches.

YOUTHS AS CONVICTS.

I respectfully renew my suggestion made to the last regular session, that something should be done for the amelioration of the condition of the youths in the Penitentiary. There are a number there who are quite young, and it is without doubt to the interest of the State, no less than an act in the cause of humanity, that they should be kept away, as far as possible, from evil associations, and instructed in the rudimentary branches of education at least, that it may be made possible for them to become good citizens after their discharge from prison.

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