Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1882-07-13
THE TENNESSEE STATE DEBT.
Cause of the Delay in Refunding it
An Interesting Talk With State
Treasurer POlk-The POliticO-
Financial Situation.
New York Tribune. Tues,

Secretary of State d. A. Num-, of
Tennessee, arrived in this city the
latter part of last week. They are
now engaged in signing the new
bonds which are to be exchanged by
the State for the existing bonds, un>
der the act of the last Legislature.
The new bonds were delivered only
on last Thursday by the Franklin
Bank Note Company, which was en-
craving them. Since June 7, how>
ever, the Tennessee government has
had funding agency in this city, in
the Continental National Bank
building. It has been in charge of
Col. M. T. Polk, the treasurer of the
State. At this office the old bonds
have been exchanged for the State
treasurer's certificates, which are to
be exchanged for the new bonds
when the latter are ready. The total
amount of certificates issued has
fallen little short of $3,000,000,
while the debt which may be re-
funded amounts in round numbers
to about $25,O00,000.
The new three per cent. bonds will
not be ready for delivery to bond-
holders until early in August. The
slowness with which the old bonds
have been refunded is explained by
bondholders to result, first, from the
objection of present holders to ex-
change their negotiable security for
one that is not negotiable, such as
| the treasurer's certificates and
second, because the continued agita-
tion of the debt question in Tennes-
see has led many bondholders to
doubt the permanepcy of the debt
settlement.
Colonel Polk, the State Treasurer
of Tennessee, conversing with a
Tribune reporter on the subject yes>
terday, said that the old bonds came
in for refunding slowly. For the
next two weeks, however" he added,
Il think they will be presented to
us faster than we can handle them.
You see, by that time the European
bonds will be coming over, which
| could not be sent until the
holders had been advised of the sit
uation here, and of our readiness
to receive the bonds for refunding
Then the political situation in the
State, as it will be developed from
now on, will be such as to increase
the confidence of bondholders in the
stability of the debt compromise.
We cannot furnish any approximate
estimate of the amount of old bonds
held in Europe, but it is considera-
ole. Undoubtedly many bondhold-
ers have been deferred from refunds
ing their holdings by the agitation of
the debt question in Tennessee, and
doubts that the present settlement
will be maintained. The agitation
mas been hurtful in that respect, but
the fears of it's result are groundless.
Then the fact that we were not
ready to deliver the new bonds has
held back offerings. There are many
bondholders who require that their
holdings shall be such that they can
use them at any time in money mat
ters. 1 am promised about S2,00O,O0O
bonds just as soon as the new bonds
can be delivered"
Colonel Polk was emphatic in des
claring his belief that the Repudia
tors in Tennessee would not
be able to affect the re-
cent settlement of the debt.
'The taxes have been levied, he
said, '.for the payment of the interest
ON the State debt Tor July and Jan
uary. The State credit people are
certain to have two-thirds majority
in the next Legislature. The Legis
lature meets in January next, and as
we have biennial sessions, the taxes
will be levied for the interest for the
next two years. That will carry the
,ttlement up to 1885. By that time
I will guarantee that any person who
suggests reputation in Tennessee
will be kicked out. ,"
care you confident of the success
of the debt-paying party In youl
State at the coming election 2"
"Perfectly- It will be successful
even if it results in defeating the
Democratic party. There are thou
sands OF State credit Democrats who
will vote for the Republicans rather
than run the risk of a victory by the
repudiators. You can imagine how
strong must be the houest sentiment
in the State when we are willing tc
vote for the party we have opposed
for the last twenty years and help Il
to success. Yet that is what will
be done, if necessary, by the
best Democratic elements Of the
State. There are three tickets now
in the field in Tennessee. The Re
publicans have renominated Govern
or Hawkins, and their platform i.
pledged to any settlement accepted
by the bondholders. Then there are
the Harmonizer Democrats, wht
wish to preserve the party by com
promise. They have nominated Gen
; eral w. B. Bate, who is himsel
a State credit Democrat. Theil
platform offers par for the debt O
Tennessee, proper. But they recog
nize that to be only $2,025,0O0. Fol
the remainder of the debt they offel
so per cent, in new bonds, bearing
per cent. interest. The Greenback
ers and Repudiators have nominated
, J. R. Beasley on Greenback-snti
Railroad -Bondhold:ng platform. MIR
Beasley is very popular man. ID
differs from most of the repudiators
in sincerely believing that the legiti
mate State debt is S2,O25,00 A
| the last election the Republican
polled 100000 votes, the State credi
t Democrats $4,000, the Repud ator
5 $1,000. and the Greenbackers 100
, | votes in round number. But thl