New-York tribune., 1882-09-28
TENNESSEE INTERESTS.
A TALK on POLITICS AND FINANCE.

TALK On POLITICS AND FlNANCE.
COLONEL POLK, THE STATE TREASURER, CONFIDENT
OF THE DEFEAT OF THE EEPUDIATING DEMO
CRATs-THE NEW DEBT SETTLEMENT
After the passage OF the act for the refunding Of
the State debt Of Tennessee, the state Govern
ment epencd an agency IN this city Tor the con-
version of the old bonds lnto new ones, kno"
NOM larIy as the compromise bonds" The Gov
ernor and several other State officers came here
from Tennessee to superlntend the rounding pro-
cess and to sign the now bonds "a they were de-
liyered from the engraYers Only siuall portion
OF the total debt of tho State has been Refunded
Tho reason for this is said by weil-inioFmed
brokers and bankers to be the doubt which, many
bondholders entertain of the pernanency OF the
debt settlement. Ia the political campaign IN
Tennessee this autumn the now settlement Is the
principal issue betweeD the COntendlng parties.
Baukers SAY that should the element IN favor OF
main tanning the credit of the State be successful
the polls there probably would bc n very general
exchange OF bonds under the Compromise Act. In
the meantime, however, bOndhoIders prefer 10
make no change i'll tho present status Ol tber
holdings They argue that their present security
is rs safe at the hands of the reppdlators IN
Tennessee as tho new one would be. while If the
recent settlement Is disturbed they have the
chance of possibly obtaining better one some
time later The State officials of Tennessee Insist
that this argument IS more spccious than substan-
tial and that rejection oi the present COMPROMISE
is likely to have no better effect tlan 10 alehatc
the lebt-DayIng parties III that State, which have
made political concessions IN order 10 effect an ad-
jn,tmcnt of tho liabilities of their commonw ealth.
The Tennessee Funding Agency here Will be
closed on September 10, alter which date bond
holders will be compelled to forward their bonds
at their own expense to Nashville for exchange;
A TRIBUNE reporter recently talked with Colonel
NJ T. Polk, the State Treasurer Of Tennessee.
about the financial ana political affairs OF his
State. Colonel Polk said
will confess thas the exchange of bonds under
the recent compromise has not proceeded as rapidly
as VIC had anticipated. At this office VIC have re-
cclpted for more than oa Pomds m 7o MGn 4Gn
new bonds an amount which absOrbs over
50 600 600 of the old issues. according to the rate
of exchange That as is known, Is go per cent III
bonds or the face OF the plIncpal lnd &C aGIruGa M
interest OF the old securities Inc tota debt 10 De
refunded is about $27.000OOO. From that
amount however must be deducted ~ 100000
bonds head by charitable and educational lnsttu-
tions i'm our State. and something over Sl,2OOOD0
held in trust by the nlted states Government Tor
the benefit OF one of the Indian nations We are
not refnnding these, having been paying the In
terest on them right along As business men anu
believe that the amount of bonds presented for eX
chan 20 will be very large. In fact | have only
To-day received assurances from several large bond
holders that they would refund their no ldings at
once Undoubtedly many persons have been de-
tered from exchanging their bonds bv the feat that
the now Legislature will be controlled by the re-
pudationists and will upset the present debt conf
promise. | consider these fears to be grOuEdless.
The election IS sure to be carried by the debt
pa wing parties. At any rate II the repudiatlOnsts
get control It Will mean po,tponement OF set,
Element for twenty years; equivalent TO ilat-footed
repudiatOn. The best terms offered by that party
aIe 30 per cent of the Old debt IN new thee per
cent bonds. Now, allowing for the possibility ot
the success of those people, bondhciders Ivy accept
ing the present compromise, Will make ono years
interest on the new bonds. | am paying the July
coupons on the bonds as they are issued and have
the funds on hald to pay the next January
coupon. And | intend to pay that coupon think
that the man who doesn't accept The present set
Element doesn't want any. our ohice here VIII Oe
closed in about ten days, and thereafter bond
holders who decide to Surrender their olG securities
Will have to send them on 10 Nashville and pay
the expense OF transportation. Alter september ID
our work nero stops"
Are You confident OF the deleat OF Jne repudld-
Perfectly confident" Colonel Polk replied.
"There is no doubt OF the reelection OF Governor
Hawkins, the Republican candidate. The state
Credit Democrats are steadily gaining, too The
furor over the nomination OF General Bate, the Low
Tax partvs nominee who is very popular personally.
is over, and also the allurng enthusiasm about
unItIns the Democratic party in the State. We
will receive and are receiving accessOns frOm
voters who al first were Influenced by these con-
sideratiOns in favor Oi the repudlatlOnlstS Low
TaA party is an attractive name, and | never
knew any persons to be mOIe attracted by the cry
of low taxes than those who don't pay any and
who even try to crawl out Of paying their poll tax.
1 am willing TO predict that Ia the next Legs,
lature there will be httytwo Republicans ana
twonty- four State Credit Democrats or seventy
six members favor of ma 'ntaining the debt
settlement out ot 1t total Of l32 IN both branches
of the LEGISLATURE. In this estimate am includ-
ing no really doubtful district. |, Is true that
some of these districts claimed by the LowTaA
party but then they claimed many D: them at tho
last election, but our men were III the Legislature
all the same -,
tnued Colonel Polk. The campaign begins at
once Governor Ifaw kins, James FusSe the State
Credit candidate for Governor ana j. Il. Beasei,
the GreenbackCT, start n stnmplng tour to-
gether Ths friends of General Bate refused TO
allow hIm to 90 with the party Oh the ground that
there would not be time for the four candidates
to make speeches the same night The real
,easOn is that they know that General Bate would
he beaten OF ,hc platform. lie Is n very popular
man and personally ] like him very much. But
while ne Is good orator. so far as speech making
goes he cannot meet one man on the debt question.
The facts are against MN and he could not over
throw them
How about the United States Senatorshp from
Tennessee y
Senator Harris, whose term has expired, took
the grOnnd that he must support the position of the
majority OF his party. As the Ietundl1g OF the
State debt in new three per cent bonds at ty cents
on tue dollar is favored by majority of the
Democrats. Mr. Harris has espOusrd that prOpOsI-
of General Bate. But Mr. Harris will not 20 back
to the Senate, even ii the repudatiOnlsts are vic
| torious. In that case any other man even vtO-
| lent LOw-TaX m1n-wOuid be preferred by our
| party TO him. Senator Howell T.. Jackson is 90
! ing TO meet Mr.. Harris wherever he goes. Mr..
| jackson is a man who does not believe that DEM
ocratic principle should be sacrificed to Democratic
! expedicncy. Simply because It is eNQedit mt not to
| pay ones debt he does not believe IN rcpudiatng
| il The good name of the state is To be preserved
| even above the union Of the party. Harris when
| Governor Of Tennessee, signed about F1OOO,OOO
OF the old bonds and he ku' VS. that tue debt is an
| honest one
| In conclusion Colonel Polk Ievertng to the Ques-
tion of the present exchange of bonds. said: 1t
will be a mistake on the part of the bondholders If
they suffer the compromise TO fan through their
| neglect TO exchange their bonds. BY delay they
| are only ageravatng the State Credit Democrats
who have sacrificed their political and personal IN
| tere,ts in order to bring about the settlement
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