New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-12-30
TREASURER POLK'S ANNOUNCEMENT

SENATOR JACKSON, OF TENNESSEE, AsToNsHED.
iBT TELEGRAPH TO THE TRIBUNE
WASHINGTON, Dec. Ex-senator Jackson,
Of Tennessee, who the leader Of the State Credit
Democrats in the last campaign expresses great as
t0nishment at the announcement from Nashville that
State Treasurer Polk will refuse to pay the January in
teres on the new funded bonds in Difference TO 1.-THE
Will of the people" shown by the election OF the
Republication ticket in November He said: " cannot
understand IT, The funding act OF May 20, 1ss2 made
the funding date from January ]. 1852, and made inc
interest payable every six months. Interest was paid
July and the money Is now in the Treasury TO pay
the January Mr. Polk Is sworn officer OF the
state acting under which has not been repealed
and cannot be repeaed-a matter Of contract ana ne
proposes TO take it into his hands to say
that the law shall not be enforced. He pro
poses, even in advance OF legislation, TO stop
action under a valid law. That ia mOnsrous position
He right refuse TO pay the interest than
he would have to fund the debt"
In view of Mr.. Pok's announcement 1t Is interesting
to recall the that the funding act OF last May con
tins these words: And for the punctull payment OF
the pruc nal and interest OF said bonds the fan credit
and honor of the staJe hereby solennly pledged
Mr. Polk is a nephew OF President PoA' ana mas up %
this time been staunch state Credit democrat
acuOn that state Credit Democrats here say tDey
regard il as anotacr Sign of The growing demcralization
i'm rnuessee and the suspicion expressed that there
may on foot anOtner socElobhinS scheme nhe lhr
graceful which carried out last winter when
Wal street "mked" by men who knew III some
at decision OF the Tennessee Supreme court
Oh the Legally Of the 1908 settlement was to be.
TENNESSEE B0NDHOLDEGs INDIGNANT.
The dispatch from Nashville, Tenn, pub
sled Yesterday which announced that the state Treas
urer had determined pay the January interest on
the funded debt excited l-tle surprise among the bond
holders in this city They admitted at once that the
dispatch was undoubtedly because was known
that no money for the payment OF the January coupons
had been received by the fiscal agents Of the state
While the excited little surprise, 1t was received
with great indignation.
The Tennessee Legislature passed funding act last
winter bur the State Supreme Court held the law TO be
unconstitutional of section OF the act
which made III coupons receivable for taxes. new
funding law passed In May from which this clause
was omitted and it signed by the Governor Under
this law the OF bonds for 60 per cent Of the
principal and of the State deOt was authorized
The bonds to bear per cent interest for two
years per cent for two years. per cent for two years
and per cent from 1883 to their maturity
1912. They made redeemable AT tho
Opdop OF the State at any time after January l. lsS0
Provision WAS madc for the payment Of the interest in
accordance with the terms OF the act and the July
coupon was paid promptly The money for the January
coupon which the Treasurer refuses to pay,
in tne state Treasury.
In carrying the into effect Office opened in
this city by high officers Of the State. Governor Haw
kns Secretary of State Num-, Treasurer Polk and Con
troer Nolan spent two three months here, engaged
in exchanging bonds for Old ones. Mr. Polk
at ieast gave the most positive assurances
that the coupons would be pad promptly and all OF the
officers urged The exchange OF bonds Altogether there
have issued nearly $3,00000O Of the bonds,
which represent than Onethird Of the old indebt
edness.
A prominent member Of the Bondholders' Committee
wbich aided largely i'll the adjustment Of the state debt,
yesterday g. give possible excuB, for the
refusal or state Treasurer Polk to pay the January
coupon, but suggest one or two things that may
have led INN to the conclusion He may have been dlsap
pointed that no larger proportion OF the bondhoders has
accepted tie bonds in place of the old ones Per
haps the state will propose to these creditors who have
proved Obdurate, compromise on less favorable
tcrms-that is, for the creditors This is excuse,
admit Tor not paying the interest to those bondhOders
who have taken the new bonds. / suppose that the
real motive OF the Treasurer must be desire
10 be reelected 10 his present posi- ion. He says
In the published interview that he must be governed by
the VIII OF the people expressed at the bdOtbOI TINS
is suberuGe IN opinion, for the funding OF
the debt not before the people at the last election
But admitting what lie says 10 be true, Mr.. Polk
that the Legislature will repeal the funding
act passed by preceding This may be a correct
forecast but VIII gave him the right TO violate law be-
he thinKs that il may some day he repealed"
Other large bondhOlders expressed similar opinions.