New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-07-11
PRICE FOUR CENTS.
THE TENNESSEE STATE DEBT.
CAUSE OF THE DELAY IN REFUNDrNG 1T.

Il.
AN INTERESTING TALK WITH STATE TREASURES
PoIK-THE PoLIucO-FINANcrAL SITUATION
Governor Alvin Hawkins and Secretary Of State
d. A. Num- of Tennessee arrived in this city in tho
latter part of last week. They are engaged in
signing the new bonds which are to be exch lnged
by the State for the existing bonds under tho set
tlement made with the bondholders under the
act of the last Legislature. The new bonds were
delivered only on last Thursday by the Franklin
Bank Note Company, which was engraving them.
Since June z. however the Tennessee Government
has had funding agency in this city, in the Con-
tInental National Bank building. 1t has
been in charge Of Colonel NJ. 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 arc
ready. The total amount of certificates issued has
fallen little short of S3, 100000. while the debt
which may be refunded amounts in round numbers
to about $2500O,O00.
The new three per cent bonds will not be ready for
delivery to bondhOlders until early in August. The
slowness with which the old bonds have been re-
funded is explained by bondhoders to result, first.
from the objection of present holders TO exchange
their negotiable security for that is not negota-
BILE, such as the Treasurers certificates; and second
because the continued agitation of the debt question
doubt the permanency of the debt settlement.
Colonel Polk. the State Treasurer of Tennessee
conversing with TRIBUNE reporter on the subject
yesterday, said that the old bonds came in for re-
funding slowly. For the next two weeks, how
ever" he added, think they will be presented to
us faster than 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 situation here, and Of our readiness
Al l.. e. ThAr thn
political situation in the State, as it will
be developed from 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 il is considerable.
Undoubtedly many bondhOders have been deferred
| from refunding their holdings by the agitation OK
the debt question in Tennessee and doubts that the
| present settlement will be maintained Bhe agita-
ton has been hurfu in that respect, but the fears
| of its result are groundess. 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 matters am promised about So, 0OOO
| liveYed.p
Colonel Polk was emphatic in declaring his belief
| that the Repudiators In Tennessee would not be
able to affect the recent settlement OF the debt.
! "The taxes have been levied" be said, for the
payment of the interest on the State debt for
| July and January. The State Credit people
arc certain to have two-thirds majority in tho
| next Legislature. The Legislature meets in Janu-
| ary next, and as we have biennial sessions, the
| taxes will be levied for the interest for the next
| two years. That will carry the settlement up to
| 1885 By that time will guarantee that any per-
son who suggests reputation in Tennessee will be
| kicked OUT"
Are you confident of the success of the Debt
Paying party nyour State at the coming election"
| Perfectly. Ii will be successful even II 1T re-
suits in defeating the Democratic party. There are
thousands of Stale Credit Democrats who will vote
| for the Republicans rather than run the risk OF q
| victory by the Repudiators You can imagine how
| strong must be the honest sentiment In the State
when we willing TO vote for the party we have
bitterly opposed for the last twenty years and help
| 1t to success Yet that Is what Will be done, II
necessary, by the best Democratic elements OF the
State. There are three @ tickets s,;o now M IN the
| nominated Governor Hawkins, and their
| platform is pledged to any settlement accepted
by the bondh0lders. Then there are the Harmonizer
| Democrats, who wish TO preserve the party by q
! compromise. They have nominated General W. Ds
| Bate, who is himself State Credit Democrat.
Their platform offers par for the debt OF tennessee
| proper. but they recognize thas 10 oe y oniy
| $2,O25,00O For the remainder of the debt they
GeT SG per Se1f e D1d and have
nominated }. Il. Beasley on Greenback And Rsll-
| road -Bondholding platform. Mr. Beasley Is very
popular man. lie differs from most OF the Repudia-
ters in sincerely Oeieveng that the legitimate
state debt is 81, ,025 900 AZ the last election tho
Republicans poed lO3oOO votes the sta state Credit .t
|
| Green hackers 1000 votes i'll round numbers. But
| this year Beasey, the Greenbacker Will draw
| 10000 from General Bate, the Har-
| monizer. Tomorrow the State Credit Democratic
| Convention will meet in Nashville, and its
platform will be favor of maintaining the present
| debt settlement. think that the convention VIII
nominate for Governor j. j. Turner. a prominent
lawyer of Gallatin. He is strong, uncompromlslng
State Credit l estimate the vote OF the State
| Credit Demo- ocrats at about 10000 Thousands or
| Democrats will vote for Mr.. Hawkins and give tho
| Republicans everything rather than have the
| present settlement ImperIled."
" HOW is business III tennessee at presentT asked
| the reporter.
| business in all branches is improving consider
ably The outlook for the crops Is splendid too:
| We have had such wheat crop as we Will
| have this year. 1t is harvested and is being
| threshed and is turning out WELL The wheat crop
this year would pay the whole debt without trouble.
All the other crops also looking well"
The coupons ON the new tennessee bonds are not
BILE under the recent decision OF tho
| Supreme Court. No steps have yet been taken 70
| carry the case INTO che United States Court.