Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-01-03

De on IOOt abOtner bIOcklODOlbR ttncfnes ike
The disgrsceiul one that was carried out last
winter, when Wall street was "milked" by
men who knew in some way what the de-
cisiou of the Tennessee Supreme Court On
the legality OF the one hundred and three set
tlement was 10 be.
TENNESSEE BoNDHoLDERs INDIGNANT.
The dispatch from Nashville, Tenn, pub
lIshed yesterday, which announced that the
state treasurer lad determined not to pay
the January interest on The funded debt, ex-
cited little surprise among the bondholde's
Ia this city. They admitted at once that the
dispatch was undoubtedly y correct, bscaTse it
was known that no mOney for the payment
OF the January coupons had been received by
the fscal agents of the Siae. While the
news excited little surprise, it was received
with great indignation.
The Tennessee Legislature passed fund
ing act last winter, but the s ate Supreme
Court held the law 10 be unconstitutional on
account Of one section OF the act which made
the coupons receivable for taxes. A new
funding Law was passed in May from which
this clause was omitted, snd that it was
signed Dy the governor. Under this law the
issue OF new bonds for sixty per cent. of the
principal and interest of the State debt was
authorized. The new bonds were to bear
three pr cent. interest for two yeara, four
per cent. for two years, five per cent. for two
years, and six per cent from 1855 to their
maturity in 1912. They were made redeem
able st the option of the State at any time
afler January 1, 1887. Provision was made
for the payment of the interest in accord ance
with the terms Of the act, and the July ecu.
pom was paid promptly. The money for The
January coupon, which the State treasurer
now refuses to pay, is iu the State treasury
In carrying the law into effect, an office
WAS opened in this city by high officers OF
the State. Gov. Hawkins, Secretary. of State
Num-, Treasurer Polk and Comptroller No
ian spent two or three months here engaged
in exchanging new bonds for the old ones.
Mr.. Polk at least gave the most positive as
surances that the coupons would be paid
promptly and all of the ofic rs urged the
exchange of the bonds. Altogether there
have been issued nearly S3,000000 of the
new bonds, which represent more than one
third of the old Indebtedness.
A prominent member OF the Boudholders'
Committee, which aided largely in the ad-
| justment OF the Stale debt, said yesterday:
Il can give no possible excuse for the re-
| fusal OF State-Treasurer Polk TO pay the
January coupon, but i can suggest one or
| two things that may have led him to the
| conclusion. Hemay have been disappointed
that no larger proportion of the bondhold-
ers mas accepted Inc new Donus IN place oil
the old ones. Perhaps the s ate will propose
to these creditors, who have proved OBJ
durate, new compromise on less favorable
terms-that is, for the credilors. This is
no excuse, / admit, for not paying the iu-
terest TO those bondholaers who have taken
the new bonds. / suppose that the real
| motive OF the treasurer must be a desire
/ to be reelected to his present position. He
ssys in the published interview that he
must be governed by the win of the ueo-
| pie expressed at the ballot-box This is a
mere subterfuge in my opinion, for the
fanding of the debt was not bsfore the peo-
| pie at the last election. But admitting,
what he says TO be true, Mr.. Polk assumes
that the new Legislature Will repeal The
funding act passed by a preceding one.
This may be correct forecast, but who gave
him the right to violate a law because he
thinks that it may some day be repealed p
Oiher large bondholders expressed similar
| anInians