The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1913-07-11
GOVERNOR HOOPER
Tells OF WORK OF
REFUND|NG BOARD
GIVES AN ACCOUNT OF HOW THE
MATuRED BONDS WERE
PAID.
INTEREST WAS REASONABLE
The Closest Money Market the Coun-
try Has Seen In Many Years, and
Tennessee Paid No Higher Than
other Borrowers of Cash.

NASHVILLE, July Tn an inter-
view Sunday Gov. Hooper had the
following to say of the refunding of
the state debt:
"The people are entitled to know
all the facts about every step raken
in connection with the refunding of
the state debt
when Comptroller Wooden, Treas
urer Hickerson and State Treasurer
Sneed, members of the funding board
went to New York recently to Dor.
row $9,223,000 on short term notes
| to meet the state bonds due July 1,
they had about one week in which tc
negotiate the loan and close the deal.
ION account of the large number
| of bills transmitted to me by the gen
| eral assembly. il was not possible for
me to leave for New York until sew
eral days after the other members OF
the board vent. They conducted the
negotiations fer the loan and, on the
day | left Nashville, sold the notes
want to say just here, however, that
I was kept Informed by them as to
the progress Of the transactions;
| acquired fuller details after my ar
rival in. New York, and that approve
the action they took
THE funding board was confronted
with the tremendous task Of borrow.
ing $9,223,000 in few days time on
the closest money market that this
country has seen in years.
IF the loan sought by the board
had been only a few hundred thous-
and dollars, the amount of an ordina-
ry bond issue, the matter could have
been easily handled. There would
have been plenty of competition
among the money lenders. But for
an amount so large, the available
time so short. and the general de-
mand for moaey so strong, it was a
lforegone conclusion that no one insti
tuition would undertake the matter
but that ii would necessarily be han
died by syndicate of bankers and
brokers.
"Under all these unfavorable con
ditions the board made every conceiv
: able effort to get the money at the
lowest rate POSSIBLE. 1t would be te
: dious to relate in detail their efforts
along this line The best bid they
could obtain on the entire amount
was approximately per cent. TIE BIZ
exact the bid was SO. for per CEN
notes.
THE board therefore had choice
between -wo alternatives, to accept
: the best bid obtainable or to let the
state default in the pament Of it!
bonded debt July /.
Il may say that so far as am per
sonally concerned l never felt tn,
least uncertainty or hesitation "a t.
the proper course to pursue.
1.-The default of the state would
have brought results that no tru,
Tennessean could view with iEdif
ference. In the first place it would
have greatly injured the states hon
or, and credit. There are tens o
thousands of Tennessee citizens
whose high sense of honor would
cause them to strip the coats from
their backs to. meet and discharge {
personal obligation. Such men woult
have felt the keenest modification i
the state had defaulted Moreover
the immediate parctical result would
fhave been the greatly increased diff
Guilty the state would have expert
enced in the final sale of her bonds /;
Iyear or two later.
"In the second place not only would
such default have damaged the state.
credit, but il would have wrought