New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-09-25
M'ADOO TO AID
IN TENNESSEE LOAN
Secretary Learns Bankers
Want s Per Cent Basis on
S1.4OO,OOO Notes.

Washington, Sept. 21.-Secretary NC
Adoo to-day issued this statement:
senator Lea, Of Tennessee, INFORMS
me that the State Of Tennessee naS
81 SOC. 900 of short term notes matur-
inc October I: that the state desires
10 renew or extend $l,40O,OOO Of tnese
notes; that a commission repTeseH'Ins
the state has been in Ne" TOTE aO'
sourp time trying 20 effect thlS Ioa"'
but without success.
at is preposterOus that one OF the
great states Of the Union should mo
f. impossible to procure from the
hanks such a comparatively SmaIi
amount of money. II Senator Lea ana
his associates are unable to procure
from banks in New York or elsewhere
and upon reasonable terms the desired
loan / will myself see If banks cannot
he found TO take up this loan for the
State of Tennessee October ], upon
reasonable terms and at reasonable
rate Of interest"
George p. Wooden, Controller, and
r. r. Sneed, Secretary Of State Of ZEN
nessee. who have been in New YORK
for a week negotiating with wall
Street bankers TO extend an issue OF
81 100000 short-term notes maturing
October 1. said at the Hotel Vanderbilt
last evening that the bankers here were
vet unwilling to meet their terms re-
gardiug the interest the new noteS
should bear, but that they hoped 10
reach a satisfactory basis for their ex-
tension. Up to the present, the state
representatives asserted, the New IorH
b.rks have consented to purchase an
issue Of new notes, but with the under
standing that they be taken on an
per cent basis.
According to an act of the Tennessee
Legislature short term securities. 10
take up bonds maturing IN 1913 are
limited to maximum interest OF per
cent. which would mean that the state
would have TO dispose OF its new notes
considerably under par, If they sofa
them on an per cent basis.
Luke Lea, United States Senator
from Tennessee, came here yesterday
from Washington to assist Mr. Wooden
and Mr.. Sneed to make better terms
Senator Lea had conferences Tuesday
and Wednesday with Secretary McAdoo
and Controller CT the Currency John
SHELTON Williams. As a result OF his
talk with the Treasury officials Senator
Lea said that the new notes would be
accepted as collateral for emergency
currency up to so per cent OF the
amount ISSUED. This he thought would
influence the New York banks to eX-
tend the maturing notes at price ac-
ceptable to the State of Tennessee.
The State of Tennessee has a total
indebtedness of Sll.5OO,0O0, which ma
tured July / and October l, 1913, and
the market was such that long term
bonds could not be sold advantageous
". so short term notes were issued to
take them up. On July l $9,iOO,OOO of
these notes matured and were extended
for one year on a basis Of 4.28 per
cent. The total maturity OF October
/ is 81 100000, but the state, out of its
current funds, is able to pay 100000,
leaving the amount to be extended at
81 100000.
Mr.. Wooden and Mr.. Sneed said there
was no reason why the notes should
not be extended on a basis to which
their state is entitled, as her indebted
ness represents only fraction OF per
cent of her taxable values, which are
much less thar the market values of
her property.