The comet. (Johnson City, Tenn.) 1884-1916, 1915-04-22
MILLION DOLLAR ISSUE
GOES AT THREE PER CENT
NEW YORK BANK BUYER
Officials Declare This to be Remark
able Good Trade Dated May
to BE Retired July

Nashville, April Estate Treas
urer .'orter Dunlap, acting with the
authority of the state funding board,
Saturday afternoon closed a trade
with the Nation City Bank of New
York ut per cent for the $1,000, 900
short-time notes or bonds recently
authorized by the general assembly
to take care of the states deficit
which the Rye administration inherit
ed This is declared the best trade
the state has made on its bonds since
reconstruction days.
These notes will be dated May
and mature July /. On the latte"
date, there will be available for the
retirement of these notes. the pro
ceeds of the 11,7S1 900 bond sale
which will be negotiated shortly. The
latter issue will take care of the en-
tire state debt, the bonds maturing
forty years from date on serial
basis.
The report Of C. A. Ware, assist
ant state auditor, made as Of Jan
Is last, showed deficit in the state
treasury of $1,O22 ,26631. On April
8, at TIE meeting of tn efunding
board. Treasurer Dunlap reported
that there was over $1,25O,00 less in
the treasury on that day than on the
game day two years previous, and
over 81 100000 less than on the same
day one year previous. This same
report showed that the remittances
from the county trustees over the
state, which is the principal source
of revenue coming int othe states
Golfers. amounted to practically the
same a. for several years previous.
The states outstanding obligations
would wipe out whatever small bal
ance the state has had to its credit,
and show an absolute deficit.
s ue IdIc VI lltCACol WniCH lhC
state viii pay for the $1,000,000 loan
it is floating at this time as an emer-
gency measure, is SO low that the
state, ii is said, will lose nothing.
The money, or whatever part of it
is not Immediately paid out, will be
deposited in Tennessee banks at in
terest.
WheL the news spread in banking
circles Saturday that the state had
it's loan at the rate OF
8 per cent, Treasurer Dunlap receiv-
ed many congratulations from local
bankers, who had been attempting tc
secure so good bid as the one ac-
cepted
The lowest bid local bankers were
able to secure for the entire issue
of $1,Oo0,O0O was per cent. One
banker did receive bid of IL per
cent sct $4,000 worth of the notes.
Another feature of the transaction
is that Treasurer Dunlap closed the
trade without going to New York, OF
scarcely leaving his office at the cap
ltal. In former times it has been
customary for the funding board tol
make visits to the eastern financial
eentcrs. Treasurer Dunlap introduce
ed a new style by remaining in his
office at the capitol, attending to all
routine duties, and at the same time
pushing to a successful conclusion
his trade. In this he has been ably |
assiste by W. r. Marhall, the Tulla-
1oma tanker, who was recently elect
ID secretary of the state funding
BOARD to succeed Gen. George e.
Blake.
During the recent gubernatorial
the handling of the states |
financial affairs was one of the chief
sources of the Hooper administra-
ion. In his opening speech at Mem
,his, Gov. Hooper said:
at was forgone conclusion that the
tate tculd not borrow any more
money at per cent. Tennessee rev
n did sell 9 per cent bond. The
pc re, mt bonds issued in 1883 were
lot sold. They were forced on the
lolders of the old bonds"
The statement Of Gov. Hooper,
Iuoted above, was never challenged.
I remained for the Rye administra-