Jasper County Democrat, Volume 14, Number 22, Rensselaer, Jasper County, 5 July 1911 — TENNESSEE A DEFAULTER [ARTICLE]

TENNESSEE A DEFAULTER

Interest on State Bonds, Due Today, - Is Not Paid. Nashville, Tenn., July 1. As has been anticipated Tennessee will default in New York in the payment of Its July interest to the amount of about $ 170,000. It will probably be considered a technical default, since the money is forthcoming, but whether it will militate against the sale of $11,000,000 icfuucing bonds remains to be determined later. Tennessee state securities are all held in New York city. The law of that state prevent the handling by trust companies and savings banks of any securities of defaulting states for a period of ten years. * Facing this grave situation and time and again forewarned by Comptroller Dibrell that he would not pay out the money except by regular appropriation, the legislature has for the past several days dallied over an alleged “salary grab" that members of both factions in the house favored, but the same was opposed by a majority of the senate. '