The debt of Arkansas was not so difficult to settle. The issue of about $7,500,000 for railroads and levees during Reconstruction was declared unconstitutional in 1877-78, and the so-called Holford bonds, issued in aid of banks, were repudiated by the constitutional convention of 1884. The total amount repudiated and declared void by the courts was nearly $13,000,000. Tennessee also struggled with a debt which it was unwilling and perhaps unable to pay. The amount, which in 1861 was about $21,000,000, incurred principally in aid of railroads and turnpikes, was largely increased under Republican rule, and most of the money received for the bonds was stolen or wasted. No interest had been paid during the War, and the accrued interest was funded in 1865, 1869, and 1873. The debt was somewhat reduced by permitting the railroads to pay their debt in state bonds which they purchased cheaply on the market. Other defaulting railroads were sold, but the State still could not meet the interest. Many discussions with the creditors were held, but the people had the idea that much of the debt was fraudulent and they consequently voted down proposals which they thought too liberal to the creditors. The question temporarily split the Democratic party, but after much discussion a long act was passed in 1883 which finally settled the matter. A part of the debt, with interest, was funded at 76 to 80 cents on the dollar. The major part was funded at 50 cents on the dollar with interest thereafter at three per cent.