Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1873-01-24
STATE CREDIT = CALDwEJ.I,

BILL.
We publish below the bill which
Governor CALDWELL sent to the Legis-
latrre Oh Saturday last. Our Edito-
rial Correspondence makes proper re-
ference to this unusual and extrao1 di-
nary act of the Governor We snail
have something more to say in regard
to it in a few days:
! ACT TO RESTORE THE CREDIT OF THE
STATE.
WHEREAS, The nominal debt of the
State of North Carolina exceeds $780,
| OOO, 600, consisting of bonds issued at
different times for different purposes
| and of different market values and
whereas a large amount of said bonds
! is tainted with fraud; and whereas the
people of the State are unwilling to be
| taxed tO pay the interest Ona debt from
which they derived but little benefit; and
| whereas there is feeling of alarm
among our own people and OF distrust
among capitalists abroad in regard to
the good faith and ability of the State
| to remit its obligations; and whereas
immigration and capital are kept out of
| the State by reason of it's present finan-
cial embarrassments; Therefore, for
| the purpose of rendering all the bonds
| of the State of uniform value, of re-
storing it's credit and of reducing it's
| debts to such an amount as the citizens
of the State will be able and willing to
pay,
| The General assembly of North
Carolina do enact. Sec 1. Thar.
$15, 100000 of coupon bonds dated 1st
July, 1873, AMI due LIST July, 1913,
bearinginterest(p payable semi-annuallyJ
at the rate of per cent. the first five
years, 5 per cent. the next five years,
6 per cent. the next fifteen years, ana
Z per cent. the next fifteen wears. be
issued for the purpose of taking ND all
the outstanding bonds of the State.
and of reducing the debt to said amount
Of $15, 900, 5000, said bonds to be issued
from time to time as the exchange is
effected.
2. That past due coupons upon the
bonds issued under this act shall, at all
times, be receivable in payment of
State taxes.
3. That said bonds shall be exempt
from State, county and municipal tax
alton.
| 4. That the Governor of the State
shall offer the bonds authorized to be
issued under this act to the present
bondholders at such rates, as if accep-
ted by all the bondhoIders to take in
and cancel all the outstanding indebt-
edness of the State
5. That III the exchange of bonds
the Governor shall settle the basis of
exchange by reference to the amount
actually realized from the sale of the
outstanding bonds OF the respective
classes, and to the estimated market
. value OF those not actually sold, Tex
changedl reference being had to the
current market value of each class.
6. That in adopting basis of ex-
change of the various classes of bonds,
the same rule shall apply to accrued in
terest as to the bonds themselves.
Z. That if at any time there shall be
in the Treasury of the State any money
not otherwise appropriated, and not
necessary for defraying the current ex-
penses of the State government, the
Treasurer shall notify the Governor of
the amount of said monies, and he shall
thereupOn be authorized to draw them
from the Treasury and use them in the
purchase of the outstanding bonds of
the State at the market value of said
bonds.
s. That it shall be the duty of the
Governor to forward to the Treasurer
to be cancelled the outstanding bonds
of the State or any part of them, as
soon as they shall have been received
in exchange as aforesaid.
D. That it shall be the duty of the
Governor to report to the General As
sembly at its annual session and as
often during the session as may be re-
qmred, full account of the progress
of the negotiation, of the amount of
the bonds cancelled and the amount Oh
stamping, and shall give such inform
alton from time to time as may be re-
q1lired of him.
10. That if in the progress of the
negotiation, the Governor should find
it necessary to employ an agent or at
, torney to hold a personal conference
with the bondholders, he is hereby
authorized to do SO, and to draw from
the Treasury an amount sufficient to
pay the actual expense of such agent or
attorney, provided, that the fees paid
to said attorney shall no one year
exceed the sum Of 81, 900.
IL. That it shall be the duty of the
Legislature after the lapse of Is years,
to provide sinking fund either by
selling the stock of the State or by an
increase of taxation to the amount of
$500, COO per year.
from and after its passage.