Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1877-01-10
sOUIMERN ISpgBTEpNESs.


Az ETNrt TO Reduce tha Debts Of
Virginia. North carolina ana Ten
nessee-hew Bonds 10 ha IkNnrd of
E.esseF AmOant-A COMMITTEES Row
Considering the urjsct.
Cor. New York Tribune.l
WASHINGTON, January 2.-An
important movement is on foot
looking to the reduction of the
nominal amount of the State debts
of Virginia, North Carolina, and
Tennessee, by sealing them down
and funding them in new bonds.
The two States first named have
been in default for several years,
and manifest no disposition to full
ill their obligations. Tennessee
paid her interest until last Janu-
airy, The bondholders, thinking
that half a loaf is better than no
bread, are willing to surrender their
claims and take bonds of much
less face value i! the executives and
Legislatures of those States will, on
their part, undertake to put their
finances on such a basis as to insure
the creditors Of the punctual pay
ment Of interest on the reduced
debt. Virginia owes about s45,-
000, 900, and insists that West
Virginia is bound to shoulder S15,-
100000 of it as her fair share,
but the latter State is not willing
to do this. North Carolina's debt
aggregates about $40, 900, 900. Ten
neSsee owes about $2l,OOO,0OO. The
bonds are chiefly held in New York,
and the owners have requested a
committee of eminent bankers who
are not themselves interested in
them to endeayor to secure a reor-
ganization of the debts upon an
equitable basis. Messrs. Geo. Coe,
j. D. Vermilye, and B B. Sher-
man, of New York; B. B. Oomegys,
Of Philadelphia, and Enoch Pratt,
Of Baltimore, all officers of large
banking institutions, constitute the
committee who have undertaken
this important work. At their re.
quest Colonel J. E. Peyton, of New
Jersey, who organized the bankers
movement at the Centennial Exhi-
bition, has gone South to confer
with the governors and financial
boards of Virginia and North Car
DINA first, and probably of Tennes-
see later, if the plan meets with
success in those States. Many
prominent public men have written
letters in favor Of the project;
among them Thurlow Weed, Peter
Cooper aud W. G. Bryant, of New
York, and John Welsh, of Phila-
delphia.
The States in question will, it Is
hoped, m ct the offers of the credi-
tors in fair and liberal spirit, and
cordially co operate in deyising
plans for restoring their shattered
credit. As the offer to compound
their debts comes from the bond
holders, an arrangement for the
purpose on the part Of the govern
ments of OF the States would not
SAVIOR strongly Of reputation and
could be Effected without dishopor.
1t is claimed that it is impossible
for them to collect taxes enough tC
live up to the letter of their lnan.
cial obligations, and it is evidently
their interest, as well as their duty,
to do as much as they can in that
direction. Especially should they
seek 10 remove the stain OF being
in Gefault. 1t is serious drawback
to the development of their re.
sources, because immigration
which all the Southern States
strongly desire, naturally shuns
communities which aye living in a
condition Of chronic bankruptcy
aud making no efforts to pay thell
debts.
On the part Of the creditors, II
will obviously be advantageous to
sacrifice a large part of the face
value Of their bonds if they can
get in return obligations which the
debtors are both able and willing
to pay. North Carolina bonds
were quoted last week in Wall
street at prices ranging from 81
cents to 20 cents on the dollar
Virginia bonds Of different sorts al