The Russellville Democrat., 1877-10-18

denominations of $500 or $l,000, at the option of the holders of the sur rendered bonds, and similar provis- ions shall be made for securing the payment of the interest on the new bonds as is made by law for securing the payment of the interest on the new outstanding Loughborough Bonds. We are to pay all expenses in the matter, except that of print ing the bonds.
 "This proposal is made for the ap- proval of the Board of Finance, and subject to the approval of the Legis- lature. Respectfully submitted, "JonN D. ADAMS,
 "For self and J. E. Redfield, "To the Board of Finance, City of Little Rock.
 The substance of the offer includes an absolute gift of all bonds of dis puted justice or validity-new bonds to be issued, at a rate equivalent dollar for dollar, to the amount of the undisputed debt, upon the old undis- puted bonds, together with the dis puted debt, donated, being actually turned into the Treasury. In other words, upon payment of what we confess to be due. our creditors will make the State present of the re- mainder, be that remainder, in part or in whole, legal or illegal, just or unjust, binding or void. All claims agalnst the State on account of 1t, present CT future, is to be withdrawn, and the evidences of it, now outstan- ding, are to be placed in the Treasu " to be burned. For this surrender the State will pay nothing. The is sue of the new bonds will rot begin until half of the entire amount of the old debt, both undisputed and dis puted, shall have been paid in.
 The gist of the proposition lies Tn the agreement to surrender to the State, for every s! ,000 of new bonds, old bonds as below set forth: Undisputed-
 Of undlsputed debt
 Equivalent under the
 operation of the propos-
 ed plan, as will present.
 ly appear, to little
 over $l, ,000) ........$ 93l.95 Disputed
 Of Holford bonds, for
 amount disputed. 391.56
 Of the Railroad Aid
 Bonds. ......... 1,7S9,29
 Of the Levee Bonds. 6S77S
 Total. $3, ,S00,5S That is to say (assuming, without explanation, for our present purpose, that the $93l.95, under the arrange ment for reduction of interest during the first three years, is equivalent to $l, ,000), for every $l,000 of old and undisputed debt turned in replaced by new $l,000 bond, the bond holders or their representatives, shall make an absolute gift, to the State, of $2,S6S.63, of disputed in- debtedness.
 This, we say, is the gist of the en- tire offer. The estimate of the amount of undisputed debt, as giv en in the proposition of Messrs. Adams and Reddeld, differs mate rially, as will be seen below, from that of the Board. TIE RATE, how ever; THE PROPORTION in which the disputed bonds are to be donated to the State, with each exchange of new for old undisputed bonds, IS FIXED; and this, emitting matters of detail, constitutes the whole prac- tical proposition submitted. That such is the understanding on both sides, is shown by the following ex- tract from the published letter of the Governor to Maj. Adams, in reply to the latter's request for pub. lication of the original proposition, above printed.
 "Whether the amount be $3,727,- S27, as stated in your proposition, or $3, 100000, or less, make no practi- cal difference to the State under the proposed plan of settlement; IF THE SUM BE S3, ,000, 900, or less, then only a pro rata AMoUNr OF THE x1,0OV,00O WOULD HE ISSUED, AS SET OUT IN yoER PROPOSITION; that Is to say, the amount cf the new bonds will be