The Russellville Democrat., 1877-10-18
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1 ner bind the State in any respect. Tue State has had no financial agent since the resignation of Messrs. Lat ham, Alexander < Go. was accepted. ?. There is no consent on the part of the State to pay one cent for either the railroad, lcvce or excess the Holiord bonds. The amount of new bonds proposed to be issued is what is due, dollar for dollax>on that part of the debt which has never been disputed by any one, and no more.
 1 5. As the proposal of Messrs. Adams and Redfield comprehends the bringing in of all of the disput. ed debt, it was of course necessary l for holders of the undisputed debt to make some arrangement with the holders of the disputed debt. That was their own business, with which the Board has had nothing to do, and of which we know nothing ex- cept from published statements made l by MT. Adams. We have given 1 that matter no official attention, as l it is obvious that the State would neither gain nor lose q. cent by the bondholdera as to their partlcipa- l in the definite number Of new bonds 1 to be issued.
 4 The proposition is not to issue $4,000,000 new bonds. We are happy to be able to state that the amount of the, new bonds will fall far short of that sum. It is true that in the proposition as made by Messrs. Adams and Rcdiield the sum of $4, 100000 is mentioned in round numbers as basis of the statement of the proposed settlement; but it is shown in the latter part of the pro position that the new bonds are to represent the exact amount of the undisputed debt, whatever that may be found to be, counting the new bonds as six per cent bonds from the date of their issue. The following is the proposition:
 THE PROPOSITION. "SIRs: As 8 feasible and fair plan of funding and compromising the State debt, we propose the fol lowing:
 "There are now outstand- ing, of old bonds is- sued to the State and Real Estate Banks $ 1855, ,335. % Similar bonds issued for funding debt, un- der act passed in 1868,
 by which the old bonds l issued to State and Real Estate Banks
 were funded in new 6 per cent bonds, leaving
 out the new bonds giv- en forthe Holford b'ds 2,S44, ,510.00 ssThe Real Estate Bank actually received, oa
 the hypothecated 'Hol- l ford bonds $l2l, ,336,
 which, with interest, l now amounts to. ... 39S,9S2.0 0S Making in all an un-
 disputed debt of. $3,727, ,S27.0S
 "The legality of this debt, or of any part of it has never been dis puted by any one, so far as we know.
 "Now, we propose to settle the en- tire debt of the State, excepting that part of it due to the United States, the outstanding scrip, and the 10 per cent and Loughborough bonds, in new 6 per cent bonds, having thirty years to run, for the aggre- gate sum of $4,000,o00.
 This will be the amount of new bonds to be issued, which will nom inally exceed the amount of the un- disputed debt by the sum of $272,- II72.92.
 But the real amount of the new bonds, estimating them on basis of per cent bonds, will be less than the amount of the undisputed debt above mentioned, for we propose that the new bonds shall not draw 6 per cent from date, but that the in terest for the first years shall be as follows: For the first year the in terest shall be at per cent, for the second year per cent, and for the third year f per cent, which will be an annual reduction from the inter est of the first three years, of the following amounts:
 "For the first year. Sl60,0 ,0O0 "For the second year. ..,. 10000 For the third year. ....... S0,000
 'Tn all $360, 900
 (Which will make the new bonds. estimating them on the basis of 6 per cent bonds, for amount less than the old and undisputed debt above mentioned, by the the sum $S7,- l S270S.
 ''As it is desirable for the good name and prosperity of the State that all the paper outstanding, hay ing her name and official seal on it shall be withdrawn and cancelled, we propose to get up and deposit, at the tune of the issue of the new bonds, and without any further charge or remuneration than the funding of the nndisputed debt as above mentioned, the following out standino bonds. the legality of which