The Russellville Democrat., 1877-10-04
A BETTER PLAN.

ans and Redfield, the Gazette, exult- ingly consoles itself, that no repudi- ation paper, as it is pleased to de- nominate those journals which op pose it's owners pet scheme, has as yet proposed any plan for the adjust ment of the Ssate's Bonded Indebt- ednes which is better than the Ad- ans -Redfeld plan. Now, we make no pretentions toward being a finan- cier of sufficient keenness to solve this knotty problem, but that is no reason why we should not oppose the Adams Redfield plan, or any other plan which works altogether in favor of the bondholders and against the State. We, the so-called.repudi- ation papers are not opposed to an honorable compromise, and all asser- tions to that effect are but tissue of falsehood. We will favor any honor. able and just compromise whenever we are satisfied that it is the very best that the State can do. We are opposed to compromising just this far, to-wit: Wherever there is a class of claims, bonds or other evi- dences of indebtedness against the State which have been submitted to the Supreme Court for adjudication and by that honorable and high tri- bunal of justice been declared to be illegal, null and void, and not lia- bility against the State, we are op- posed firmly and unalterably, to the Finance Board assuming to tax the people of Arkansas to pay anything on such claim. The Scalers place themselves on record as being in ia vor of tEis.
 There are almost $S,000,0O0 prin- cipal and interest of this class of Bonds. There is nothing to com promise here.
 Wherever there IS anything to compromise, we are i'll favor of it, but it must be compromise which will be fair and just, and not such an one as Adams and Redfield propose where the State will have to pay three times the value for all the bonds surrendered. For instance the undisputed bonds which they agree to redeem at 67 cents are now not worth 20 cents, and the Levee Bonds which they propose to pay Is cents for are not worth centt. The Railroad bonds amounting to nearly $S,000,000 principal and interest fol which they propose to pay 19 cents are declared by the Supreme Court to be worth nothing. We call this ID compromise at all.
 Now while we have no we'll defn ed plan to propose, believing that the Finance Board ought to study this matter out for themselves, we just simply suggest that if the Eli nance Board would issue a plain straightforward letter calling upon the holders of the various kinds oi State Bonds to file them with some designated United States Depository in order that the exact amount of them might be ascertained with the view of compromising the same good results might follow. The Board in their official capacity could then offer the holders of all bonds which have not been adjudicated as null and void, new bonds of the State for the old ones at fair figure What this figure should be would be determined by the market value o1 the old bonds. If the Board were te offer them twice the present market value, which it COULD DC, and stlll SAVE THE STATE SEVERAL HUNDREI THOUSAND DOLLARS WHICH IT WILL LOSE UNDER THE ADAMS REDFIELI PLAN, it looks reasonable that tht holders of the old bonds would ac cept the settlement. Whether they accepted or not it could not be sait that the State showdd no disposition to settle her old debt This in our opinion is what tho Fi nance Board should do, and it would certainly be far better than allowing a firm of shrewd spectators to stel in between the Finance Board ant our creditors and make a grand spec ulation off of the taxpayers of AT kansas. The new bonds to be issue' , should be placed at a low rate of in terest, say per cent. for the frs
 three years; 4 per cent. for the neS
 three years, and then per cent, fo the remainedr of term of thirt