Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1877-05-12
STATE DEBT.
TO the Editor Of Me Bro,rlsciUe
DpU1Oeylgf

STATE DEBT.
TO the Editor Of Me Bro,nsciUe
Democrat.
The question of compromising and
settling the State debt seems Just
now the great paramount question
| involved in public and private dis
cussion, and to which the public
press have for some weeks had
under discussion. Many newspapers
are advocating what they call
the bOndholders proposition of 60
cents in the dollar. Now are these
editors aware of the fact that no
proposition has ever been made by
the bondholders ? We think those
who lead public opinion should in
form themselves of the facts in the
case. Governor Porter in his mes
sage Incorporated a letter from a
portion of the bondholders, i'm which
they expressed a desire to compro-
mise their debt, and asked that a
committee be sent to New York to
confer with the holders of Tennessee
bonds. There was a committee of
eminent bankers, headed by George
S. Coe, gotten up for the purpose of
attempting compromise between
the bOndhOlders on the one hand
and the State on the other. These
bankers owned no bonds, nor We're
they ever clothed with any power
to settle or compromise the claims
of the bOndholders. Their position
was simply one of advice and cOun-
sci protesting equal and mutual
friendship to both parties in interest.
This committee was willing to adj
wise the State creditor to accept
new series of bonds from the State
covering all arrers of past due in
terest and accruing interest up to
July, 1877, at the rate of 60 cents in
the dollar of the whole amount.
This committee stated explicitly
that they held their appoint
ment by action of the New York
Clearing House, held on the 25th of
June last. Their mission was one
that might more properly be termed
an arbitration commission. Sixty
cents was what these men thought
we should pay. The bondholders
held a meeting in New York the
very day this commission made
their report, and published a letter
in the New York papers making
the following proposition, to wit :
"That the Legislature pass a law
authorizing the funding of all out
standing bonds of the State, of all
past due coupons thereon, and of the
coupons which will fall due on July
LIST, 1877, into new bonds of the State
bearing date of July LIST. 1877, and
having fifty years to run to maturi-
ty, bearing interest for period of
five years from theirda at the rate
of per cent. per annum, for pc
riOd of five years thereafter inter
est at the rate of per cont. per an
mum, for a period OF five years from
the termination of the last men,
toned period interest at per cent.
per annum and thereafter until ma
turity and payment of interest mt
per cent. per annum, interest upon
each bond to be paid semi-annually
on january lSt and July lst in
every year from and after its dates,
and the coupons evidencing is to be
receivable by the State for all taxes
and dues to the State, said bonds to
be for Sl00, $500 and 81 900 each"
This proposition was made direct
hy part of the creditors of the
State. The sixty cents proposition
was a suggestion from a committee
of eminent bankers, as before
Stated-nothing more and nothing
less, which it is probable the holders
of our securities, or a majority of
them, may hereafter accept. Not
willingly, but as the best they can
get. The Legislature should have
passed a bill funding the debt into a
new series Of bonds, scaling the
price so that no future necessity
could arise as to the payment of
principle and interest. AT the same
tlniR they should have made proVis-
ion for payment of interest as it ma
lures, created also a sinking fund to
retire the principle in reasonable
period and left all holders Of State
securities to fund or not at their own
option. Finding their bQnds 10
longer carried interest the hOnd-
holders could hayefunded under tho
law in self-defense, and thus terml-
nate this VeXed question, for after
all 1t is q humhug and a species of
sharp practice TO 50 shape our legis-
latiOn a. to compel our creditors to
offer terms and thus say to the world
that we are justified in scaling be-
cause our creditors offer us the terms,
fOrafter all, whether the offer comes
direct from our creditors or we pass
a law that virtually compels them
to fund on our own terms, the cause
4 4
State, for all sensible men must know
that the creditors would never
take 10, 80 or 60 cents i'm the
dollar for his debt if he could help
himself, and to this complexion will
things come at last of passing an act
as befnro Indicated and allowing all
parties to fund their debts. This
much by way ofremOVal ofthe crush
and debris with which this question
has been of late covered up, which
NAV lead To another article, if time
permits, as TO the price at which the
State should settle this debt and the
length Of time the bonds should run
and the rate of interest they should
carry. MODOC.
THE New Orleans Picayune refers
thus happily to the political future
of Louisiana:
For two Presidential terms the
Republican press has teened with
stories Of outrage, wrong and cru
city i'm this State under Il radical
government, BY its own confess
ion the Republican party, with the
army of the Union at its back, has
been unable to afford protection to
the newly enfranchised. 1t Is our
turn to try. Let Us make this State
Democratic Republic-a peoples
government, regardless Of race, of
1 party. and Of all consideration save
only peace and justice! The rich
fields of the Southern States are
open to the wOrkingmen of the
| North. Everywhere in the South
| they will be welcome.
Iniermarriage.
1t appears to be a law of nature