Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1877-03-31
THE LAST CHANCE FOR STATE
CREDIT.

Gus as affecting her future welfare, the
question whether she will embrace the
opportunity of settling her bonded in
debtedness ON terms which are liberal
and generous on the part of her credi-
tors, aud which very largely alleviate
the burden with which these bonds
have pressed upon her straitened re-
sources.
Though we hove from time to time
kept our readers informed of the pro-
ceedings of the present Assembly in
reference to the bonds of the State, it
will perhaps be as well to make con-
else statement of the whole course of
events relating to them since the pres
ent Legislature commenced its sittings.
1t is known that for two years pre-
vious to the meeting of Legislature, no
interest had been paid on the bonds of
the State, and that, in the heated can
vass that preceded its election, the
subject of reduced taxation was very
vehemently sgitated; and that as a
consequence of the discussion of this
demand almost to the exclusion of all
other interests Of the State, large
number of Representatives and Sena-
tors went to Nashville pledged to raise
nothing by taxation beyond what was
necessary for the ordinary expenses OF
the State, those expenses being re-
duced to the very lowest amount pos
sible; and it was understood by those
who made this proposition, that the
interest of the bonded debt was not to
be considered as part of the expenses
provided for.
About this time or a little before,
meetings had been held in New York
and elsewhere By persons holding
the paper of this and other South
ern States, for the purpose of taking
into consideration measures for the
liquidation of their claims.
As consequence of these meetings
a committee of eminent business men
was appointed by the bondholders to
communicate in their behalf with the
State Governments in question, and a
letter was received by Gov. Porter
from this committee requesting him to
appoint a committee of influential
Tennesseeans to confer with them for
the purpose of agreeing upon some ba-
sis of adjustment which might be salts
factory to both contracting parties.
This letter was referred by the Gov
ernor to the Legislature assembled,
who appointed the following members
as committee to confer with the
bondholders committee.
John II. Savage, jesse Arledge, Geo.
W. Martin, W. E. Travis, Louis Shop
herd.
This committee Immediately organ
lied in Nashville and opened CORES
po1dence with the New York commit
tee, as result of which a meeting was
appointed at the Fifth Avenue Hotel
New York, on the Sth of March. The
Tennessee committee arrived in New
York on the 9TH; they were visited by
three members of the bondholders
committee, and after some prelimina-
ries agreed to meet for business at the
Fifth Avenue Hotel at y P NJ, on the
Sth. Among these preliminary pro-
ceedIngs the Tennessee committee made
the statement that their power only
extended to the reception of whatever
proposition the bondholders commit
tee might make, aud reporting 1t to the
Tennessee Legislature sitting at Nash
Vile, who were the only body author
lied to accept or reject it.
At this and subsequent meeting
too separate propositions were made as
follows:
First Proposition That the present
debt of the State and all past due in
terest should be funded at par in new
fifty year bonds. The bonds to bear
interest for the first FIVE years, at the
rate of three per cent. per annum; for
4 second period of FIVE years at four
per cent. per annum; for a third pc
Rod of FIVE years at five per cent. per
annum: and, for the remaining thirty
five years at six per cent. per annum.
Second Proposition That, after ad-
ding all the arrears of interest and the
interest to accrue up to July l, 1877,
the then aggregate amount of the State
debt should be re-adiusted by the is
sue of new bonds at the rate of 90 per
cent. of the total amount. j. e. for
every sum of one thousand $4,000
dollars then due new bonds should be
given in exchange and full settlement
for six hundred $4,000 dollars OF for
prOportionate amounts. The new bond
to bear interest at the rate of six per
cent. per annum from the LIST. of July
1877, payable semi-annuallyin the city
of New York, the first payment Of in
terest to be made on the first of Janu-
ary 1873, and that principal be made
payable also in New York in thirty
years from date. The interest coupons
to be received by the State for ali taxes
due to it,
We regret to add that the Tennessee
committee refused to recommend either
ofthese propositions to the Legislature
aud protested against both as mot
likely to meet the expections of the
General Assembly of Tennessee, or of
the people" Those acquainted with
recent political affairs in Tennessee
cannot but perceive that the appoint
ment of Col. Savage as the chairman
of such committee was an indecent
and scandalous outrage. Col. Savage
IS we'll known in this State as an
avowed repudistor, as one who stump
ed the whole State to oppose the pay
ing any part of the bonded debt; and
Legislative body which appointed
him on n committee to confer with our
creditors on some possible way of set
fling the debt, must have been intent
on the simple question "how not
e 10 IL" exactly a parallel com