Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1877-03-19
TIE sTATE BONDHoLDERs' PROPOSE
TON.


legislature to New York, to confer
with the arbiters appointed by the
creditors of the Southern States,
returned last week with a PROPOSE
ton. This will be submitted to
the legislature without any special
recommendation. The general i'm
preston is that the consideration
Of the question will have to be de-
ferred until an extra session. The
proposition referred to is as follows:
To the Honorable the General Assembly of
Tennessee:
Alter e loBg discussion with your corr
mittae, when all the circumstances under
Which the debt was incurred, the peculiar
condition Of affairs in the State, together
With its present ability and lite future re
sources, we're most July aud carefully
considered, the undersigned have come
TO the deliberate conclusion that, after
adding al the arrears Of interest to &c
orae up to July l, 1877, the then aggre-
gated amount OF the State debt should
be readjustsd By the issue Of new bonds
st the rate OF sixty per cent. OF the total
amount; J. G for every sum OF $1,000
then due, new bonds should De given 10
exchange aud lull settlement Tor $3.50,
or for pr0poftionate amounts.
Tbs new bond to bear Interest at the
rate Of SIX per cent per annum from the
lat Of July, 1877, payable ~semi-annually
ia the city Of New York, the first pay
pient 70 be made the lst Of January,
1878 and the principal be made payable
also in New York in thirty years from
date. The interest coupons TO be re-
ceived by the State for taxes due to it
Tais compromise the undersigned con-
slider, under all the circumstances aus
necessities Of the case, 70 be just and
fair, both to debtor aud creditor.
To facilitate and promote the proposed
exchange, which it's assumed the cred
itors will generally accept. this commit
tee recommend that a new and uniform
issue Of coupon bonds Of the required
amount 10 denominations of $1,000, $500
and 500 for convenient exchange. be
prepared, ready for delivery from time to
time as TAINTED in the city Of New York;
and ,has they be there held, subject
when Issued 10 the counlersign Of ap
sgen. appointed under their supervision,
IL so desired, with The approval Of the
governor OF the State. The new bonds
to be registered 10 the name Of the owner
IL preferred, aud the old bonds, as eZ
changed, TO be Cancelled and Immediately
returned 10 tie treasurer OF the State.
In the conclusion to which this COM
mittee have, with much deliberstion, ar
rived, they have not lost sight OF thu fact
that a sovereign State, although beyond
the reach of legal coercion in the fulfill
ment Of its obligations, is for that very
reason under stronger bonds TO maintain
its credit inViolate. Nor have they been
uumindiul OF the honorable character
and uu5lemished credit which the great
Safe OF Tennessee has always enjoyed
in the markets OF the world, Of her repu.
tation Tor the possession OF large re-
sources, NOT Of the humiliation she must
consequently endure BY any compromise
whatever Of her legal obligations. All
these considerations have been duly
weighed, and they have induced this
commiitse to carefully inquire whether
u was not expedient tor them to recon.
mend, inslesd Of 80 large a reduction Of
the principal Of the debt, a concession
for a few years, IN the rate OF interest as
proposed ia a plan submitted 70 the gov
ernor BY holders Of q large amoant Of
bonds, 10 the belief which is generally
entertained among the creditors, that &
gradual recovery Of wealth would accrue
10 the State aud enable her OF au early
Gay to resume payment in fall. This
mode OF adjustment would be obviously
more gratifying TO State pride, and would
also afford greater present relief, and il
would certainly be mora acceptable TO
thu mejority oil bondholders
But efler attentiVely considering the
statements Of your delegation, respect.
ing The sad results Of the war, the social
arrangement add general impoverish.
ment it has enia,lcd, and the wide spread
Reorganization existing in oil the indus.
tries OF the people throughout the State.
We have been constrained to the decis
ion that a summary reduction Of the
debt even TO the large extent indicated.
H the best course Tor eli parties con.
cerned, and that, unless tie legislature
shall now see It's way clear for a settle
ment more favorable to the bondholders
It Is both its dnty and It's policy to adof
the award which this comEitlee mos
respectfully and conscieatiously tende
TO them aud to their creditors, as the re
sult OF their best judgment.
This committee regard it as most ion
portaut and just to all the creditors q
lhe State that the bonds Issued under tn
proposed adjustment shall be uniform i
terms and conditions Of payment aud i
their general appearance, ard they ais
express the conviction thatthe State wi
be able az an early day to provide
fund, however small, in excess Of til
interest 10 be usei for the gradual e,
tiuguishmcnt Of the debt. This, wit
the constitutions prohibition which the
are informed Is now existing. that IN
debt can be incurred by the State for II
creation or ia aid Of any public improv
ment, will give augmeuting value TO Ii
new bonds, and so far tend to mitigaI
the loss which the creditors incur
The consideration that the decision
this momentous question by a State {
distinguished 10 character and positio
as Tennessee. will exert unbounded il
auence upon the other States, gives in
measurable. responsibility both to th
award and 10 It's adoption. Yetthe cor
mit,e confidently present II with the b
lief that while it is. best for her creditor
it Is also best for the State, and that
will remove tho greatest obstacle thI
now stands n the way Of the prosperit