The Van Buren press., 1877-09-04
The OLD BONDED DEBT
IlrrLE Rock, August %. Is


Arkansas bondholders to fund their
bonds. The article reads in such n way
as to please the writer SO WELL and will
doubtless equally please other like KIN
dred spirit, that it is n pity to spoil
their thunder; but rs good men might
possibly be mised by such editorials
were they to go unanswered 1 VIII not
only answer the Star man, but will take
this occasion to let the people OF Arkan
sas know what is being done in regard
to getting proposition for a compro-
mise settlement from the bondholders,
The Legislature in January, 1875, passed
the following resolution;
"Resolved by the Senate, the House ofRep-
rcsentatives eoneurring therein, mat the
State Board of Finance be- and Is hereby
authorized and directed to correspond with
the holders OF the outstanding bonds OF the
State or, ut their discretion. at such time aud
place. ana upon such notice as they may
elect, to call Ia convention OF the bondholders
of the State to meet them, for the purpose Of
discussing the questions involved with Il
view to ctfeeting II consolidation ana settle
ment of all Just debts on II basis whichiM III be
satisfactory TO the people and in their ability
Appro, ed January Is, 1915"
Nothing had been done in the matter
up to two months ago, when Mr., Redtield
and myself proposed that we would see
the bondholders in regard to q compro-
mise. The Finance Board finally agreed
that if the bondholders would surrender
to the State the whole old bonded debt
I(cxcept the debt due to the United States
Government for.S4 100000, they would
recommend the Legislature to accept the
proposition. They found tho actual
debt by calculation to be Si,075,000,
that is the five and six per cent unlund-
ed except the lloliords, for which they
allowed Sl21 1888, which amount in spe-
cie was actually paid over to the agent
of the State on those bonds, and they
allowed interest on same at SIX per cent.
from the date the money was received
by the State. They further stipulated
that in case the bondholders made II
proposition in accordance with these
terms, that i'll presenting one of the
! bonds that we actually owe it should be
accompanied with Il proportion of the
lovee bonds, the railroad aid bonds and
the unallowed proportion of the Holford
bonds, all IN such proportions that when
the last bond was presented for funding
it should be accompanied with the last
part of each OF the other issues, 80 that
when the 100000 went out the State
would take up all the bonds issued prior
to 1874, except the debt to the United
States Government, which would pay
itself out in the course of time, the State
having n set-oH now against that debt
to an amount between 100000 and
100000. The Finance Board stipulated
that the new bonds should draw only
two per cent for the first year, three per
cent. for the second year, and four per
cent. for the third year. This would
give time, by restoring the tax to where
| Il was when the Legislature first reduced
it, to get the State scrip out Of the way,
and then the bonds would. draw six per
cent. interest. If this settlement can be
made, the State assumes to pay sSo,ooo
less than she actually owes, and allows
nothing for the Lcveo Bonds, the Rail
road Aids, and we would thus get rid OF
the debt imposed upon us by the carpet
baggcrs without paying or assuming te
ever pay anything to them, and would
avoid the disgrace attaching to the namc
of reputation. We would also settle
the controversy regarding the lloltord
Bonds, which has been agtated in Ar
kansas for nearly forty years, by only
paving or agreeing TO pay, thirty years
hence, the sf2i ,332a that we got on thos'
100000 bonds. All this, to just
minded man, would seem as RIGHT for tax
State to do. There is no bond ring no
scrip ring about it. We have conferred
with the bondholders, and we and they
together have made up the calculation
of how much of the four million bond
each bond is to get, and il was deemed
best to put in some tangible shape
therefore a contract was adopted, 4 cop,
of which accompanies this letter. Thl
was done so that the bonds would b
deposited and definite proposition
made to the State, it made at all and
believe the bondhoders will come int
the conditions prescribed by the Financ
/ Board.
There are already over 100000 o
, the old bonds subscribed to the contract
, The calculation was made so rs to divid
out the whole 100000 new bonds t
. the old bondholders in the proportion
, stated in the contract There is no rim!
here nor in New York, there is nothin!
to have a ring for; there is no money i
il to any one except the bondholder>
Mr.. Redfeld went into it for the pun
pose of getting something tangible 10
D his old bonds, of which he holds owe
, S300,090, and went into it because
Q am opposed to reputation, and beeaus
believed the owners of the good bond
would be willing to allow something t
ret ont of the way, forever, the bond
that are of doubtful validity; so tina
: the State would neither assume NOR
), than she could easily pay the intere'
upon, nor deprceiate her low bonds b
the name OF repudiation-thus leavin
no cloud upon the States good nam'
:" ] have spent two months in this bus
l. ncss--will likely spend two more--tt
= time is not long nor the expense grea
| do not own dollar in scrip nor
: bond of the State, but would be willin
y to work much longer without pay,
u see this vexed financial question settle'
+! and forever out Of the State polite
which only acts a hobby-horSe for den