Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1877-03-24
PROPOSITION OF THE NEW YORK
BONDHOLDERS TO THE TEN.
NESSEE GENERAL As
SEMBLY.

nNSHCC.
In the long and earnest discussions
which have taken place between our /
respective committees upon the sub 1
ject, it gives me pleasure to attest the /
fact that while no member has with 4
held the most unreserved expression /
of his individual views, they have all I
done :. --:th ~ ;..-coS. ccTT::ecSsjyr IT:tis !
an evident appreciation of the magni- |
tude of the question and with a mani |
fest desire to reach satisfactory and |
equitable result
In presenting to you the award of
the committee, allow me to express
the hope that it may secure the import
ant end desired that the adjustment
of the debt of your great State Will be
followed by similar proceeding IN the
other States, and that by the removal
of this dark cloud from the reputation
Of the country, we may begin an era of
progress, prosperity and mutual re-
spect which will be perpetual.
With the highest regard, have the
honor to be, sir, very respectfully
yours, GEO. >. zoe, Chm n
The proposition referred to by the
arbiters is as follows:
To the honorable the General As
sembly of Tennessee After a pro-
!onged discussion with your commit
tee, when all the circumstances under
which the debt was incurred, the pc
culiar condition of affairs in the State,
together with its present ability and Its
future resources, were most fully aud
carefully considered, the undersigned
l. to eha Aal1 to
that, after adding all the arrears of in
ierest TO accrue up to July l, 1871, the
then aggregated amount of the State
debt debt should be readjusted by the
issue of new bonds at the rate OF sixty
t60) per cent. of the total amount
1. e., for every sum of one thousand
Isl ,000) dollars then due, new bonds
should he given in exchange and full
settlement for six hundred (S6OO) dol
lars, or for prOpOrtIOnate amounts.
The new bond to bear interest at the
rate of per cent per annum from the
lst of July, 1877, payable semi-Gunu-
ally in the city of New York, the first
payment to be made on the lst Janu-
airy, 1878, aud the principal be made
payable also IN New York in thirty
years from date. The interest coupons
to be received by the State for all taxes
due to it.
This compromise the undersigned
consider, under all the circumstances
aud necessities of the case. to be just
and fair, both to debtor and creditor.
To facilitate and promote the pro-
posed exchange, which it Is assumed
the creditors will generally accept,
this committee recommend that new
and uniform issue of coupon bonds of
the required amount, in denominations
of one thousand, FIVE hundred, and
one hundred dollars for convenient ex-
change, be prepared, ready for deliv-
cry from time to time as wanted in the
city of New York; and that they be
there held, subject when issued to the
countersign Of an agent appointed un-
der their supervision, If so desired,
with the approval of the Governor of
the State. The new bonds to be register
ed in the name Of the owner if prefer
red, aud the old bonds, as exchanged,
to be cancelled aud Immediately re-
turned to the Treasurer of the State.
In the conclusion to which this COM
mittee have, with much deliberation,
arrived, they have not lost sight of the
fact that a sovereign State, although
beyond the reach OF legal coercion in
the fulfillmeut of its obligations, is for
that very reason under stronger bonds
70 maintain its credit iaviOlate. Nor
have they been unmindful of the hon
orable character and unblemished
credit which the great State Of Ten
nessee has always enjoyed in the mar
kets of the world, of her reputation
for the possession of large resources,
nor of the humiliation she must con-
sequently endure by any compromise
whatever of her legal obligations. All
these considerations have been duly
weighed, and they have induced this
committee to carefully inquire whether
IL was not expedient for them to re-
commend, instead Of so large a Teduc-
ton of the principal of the debt, con
cession for few years, In the rate Of
interest as proposed IN plan submit
ted to the Governor by holders OF {
large amount of bonds, in the belle
which is generally entertained amOns
the creditors, that gradual recovery
of wealth would accrue to the State
and enable her at an early day to re
sumo paymentin full. This mode o
adjustment would be obviously mor'
gratifying to State pride, and would al
50 afford greater present relief, aud l
would certainly be more acceptable Il
the majority Of bOndholdeTs.
But after attentiyely considering tn,
statements of your delegation, respect
ing the sad results of the war, the so
cial arrangement and general impOv
erishment it has entailed, and tn
widespread Reorganization existing
in all the industries of the peOpl
throughout the State, we have bee1
constrained to the decision that a sum
mary reduction of the debt, even t
the large extent indicated, is the bes
course for all parties concerned, an,
that, unless the Legislature shall nov
see its way clear for a settlement NOR
favorable to the bondholders, 1t is bot
its duty and its policy to adopt tn
award which this committee most re
Snectfully aud cOnscientiOusly tende
so them and to their creditors, as tn
result Of their best judgment.
This committee regard 1t as mos
;mpOrtant aud Just TO all the creditor
of the State that the bonds issued un
der the proposed adjustment shall b
uniform in terms aud conditions Q
p4vmcnt and in their general appear
ance. aud they also express the cOnvic
ton that the State will be able at =,
early day to provide a fund, howeve
small, in excess of the interest to b
uSsd for the gradual extinguishmen
of the debt. This. with the constitu
tional prohibition which they are in
formed Is now existing, that no deb
can be incurred by the State for tn
creation or in aid of any public i'm
provement, will give aGgpentin
value to the new bonds, and so far ten
to mitigate the loss which the creditor
incur.
The consideration that the decision
Of this momentous question by Stat
so distinguished in character aud Pc
sitiou as Tennessee, will exert IN
bounded influence upon the othe
States, gives immeasGrable Response
bility both to this award and to its ad
option. Yet the committee conhdentl
present it with the belief that while
is best for her creditors, it is also bes
IL ls.,r ~