Bristol news. [volume] (Bristol, Va. & Tenn.) 1867-189?, 1881-01-25
coNrNurp rnon rrrsr PAGE.

1cdih ~ tHfte per cent. Interest Tor the
hrst ten years, four per cent. for the
next twenty years, and five per cent for
the remaining ten years, with tax re-
ceiyable coupons, and principal and in
tercst 10 be exempt forever from all tax
alton within the State. Under the form
or bills there had been no such exemp-
tioR, aud the coupons had been subject
ed 10 u tax which Was deducted from
them whenever they were presented in
payment Of public dues. 1t also con-
Nerted the whole Of the debt, principal
md Interest, from one payable In cur
reDcy 10 one payable IN gold, or sterling
at London, Mt thu option Of the creditor.
a further provision WAS that II 1t any
one Of the semi-aBBuAi periods for tile
payment Of interest there should not be
money IN the Treasury for that purpose
II should be borrowed, or there should
be issued certificates for sums Of one
dollar aud It's mullipes, receivable for
all taxes, TO b. hypothetical or sold at
not less than twenty-five cents on the
dollar. The funding was 10 proceed by
installnents, not less than s., 700 600 By
the first OF January, 1880, aud of not
less than 1900, 600 within each sue
EtfulilK OLA uiOtlAilrs Ouit htlt Allf
main features of the measure as Il was
perfected and came from the syndicates.
That this was
MERE BROKERS' JOB
wag Obvious upon It's face, and II was
soOn developed that tie 'peeler creditors
were TO be atrociously yictimizcd. These,
M has been said, had received only the
equivalent OF two years interest in eight
years, and on each VI their one-hundred-
dollar bonds there WAS overdue and un-
paid thirty-six dollars In interest. This
portion Of the debt WAS chiefly held by
guardians and other flduciarics, under n
provision Of our code requiring them 10
no invest their trust funds, and the ma
turc Of their securities Ind not, AZ II gen
cral thing, been changed under any of
the previous bills. This bill authorized
hnancicrs TO invest their funds under it
without the usual interpretation Of any
court. But mark how the 'pccler holder
was placed at the mercy Of the syndi-
cate. Anxious 10 exchange his helpless
bonds for the better ones provided by
this bill, be naturally applied to the H.
nancial officer of the State TO have ii
done. These ut once informed him Tor
herr that they had nothing to do with 1t,
e,cel IA directed and required by Mr..
AcCullocl's agent, through whose office
all the funding must be Transacted
Calling on this agent he was there in
formed that his 'pecler bonds could not
be funded unless accompanied By consOl
bonds in the proportion Of two dollars
In consOls 10 one in peclers Not hay
t.ss tho ,at.ullu la 90 tne-
ity TO purchase them, the pe0lcr holder
had no recourse but to hold on to his
barren bonds or 10 sell them. But who
would bny bonds 80 unproduciiyc, and
which had been put at such disadvantage
by the McCulloch Bill? Mr. McCul-
lorh's agent! lie would relieve the
pccler holder Of his unmarketable bonds,
aud for every one hundred dollars of
principal, having upon 1t accrued and
unpaid Interest amounting 10 thlrty-siX
dollars, fundable at fifty cents IN the
dollar (maklng Il new capital Of one hun
dIed sud eighty dollars, the agent Of
the syndicales offered only twenty -four
dollars. or ninety-slx dollars less than the
fuudable value Of the security! II was
nonstrOus, to be sure; but what remedy
had the peeler holder against these bro
kers into whose hands the State had de-
liy.rcd himY Into whose keeping had
been conllded the honor and honesty Of
The public faith? He had to submit and
lake what they offered him or hold on to
bonds that were worthless IN his hands,
AMI for which otherwise the bill made
no manner Of provision. The McCul-
loch syndicalcs, meantime, looked for
ward 10 this speculation, and take adj
vantage Of the depression on COnsol
bonds In The market, consequent on the
result Of our State election of 1877, and
had provided themselves with n supply
OF these bonds 10 enable them 10 pro-
coed IN their scheme. They had also
provided IN their bill that IN making up
the first lnstallment Of eight millions 10
be funded by the first Of January, 1880,
the accrued Interest 10 be capitalized at
fifty cents IN tic dollar might DC en-
ployed M peeler principal, and rs the
coupons representing this interest were
not receivable for taxes and was six
years IN arrears, the syudlcatcs purchns-
ed large amount OF them for their pur-
poses at seven To ten cents IN the dollar.
They actually did make up their first
lnstalmcnt Of eight millions by using
this peolor Interest to the amount Of
about one million dollars.
In looking nj This process, with respect
70 the holder Of the pcclcr bonds, the
question naturally arises that If he were
not mn unwilling
VICTIM or roRcg.
what Ia meant by force IN this conucs-
tionP lie WINS certainly no voluntary
party TO the arrangement which cxclUil-
Ell Him from fur participation IN The
funding, which ropudlutcd absolutely
onc-half Of his Interest, and which gave
the syndlcatcs such complete mastery Of
his bonds. Ills consent was not sought,
although he WINS M mcrilorlous ns any
other Of the creditors Of the State; hls
bonds resting In the faith of the same
people, being rnrt Of the same people,
being part OF the same rate Of Interest M
the "COnsoh." but he was marked M
McCulloch'e game, and when he was
forced 10 accept twcnty-four dollars
from the syndicate for his bond and me-
Crued Interest, fundnble NJ one hundred
and eighteen dollars aud syndrntes
funded the same and sold the new bond
ut market rates for llfly-nlnc dollars and
forty ttnts--tlcpby rcaplng profit Of
thlrty-ilye dollars aud forty cents on
mn Investment Of twenty-lour dollars
IL IL easy 10 see that by like process
with the whole ton millions OF the licoler
debt the syndlrnlcs could have Melted
thrco million Ave hundred thousand doll
lars on that alone, without reckoning
their commissions mud profits from other
sources IN this funding Job, Of which
they had the complete monopoly, With
out restriction ~ TO per cent, They
Nerc IN no sense the agents Of The State.
In effect tho naslpuppa Tho hill Vns