Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-05-11


to the Legislature message calling on it to
consider the proposition to settle the debt at
so, 3, 4, 5 and 6. In it he says:
The Message.
have the honor to submit for your con-
alteration another voluntary proposition for
settlement Of our Indebtedness, m ade under
date of April 19, 1882, by the committee of
bondholders OF the State of Tennessee,
through Mr.. Eugene Kelly, chairman of the
committee, in behalf of the 7bondholders
whom they represent and in their own be-
half, owning together, as am advised and
believe, majority Of the outstanding bonds
OF the State, which is as follows, to-wit: That
the unm atured bonds aud the inter coupons
thereof, up TO and including the coupons
which fell due and have matured with in
terest, to said first day of January, 1882 be
capitalized and
NEW COMPROMISE BONDS OF THE STATE
to the amount of sixty per cent thereof be
issued therefor, ten per cent. OF which shall
be OF the denomination OF $500 and the re-
mainder of the denomination of $1,000 each,
said compromise bonds to bear date January
L, 1882, and to be payable either thirty or
forty years after date, at the option of the
State, with interest coupons at the rate OF
four per cent per aDuum, payable semi
annually, in New York, for the period of
three years from date, and at the rate Of five
per cent. per annum, payable semi
annually, also in New York, for a further
period of Eve years from the last named
period; at the rate of six per cent. per an
mum, also payable semi-annu ally in the city
OF New York, until the maturity and pay
ment of said compromise bonds. The prnci-
pal of the outstanding bonds of the State
amounts to a little over
TWENTY MILLION DOLLARS.
1t is humiliating fact that the interest
which has accrued thereon since the first day
of January, 1875, except upon the bonds
held by Mrs. Polk and some educational in
siitutions, remains unpaid. The principal
and interest now due amount TO about S28,-
100000; sixty per centum thereof will
amount to 16,S00,000. l would most re-
specially but earnestly urge upon your con-
sideration the paramount Importance OF a
prompt settlement of our Indebtedness, upon
such terms as may be honorable to the State;
and surely no terms of settlement except such
as are satisfactory to our creditors can be
regarded by ourselves, or by the civilized
world, as honorable to the State. The fact
that we have so long failed to meet our
public obligations for the faithful perform
ance of which the
SACRED HONOR FAITH AND CREDIT OF THE
STATE
have been repeatedly and most solemnly
pledged, coupled with the further fact that
some of our people openly advocate the re-
pudiation of a large portion of these obliga-
tions, has been most disastrous to the best
interests of the State 1t has injured our
credit, public and private, at home and
abroad. 1t has impaired confidence in our
financial integrity; it has paralyzsd the in
dustrial energies of the country; it has closed
the door against capital and immigration; it
has stifled improvement and development.
Tennessee can no longer afford TO disregard
her most solemn obligations or trife with the
rights of her creditors. If che would restore
confidence,
RE-EsrABLIsH PUBLIC AND PRIVATE CREDIT,
induce capital and immigration to come
within her borders; if she would have her
vast resources developed and her waste places
built up; If she would have her children
educated and her people become active,
hopeful, thrifty and contented; if she would
enter the highway to prosperity, wealth and
grandeur which lies at her feet, she must
meet her obligations in such a manner as
becomes a proud State. / have an unshaken
confidence IN the courage and integrity of
the masses of the people of Tennessee. They
will never consent to see her sun go down
behind the dark cloud of reputation, to rise
no more. They are justly proud Of her past
history, and will never consent TO forfeit her
credit, violate her plighted faith, or sacrifice
her honor,
FOR THE SAKE OF FEW PALTRY DOLLARS
or for any other consideration. L most re-
specially invite your attepfion TO the sug-
gestion contained in the communication
which / had the bonor to submit TO the
Forty-second General Assembly under the
d tes of February "a, and March II, 1881,
upon this subject. This communication has
been delayed awaiting the result of negotia-
lions between your committee recently APP
pointed and our creditors, report of which
will be presented TO your honorable body by
said committee. As j am at present advised
the committee of the bondholders of the
State of Tennessee, hereinbefore mentioned,
have, in behalf of themselves and those they
represent, voluntarily proposed, In confer
ence with your committee, modification of
the foregoing proposition by which they offer
to agree and accept in satisfaction OF the
OUTSTANDING BONDED INDEBTEDNESS,
of the State and the interest due thereon
new compromise bonds TO the amount of
sixty per cent. thereof, bearing interest at
the rate of three per cent. per annum for two.
years from date; four per cent. per annum
for a succeeding period of two years; five
per cent per annum for another period of
two years, and at the rate of six per cent.
per annum, until the maturity and payment
amount of bonds to be issued in settlement
of the outstanding bonded Indebtedness of
the State upon tho basis of sixty cents upon
the dollar at SIG, SOC, 900, it will be seen BY
calculation that by the terms of settlement
proposed by the committee of bondholders
to your committee the amount which the
State will be required to
PAY AS INTEREST
for eight years after the date of the new
bonds will be $16S, 900 less than she would
be required to pay according to the terms of
the proposition in the communication to me
under date of April 10, 1882. / do most
earnestly recommend the prompt acceptance
Of the terms of settlement offered by so
large a portion OF our creditors. Those
terms are not only liberal, but certainly
meet our most reasonable expectations. In
the event no settlement of our debtedness
shall be made, inasmueh as there is now in
the treasury of the State large amount of
revenue collected for the purpose OF paying
the interest on the bonds the issuance of
which was provided for by the act passed
April 5, 1881, which cannot be applied to
The purpose for which it was collected,
would recommend that appropriate legisla-
ton be had
REDUCING TAXES FOR THE YEAR 1882,
to the end that no greater sum shall be col
lected than may be necessary to defray the
ordinary expenses OF the State government
economically administered, and in the event
a settlement shall be made upon the>t
proposed, inasmuch as the amount required
to be paid by the State in the discharge of
the interests upon the new bonds for period
OF years will be less than was contemplated
at the time the
PRESENT RATE OF INTEREST WAS FIXED,
i would recommend that appropriate leg
islation be had reducing the taxes for the
year 1882, SO that no greater sum shall be
collected than may be necessary TO meet the
Just obligations of the State. Other matters
Of legislation are mentioned in the proclama-
ton converting you in extraordinary session,
to which your attention Is called, and to
which you will give such consideration as in
your wisdom they may seem TO merit.
Senate.
Speaker Morgan presented the resolutions
and proceedings of a mass-meeting held in
Memphis IN regard to the settlement Of the
State debt Referred TO the State Debt Com