ARKANSAS. 



37 



But the real amount of the new bonds, estimating 

 them on a basis of 6 per cent, bonds, will be less 

 than the amount of the undisputed debt above men- 

 tioned, for we propose that the new bonds shall not 

 draw 6 per cent, from date, but that the interest for 

 the first years shall be as follows : For the first year 

 the interest shall be at 2 per cent. ; for the second 

 year, 3 per cent. ; and for the third year, 4 per cent. 

 which will be an annual reduction from the interest 

 of the first three years of the following amounts : 



For the first year $160,000 



For the second year 120,000 



For the third year 80,000 



In all $860,000 



Which will make the new bonds, estimating them 

 on the basis of 6 per cent, bonds, for an amount less 

 than the old and undisputed debt above meiitioned, 

 by the sum of $87,827.08. 



*As it is desirable for the good name and prosperity 

 of the State that all the paper outstanding, having 

 her name and official seal on it, shall be withdrawn 

 and canceled, we propose to get up and deposit, at 

 the time of the issue of the new bonds, and without 

 any further charge or remuneration than the funding 

 of the undisputed debt as above mentioned, the fol- 

 lowing outstanding bonds, the legality of which has 

 been disputed that is to say : 



Bailroad Aid bonds, with interest to July 1, 1877. $7,157,145 



Levee bonds, with interest to July 1, 1877 2,751,118 



Excess of Holford bonds, with interest to July 1, 

 1877 1,566,288 



Making, in all $11,474,501 



of a disputed debt which the State will get in with- 

 out paying a cent therefor. 



This will remove every ground of reproach against 

 the State, and will give her as good standing as that 

 of any State in the Union. 



We propose that the first semiannual coupon 

 shall be payable July 1, 1878. 



No new bond shall be issued under this plan until 

 we deposit in the State Treasury one-half of the 

 nominal amount of each of said kinds of bonds 

 above mentioned, both the disputed and undisputed, 

 as they are above designated; and for every new 

 bond of $1,000 issued, there shall first be deposited 

 in the State Treasury the following amounts of each 

 of said kinds of bonds that is to say : 



Of the old bonds issued to the Eeal Estate and 

 State Banks, and of the bonds funded under 

 the act of 1868, excluding the Holford bonds, ex- 

 cept for amount which is undisputed $981 95 



Of the Holford bonds, for amount disputed 891 56 



Of the Eailroad Aid bonds 1,789 29 



Of the Levee bonds 687 78 



Total $8,800 58 



The new bonds shall be issued in denominations 

 of $500 or $1,000, at the option of the holders of the 

 surrendered bonds, and similar provisions shall be 

 made for securing the payment of the interest on 

 the new bonds as is made by law for securing the 

 payment of the interest on the new outstanding 

 Loughborough bonds. We are to pay all expenses 

 in the matter, except that of printing the bonds. 



This proposal is made for the approval of the 

 Board of Finance, and subject to the approval of the 

 Legislature. 



Respectfully submitted, 



JOHN D. ADAMS, 

 For self and J. E. KKDFIELD, 

 To the Board of Finance, City of Little Sock. 



STATE CAPITOL, LITTLE BOCK. 



This involves the wiping out of the entire 

 disputed debt and the funding of whatever 

 may appear to be the undisputed debt, with 

 the exceptions noted in the proposal, the amount 

 of new bonds being sufficiently above the nom- 

 inal amount of debt to secure 6 per cent, inter- 

 est from the start, while the actual interest 

 shall be only 2 per cent, for the first year, 3 

 per cent, for the second, and 4per cent, for the 

 third. The Governor, in making a statement 



of the matter to the public on the 8th of Octo- 

 ber, gave the following as the actual amount 

 of undisputed debt in the hands of private 

 creditors as it would stand January 1, 1878 

 (see page 38). 



This would make the amount of bonds to be 

 issued under the proposed plan $3,243,117, in 

 stead of $4,000,000, as roughly stated in the 

 proposal of Adams and Redfield, and the pro- 

 portion of disputed bonds to be surrendered 



