Page:Disunion and restoration in Tennessee (IA disunionrestorat00neal).pdf/59

 of bad crops increased the difficulty. The assessment returns for 1874, as compared with those of 1873, exhibited a decrease of $18,556,173.

On January 1, 1877, the arrears of interest amounted to $1,570,646. It now became apparent to the bondholders that they must either effect some compromise with the State, or run the risk of losing the entire debt. They, therefore, entered into personal communications with the Governor, and signified to him their willingness to compromise. Their communications were laid before the Legislature, and it adopted on January 26, 1877, the following resolution:

"Whereas, The General Assembly has with pleasure received, through the message of his Excellency the Governor, the communications of certain gentlemen, holders of bonds of the State, and representatives of holders of bonds, asking for a conference looking to a permanent and equitable adjustment and compromise of the claims held by them against the State; therefore, be it

"Resolved, By the General Assembly, that the Governor be requested to communicate by telegram, or by letter, with the gentlemen holding securities of the State, mentioned in his message, and request them to submit, on the earliest day possible, through him, to the General Assembly any proposition of adjustment and compromise, which they may desire."

As the result of this resolution, a committee of the Legislature and a committee of the bondholders met and agreed to the following proposition: "That arrearages of interest to July 1, 1877, be added to the bonds, and that new ones for sixty per cent. of the total amount be issued, made to bear interest at six per cent., and to fall due in thirty years." It was naturally expected that the Legislature would ratify the action of its committee. Much to the surprise of every one concerned, it not only rejected the proposition,