Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1853-01-21
70. III. Enquirer.
-ur Bills TO ESTABLISH A SINKING FUND

;,;, t,,d "a o measure Of the first Importance
beg leave TO call attention 10 a One Of these bill
S tho Senate and was cent 10 the House. whlcn p'ss
I'D hin Of i,s own as substitute ter inc senate on'.
propose briefly to compare '''eI, nm,,Iv fnm M
crnnp revenue" the required for the sinking iuno
The Senate b section lst requires Inc se'tne aPa 10 "
from Tho revenue The preceding year tce Is cea
;,n of The CONSTITUTIONS and which may trrstfat
The object OF the sinking fund The revenue accrues IRON
The Isl of July The 18Th OF December and under inc sc
nare bill the sinking fund be set apart nn the Isl
January following There is an interval Of TWO weiss
therefore elapsng after the treasury h before inc iun
can be usrl in this lnerVai appropriations 'as u
made sufficient TO exhaust the treasury.
The Iluse bill conforms 10 the Constitution and thereo!
gives the sinking fund priority all other appropriations
[, REQUIRES the fund apar. from The acculhg eVe
nue.. As the revenue Is PAID III II CONSTITUTES III. 'u ~
2od section House bill. ,,,
The ID section Of the Senate bill perpetuaes vera IL,
accuracy of Constitution, by providing taa Tue
fund Tor debts contracted after January ISL 1927 sn'
sum exceeding by one per the aggregate amount OF In
forest agreed 10 be paid thereon al Tie lme VI us
ton" This sum s 10 be set apst' aHhuai.y m ~: 49,
years Take this provision literally and inc sum sci aat
will be the interest and per cent OIL inc ln'ees.
example if the debt be $780, and The interest FIX uoas re
annum the sinking lund will DC SIX ao'ials anu s" Is
annu,n This operation will require Just zen tuousah
wears TO c3inguish the debt nstend OF 81 years as e ION
stituion suppose. But II Tue sum SCI npa't oc
interest," and one per cent Of Inc Pthe hn uso h es,sh
fishes this construction, (maniestlY Inc Hce ohe W
ING sum be apart exceeding by ono per Gen' VI w
principal Of the debt the aggregate neIes aseen 10 Ut pa
thereon the time of its construction oec'on ISL ou
bill. ..,.o,., !, ho,,,
copy Of Tho Both paragraph OF the AIN af'lce Vi Tue oo
Section 4,h Of the Senate bill Is with due respect 10 III
Senate budget of blunders The Isl Auoor 10 leauieu
upon receiving statement IRON !he Heeonu Of m
"pay into the Treasury annually, out VI le resehu ~ Nv
preceding year, such portion OF the sum eel ua W ~
sinking fund shall be applied TO the redemption U ~, -,
STATE debt existing JAN 1882" THERE'S no reason why IN
lst Auditor should mcdde In the matter. Inc lun"
Of government corporations are placed by a" uiae n'
Second Auditor tCude 235, sec. ~ Moreover an Auuu
does moi nav money-he credits accounts ana difec,s w
Treasurer by warrant to pay them; Code chap 49, am
if he did where is the proprey of requiring him 10 pay IN
To the Treasury" money already there INA Payneh w
is TO be made of the revenue OF TIE piec. ,n
inns apnears 10 have been elsewhere than 10 te fea
sury This section is also unconsiitu'loiu
takes the sinking fund from tho revenue " "s ]
ns.ad q, The .cciing revenue" Ii only requires sI;'
ro,,ion nj the fund paid into the Treasury as sha u
annlicd to the redemption Of the debt Hhat oecenc
the portion not applicable TO the redemption o .'
Supposc that, for The purpose OF changing inc NV
the commissioner direct sale of bonds, VINO IL |" lecc
the proceeds of such sale They can't DC paid .o '
Tr.asurybccause they applicable 10 Inc eaeio,
~ hr db, and must therefore remain in the handt oil mol
,duas VINO have given security for their sale
Millions uf dollars may be thus situated Inc oh' ~ ''
particular is simply absurd. 80 eLt :,
The House bill guards against ms coholion VI
recurring Nil the interest accruing TO the und ana e pro
cceds of bonds sold be paid into the Treasury oy e @
son sprnary liable" (Sec g. The person primarily Ia
bn ~ the debtor who in the OF sale OF b"nds WI
b. the purchaser But il happen that nc cannon pa!
the money into the Treasury for ne may De
This case provitcd for by the House bill whch require
the money TO be received by Banks OF this
10 be selected by the Commissioners No irresponsible per
son can intervene between the Treasury and the dcoof
The 9Th section Of the Senate BILL Is quite as oooAoes
criticism as the 4h for il repeats the inaccuracies o h
latter unt, In addition, commits most serious efot;
section undertakes 10 provide Tor the payment VI e ue
since January lst 1882 In "a years. as INC Co
stituon but The fund set apart VIII not olsca
The deb, all The bill requires one per cent OF hs princi
pal and The interest actually que 10 DC SCI bi -, h
fund annually for "a evidently supposne his 10 ~
compliance with the Constitution and lhat Inc pio'iso'
thus made will cxngush The debt in 81 years Nne,."s
in truth if il continued for gu years lnscau OF 81
would barely suffice The State bonds, II drawn as hereto
fore will be edrcmabc for 20 years. then redeemape al III!
pleasure of the Common wealth for II years and men u
mantane nv the creditor According 10 the Senate oIl II
loan of SO0 be made per cent there VIII nc SCI apa
81 per annum 20 years which, at COMPOUND interest,"
will keep down the interest OF the debt and provide sins
np fond nf $40 applicable tho principal Inc prhc'pa
being then redccmable will oer the best Investment.
and 1, is presumed the Commissioners VIII aVa 'hen
selves OF It and proceed 10 eXiinguish pAL. o' wv
debt The Interest will thus begin to dimlnsns an"
Tie sum authorized be sci apart dmnlshes Pdr' pas
SUI with the interest The TO be annually SET apa''
per OF the principal, ana INC amount %
due and plvahlc; consequently the principal Oh ''ie ueYt
only paid OF al The rate OF per cent per annu ana nj
the end OF twenty there being gu per cent Of Inc ao
still due, the iuId viii nO' e1tn9ush II 10 less IVAN sN'
years ;; o. - ,o
Tho House bill avoids this by requiring 10 DC &c
apart n sum exceeding per cent the interest," upon ~
whole Gsbt /; Originally STOOD, '"o
nsr will DC s. per annum for "a years without refer
encs 10 The dnnut;on Of the interest actually Que ana tGya
be In consequence Of partial payment Inc sum mus pro
vid.d will extnsush the debt in 81 years
The remainder OF The Senate bill appears TO DC mater
dsai far better tho discretion OF the Commissioners
WORTHY Of remark however that provision IS nao'
for neeicc, of duty upon The part Of tho
and if ihry be negligent corrupt the sinking lua is :
the ground ami puoic cet snks win H. guatn .sans
mis- con nceucy the House BILL section 8 makes y hS gu
" of the Attorney General ~ coercc Tho delinquent ocef
By applying for wit CT mandamus ,,-,yro