Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1858-06-18

,bsl ,l,ry inlcp,ieL 10 use The fund under their control IN
purchasing bonds ut the market value, under authority
Granted hy The Cicneral Assembly, could not believe,
| until saw your announcement OF the TACT, mat 'hcy
would use the States funds. TO slave It's unmHtuleo paper
Mt a discount of ten per cent, whilst there Is a much
larger sum of ma,ured bonds in the hands Of parties who
desire payment, than the surplus on hand. ana VINO have
held them over, thirty years; and, nctwithstanuinc inc
bonds are payable at the discretion Of the Legislature, al
ter maturity, contend that good faith requires the Com
missioncrs 10 pay hrst, all maturcd bonds, 10 partaes dc
string payment in full instead Of using the sinking lund,
which was created for the purpose of paving the bonds OF
the State as they insured, and for no other Purpose-in'
stead OF using the States own funds in ShdrthS It's own
unmaturcd bonds. No one need 10 wonder that our State
credit is so low. when the agents OF the state are permit,
ted 70 pursue such a course ~unrebukcd IL an INDIVIDUAL
were To pursue such Il course, though he might have II Ms
much in his power as thcse same Commissioners nave ne
would not be couutensnced in commercial circles; and II
they expect 10 raise the States credit by the course they
are pursuing, and pay none ni the ma'ured honds, until
they can no longer use the States money under thelr con-
troll, in Sharing the unnatured bonds, they Will | think,
have an opportunity, at no very distant day, to shave with
all the sinking fund that will accumulate at twenty five,
instead OF ten per cent, and weary the patience oil
Now, il the writer Of the foregoing, had examined
the report made by the commissioners of the sinking
fund to the General Assembly at its late session, he
would have discovered that the commissioners recon-
mended the very view that he himself has taken.
In that report they say TINT there are three CLASSES
Of the debts of the State. LET, Those redeenable at a
specified date, to be paid when that date arrives. I'd,
Those redeemabls at a specified date, aud thereafter
at the pleasure of the General Assembly, provided
that pleasure shall not extend beyond fifteen years
after the specified date; and, Sd, Those redeemable in
the years specified, but afterwards at the pleasure OF
the General Assembly without limitation.
They furthermore state that 1.-The first class Of these
debts is certainly not redeemsble, the day Of payment
not having arrived. The second class, the amount
L--.-olt non : e xlo.r.ahla ta linuiAat.H Mil
perfect ease during the next year, when the day of
payment for the whole amount will have arrived"
SIN the view We have taken of the subject, the Sc.
coud aud third classes may be placed upon the same
footing. In either case they may be redeemed at the
pleasure of the General Assembly, with Z limit to that
pleasure, in the second class, to fifteen years from the
day of payment. The question is, has that Will been
| expressed, and how has it been sscertained ! Prior
| TO the adoption OF the Constitution, the payment OF
| the third class OF bonds might be postponed indei mite
ly.
but since that time, by its provisions, an amount
is required to be set apart, which must redeem the deot
in less than 81 years; and il is worthy OF note that
the given DAY OF payment, of the entire debt, will
arrive at or about the expiration Of the "a years. The
Legislature, therefore, by the Constitution, has 10
longer au unlimited period for the exercise OF its
pleasure, as TO the entire third class and it has con.
formed to the Constitution by appropriatins annually
a sum exceeding the amount of annual interest on
the debt, to redeem it within the required time and,
moreover, has directed its agents 1.-THE Commissioners
Of the Sinking FUND.- TO redssLn the debt as provided
for. They reserved, originally, the right to pay at Il
given day, with the option to extend the time, be.
cause it was doubted whether the State would be in
possession of the neans to pay at the dag named
| But tho reason of the reservation cssses when they
provide the funds; for by 80 doing they prove their
ability and desire 10 redeem; and hence we legitimate.
~ conclude a provision of funds by law is an express
sion of their pleasures; and that, therefore, whenever
we have sufficient funds on hand, and the given day
of payment OF any debt has arrived, we have authori-
ty TO redeem; when it has not arrived, that we are
authorized to purchase, and to csncel the debt"
"And it follows from these premises, that when We
have the money on hand we ought to redeem, in the
order Of the given day Of psyment-that is, the Oldest
first, without regard to the tao; whether the bonds
bear five or elk per cent. interest. The obligation in
each case was TO pay at a given time, or hereafter
in effect, when the money WAS provided"
Then if this be the Gaze, there is no necessity to
purchase this portion OF the debt at all, because we
AVE tue power, Wueu IN TeCSiPi N iuuus, ~ cdil III ~
debt absolutely, redeem it an stop the interest. lnas.
much therefore, as redemption is always made at par,
we have not deemed it necessary as to this portion Of
the State debt. to enquire whether we ought to pur-
chase at the market rates or not. But as a question
Of State policy, and Of morality too, We cannot avoid
expressing the opinion that when the given day Of
payment of a debt has arrived, it is not right to post.
pone the creditor by a plea that you have not the
ability to pay, OF that you have the option not to pay,
when with the same breath you direct your agents 10
purchase the bond which Is due, for less than you
agreed 10 pay upon its face. 1t may be different in
q case when the amount agreed TO be paid is not due,
for in that case the credit was a part of the contract
and if the length Of the credit is reduced, you may
justly abate something for the payment in advance"
This was the uuequivocal opinion of the commits.
sioners of the sinking fund, expressed to the Legisls.
lure, informing them how the commissioners intended
in future to apply the funds under their management.
The Governor, also, in his annual message. COM
menting upon the sinking fund, approved the action
of the commissioners, and after stating what that &c
ton was, added, land l that the Legisla.
iure shall enact, as Il means of raising public credit,
that none of her bonds shall in future be sunk, or re.
deemed, or purchased, with her own funds at less
than par
After considering the report OF the commissioners
and the Governors recommendation thereon, the
General Assembly passed an act on the sixth Of April
LAST, requiring the commissioners after payment of
The interest on the State debt, to devote tHat part of
the fund intended for redemption at their disposal, "to
the purchase, at their market value and cancellation
of any outstanding bonds or certificates of debt not
redeemable;" and to invest the portion intended for
investment "n the outstanding bonds or certificates
OF the said debt, at their market vslue,' aud to be
held for the benefit of said fund.
Justice" will BIZ able 10 say, after reading the re.
port Of the Commissioners, and the law of the State.
by which they are governed, whether the Commis
siOners did Tot do all in their power to manage the
fund III accordance with his own views, and whether
they are liable TO the accusation he has made against
them. Being bound by the Law of the land, they are
only carrying out its behests.
But. in justice to the Legislature, it is but right to
say, that the public creditor has no right to complain;
for the bonds which he purchased, or upon which he
made the loans TO the State, bear upon their face ths
terms of the contract, which was, that the bonds were
to be paid on a given day, "and thereafter at IT, plea
sure Of the General assembly," If the bonds were
above par, then the creditor would not desire the
Legislature to express lis pleasure to redeem, but now
that they happen to be below par, he criss aloud ior
redemption. The creditor is in a better condition at
this day than he was at the time the loan wss
made; for he took the loan with the express uude.
standing that he was not to be paid when the given
day Of payment arrived, unless tho Legislature chose
to order the payment, and their option was unlimited.
Now the Constitution has prescribed that every debt
shall be paid within thirty four years from the date o.
the loan.
THE ENGLISH CRUISERS AND PRIZE MO-
NEY.-THE SLAYER CORTEz.