Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1858-09-03

'uot OIL iuoJ w klNe tU6 ldW tullEc:
CHAP. 9.-An Act amending an act passed March
l5Ib. 1856, entitled an act TO regulate the applica
tion ot the Snkip.; Fund to the redemption of the
public debt.
PAasfp APRIL 6, 1853.
l. Be it enacted by the General Assembly, that the
application OF the $ king fund to the redemption OF
the public debt, p.ssed March fifteenth, eighteen
hundred and ity-siI, be amended and re- enacted 80
as hereafter to read .s follows:
~ 1. Bs il enacted by the General Assembly, that
the commissioners of the Sinking Fund shall here
after annus y aps the entire residue of the said
fund, ater payr nt of interest the public debt,
III follows. Z: " uch Of said fund arises from
The seven 5r ofi .nm on the debt existing OIL the
trst day a. January eighteen hundred and iftyt
together VI the proceeds of the sales Of bank socks
shall be az led TO ths redemption of such part OF said
eot as u. : be red enable; and il no part thereoi
~ radeen ,e, the lid residue shall then be devoted
20 the ~ hase a. heir market value, and canoes-
t:on OF az outs'ss.ng bonds or certificates OF said
debt. Iii! 60 100. said fund as arises from one
per ceunm the 1ebt created since the frat day OF
January eighteen hundred and fifty two, shall b-
Invested in the outstanding bonds or certificates ot
the said debt ut their market vales aud held by said
commissioners for the benefit of said fund. But if no
bonds certificates Of either issue be purchased
with the fund applicable thereto the same shall be
invested 10 the stocks bonds OF other States or OF
The United States, as shsll be deemsd mUs advants.
geous by the said commiasoners.
=. lho second section OF eald act ana allla and
parts of laws inconsistent with this act srs hereby
repealed.
3. This act shall be in foros from its passage
Now If these gentlemen can, under fbis law, land
this is the ss, and repesls all others on the subsct
lind any authority 10 shsve up the bonds oil the
Stat. that have tweuty and more Years TO mature al
discount OF nin5 or ten par cent, whilst there at
bonds redeemab be-snd the holders desiring payment,
land all the holders do desire payment, tor they call
reinvest TO their own prof) they mus: have az
unusual sketch "f imagination-lt State bonds wure
at premium, | would ask These gentlemen 1t they
would ul0Lake the law 10 give the holders the advsnag.
nj III per by refusing To pay the redeenabl-
bonds aud 20 into tho market and buy With the sink
ing fund NJ premium and save that premium fc
The holder Of old bonds; dare say they would not
This shufhing aud shifting and sharpng, like parcel
IF horse Jockeys, s unbeconing the agents OF the
great and good old CummOnw eAlth OF Virginia, hr
we'll as unjust TO ihs holders of these redeeInaole
ounds-and as stated in former piece they ough
Ia hnli oil awhile, aud not spend all the supplies enlb
their courss is fully undsrsood-for then they Will b.
able tn make much better speculation, and II VIII
not BIZ long; since the publication of il has b5sn com
rneuced III New York, where very large amount oil
these State bonds are dsily IN the market, and see
they already going down, and would suggest tha'
when they 20 to s7U, or even S72i one OF the
.Omm ,si0ners 20 to New York ana spend any rem
nADt they may have on better terms, than In hich-
mond. JUSTICE
we lDe UOIc lUuuC6u " uOtiSo tnie o''''"NN>
view of the matter in question: since We hear rumors
intmating that the communication emanates from 4
highly intelligent and inAuenol source.
The msapprehension involved ia easily explained
An attentive reading of the law explains the truth
The entire sinking fund cannot be applied to the re-
demption OF bonds which become redeemable previous
to 1886. ALI such bonds were issued prior 70
1852, and only the legal per csntage on these bonds
csn under The law. be employed for their redemption.
ndsed this state things is rendered necessary by th.
t.rms Of the State CONSTITUTION, according to which
the Legislature is obliged to set aside yearly per
centage each separate debt for lts own extinction
The money thus appropriated TO the extinction OF one
,lsb cannot be applied to the extinction OF another
debt, any than to any other unauthorized pur-
pose. In other words, under the Constitution, each
d-bt created by The Stats must be provided with
separate sinking fund, not at all available for the ex
tnctun Of any other debt. The reason for this Con-
s.itutional regulation is obvious
The arrangement ia necessary to prevent coniu-
sion of accounts. II an opposite arrangement were
permitted We should have one of two results-th.
one destructive Of State credit, the other involving
nanc al confusion. Suppose that the debt created
previous to 50 should be partly e1tiDgushed by the
sinking fund now set apart Tor the extinction OF The
,lsbt created subsequent to So, the former debt
would be rapidly paid of, and then the State would
he obliged continue TO set apart per centage on
he frlinguished debt, for an uncertain number 'o
ysa5. Or, in 1886 When the debt created subsequen
10 1852 shall become redeemsble, no s,-nceul sinkins
fund will have accumulated for it's redemption
ton bnyu 10
Legislature have not permitted, and could not per
nit by the aot of 1853 the application of the eutir
amount OF the sinking fund 10 that part of the STATE
debt which has now become redsemabIe.
Thus the duty of the commissioners of the sinking
fund is unmstak keabe, and they have strictly pursuet
fha line Of official conduct prescribed by the statute
1853. The entire amount occruins from the pnoh
reyenue and set apart for the redemption AT PAR o)
the debt created prior TO 1882 has bsen so applied
The commissioners have no right nor power to appl,
the fund set apart for the extinction OF the debt crea
ted to 1852 to the redemption OF any deb
whatever at this tims 1t is contrary to law, for then
to apply this part of the sinking fund to the redemp
lion of the last mentioned debt, before such debt sha
become releemabls. i. 9. in 1886 1t is contrary Il
both the law and the Constitution, for them to sppi.
the same fund at any time to the extinction oil I'M
| debt created previous TO 1852.
Thus certain proportion OF the sinking fund
now accommodating n the hands of the commissioned
which cannot DOW be legally applied to the e1tlnotlo
of any part or portion of the public debt. Wba
shsll they 10 with it1 The law provides that the.
must ;nues, il. How must this investment be made
The same law provides that it must be made In To
bonds OF the United States. or in the bonds of othe
States, or IN the bonds of the State ot Virginia PuR
CHASED At THE MARKET PRICE. Acting in strict ODE
diencs to the law, the commissioners have invest
ed the per centage sccruing from the public re"enu
and set apart for the future extinction Of the debt ere
sred subsequent to 1882 in the bonds of the State
Virginia purchased at market prices. This is all tina
has been done. And this strict performances Of al
official duty imposed by law, affords the only prets1
for the ignorant complaints which have recently oeei
urged against the commissioners of the sinking funo
Their conduct is entirely irreproaohable.
We regret to say that We can present no sucl
perfect e1cups,ion in behalf Of the Legislature
Virginia. And here we must not be understood a
intending more than We cay. We are mol driven l
confess that the Legislature has in the matter repu
dated the liabilities Of the State towards her credi
tore Our legislators have indeed provided that III
entire debt of the State shall be redeemed at pa
whenever the ultimate period of redemption sha
arrive This is sl that street justice TO the credn0
requires But the of esislation adopted
| unnecessarily ungenerous towards the CREDITOR An
amos, equally runous to the State credit with injus
| tics itself.
The provision that bonds issued prior TO lo32, ma
be purchased for cancellation, at the option OF ID
bondholder and the commissioners of the sinking
fund.- at reduced price, prior TO the agreed time 10
rsdsmptiop amounts TO nothing more than sutnof'
sing the State trade upon the depreciation OF %
own credit. by purchasing her own bonds at ','
count. I'VE are happy to assure our readers that To-
practical operation Of the legal provision last reiefe
to- is entirely precluded by tbs facf that ne ~noe
the sccruug revenue set apart for the redemption
bonds issued prior TO- 80 il consumed every year D.
the constant aud rapid maturing OF oonds wnic'
,brs b-co,n. red.emsble Ut par.) Aud minute Cor
| DIR -a:e tho fart fha