The day book. [volume] (Norfolk, Va.) 1857-1867, 1865-12-07


THB PUBLIC DEBT OF VIRGINIA.
The amount of State bonds regis
tered and bearing interest at six
per cent, $2l, s58, 1893 38
Registered five per cent bonds...... l0S, 900 90
$2l, 1896, 500 SO
Six per cent. coupon
bonds ..................$ll los, 900
Five per cent coupon
bonds payable in
London. .,........." 1885, l2.973,0OO 90
Aggregate amount. $34, 966, 1893 3S
Interest outstanding and unpaid
July LIST, 1865. SOL, 337 20
Add guaranteed bonds, by which
the State is liable and will have
to ............................. 1922, 1856 90
Interest thereon to July LIST, 1866. 1871, 726 20
Making an aggregate up to July
LIST, sd, 06l $40 ~
ASSETS THE STATE.
Stocks in the railroads. SIS, 649 ,s43 "a
Seven per cent bonds loaned to
railroads ......................... 3,Oss, 1913 SO
Add four years interest. $3.50, 1873 20
$22, 7Os, 319 81
Of the above stocks there is expended in
railroads, from which it is not probable that
the State will derive any income-for many
years at least-and which should be deducted
from the estimate of available assets of the
State, 81, 1859, 946 81. 1t is hoped that in
time the residue of these stocks and bonds
may be made available to the Common
wealth.
The State had invested in the several banks
of the Commonwealth:
In the name of the Commonwealth 49,. So, 243, 900
In Nf tha IF puh
l,SoO, sou
In the name of the Literary Fund.-. 1868, 070
Making an aggregate ITO, 02O
Of the stocks, the State holds, in the name
of the Literary Fund, $4,000 in the Fair
mont Bank, which is supposed to be good,
and $874,000 in the Northwestern Bank,
$4,000 Of which belongs to the Literary
Fund The last named bank has gone into
liquidation, and it cannot be known until its
accounts are settled what will be realized by
the State on this investment. The residue of
the bank stocks held by the State was in the
Bank of Virginia, the Farmers Bank of Vir-
ginia the Exchange Bank of Virginia, and
the Bank of the Valley, all of which, it is be-
lieved, is lost to the State Some of these
banks will only be able to pay small per
centum on their circulation In addition to
these, there are a number of independent
banks in the State. Some of the latter were
based on State stocks on the same principle
as the present National Bank system. They
were permitted to issue, in circulation, eighty
per centum on the amount of stock held by
the bank-the remainder twenty-five per cent.
was required to be kept in specie. I am in
formed that some of these banks have pre-
served part Of their assets, and, but for the
depreciation of the State bonds, would be
able to redeem all their notes at par. Others
of them invested largely in Confederate bonds,
and exchanged their State stocks for Confede
rate bonds, and consequently their circulation
is of little value. By the terms of the char
tiers of these State Stock banks they were re-
quired to deposite eighty per cent. of their
stock in State bonds with the Treasurer of the
Commonwealth as security to their note
holders. The Treasurer was authorized to de-
liver to the bank, at any time an amount of
stock equal to the amount of notes of the bank
presented to him for cancellation. The Off
GERS of some of these banks, since they have
failed to redeem their notes at par, have pre-
sented their notes, in considerable amounts,
for cancellation, and demanded of the Trea-
surer an equal amount of the State bonds de-
posted by them. The Treasurer refused to
deliver the bonds SO held, upon the ground
that the deposit was held in trust to secure the
note holders, and that when the bank failed to
redeem its circulation at par, it could not avail
itself of that provision Of the law until it
went into liquidation, and decided the mode
of disposing of its bonds and other assets, with
a view of placing all the note holders on an
equal footing. l think this decision is OBJ
yiously right.
The law, as it now exists, gives the Execu-