Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1867-05-31
The Finances of Virginia.
STATE OF VIRGINIA,
AUDITORS OFFICE,
RICHMOND, May, 81, 1867.
Fl G.. Flo,t Esq, President Of the First Ma
60naL Bunkof Richmond:

RICHMOND, May, u, 1867.
II G. Fnut, ESQ, President of the First Ma
hoaul Bankof Richmond:
Dear Sir: In reply to your favor OF the
18th Instant | beg leave to state that an act
was nassed at the last session OF the General
Assembly bearing dale the DIST March, 1885,
providing .That the accounting officers OF the
Treasury pay on the lst July, 1861 anu Jahu-
ary, 1865, two per centum interest on the
principal of the public debt Of the State ex
Guiding theretrom the bonds given Tor interest
Oh said debt under the act OF the General AS
selnbly passed the I'd of March, 1866. the
''act to provide for funding the interest on the
public debt, that being the interest when
the State feels obliged to pay until there Is 4
settlement of accounts between this State ana
West Virginia. You will observe that IN
this act no provision is made tor continuing
the payment of interest beyond the lst OF Janu-
airy, 1868, but an act was subsequently pass
ed, to wit, on the 23d April, which declared,
among other things, that ''the sem-annual
payments of interest required by the SAID act
(2lst March, 1861 he continued uFt'l other
aci:se provided Jy zav." l see no reason to
suppose that the interest on the public DEBT
will not be punctually paid. The tax mposed
by the Legislature, much Of which IS now IN
process of collection is amply sufficient to meet
all the demands on the Treasury Indeed, the
greater portion of the amount required 10 pay
the July interest is already in the Treasury.
The form of evidence to be given to the
bondholders for the amount of their interest
held by the State in allegiance will be-lst.
In respect to the registered debt: The amount
unpaid will remain at the credit Of the holders
upon the books OF the Second Auditor, for
which certificate will be issued if required.
81. Interest coupons: These coupons will be
presented at the office of the Second Auditor !;
two per cent will be paid thereon in money,
and for the remainder not provided Tor new
coupon will be issued of the same number and
date as the original. [ may here remark that
the interest on both the registered and coupon
debt will he only for the six months preceding
the LIST July, 1861 All the uninvested inter
est on the debt contracted prior to 1861 can
still be funded under the act Of q Of March,
1866 in bonds bearing date the lst January,
1867
In respect to the probable reduction OF our
State debt | would remark that three acts
were passed at the last session OF the General
Asscmbly--one on the lst OF March, 1851,
incorporating the Chesapeake aud Ohio Rail
road Com pany, which consolidated the follow
ing roadside wit: The Covington and Ohio
railroad, the Blue Ridge railroad. the Virginia
Central railroad the Souhsde railroad, and
Norfolk and Petersburg railroad The interest
Of the State in the above roads, exclusive OF
the Covinglon and Ohio, is, 10 the aggregate,
S6,e93, $50 IS. The act of incorporation pro-
vides that this company (the Chesapeake and
Ohio ''shall have the right within t1oo gears
after its organization to purchase the stock
held by the State in said company at the date
of the purchase, by transferring to the Board
of Public Works bonds of the State Tor an
amount equal to the stock proposed to be pur,
chased, and also to pay any debt which 1t may
owe the State at the date Of the payment on
account of loans made to any OF the companies
which may have consolidated, ny surrenderlng
to the Board OF Public Works State bonds tor
an amount equal to the debt proposed to be
paid, and may also purchase the right of the
State in and to the Blue Ridge railroad by the
surrender of State bonds to an amount equal
to the value Of said road at the time Of pur.
chase under the contract with the Virginia
Central Railroad Company, said amount to be
ascertalned by the commissioners OF the Gov
ineton aud Ohio Railroad Company, etc.
Another act was passed the 18th of April,
1867, providing that it shall be lawful Tor the
Virginia and Tennessee Railroad Company,
the Southsile Railroad Company, the Nor
folk and Petersburg Railroad Company, and
the Virginia aud Kentucky Railroad Company,
to form one ioint-stock company to te there
after known as the Atlantic, Mississippi aud
Ohio Railroad Company The interest OF the
State In these cortorati0na provided 1t ~ not
extinguished az to the Southsldc and Norfolk
and Petersburg Railroad Companies by the act
of the lst March, 1867, Is 50, 5O6, 9O9 ~. =
Upon the organization OF this company the
Board of Public Works are empowered and
instructed to sell to il lie States lnlere3t IN
the several COMPANIES compo"lng II Tor Stale
bonds at par, provided that such purchase ol
storts OF the State in The said railroads and
bonds of the Southside railroad AMI Norfolk
and Petersburg railroad, shall he made on or
before the lst dag Of May, 1868.
An act was also passed on the 24tl Of April,
1867, authorizing the Richmond and Danville
railroad in 4 certain contingency to purchase
the entire interest Of the State in said road,
amounting to 81 ,9SS, sos for State bonds at par.
The aggregate amount Of the State $ interest
in the roads embraced in the companies afore-
mentioned to be exchanged for the bonds OF
the State at par, is Sll ,2S5, 7lS.54 When
the provisions Of these laws are carried out the
debt of the State as it stood on the 18th day
Of April, 1861, to wit: S34, OF, 29S.3S will
be reduced by that amount, to wit: $ll, 3D.
1854, making the principal of the debt (alter
deducting the amount to the credit of the
sinking fund, say 81, 0OO, OOo,) $2l ,G9l 81.
The interest ofthc State in the railroads not
embraced in the organizations above mention
ed is as follows:
The Alexandria, Loudoun and
HAMPSHIRE r. r. Co 81 ,Ol7,24s %
The Fredericksburg s. Gordons- -
vile II. r. OBSERVATION-DISCLOSURES. lG', 299 On
Observation-Disclosures. 2,29O,OOO 90
The Orange and Alexandria Rail
road Company ............. ,ZI4 ,GGO w
: an and Potomac +. R. Co............., 275,2O0 90
R.R. .... Ss5 5000 90
The Richmond and York River
r. +. Co. .......... 400, 900 50
The Roanoke Valley Railroad
Company ............... 3O7, 1902 90
The Winchester and Potomac Il.
Il. Company ........................." 96,jj3 %
Total ......................... SG,277, 5Sl s.
To VIII oh NAV be added the inter-