The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1871-04-08

Funding the State Debt-Oysnfon q
the AtfOrney.6eneraF-No NOR,
Transfers OF the Old Bonds to b,
Mnde by the Second Auditor.
The following opinion of the Attorney
denera! settles the question which has beer
raised in regard to the transfer of State
stock prior TO the issuing of new bond:
under ths SGT recently passed 10 fund the
public debt
CoMAoNwEALTH OF VIRGINIA,
OFFICE OF THE ATTORNEY. GENERAL,
RICHMOND, VA, April 6, 1871. ]
Hon. Asa Rogers:
SIr,-ln reply to questions propounded
to me by yourself, I have the honor 10 in.
form you that the first section Of the act
entitled San act to provide for the funding
and payment of the public debt" approved
March Both, 1871, reads as follows, to wit:
s. Be at enacted by the General Assembly
Of Virginia. That from and after the pas.
sage of this act, no boad, certificate, or
other Evidence Of indebtedness shall be issued
for any portion of the debt of this State,
nor shaii any interest be paid upon any part
or portion Of said debt except 'as hefefnaf-
Ter provided"
o7cners OF any of the bonds, stocks, or in
terest certificates heretofore issued by this
State, which are recognized by it's Consti-
tuition and laws as legal Except such as are
therein cXcepteD may fund two thirds of
the amount OF the same, together with tro.
thirds OF the interest due or to become due
thereon to the first day of July, 1871, in six
per centHm coupon or registered bonds OF
this State, go. !,
am OF the opinion that from and alter
the passage Of said act the Second Auditor,
or other officer heretofore charged with the
duty Of issuing bonds, certificates, or other
evidences of the Indebtedness of this State
Is prohibited, by the terms of the act, from
any further issuing thereof, except as pro.
vided for by this act. This act repeats, by
implication, so much of the old law as is in
conflict with its provisions.
The 25th section of chapter A, Code,
page 264, is thus repealed, because that
section created different mode of funding
to the one provided for by this latter act !;
the act passed the I'd day of March, 1865,
is also modified by the act first above named,
Which act contemplates the funding Of two
thirds of the debt of the State. with two
thirds of the interest due or to become due,
on the bonds named in said act, and as pro-
'A'ce ny VIC dSos VIC dlly
SUCH bonds, stocks, or interest certificates,
neglect or refuse to fund the same, as pro-
Vldcd by this act, there can be no interest
pad TO such holder. Such parties must
illnd according to the terms Of the act
10 enthle them to receive the interest or
any part of the principal due.
ii you were to continue to transfer and is
sue new bonds, certificates, or other evil
dences of debts as heretofore, you would
Violate the provisions OF this act, because it
expressly declares that from and after the
passage OF the act, no bonds. certifi.
cate, OF other Evidence of Indebtedness.
shall be issued for any portion of the debt
or this State, except rs hereinafter pro-
ylded. Does this act prevent the sale or
transfer of the bonds, certificates, or other
evidences OF indebtedness spoken of in the
act? answer it does not, but it does in
hibit the Issuing of ne1o bonds, certificates,
or other evidences of indebtedness, except
as provided for by the act.
Who shall fund under this act The act
declares that the o,cners Of any Of the bonds,
stocks, or interest certificates heretofore is
sued by this State may fund two.thirds of
the amount Of the same, together with two
thirds OF the interest due or to become due
thereon to the 1st day Of July, 1871. This act
contemplates 4 surrender OF the old bond,
stock, certificate, or other evidence Of debt,
and the acceptance Of Il new bond, not for
the whole amount of such debt, rs was the
case before the passage OF the act, but fol-
tar0.thirds only OF such debt. For the re.
naming third special provision is made
by the act.
II you were to continue your transfers a>
heretofore you would be issuing new bonds
new certificates, and new evidences Of debt
for the whole amount of the bonds, etc.
transferred, instead of for two-thirds Of
such bonds rs contemplated by the sai(
act. II is not necessary for. The depart
ments named in the act to wait until the Isl
of July next in order to then take action
under the act. See the 4th section of the
act, which declares that preparatory steps
for executing the law shall forthwith be
taken. I think bonds might now be is
sued under said act if the departments
were ready to do SO. Should issues
be made before the first day o.
July next, the interest must be calculated
to that day the bond must be dated us Of
that day; and made to cover two-thirds Of
the sum of principal and interest to thai
day for any fractional sums provision is
made in the second section.
There can be but two classes OF bond:
issued-to wit, registered and coupon
bonds. The new bonds must be issued tC
the ouners Of the old bonds, stocks, OF i'll
terest certificates, or to their lawfully au
thorized agents or representatives. L think
the General Assembly displayed much wis
dom in seeking to reduce the great number
and variety of outstanding evidences Of the
States Indebtedness to but two. Hereafter
it will not be difficult matter for all per-
sons wishing to invest in these valuable
securities to familiarize themselves before
investing with the genuineness of the paper
purporting to represent the Indebtedness
Of our Commonwealth.
In haste, yours, &C.,
JAMES G. TAYLOR.