Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1872-01-24
THE STATE DEBT.
RaDOrt Of the Finance Committee OF
the LEGISLATURE.

the Legislature.
The sub committee Of the Joint committee OF
the General Assembly on the questions relating
to the State Finances composed Of Messrs.
Cochran, Terry and Fitzpatrick on the part OF
the Senate, and Brooks Coghill, Cummings,
Deneae and Walker of the House-havc re-
| ported the following bill to the joint committee,
which was adopted by vote Of Is to . last
night:
A BiUto pyoridc for the Fnudiug and Payment
Of the Public Dcbt.
Whereas the act of the General Assembly
of Virginia approved March 80, 1871, entitled
an act to provide for the funding. aud payment
OF the public debt, is, in some OF its features,
of doubtful or disputed construction, and in
others of questionable constltutlonaty, if not
subversive of the vital and inherent power of
every Legislature, to regulate, according to the
condition of the people, from time to time, the
subject Of taxation; amongst which provisions
are those touching the liability OF the State Of
Virginia for the one third certificates issued in
pursuance of said act, and declaring the cou-
pons attached to the bonds therein provided for
to be receivable in payment of taxes, debts
dues, and demands due to the State; and where
as a large portion of the public debt having
already been funded under said act, which it
is not the purpose of this General Assembly
materially to disturb, it is deemed expedicnt 10
withdraw the proposition to the creditors Of
the State contained in said act, and to adjust
the yet untunded portion upon basis more IN
accordance with the financial ability of the
Commonwealth; and whereas the General AS
sembly is DESTROYS of sustaining the credit of
Virginia by providing for the prompt payment
of interest upon her debt, whether funded or
unfundcd to the full extent Of her means !:
Therefore
Be It enacted by the General assembly, That
FROM and after the passage Of this act no bond,
certificate, or other evidence of Indebtedness,
shall be issued for any portion Of the debt OF
the State, except as hereinafter provided; but
nothing herein contained shall be so construed
as to prevent the issue of new bonds OF the
same character to assignccs of any class Of reg
| lsteled bonds.
2. The owners of any of the bouds stocks,
or interest certiiccs heretofore issued by this
State which are recognized by its Constitution
and laws as legal, except the consolidated bouds
issued in pursuance Of an act approved March
80, 1871, entitled an act to provide for the
funding and payment of the public debt and
the five Der ccntum dollar bonds, and what are
known as sterling bonds, but including the
stock of the old James River Company, and
the bonds of tic James River and kanawha
COMPANY, guaranteed by the State, may fund
two-thirds of the amount Of the same, together
with two thirds of the interest DUE or to be.
come due thereon, to the first OF July, ISL in
coupon or registered bonds Of this State Of the
denomination of one hundred dollars aud null
tiples thereof, dated that day, and to become
due and payable thirty-four years after date:
the interest to be paid semi annually, upon the
first days of January and July Of each year. at
the rate of three per ccntum per annum Tor
the first twelve years, six per ceutum per an
mum for the next ten years. and nine per cent
um per annum for the remaining twelve years.
The bonds shall be made payable to order or
bearer and shall bear upon their face the sew
eral rates of interest indicated by this section.
The coupons shall correspond with the several
rates of interest as specified in the bonds and
the same shall be payable to bearer semi-at-
nually at the treasury of the State. Bonds
payable to order may be exchanged for bonds
PAYABLE to bearer, and registered bonds may
be exchanged for coupon bonds, or vice versa.
at the option of the holder. The bonds shall
bear on their face declaration to the effect
that the redemption thereof is secured by a
sinking fund provided for by the law under
which they are issued The holders Of the five
per centum dollar bonds may in like manner
fund the same in like bonds, bearing interest,
however, for the first twelve years at the rate
of two and halt per centum per annum; for
the next ten years, five per centum per annum;
and for the remaining twelve years. seven and
half per centum per annum. And the hold
ers of the consolidated bonds, funded in pur-
suance Of the said act of March 80. 1871, may
exchange the same for either like class Of the
bonds prescribed in this act, with all the privi-
leges guaranteed to other bondhoders, Of ex.
change or conversion from one class Of securl-
ties to another In the funding herein au-
thorized, for any fractional sums less than one
hundred dollars, certificates shall be issued,
bearing the same date and rate OF interest, and
payable at the same time as the bonds issued
under this section; which certificates, in sums
of one hundred dollars, or any multiple thereof,
shall be exchangeable for bonds of the charac.
ter herein authorized to be issued; and new
certificates of like character may be issued for
any fractional sums less than one hundred
dollars, which may remain in making such eX-
change.
3. No person or persons now or hereafter
authorized to collect or receive any portion of
the taxes debts, dues, and demands, due or to
become due to the State of Virginia shall re-
ceive in payment thereof, or any part thereof,
any coupon or coupons heretofore or hereafter
issued under the provisions of said act Of March
80, 1871, or of this act.
4. Upon the surrender of the old and the ac-
ceptance Of the new bond for two-thirds Of the
amount due, as provided in the second section
of this act, there shall be issued to the owner
or owners, for the one-third Of the amount due
upon the old bond, stock, or certificate Of in
debtedness so surrendered, certificate bearing
the same date as the new bond, setting forth
the amount Of the old bond which is not fund
ed as provided in the second section, and that
payment of said amount, with interest at the
rate Of six per centum per annum, will be pro-
vided for, to the extent that the State of Vir-
ginia may receive moneys or property in such
settlement as shall hereafter be had between
the State of Virginia and West Virginia in re-
gard to the public debt OF the State of Virgin
ia, existing at the time of its dimembermcnt;
and that the State of Virginia hold such bonds,
n e. IL L Il j..