Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1872-02-01
THE STATE DELFT.
Report of the Finance Committee Of the
Legislature.

NE ATE DEBT
Report Of the Finance Committee Of the
Legislature.
The sub committee Of The io'nt COM
mittee Of the General Assembly, on the
questions relating to the State F nances.
composed Of Messrs. Cochran, Terry, and
Fitzpatrick IN the palt of she Senate, and
Brooks, Coghill. Cummings, Deneal and
Walker Of the House-have reported the
following bill to TIE joint committee,
which was adopted by vote of l6 to 8
last night
A Bill to proyide for The Famding and
Payment Of the Pubic Debt.
Whereas the act of the General Assem-
bly, Of Virginia approved March 80. 1871.
entitled an act to provide for the funding
and payment Of the public debt, is, in
some of its features, of doubtful or dis
puted construction, and in others Of qnes-
tiopable constitutionahty, ifnot subversive
of the vital and inherent power of every
Legi1a !ure, 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 iFsued in pursuance Of said act
and declaring tho coupons attached to the
bonds therein provided for to be receiya
tie in payment Of taxes, debts, dues. and
demands due to the State and whereas
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 expeGient to withdraw the pro
prosition to the creditors of the STATE con-
tanned in said act, and to adjust the yet
IN funded portion upon basis more in
accordance with the financial ability Of
the Commonwealth and whereas the
General Assembly is desirious of sustain
ing the credit Of Yirg mia by providing
for the prompt payment of interest upon
her debt, whether funded Or. unfunded +,
TO the full extent of her means: There
fore 's-s
BE it enacted By the General Assembly,
Thai from and after the passage of this
act no bond, certificate, or other evidence
0 f Indebtedness, thaa be issued for any
portion of the debt of the State, except Ms
hereinafter provided but nothing herein
contained shall lie SO construed as to pre-
vent the issue OF new bonds of the same
character to assignses of any class of reg
istered bonds.
2. The owners ofany of the bonds,
stocks, or interest certificate heretofore
issued by this State which are recognized
by its Constitution and laws as legal, ex-
eept the consolidated bonds issued in
pursuance of an act approved March 80.
1871, entitled an act to provide for the
funding and payment of the public debt,
aud the FIVE per centum dollar bonds, and
what are known as sterling bonds, but
including the stock of the old James
River Company. and the bonds Of the
James River. and Kanawha Company,
guaranteed by the State, may fund two
thirds of the interest due, or to become
due thereon, to the first of July, 1871, i'll
coupon or registered bonds of this State
of the denomination of one hundred
dollars and multiples thereof, dated that
day, and to become due and payable
thirty-four years after date the interest
to be paid semi~anuually, upon the first
days of January and July Of each year
at the, rate Of three per centum FER anuum
Tor the first twelve years, SIX per centum
per annuEl for the next ten years AMI
uino per cen,um per annum tor the re-
msining twelve years. The bonds shall
be made payable to order or bearer. and
shall bear upon their face the several
rates of interest indicated by this section.
the coupon shall correspond with the
several rates of intere:t as specified in the
bonds, and the same shall be payable to
bearer scmi-annually at the treasury of
the State. Bonds payable to order may
be exchanged for bonds payable to bearer,
ard 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 Jaw under which they are issued.
The holders of the Eve PEE 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 bali per centum per anuum
AND for the next ten years, five per CELL
tum per annum and for the remaining
twelve years, seven and half per centum
per annum. Aud the holders of the con :
solidated bonds, funded IN pursuance 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 privileges guaranteed to other bond.
holders, Of exchange or conversion from
one class of securities to another. In the
fnnding herein authorized, for any
fractional sums less than one hundred
| dollars, certificates shall be issued, bear
ing the same date and rate of interest.
aud pay axle at the same time as the bonds
issued under this section which certif-
ii'cares, in suns of one hundred dollars, or
aay multiple thereof. shall te exchange
aBle for bonds of the character herein
authorized to be issued /; anG new eertif
Gates of like character may be issued for
any fractional sums less than Que hundred
dollars, which may remain in making
such exchange.
3. No person or persons nov or here
after authorized to collect or receive any
portion Of the taxes. debts. dues, and
demands. due Or to become due to the
s. ale OF Virginia shall receive in payment
.hcrcof, or any part thereof, any coupon
or coupen rs heretofore or h, reaftcr issued
under the provisions of said act Of March
so, 1871, or OF this act. igf
4. Upon the surrender Of the old and
| tho accnptanpe nf tho W bond for two