The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1872-02-23
WHAT THE suYLoCKs DEMAND.

WHAT THE SsEYLOCES DEMAND.
We give our readers to-day table Of
figures to show what the Wall-street Shy
locks demand Of the taxpayers of Virginia.
1t is a startling exhibit, and should bring
the General Assembly, now in session, to
the instant possession of its faculties, as
well as to the determination Of repeating
the funding bill of last session before it
has wasted another twenty-four hours in
debate. The table which we give below
simply shows what the bondholders take
out of our people by hoodwink-
ing them into paying interest upon
interest on our public debt. This
outrage was consummated by the last
General Assembly, under circumstances
which justify the suspicion, if they do not
verify the fact, that large sums of money
were expended by the bondholders to Sc
cure the passage of the bill by that body.
This fact, of itself, is enough to consign
the measure to unmeasured infamy; but
we propose to show what sort of usnrer's
chain it puts on the neck of Virginia, and
how ANONYMOUSLY, and at what expense,
she must consent to wear it.
The startling fact is shown, that in the
next thirty-four years, the period these
funded back-interest bonds have to run, that
the State aoiU ci,foally hare paid TO the
60ndholderS, IN interest upon interest, no less
1I1I, } L. l. -
interest upon the interest of these bonds,
if invested at the end of every six months
in sinking fund bonds, instead of being
paid to the Wall-street Shylocks, Mould
amount, at the end cfMe hHty-foao' gears,
to more than enough to pay the wEo}e
State debt t,cice 0Uer. And this stupen-
dous sum of money is taken from the
people, without any legal warrant, by
fraud, bribery and corruption. No
wonder that the bondholderS, in view of
this gigantic swindle, threw out their
money year ago in such profusion as
actually to deluge the Lobby with green
backs. A stake of s32 100000 and up
wards, is one that does not offer itself every
day in the year, nor do all legislative gulls
fly SO low, as to be winged in'' on a
financial scheme of this sort. Time.
place, circumstance, and material to be
acted upon, We're all auspiciously present
to the bondholders, and most admirably
did they improve their opportunity.
But to our figures. We have shown that
the amount of unpaid interest, funded and
remaining to be funded under the law of
last session, cannot be less than $40 $780,
600. The interest on this sum for one
year is 100000. We take this as the ba-
sis of our calculation, and compute the in
terest annually thereon for thirty-six years,
adding the interest to the principal at the
end of the first year, and making their sum
the basis Of the second years computation,
and so on to the end of the term. 1t will
be seen at once that this will make less
sum in thirty-siX years than semi-annual
compromising will make in thin ty-four years.
But as 6, the rate of interest, and u, the
number of years in which money doubles
at compound interest, are constantly all
quot parts of the interest treated as princi-
pal 63o,00O, and of SO, the number of
years our computation covers, we have
preferred to show the less sum rather than
the greater, both for convenience in Gem
putation and the less space it will occupy.
The order of payments, as will be seen, is
int In FOL 81 L
OF time; the table showing what $3.50, 900
will amount to at the end of SO years, what
at the end Of 30 years, and so on. down
to the beginning of the first year wherein
the first 100000 of interest is paid.
1t will be seen that the table makes the
first years interest on 100000 a tribe
more than it should be, for the reason that
we have pro-r@ded, or deyided the accru-
ing interest equally, through each period of
twelve years, in which it doubles, success.
siyely. Thus, $6SO,O0O doubles at the end
of the first twelve years 81 1850, 900 at the
end of the second twelve years and so on.
until the last twelve years makes it s5,-
100000. In this way, the interest for the
iirst SIX years of each period of twelve
years, is just as much in excess of the ac-
tual interest for the time as the interest for
the last six years is below what the actual
interest would be. The method of computa-
ton adopted may be inaccurate as to any
one particular year, but it is impossible that
1t should be otherwise than correct for the
whole time. This must be apparent from