The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1872-02-12
NEW FUNDING BILL,

Mr.. James p. Critz offered in the House
of Delegates, on Saturday, substitute for |
the Funding bill, presented by the minority |
committee, which is an immense improve
Inent on the bill Of last session, and which |
we hope will be carefully considered in its
several provisions. 1t recites briefly, in
preamble, the true state of the financial
question in Virginia, declaring the earnest
desire of the people to maintain the honor
and credit of the State, and to meet all her
just obligations at the earliest possible mo-
ment.
1t provides that from and after the pas
sage Of the act, the holder of any bond or
certificate Of indebtedness against the
State, other than bonds and GER
tificates for unpaid interest that have
not been funded under the provisions
of the act approved March Both, 1871,
may fund two-thirds Of the same in
registered Or coupon bonds, payably thr-
ty-four years after date, bearing the same
rate of interest as the old bond surrender
ed, from July LIST, 1871. He is, at the same
time, to receive non-interest certificates for
two-thirds Of the interest due and unpaid
on the old bond, provision being made for
their payment by special tax-levy from and
after the year 1875.
Upon the surrender of the old bond and
the acceptance of the new and interest GER
titicates, the holder shall receive certifi-
Gates for the remaining one-third, setting
forth the amount of the old bond not
funded under the provisions of the bill,
which shall bear the same rate of interest
as the old bonds. AT the same time nom
interest bearing certificates shall be issued
for the remaining one-third interest and the
State shall not be bound to pay either GER
tificate except SO far as she may receive
money or other available assets from the
State of West Virginia, upon a settlement
with her for that purpose.
The third section of the bill provides that
the principal and interest already funded,
under the provisions of the act of 1871,
shall be paid by recognizing two-thirds of
the amount of the new bonds as principal
and one-third as interest and that the in
terest on said two-thirds shall be paid in
sem-annual payments, to commence on
the LIST day of January, 1872, provided it
can be done without absorbing funds neces-
sary to carry on the State government, or
without an undue increase of taxation. "
From and after the year 1875, there
shall be levied and collected two per cent.
tax on all the taxable property of the State,
to pay the current expenses Of the State
government, the interest on the public debt
as funded under the provisions Of the bill,
and to purchase in open market the non-in-
terest bearing certificates, and cancel the
same as they are bought in. A provision
is also inserted that the special two per
cent. tax shall cease when these non-inter-
est certificates have been retired.
The bill further provides that from and
after the year 1880, three percent tax
shall be levied and collected, and paid into
the sinking fund, to be used by the COM
missioners thereof in purchasing and re-
firing the interest-bearing bonds of the
State. Any and all assets realized from
the claims of the State against Selden,
Withers & Co., and from the sale of the
States interest in any improvement COM
pany, or any other source, owned by
the State before its ACKNOWLEDGMENT, shall
be applied as follows: One-third to the
redemption of certificates set apart to
West Virginia, and two-thirds to the sink
ing fund of Virginia proper, to be used in
liquidation Of the debts of the State as
recognized by the act. The bill concludes
by prohibiting any collector of taxes or
other dues to the State from receiving in
payment thereof any coupons issued by
authority of the act of March 30th, 1871,
or by any other act. rs
These are in substance the provisions of
the bill presented by Mr.. Critz. The
three per cent. tax from and after the year
1880, is manifestly larger, we think, than
it need be. With this, and perhaps some
minor exceptions. the bill appears to be rea-
sonable and just in its provisions. 1t does
away with the compound-interest feature
of the bill of last year, and relieves the
State from any and all liability for the pay
ment of West Virginia's just and equitable
proportion of the public debt, beyond the
the actual assets received by her for that
purpose. @
/ This much we say in view of the fact
that the people are disposed to make no
inquiry into the origin of tho debt, to see
whether it was contracted in violation of
the constitution of the State or not. r
THE SECOND number of the new ''Kan-