The herald and mail. [volume] (Columbia, Tenn.) 1873-188?, 1874-12-04
souTHERN srArE DEBTS.
Proposition of the American Bond
Funding and Banking Association


Funding and Banking Association
- of London. tA
Arrangements between the British
bondholders and the governor and treas
urer of Virginia for funding the present
debt of the state, have at last been en-
tered into with some satisfactory re-
suits. The legislature of Virginia, at
its last session, appointed Gov. Kemper
and MIR. r. M. T. Hunter, the treasurer,
commissioners to confer with the credi-
tors of Virginia, to see If something
could not be done to put her debt on
satisfactory basis. Accordingly they
had meeting on the 10th inst, which
resulted in nothing. Since then, and
largely owing to Gov. Kemper's exer-
tlons, an arrangement has been made by
the Virginia commissioners and the
American bond, funding and banking
association, limited, of London, by
which the British association engages to
retire the present debt and receive in
lieu thereof bonds payable in thirty
years, with principal and interest paya-
BILE in London in gold coin, the whole to
be secu; ed by @ sinking fund; and the
payment of interest, principal, and
sinking fund to be taken out of the
hands of the legislature and vested in
the auditor, who can be compelled to
levy and collect taxes to pay them by
mandamus in either state or federal
courts. The American bond funding
and banking association is backed by
the first capitalists of Europe-Lord
Northbrook, chief of the house of Bar
ing, Rothschild, Gilliat, of London
Hope, of Amsterdam, and Salomons, of
London and New York. It has already
made arrangements with the governors
of Arkansas, Mississippi, Alabama,
South Carolina, North Carolina, and |
Virginia to accept its proposition to fund |
certain specified portions of their pub
lie debt in bonds payable in London in |
gold coin, and those governors have un-
dertaken to recommend the measure to |
their respective legislatures.
The governor of Georgia has rejected |
the proposition and that state will be |
let severely alone. In the opinion of |
many, the legislature of North Carolina
will not accept the terms proposed, be- |
cause they will bind her to pay, and put |
it in the power of the bondholders to |
collect their interest and debt. The |
legislation provided to secure the pay
ment of the new bonds has been prepared |
by counsel eminent at the American and |
English bar, and is approved by Fred
erick Knapp, of Berlin, who is the Ger
man authority on American law, and
Mr.. Benjamin, of London. It is based
on the decision of the Supreme court of
the United States in the eases against
the western cities and counties-Van
Hoffman VS.. Quincy, Gepcks vs.. Du-
buque-and those adiudioations which
hold that court has power to enforce
the collection of tax when the legisla-
ture has provided the necessary machin-
cry. The legislation by this association
does provide nt cessary machinery to Sc
cure the collection of tax, whether a
is willing or not, and makes
it contract, so as to be irrepealable.
Judge Thomas, chairman of the senate
on finances Mr.. Coghil,
chairman of the judiciary committee;
Judge Robert OuId, of this city, and
other leading members of the legisla-
ture, are in favor of the plan. Rich
aOnd special to n. Y Herald.