The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1874-12-08
The Ssaee paoe--Another View

The f6nsing act was passed under the IDEA
that Tsghia would psver be caaed ,upos TO.
paw more thar 6irds Of ber6ebt. It bad.
been auureased uearya third 'sy funding &C.
erred 'intefestand paying iateres' On that;
and Tie idea prevailed that 4 Virginia paid
interest ,upen tws-thirds, End finally the
prfnspal, ssze'would be emitted to s:reiease
sroE all elsiaas against i,ea. Besidesthe face
that, ,owisgto the oceurreuce cfthe VAR her
debt had besa 50 largely increased, her neans
;of,myiug that dek were tsken'ffosa herpeo-
sSfe to the sextento Of ak che >slaRe property
In the State and ts Che extent IF the gut
uneeastitgtional Topping 6a Of
q third OF her territory. These fsess,' 1t was
ecsntendeE, would uneaestionably exoncrate
Her from the one-thtrd ct the debt exetIded
|Trom tho funding process. y ,'.l.. aa8 e
But this idoa is embarrassed by tie fact
|1hatfks State twice acknowledged iaser obli-
lcaionfor the whole debt, prcmisingk West
.YirsiSs did pet pay the onethkd she
would; and even the funding act assumed
LIABILITY In the event Of the delinquency lof
WestvY irginia. @4iiru - Jtif3s& - .sf3:''
But, continuing the subject, the funding
| act Bound the State to pay sir percent. per
anfAnn upon the twe-tMrds. This six per
cent. however, has aetbssn psta, the funds
intae treasury nst having been-stHicient for
the purpose. i'7 '' -. -, ~. - -
rThe proposition Of thelB ondholders' Con-
+vention.-that the State ought to pay four
pet scent. upon her Hfandedand two.thirds
!.ofiker unfunded debt"-propesed pre-
sent reduction OF her annual interest on t'oo.
jsaisds OF her, debt {as;ia the funding act) to
for. per cent. instead ofesia, leaving the
balance Of two per eeat.,per annum for pay
.nnsnta at the optisn At the State but If not
paid within ten years be taeR funded In q
fear cent. bond. Ill II. as.;.sa..=-f a.z
Mr.. MAcKnNos's proposition offers con
|lbehalf of the American Bond Sunding Asso.
citation" and other holders Of the -" bond
Indebtedness of virgiaia" the settlement of
the entire "admitted indebtedness " OF the
State on the terms stated.
We suppose Mr.. MAoKINNax, in the words
4sdmitted indebtedness" lad allusion to
the assumption of "tws-thirds" of the debt
as provided in the funding act. ......
IF so, we were in error in assuming that
the .bondholders' propositions equally in
,volzed the payment Of Interest with the
funding act. It would:then appear .,
list. That the resolutions of the Bondhold.
ers, Convention involved only the payment
of.four per cent. at presssf. while the FINDING
act provided for six per cert. Tae bondhold-
ers would postpone The remaining too per
cent, for ten years, the Stats. paying it earlier
at her option; but if not paid by the time spe-
cited then to be funded On q four per cent.
bond r,;,s i,,a.. g.a. .l5l,4
.2nd. Mr.. MAcK1AroN proposes to ,e re-
capitalize" the {" admitted Indebtedness !"
Ills that two-thirds p in esour per cent. in
.terest.hearing bond. Fhat would diminish
the interest on SO much .of the State debt
from six to four per sent. ---
/ Hhis we suppose TO be correct view Of
:theplaus. How. far either alternative to the
lfllnding act can be enacted dnto law, or to
what extent the holders Of bonds under the
Suaaing law will sequiesce 10 any change Of
the form or amount OF interest to be paid
anithesState bonds they hold, remains to be
saen. The settlement of the question must
heoss of great difficulty.
We. repeat that the Legislature has great
ant ,pernlexing case before it, and we re-
peat eur earnest desire that "a meeting she
obligations that nay In any event be thrown
upoa ,the State, the needed taxation be
fairly and just levied equally upos all citi-
:zens GE ttheaState.