Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1874-11-18
IONETARY AND OMMEKCIAL.
Debt of Virginia-Importan PrOpO-
Sifinn.


Mr.. John j. Ma kinnon, representing the
the Amer an Bond Funding and Banking AS
ISOLATION limited) of London, was in Richmond
during the past week or ten days. He came to
consult with Governor Kemper, Treasurer Hun
ter, and some of the leading fnanclers of the
city, in regard to the debt of Virginia. His As
ISOLATION is accredited Tor fair dealing and capa-
city to execute whatever they undertake by
Duncan, Sherman Il Co., of New York Among
its members and stockholders are many OF the
largest capitalists Of Great Britain-such men as
the Rothschids, Earrings and Gilliatts.
They propose to fund the entire debt of the
Southern States, and have already opened Nc
gotiations with several Governors The matter
will he brought before the Legislatures of those
States At the sessions to be held this winter. In
reference 10 the debt Of Virginia, which amour IS
20 about S3u, 600, exclusive of past due and
unpaid interest and the one-third allotted to
West Virginia as her fair share of the ante bel
| lum Indebtedness, Mr.. Mackinnon offered to
fund it in bonds running ten years and bearing
four per cent interest in gold or in bonds run.
| ming twenty years bearing FIVE per cent il teres
in gold-the principal and interest to be paid
only in London. The Association prescribes a<
one of the conditions OF the contract it propose:
| to make with the State that the money to pay
the principal and interest of the new funded
debt shall be deriV ed from fixed portion Of the
| revenue to be inviolably set apart for that pur.
pose TO accomplish that end, they furnish
copies Of such acts rs it will be necessary for the
General Assembly to pass to insure the desired
| success.
The scheme, it is said was drawn up BY emf
nent counsel in elsnd and America. Its su-
thors believe it is amply sufficient to secure the
payment of interest and principal as they fsl
| due. 1t provides that the Auditor shall every
year levy such direct tax on the property of the
State rs will BE- sufficient to pay the interest anc
raise sinking fund. The money raised by this
taxation is to be kept separate from all Other
! funds of the State, and is to be sacredly appro
prsted to the designated object. In case the
Auditor refuses or neg ects TO raise this tax, &C.
cording to the plan, any bondholder is to have
the right to apply to the courts for mandamu
to compel him to do So and the courts are to b
armed with the power to make the Auditor eX
ecute his duties under the contract
The new bonds are to be delivered by tht
State Treasurer to the Association as fast as the
Association or their agents are ready to exchange
therefor the outstanding bonds in sums not les:
than 100000 The Association are represented
to own or control at least SIS, CO., 900 of the pre-
sent bonds of the State. They believe they will
have no diff ulty in selling the new bonds at
higher price than "consols" now command il
the markets OF the country, and thus will be
| able to retire the present six per cent debt OF
1
hearing four per cent interest for ten years, or
| five per cent interest for twenty years. The
whole :unding process is practically to be car
ried on through this British Association. The
| Association, it is expected, will be REIN bursed
for its risk, trouble and expense by the en-
HANGED value of the new bonds over and above
the present outstanding bonds The new bonds,
they calculate, will have such value as will
justify those who own "consols" in exchanging
them therefor. In that way the ta,.receivsble
| coupons now constant source of irritation and
trouble to the State would nearly all be with
drawn from circulation.
Mr. Macknnon left Richmond for the South
yesterday. 1t was generally thought in financial
circles, where the matter hss been discussed for
week, that some understanding had been ST.
rived 81 between the Governor and him. 1t WAS,
| however, believed that the Governor would not
consent to recon L end TO the General Assembly
| to embark in the scheme unless it could arrange
| to hsve the bonds run for thirty years and yet
besr no greater interest than four per cent
| Richmond dispatch.