Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1875-03-06
RccaDitaIIZatiOnO Of the State Debt

[Froln the Richmond Enquirer Of yesterday.
The Finance Committee and other members of the
General Assembly met last night in the hall OF the
House of Delegates and gave hearing to Mr. Mae
kinuon, of Illinois, as agent of the English and
American Bond Fund Association, (imitcd) which
proposes to recaptaizc the whole debt OF Virginia.
MIR. MackinlOn made statement Of his PROPOSE.
ton in its original form and amended to SUIT all
the objections he had heard advanced against 1t lie
stated that bad been suggested that the Association
might take up first the bonds the coupons of which
are not receivable for taxes he therefore proposed now
to add the bill section providing that before the
act should be operative the Association must deposit
in the State treasury 900 of consol bonds and
that thereafter they must present Sloo'ooo OF tna'
class of bonds for every 100000 of any other class
they may present. He had proposed at first to fund
the whole debt of S30,OOO0 900 at four per cent. for
ten years, and five per cent for twenty years The
commissioners appointed by the Legislature to
confer with the bondholders last November had con-
silercd that proposition, and Governor kemper, for
them had rejected it, unless the rate of interest was
reduced to uniform rate of four per cent for thirty
years. After delberation he had decided to agree to
the reduction to uniform rate OF tour per cent,
which he said, less rate than money couiu be
borrowed for by any State of the Union or any gov
eminent of Europe except England and Holland.
In tho next place he willing to strike out from
tho bill Tor contrac) submitted the clauses enabling
the Association to cnforcc it IN the courts Inc only
remedy il would then have would be by mandamus
it is only statutory right. and the power to grant 1t
can therefore be withheld FROM the courts.
This proposition us it stands Is therefore to
fund the whole debt of S3O,47S,74l in bonds running
thirty years, and bearing four per cent interest pay
able in gold Mt London. The new bonds TO De issued
as the Association delivers to the treasurer OF Virginia
outstanding bonds one half of which at each delivery
mus. be of the class having tax-receivable coupons
attached and no new bonds be issued until 50, 00Q,
600 of conso bonds have first been delivered.
Mr. Macknnon claimed that the State would pay
no more interest on the new bonds than she now pays
by the operations of the Funding bill, though she
will then be paving interest her entre debit that
she will in fact have surplus of upwards OF S2oO OOU
and have no need to increase the present rate OF tax
alton. In support of these views he submitted the
following statement based upon reports OF the state
Treasurer and Auditor:
Total debt proper @oo1' o.O4
Interest in currency at per cent...... slsZe' IA
Interest in gold at per ct:...Sl,2 i49
pronium and exchaurc..... 1888
''-''Ol'' -- 1871 ,542
;n. IN favor Of decentralization. S457 SO
tacbeJ, 1855 800
bio into ta D .nav;nr. 1892 ,429
Total so, 27S, 73O
s2o,e7S7s0 .s........!............. s1,2l7,72@
Total debt without taX-paying coupons,
SlU,2ou,0ll. Interest at per ccut...... ,Voo
Total interest now paving. ...... 81 1925, 1913
Total interest now paying. Sl,G25,123
Total interest at ut per ct..... l,37l ,54l
Nett gain ..................... $2,:4lSl
Total amount received byTreas-
urer last year...... -, I4o,6Io
Deduct interest at i per ct. gold
as above Observation-Disclosures. $50 ,312
Balance after paying interest
in full Observation-Disclosures. Sl,374.13
v;.Id ......,...........:....... $4,000, oOC
Dednct interest ................... ,371, "a.
Balance to meet other expenses of govern
ment. ''''''''