The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-03-06
Rirl,ulond lispattll,
MARCH Q, 1915
THE state Debt.

The state Oept~
,.a ~ owe money, and seldom cas-!
1875, In the case of this STATE Tue ''
.,,n,s,auces are bard indeed. But s',, w
,,rofouudly believe that it would DC all III.
world to nothing better for Virginia " pas
her debts, and maintain her honor az" hv Wv
nm her head proudly as ever s"o''s ~.
States. Her moral standing woe'u 'Ns. 49, W
s,s.arn;sh.d her public credit better than
o,er and her physical welfare wou'o 'mme-
dia,ely improve in the most rapfo manner.
The debt Of the State has peen s'oce 'ne
nor . constant source Of troaoie and anxiety
IN ma The State laws On the SUBJECT pave
Al, looked to the payment Of the ae~' ae'
,re have bu, partially succeeded In carrying
~, Tho Intention SO frequently ave%ed sy
sbe peoples representatives.
The funding act assumed two.tkirdsotebe
debt leaving to Western Virgins one-thrd
and it pledged the State to receive the cou'
mons of interest attached to the bonds.
This las, excited the indignation which has
so freely vented itself against she %no'ng
act. The Legislature refused to1ncrease the
taxes so as to produce the amount OF reVe-
nue. needed to pay the intereston the 9onos
fssued under the funding act called "con-
soils "-and yet the tax. collectors were fofced
TO receive the coupons in payment OF
taxes. So we have the public finances en-
barrassed continually.
In this strait, as the pablicis aware. there
have been conferences held with the bond
holders, and propositions made on ese'r be-
half and laid before our State authorities anu
legislative committees. At will be Temem-
hered that Mr.. j. j. MckfS.oN, on behalf OF
the English boudhoders, presenses scheme
reducing the rate of interest Oh the state
bonds to Ave per cent. and proposing sys-
tenn Of collecting the taxes Of tbe State that
was repulsiye to our people. That PROPOSE
.;on was the subject of correspondence be >
fwcen MIR. MCKINseN and Governor hen.
PER, the terror of which Governor hEhss r
laid before the Legislature at the begInnlr'g
Of the session. No action has been TAX en-
upon it.
Within few days Mr.. NfyKISNoN has ap-
peared in the capitol again and presen ted
another proposition, in which be pfepf 'se'
that the State shall issue four per cent. 6o'nds
for the whole debt, be agreeing on beha II ~
the English bondholders to present shf' SIX
per cent bonds at the State Treasury III eN-
change for the four per cents.-that M V'ill
Immediately put up five millions OF the con-
soils under the funding act in exchange lot
the four per cents, and will follow tlils ex'
change as rapidly as possible with OTHER eX'
CHANGES until all outstanding bonds are abb
sorbed. We refer the reader to q com NUM-
cation on this subject signed "F'nar'ce."
This second proposition Of MI MchIN'
sos,s is purged oc the Objectionable proVl'
s;ons about the participation OF ahe BOND
holders in the pro cess Of the >ecslection OF
taxes TO pay the interest on the public debt
The State is TO be left altoSeaheV 20 conauc'
her own stfairs in State-like Manner
Now. it would he a decided advantage to
Virginia if her obligations were all made
aniform and represented by .consos bearing
four percent. interest instead of six. 1t
would be great gain. So much would II
diminish tue annual interest upon the debt
that we suppose it might c.'peid without
very onerous taxation. We, ,ssosIld get RID
OF the tax.pvying co1peos,--a subject OF
great discomfort in the State-anG that would
be a great blessing.
But the process by which characterization
of the State debt would be undertaken would
be troublesome and doubtful. The bonds OF
the State would rise in Taluerso much as to
make it doubtful whether the scheme could
he carried out, and there sssy be ;'onjhold-
ers who would prefer to hold. We su ppose,
ho viewer, these matters have been eonsi dered
by the Dondhodcrs represented by Mr..
Nc KiNNoN. Another point of trouble will
pro badly be the part Of the debt thai belongs
to West Virginia.
At the same time we must not 'foaget that
the bondhoIders propose to produce at nee
five millions ofconsos. That lisa good round
sum, and the exchange of that amount would
take so much away from the irritation of the
anti-funders.
PROFESSIONALLY the scheme is worthy ol
the serious consideration Of the Legislature.
We are never very sanguine of the successful
solution of any trouble about debt short Of
the paying of it. But if our Government
can mature any plan by which the public
credit can be preserved, and the burtbons of
the people at the same time be ligbtesed, we
shall applaud il to the very echo; and it will
be held 10 lasting and grateful menSty by
the people.
The Happy, Conclusion.