The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-11-27
LOCAL MATTERS.
STATE FIN A n c E S
srpoRF OF SECOND AUDIToR.
CONDITION OF THE DEBT
INTEREST PROBLEM DISCUSSED.
x.ruabse information for the People
and Legislators.

The following report, recently presented
ty rha second Auditor to the Governor, al
f5rd, 3 large amount os valuable and interest.
inginformltion 10 regard to the puoiic deot
lrl the measures that will be necessary 10
proyide for the payment OF the interest on
y, same:
COMMONWEALTH OF ' VIRGINIA.
SECOND AUDITORS OFFICE,
RlCuMoSp, October l, 1907
u ttt General assembly Of Virginia:
I have the honor to present herewith my
annual report Of the public debt and Of the
Incfary fund; al.o. the report OF the COM
mr., oncrs Of the Sinking Fund.
+. will be seen by the annexed statementlA)
that The amount Of the public dcbt proper
op the 30ih of September, 1875. the end OF
;tr fiscal wear, exc usire of bonds and certfi-
cate, held by the Literary Fund and Sink
iry Fund. is s295144a6.SS. The debt as re-
ported 1>t OF October. 1874. was S29 951.-
dI0..j: but it has been reduced iD the last
wear by purchase Of bonds by commissioners
o; Sipking Fund 100, and by bonds
tlrued for stock received from Auditor OF
Public Accounts and transferred TO commits
>loners OF Sinking Fund. So. .SS4.S7; leav-
iug actual deb, as above, S29,514 426.3S.
Amount Of tax.psyiDg coupons issued to
this date, S1S,SSl 800; amount of registered
bends and fractional certificates which may
he converted ut the option Of holders into
such bonds, 1885, ,5l5 S0-makinc the
amount of consol debt S20,237 ,0l5S0.
Amount OF debt funded and to be funded in
bonds not convertible into consols, 1921 y
4l0.0S-making debt proper 29,ol4, ,426.3S.
Amount recognized as West Nrginia'S por-
ton, Sl5,239,3I0.74.
INTEREST.
By an act of April 22d. 1874. and another
OF March 29h, 1915, the board appointed for
the purpose met on the 23d OF June, 1875,
and. ON consideration,
IteSJ!Ued. That in the judgment OF the
board, having regard 10 the surplus in the
treasury and the accruipg revenues, and the
amount necessary to the support Of the Go.
vernment. the condition of the treasury will
warrant the payment, on and after the 1st oil
,Iuly next, of;wo per cent. interest upon the
debt bearing six per cent. interest, payable
lst Of July, 1874, and the like proportion
upon such bonds bearing five per cent. in
tcrrst, under the acts of March 30ih, 1871,
and March 7h, 1872, and upon two thiras
OF the face OF stock not funded at the same
rates.
Under this resolution the payment Of in.
terest due July 1st, 1874, was commenced on
1t July, 1915.
This action of the board was, in my judg-
meut, dictated by sound policy. There was
no order for payment OF interest since that
due January l, 1874. To have failed to pay
until January, 1876. would have injuriously
affected the credit Of the State. Hundreds
OF needy creditors in the State and many
outside were constantly inquiring anXiously
when they could receive some portion of the
n Nkn ~
proposed to be paid altogether would require
only some two hundred and fifty thousand
dollars, a considerable part of which it was
KNOWN would not be called for during the
Year.
For these reasons the board concluded
wisely, think) that II was better to Dor.
row temporarily what might be necessaryto
meet demands upon the treasury, and pay
the small amount OF interest such loan would
cost for few months, than TO make further
default in payment so long deferred.
1t has had happy effect on the credit of our
securities at home and abroad, as is seen by
the reports of prices in the markets. The
cost TO the State in Interest on the loans is
insignificant when compared with the bene.
1ts resulting from the payment Of this small
portion Of our obligations; and it is conf
IDENTITY believed that under the circumstances
OF the case the action OF the board will be
approved.
Amore healthy feeling. n regard to our
Npublic debt" and daily increasing, is man.
lFe>t throughout the Commonwealth.
The whole amount OF tax paying coupons
i>satd from the 1st Of July, 1871, to this
dS.e is Sa,062:9l5. From which deduct
amount paid into the treasury for taxes,
S2,2%9, So; and amount paid in cash ut the
treasury At the rate OF four cent. per anpum
witb certificates issued for deferred two per
cent, = toaa. y 715-total, S3, 295 ,597-leaving
outstaLding upon all heretofore issued, in
cudiug July, 1876, sI67>3ls.
IL ap;seafs that coupons receivable for
t5N:> were paid into the treasury as follows !:
From January, 1872, TO 1st October, 1873,
s@Ol .l4; for year Guiding 1st October, 1874.
81 09S ,Gz! for year ending 1st October, 1875,
sSJl ,O9l total, S2,250,S22.
The sms}i amount PAID in for taxes to Oc-
tooer /, 1873, was because we were paying
interest during that period at,feur per cent,
. anu certificates were issued for the deferred
NO per cent. If we.coutd have continued
tAe payment 81 four per recent. regularly.
iaE5e amount Of these coupons would have
btst: retired without coming into the trea-
Jsury Tor iuXes at their face value.
It's fair 10 esGEaa;e that about nine hum
ci!ed thousand Goi,ars Of these consol cou-
yons VII come iato the treasury anRuilly
!3.r taAGs until the State can resume the re-.
yet'r pa. nept Of four per cent. interest.
INTEREST TO Be PaoyaDEsS FOR.
Aasount Of intercs: on debt proper for tlse
year hAdiDg Both September, 1876, at fonr
per cent. on tie six per cent. debt, and three
and oue third On that bearing tive per cent,
after dcauetjng coupons received for taxes
TO this date, ssS%, 1895; amount due for
arrears Of interest ut those rates. due to
s!ale, S345. .5S0 90. Total, 81, 199, ,SG4z9.
and this includes all The past.due coupons
outs.ardDg, Including those of July, 1915,
at he rate Of forr per cent. Fer annun, SO
that, 10 ihe extent 10 which such coupons
may come into The treasury for taxes, one
third of their face value aust be added to
the above amount .,s Necessary to meet. the
demands to this tins. There II legislative !
authority now for the .oayment OF sucn IN
Isrest as the board may think proper 10 or.