Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1876-01-07
The State Debt.

At meeting Of the Fluancc Committee of
the House of Delegates last "Wednesday hight
Gen. Richard Taylor presented the following
letter from the Secretary Of the council Of
Foreign bondholdcrs:
LONDON, December LIST, 1875 General Il.
| Ttytor: Dear Sir.-l aln instructor 10 nl .rm
you THAT the Committee on Vrgioia Bond
| holders had much pleasure 10 recelvlng from
YOU letter under date 23d November, 10
which at their quest you have laid before
| them your views with regard to the settlement
which M ht be arrived at as to the public debt
of Virginia.
We understand you TO propose that the debts
of Virginia should be, if possible, unified; and
to that end that all uDfuudcd securities aud in
tercs due, by which we understand are to be
embraced fractional parts fcoupJns aud certl
Gcates for interest due, shall be funded in thir
ty years. Gold bonds to the extent Of two
thirds of said securities aud interest certificates
for the remaining Que third for West Virginia,
to he given to its holders at time OF funding, as
was doDe under the act of 1871. For the first
three years three per cent, for the next tour
years four pei cent, and then five per cent
until maturity.
The bonds issued under act 1872 (''peelers' J
should be exchange able into the new gold boods,
| bond for bond, and additional bonds gwen + r
the overdue interest. The measure, YOU state,
| should be broad enough to induce holders of
| six per cent. tax receivable" bonds as may
desire to make the exchange. 10 insure re
suit so desirable, it is 10 the interest oithc PEG
| pie IF Virginia, as well as an act of common
Justice to all her creditors, that Virginia should
hold out inducements for all creditors to adopt
| the arrangement, aud there IS no more ettcc.
tua inducemant than for the State t. hedge
round these bonds with every possible security
for the regular and just payment OF the inter
est and principal.
Every bond exchanged should be made no
der 4 contract vii the State, which it would
be the duty ofthe State Courts to enforce and 10
award prompt payment and costs, aDd such
clauses 10 the act of the legislature should be
iccr collecting revenue should be charged by
siuns of the act under which the proposed
bouds are to be issued. Creditors should be
empowered to sue the State u her own courts
and such suits should be made preferred cases,
in order to insure speedy justice to the public
creditor.
In assiguingiDg onc-third of her dcbtto West
Virginia and giving certificates therefor, Vlr.
GINA does not, as you say, escape her share of
responsibility which remains just as 1t was be
fore part of her creditors accepted the fund.
ing act of lS7l and 10 the event of an arrange
meDt az above suggested being carried through
it is to be expected her whole Influence can be
relied Oh to assist creditors 10 obtaining settle
meut with the stter State at the earliest ps
sible date, and that Virginia take action ADD
secure the said settlement
The committee have no authority to pledge
the bundhoIders without calling general meet
ing, for which there Is not sufficient time; but
having conferred with the principal bondhoders
10 London, they feel able to state that the pro-
position you have made will be regarded, in the
condition of Virginia as by you represented,
with favor by the holders of the unfunded bonds
g ,nerally, and perhaps eventually By the hold
ers OF the bonds the coupons Of which are re-
celvable for taxes.
Io conclusion, am instructed to report to