Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1876-01-31
Almanoria @a5&tte
Our English Creditors.
MONDAY EVENING, JAN'Y. 81.

As there appears to be some mlsconception
about the offer of our foreign creditors, now
before the General Assembly, We will endeav-
er to state the facts, as accurately as possible.
The offer contains a distinct proposition for
the settlement Of our non-cousol debt, amount.
ing with accrued interest to the sum of slO,-
600, 900, and a suggestion concerning our con-
sol debt of $50, 00O. 900.
First, as to the noir %cousols: These bear In
terest at the rate of 6 per ceut., or 5000, 900
Currency per year. Our creditors offer to
fund the debt into thirty-years gold bonds,
with interest as follows, viz: for first three
years.. 3 per cent; for next three years, 1 per
cent; and then 5 per cent. for .wenty-tour
years. Calculating premium on gold at 10
(some points higher than existing rate,l We
would save interest by accepting this PROPOSE
ton, to the extent of $765, 900 the first three
years, 1920, 900 the next three, and 100000
the last twenty-tour years, or ln all 81, 7S5, 900.
ln estimating the amount OF non-consols we
have included unpaid back interest. We owe
this interest, have given our creditors evidence
of the fact, and keep al account of it on the
books of the Second Auditor OF the State.
Were we able to pay it now, there would be
OIL Va thS OuG w Il NV oOtSS odN
our creditors say, take thirty years time and
fund 1t on the same terms as the principal.
Regarding the one~third Of our old deb, as
signed to West Virginia, we are asked to give
certificates therefor, as evidence OF claim against
that State, and to use our moral influence to pro-
mote a settlement thereof; and there our respon-
sibiity ends. In consideration of the liberal
terms offered, these creditors ask that the new
bonds be suable 10 our OWL courts, or have some
special tax assigned for the %puootual payment
of interest, or bear some other form OF assur-
ance that interest will be provided. They we'll
understand that there exists no power to COM
pei us to pay the existing bonds, nor do they
expect us create such pc yer in the case Of new
bonds but they desire the new bonds to have
a character, that it may be known of all men,
Virginia has determined to pay, and especially
that it may be known of future General Assem-
blles, whose duty it will be to provide neces-
sary means.
We stated the "ofer" contained a suggestion
about our consol debt amounting to $50, 900, 900
wherein our creditors believed we could hhd
an escape from some of the losses incident to
the TO- kng Of the act under which this part
Of the debt was funded, thus sire ogthenlng our
non-consol securities. 1t is estimated that
SIS, 600, 900 of consols are held by non-resi-
uCuSS Va u OVatCs AuO "
consols realize Al gold interest. This can be
seen at once by reference to the currency value
of tax-receivable coupons. But, the collection
of interest Involves much trouble, as the cou-
pom must be sent here to find a purchaser. This
feature has prevented %consols becoming favored
securities in London. A conviction is express
ed that bonds of the character above skctched
bearing A interest (gold) for six years, then
5 per cent. until m~aturity-Would be quoted in
London at IS to 81 (gold.) English 3 per cents.
rule steadily at 81, because OF certainty ofpay-
ment. Consols are quoted in market here at
GS to GO (currency.)
If the opinion of London faanciers be well
founded, a speedy conversion of all consols-
not held by our own tax payers-must ensue,
and the conversion of $3.50, 0UO,O 900 6 per cent.
currency consols into a gold bonds would save
TO the State Treasury, gold premium Is, Sl23,-
$50 annually, or in six years $742,5 800, aud In
twenty-four years at 5 per cent $500, O0O-total
81, 642, 500. Such conversion requires no
change of existing taxation aud 20 expense be-
yond printing new bonds Winchester Times.