The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1877-10-20
(For the Dispatch.l
Address OF
HON. CHARLES HERNDoS
ON tho
PUBLIC DEBT AND THE FoNDAN"
BILL.

HON. CHARLES AEtSNDO
ON tho
1PUBLIC DEBT AND THE FUNDiSS
| BILL.
Fslior- Citizens of the Itoentysecond ec'a-
toriai District:
Permit me In taking leave OF you as your
representative to express my thanks 40. sGu,
past kindness. The general comlhe .,.,. oii
which has been bestowed on ne aonn ~.
narts of the district, and the concession
rom every one that in all my legislative
oots my motives have been pure ana patri-
at;c Will ever be gratefully remembered.
Having been a member OF the General
Assembly for the last twelve years, ana
being familiar with the history OF the pub
lie debt, and all legislation in respect thereto
since the war, and this being subject OF
great public interest at present, and the
public mind being greatly exercised and
excited in reference thereto, have thought
it not out OF place to lay before you IN
plain way some facts in reference to its bis
| tory ND to the present time, and some sug-
geStions in reference to its proper solution
and settlement. .,...
I hold no State bond OF any description.
NV State taxes amount to about 800 per
annum. Now, as Taxpayer, don't want
the funding bill repealed or interfered with,
and will tell you the reason why:
First, Because it enables me to take from
my tax bill, and thus save about Sl2.so every
uear-somewhat over IA per cent. per dnnum.
Second. Because, in the same way, 1t
saves to the people OF my town (Whose
State taxes are S17,093.29 per annuuD about
S2,39505 every year.
Third. Because, in the same way, it ena-
blcs the citizens of my county (whosc State
taxes are S10,34S.9D to save about 81, 44S.S4
every year; and in the same way it is a
saving to the people of Louisa of S3,055.5O,
and to those OF Stafford of 81, 400 every year.
Fourth. Because it saves to the taxpayers
of the achole State about $4,000 every
ucqr-enough to pay the salaries of all OF
our one hundred judges. and enough, also,
to pay all the expenses OF our whole Legis-
lature under the new amendments.
Fifth. Because the State collects yearly
tax Of about $4,000, not one cent OF which
she would get except BY virtue OF the fund
ing bill.
Ii this be so, then the State and the tax
payers together realize or save about 1922
500 per AMMAN By rirtue of the funding bill.
How is this? When the Treasurer calls
for nv 800 Of taxes l 60 into the market
and buy 800 in coupons taken from the
bonds created by and held under the fund
ing bill, for which I have to pay TAT 81 cents,
the highest average market price for the last
six mcnths) the sum Of $3.50. tender
these 800 Of coupons so bought to the Trea-
! surer, and he. under the provisions OF the
funding bill, is obliged to receive them in
full for my tax bill. With this exception
the law requires him at the time he takes
the coupons for taxes to collect Of the party
the tax on the value Of the State bonds
! Sro oh fol-n
value is fixed at 500 for $1,000 bond. So
I have to pay him also the sum OF 1925 as
tax on the State bonds from which my
coupons were taken. This 1926 at 81 cents
takes 81. % in money. This, with the ST.. 90,
makes S77.1j, which is all the money pay
out to settle and pay the tax bill. Thus l
save in money on my tax bill the sum OF
S12.S5, or orer IA per cent.
What can do every taxpayer III the
State can do. The citizens OF my town
avail themselves of this great privilege; and
the II per cent which they thus save
amounts to the sum Of s2,393.O5 erery gear.
The taxpayers Of my county are commenc-
ing to do the same thing, and they will thus
save the sum Of S1,44S.S4 every gear.
The whole amount Of coupons which ma
ture every year, and which can, under the
provisions of the funding bill, be used as a
currency TO pay taxes, amounts to about
s1,214, 220.09 Is per cent. interest on $780,
237, 015.S0). g. ...... -. .,
This is now practically used by the tax
payers Of the State as currency to pay
their taxes, and they buy it at discount
as shown above-of over IA per cent, or at
q saving of about $4,000 per annum.
| Nv fifth reason for not repeating or alter
ing the funding bill is, that the State realizes
and collects tax of about $50, 500-not one
cent OF which she would get If the funding
bill is repealed. Thus: There are in round
numbers S20,000,000 OF Virginia consol
bonds, which were created by and held I'M
der the funding bill. It is estimated that
about S15,0O0,000 Of those bonds are held
Tout Of the State by non-reSldentS. and there
fore not taxable. But these non-residents,
in order to get their interest, are compelled
to sell their coupons, and to sell them TO our
} taxpayers nobody else wants them or will
buy them), or get nothing. Then our tar
pauer, when he uses the coupon so bought
from the nonresident, is required by law to
pay to the State the tax on the value OF the
: bonds from which the coupons were taken
: This, Of course. practically comes out Of the
nonresident, for he has to sell his coupons
at less rate because OF this fact.
The said s15,O0O,00O at 500 (thc value
fixed BY law for taxation on $1,000 bond
makes q Naluc OIL SiU,0UU,UuU, WHICH Ut 81
! cents is $4,000 thus collected by the State
) through her taxpayers out OF the non-rcsi.
dent bondhclder, not one cent OF which she
i, would get but for the funding bill.
Apart, therefore, from the fact that We
cannot, with honor and common decency,
c demand as; reasonable or right that these
G bondhoders (who have delivered up their
. | old bonds and given up one third Of the
debt and taken new bonds at thirty-fou1
years for the balance) should now again sur.
render their bonds and take new bonds OF
r the State for less amount and without any
) security. ~'
, T. And apart from the fact that the Supreme
Court Of the United States has again and
again decided the principles on which these
creditors now claim in their favor.
And apart from the fact that our Supreme
r Court Of Appeals he's, after full argument
: by able counsel, decided that these bond:
, holders could not be deprived of their rights
!. under the funding bill even by the Legisla'
ture of the State. r...s,. ... ...,........ =.
fsay, apart from these views OF the sub.
: ject, II the facts and the reasoning as given
above be true (and no one can deny them,
then it is not only proper, right, and honor
, able not to interfere with these creditors,
but it is to the interest Of the taxpayers
and the State not to do so, unless, indeed,
we mean to choke the bondholder out OF
, the largest portion Of his present debt (al.
ready reduced one third), and thus virtually
repudiate. OF course, il we mean to take
from him by hostile legislation, aoithout his