The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1877-09-25
The state Debt--The Sinking Fund.

TUESDAY, SEPTEMBER IS, 1877.
The state Debt--The Sinking Fund.
Yesterday morning, in an article on the
subiecs OF the condition and prospects OF
y;rciaia, we incidentally alluded to the inn
potsant agency Of the sinking fund in dt-
ssinishipg the debt OF the State. we esti-
mated the sinking fund at four millions ana
half OF dollars, which was really consider
ab,y under the mark. a valued friend
whose means OF information are thorough
gives us the exact facts with regard to the
nresent amount OF the fund, and, further
more, places at our disposal q prospective
view OF the operations Of this TUNA
which viii. we are sure, give poth
sprnrise and satisfaction to most read
orc We find from this exhibit that
the amount OF that fund to-day in State
funded six-per-cent. bonds is S., 125, 27l.90,
and it is fair to compute the assets Of some
S50o.000 due from the Richmond and Dam
Vile railroad, $4,000 stock in the Rich
mond and Fredericksburg road, Washing
ton and Ohio road $4,000, and other inter-
nal Improvement companies, and the armory
and other public property belonging to the
State, as OF the present calue OF at least
ss74,72s 10. making $6,000,o00. The arrears
OF interest due 1st OF July. 1877, on the
bonds held now is 1881, 996.2G. including
deferred interest, which II invested in peeler
bonds at so cents to the dollar (they are now
about 49, would purchase sl,S63,992.52,
which makes the fund, say of the 1st OF
July. 1877, S7,s63, 992.52.
Taking this fine total as basis, our in
formant reasons that it will be readily seen
that il the interest on this sum could be PAID
semi.annuaIIy, and invested in bonds OF the
second series, at even considerable al
vance, how rapidly the sinking fund would
grow. But it must be noticed that while
the Constitution prescribes that the Gene
.:ral Assembly shall provide by law sink
: cling fund, to be applied solely to the pay
"ment and extnguishment OF the principal
"oft the State debt" the act OF March 80, 1871,
known as the funding act, provides that Gin
ssthe year 1880, and annually thereafter
"until all the bonds issued under and by
.sauthor;ty Of this act shall have been paid,
"there shall be levied and collected, the
sesame rs other taxes, tax OF two cents on
ssthe one hundred dollars OF the assessed
<svalue Of all the property-personal, real,
sand mixed-in the State, which shall be
"paid into the treasury OF the State to the
Hcredit OF the sinking fund"
1t is reasonable to estimate that the value
OF the property referred to will IN 1880
amount to at least three hundred and
fifty millions, and the tax thus to be paid
into the sinking fund will be on that account
from and after 1881 seventy thousand dol
lars per annum.
Our friend has not entered into calcutta
ton to ascertain how long it would take to
enable the commissioners OF the sinking
fund with such IN income to purchase stock
to the full amount OF the public debt, for the
reason that it would depend upon the price
of the stock in the market, which will de-
pend upon the legislation that may occur in
respect to these matters.
But upon the foregoing estimates, rating
the bonds to be purchased by the Board to
cost fifty cents to the dollar till the 1st OF
July, 1878, and after that at sixty cents to
the dollar till the list Of July, 1882. the fund
would be on that day sS,2S5, 1878. From
the 1st OF July, 1882, the sum to be realized
annually from the tax would be, in addition
to the annual interest, $4,000, making the
total income tor the year 1882 about $780,
900, and thereafter constantly increasing.
This is the estimate Of the condition Of
the fund five years hence, and IL the Con-
stitution and the laws are carried out 1t
will be seen that before many years the
public debt will be % eXtinguished.'
Then why shall we 60 on with the agita-
ton, agitation, through the State, upon the
assumption that Virginia cannot pay her
debt? 1t is groundless assumption, and
the people will observe that in every case OF
such assumption and such agitation some
body wants to get into position in which
he can get little money out OF the treasury
They are not anxious to protect tine Com
monwealth-not working to advance the
public good; each and every one Of the agi-
tators are endeavoring with all their power
OF lungs, with all their art OF ingenuity, to
induce the people to elect them to office.
That is exactly what it is all about.
Poor Virginia. God help her! How pitia-
BILE to see so noble State brought so closely
to resemble the picture of Millions Sin,
deyoured by her own offspring!
VERY TRUE,-We published yesterday an