The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1878-03-14
The Debt Satflnt,,en4

The Debt Settlement
. IA The following is the bill reported from
the finance committee, and amended by
Mr. Bocock, Tor the consolidation of the
State Debt, and providing for uniform in
terest thoreupon, which passed the House
on the 18th, by vote OF 81 to 13, the mega
tlves being John r. Carter, Crank, Frazier,
Howard Smith, Stevens, William Taylor,
Witn1er, and Speaker Alien. Messrs. Echols
and Van Lear voted for it, as did Messrs.
Moffett and Harrison, of Rockingham, Hi
ner, of Highland, Lady. of Rockbridge, and
Henkel, of Shenandoah.
THE BILL.
Whereas this general assembly has expressed
the belief that the present rate OF taxation is as
high as can be borne without destroying, or at
least greatly impairing the industrial interests
and recuperative power of the state and where
as the present general assembly was elected with
special reference to a readjustment of the pub
lie debt OF the State, so that the interest may be
nnnctually paid alike on all classes of it without
an increase OF the rate or aggregate of taxation.
so that said readiustment may be satisfactory and
final and public agitation OF the subject may
MIXING it's duty first to preserve and ensure the
continued existence OF the STATE, including the
public Tree school SYSTEM IS WILLING ana anxious
to restore the former equality of all of the public
creditors by distributing rateably among them
the entire excess OF the public revenues derived
from the present rate OF taxation, after the most
economical administration of the state govern
ment consistent with the efficiency of the public
SERVICE therefore,
/. Be it enacted by the general assembly of
Virginia, That the governor is hereby author
lied to cause to be exchang ed, dollar for dollar,
for the principal of each outstanding bond of the
state issued under the acts approved March thir-
tieth. eighteen hundred and seventy-one, and
March seventh, eighteen hundred and seventy
two, registered bond bearing interest at the
rate of three per centum per aunum, for 10 years,
and per cent; 30 years. until paid, and exempt,
both principal and interest, from taxation by the
state or by any county or corporation therein,
which shall be expressed on the face of the bond
the interest payable semi Annually, on the first
day of January and July of each year. at the treas
usy said bonds to be dated the first day OF Ju-
Iy, eighteen hundred and seventy-eight, to be due
and payable fifty years after date but redeemable
after ten years at the pleasure OF the general
sembly provided that no exchange OF bonds, as
herein lAovidcd for, shall be made until the hol-
ders of not less than fifteen million of the tax
receivable cuupon bonds of the state shall have
of the sinking fund, together with the attorney
general, of their readiness to make said exchange,
and that for the purpose OF said exchange, they
have deposited said bonds with such agent or
agents as may be satisfactory TO said board above
| named.
2. The owners of any other interest-bearing
bonds of the state. which recognized by the
constitution and laws as legsl, and which have
not been funded under the aforementioned acts,
may fund two thirds of the amount thereof, to-
gether with two-thirdS OF the unpaid interest
crued thereon, up to the first day of July, eigh-
teen hundred and Seventy-ope, in the three per
centum bouds described in the first section OF this
act; and the said owners may receive for the
naming one-third of the principal and interest.
a certificate that said amount is due and payable
by the state of West Virginia. and that payment
OF the same has been apportiOned to the said
state OF West Virginia, in part settlement of the
liability of SAID state for the debt Of the common
Fl i fh sd at the time of the
such three per centum bonds, and such GER
tifcates shall be issued as in this section provi-
ded. except and until the owner or owners, or his
or their authorized AGENT Shall enter in book
to be kept ior that purpose and acknowledge be-
| fore the secoud auditor, that he or they do re-
lease, and forever quit claim and discharge the
comm onwealth of Virginia, from ull liability for
said remaining one-third. and it shall be the du-
ty of the second auditor to countersign and pre-
serve such entry and Acknowledgement.
g. The treasurer shall issue and register non
| interest bearing certificates for the amount of
the accrued and unpaid interest, up to July first
eighteen hundred and seventy EIGHT. upon all
| the parties entitled ther9to, which shall lie re-
deemableat the pleasure Of the general assembly,
and to be so expressed on the face OF the certit-
| cate and provided further, in regard to the
bonds allowed to be funded under the second sec
| ton of this act, that such non-interest bear
ing certificates shall be issued for wo-thirds on
| ly of the unpaid interest accrued thereupon be-
tween the first day of July, eighteen hundre and
seyenty-one, and the first day OF July, eighteen
| hundred and seventy eight; and for the remaining
| one-t hird certificate may be issued apportion-
ing said amounts to the state of West Virginia. as
| in said second section so provided, sesss
| A. The rules prescribed in the act approved
March thirtieth, eighteen hundred and seventy
one, in respect to preparing, signing, and issuing
| the new bonds and certificates, regulating the
| same and in taking in, .canceling, and register
ing the old bonds. shall be observed by the Off
GERS OF the treasury in the execution or this act,
except so far as the same be modified by the pro-
visions of this aet provided that all parts OF such
bonds and certificates as may be necessary to be
| printed, shall be printed from plate which shall
| be the property of the commonwealth, and shall
remain in the keeping or under the control OF the
| cncond auditor: and provided further. that a
| whole amount OF bonds so printed, or in any
manner prepared, shall in no case exceed the
| amount of twenty-nine millions, three hundred
and fifty thousand and rwenty-six dollars and
thirty-eght cents, and also one million four hun
bred and twenty-eight thousand, two hundred
| and forty-five dollars and twenty-five cents, due
to the literary fund-a total of thirty millions sew
| en- hundred and Seventy-nine Thousand and sew
enty-one dollars, and sixty three cents ; provided
| thai in the distribution of the twcnty-nine mil
| lions three hundred and fifty thousand eight
hundred and twenty-six dollars and thirty eight
cents among the holders of the evidences of the
public debt Of the state, the said board shall be
careful to have restored the original equality OF
all the public creditors.
| S. Executors administrators or others acting
in a fduciary capacity may make the exchange Of
bonds herein authorized and the same shall be
deemed lawful Investment.
6, The treasurer shall. upon the first days;on
January, and July, eighteen hundred and seventy
nine and upon the same days in each year there
after, pay to the holders thereof the semi-annual
| interest then due upon each OF 1he three per
tum bonds of the commonwealth authorized to
be issued by this act.
| I. All bonds retired or redeemed under this
| act, shall be cancelled by perfopating and mutia-
ting, and by the written cancellation of the
cond auditor across the face OF the same in the
presence OF the commissioners of the sinking
fund.- who shall cause the bonds so cancelled to
filed by the treasurer in a suitable depository,
and shall record their proceeding in a hook show
ing the number and amount thereof
| 8. The governor shall. by proclamation, give
notice ofthe provisions of this act, inviting all
the holders of Virginia securities to make the
| exchange herein provided.
10. This act shall be in f1rce from its passage.