The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-11-22

The public Debt.

NeuCe In Clare atsatAss 80 y, $500,
she question. That gentleman Is Genera
laws ri, WILLIAMS, OF Frederick. Its 8,
views appear in, the Culpeper Times OF tue
sofh instant. General WILLIAMS Is a citi-
ven Of Winchester. From Frederick he
served in the House OF Delegates in 1876.
he was not m ultra man III anything, aad
was literally disposed upon the debt qaes-
ton, but utterly arerse to anything IKE
sssenforecd equity"
General WILLIAMS, concerning tne FieSs.
ing demand for settlement OF tnc n mos,
yeyed question ever presented to the peo-
pie OF Virginia, came to the conclusion mat
it might be done by the scheme W.nch ne
presents without injustice to the pond-
holder and without burthening too much
the tax.payers. Taking UP the subject at
the point to which we were brought by tue
funding act, he considers the matter, and
concludes that the best that can be done is
70 settle IL upon the issue OF new pond'
absorbing all the present debt OF the state
The following is his
PLAN:
Refund the principal Of the debt-viz.,
ssI 900. 600. Issue bonds to run fifty years,
sc;fh yax. receivQble coupons, .ehen ana as
desired, the bonds to be exempt from taxa
tiou. and to bear interest at 800 per cent,
or one cent per day on the 500. But me
law providing for this refunding 10 tdse
effect and be operative Cniy after me Peopte,
al a general election, shall hare approved or
sanctioned 1T, or provide for IL, oy con.
stitutional provision. The sanction OF the
) people TO the settlement IS tue cai oiu"' io3'
ture of the plan.
The nsinEing fund" and all arrearagest to
IN LOFT IN tbe future for settlement. In an
article like this it is almost Impossible TO 90
into elaborate details, but we present some
of the
ADVANTAGES OF THE PLAN.
1st. All, the creditors for the future are
nut on d equal neutrality-suspicious. who nave
received little or no interest 4. e., peeicr
bondholders) will receive interest along
witt, the present on-bondholder.
Cd. The rate Of interest will be more than
ssrep per cent on the present marcel Udtae
of the coupon bond and more than ten per
cent. on that of the pecter bond, and on far
value is about the average rate on pubic
debts.
3D.. The sanction given these bonds, by
the vote OF the people. by their approval, at
an end to the discussion OF the debt qnes-
tion. that now is widespread through the
State. and that becomes intensified IN eacn
canvass. and that occupies more than ba!f
oF the time OF each session OF the Leglsia-
ture: all which have most materially al
facted the market value OF the present
bonds. With this new bond there need be
no anxiety; the people give it, and they
close the discussion.
4th. The rate OF interest Is wIblh the
means OF the State, and is almost as much
as the coupon bondholder now receives,
when YOU consider that he sells his cou-
mons in the market to the taxpayer through
the agency OF the broker, and as taxes are
chiefly PAYABLE 1st OF December, the Janu-
ary and July coupons are not sold before
November, and there is thus an average de-
Law OF several months in each year in real
izing the interest, whilst the peeler pond
holders get nothing.
5th. The security is the same as is now
held by the coupon bondholder. and IN case
OF default the coupons can be sold, as now.
9th. Few OF the present holders OF the
bonds were the original holders. Inc bonos
do not as a general rule stand them over
one half their face-yalue. and they can we'll
afford to make the exchange. :.
7th. The settlement is equitable and Just
in ITSELF In view OF the division OF the
State, its terrible losses, the war interest, |
the compounding, or rather the making OF
interest principal, this offer is one none
need be ashamed to make, whilst policy, |
the controlling reason lat least with the Gre
dltor), win prompt Its acceptance when he |
is assured it is to be and will be fnality, !
and such it will be.
We propose not to quote further from the
General at this time. That it is OF very |
great importance to settle the debt question |
at as early day as possible we suppose all
will Observation-Disclosures as we'll as tax-pay-
ers. The difficulty in the way OF a settle
ment is great, but when we consider how
great the advantages of a settlement would
be, the desire to triumph over the obstacle
must be so strong that it can hardly fail.
The scheme presented by General WILL
LlAMs must be regarded as coming from one
not alien to the creditor and not insenslble
to The Importance Of maintaining the credit
OF the State. Certainly it is within the
range OF practcability, and is entitled to the
consideration of all parties to the veXed
question that has disturbed our peace since
the war.
1t has been understood that the public
creditor was not disinclined to consider an
overture Of new bonds at four per cent.
upon an assured basis, and we had hoped
that some arrangement OF the sort, or some
thing like it, was practicable. General
WuLIAMs's scheme Is tantamount to four
pcr cent, and while we do not mean TO be
understood as supporting it. we may say
that we are not displeased that man occu-
pyIng General WILLIAMs's position has pro-
posed it. He proposes that the coupons of
the new bonds shall be receivable in debts
due The Commonwealth, which provision
has been the grand point of attack OF the
destructiyes and demagogues upon the
funding act. But General WILLIAMS pro-
poses that the act authorizing the issue Of
the 8. 65 bond shall be submitted to the peo-
ple, and shall receive their approval before
it shall become law.
This featured Of his scheme, OF course, will
elicit discussion. The approval OF the peo-
p.e would unquestionabIy add credit and
dignity to the bond, but many OF the best
people OF the State would feel Inundated at
the idea that the vote Of the people Of a
State Of such honorable fame should be re-
auired to authorize the State government to
nav her M doubted obligations.
We take no note OF General WILLIAMS
discussion of the school fund in connection
,,;th h;c cch1ma Tho schnol s7,nd Is at