Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1879-02-14
TIE AMENDED PROPOSITION OF THE
CREDITORS.

THE THREE PER CENT. TERM EXTEND
ED TO TEN NEUTRALITY-SUSPICIOUS. OF
OPINION By IsLAToRs-APPLICA-
TON FOR OTHER CONCESSIONS FROM
THE CREDITORS,
&C., &C., sc.
On Wednesday evening at 5 o'clock the
Agents of the Foreign Bondholders' Coun-
Gil and the American Funding Assocla-
ton submitted to the Joint Committee
their final proposition. 1t extends the
three per cent. term to ten years, and con-
tains other changes. which we print In
full, that named, however, being the lm-
portant one. A proposition was made
from Mr.. Fowler, of the Committee, tina
ten cents on the hundred dollars for th'
schools be excepted from the receivable
coupon feature, but'the Messrs. Caring
ton, who represt nted the oyndlcat
thought they could not get that conces-
sion from their principals, nor could the'
principals get iJt from the bondholde'
The Committee reported the propositlo
to the legislature yesterday, and we AZ
Informed by telegraph that it was ordered
to be printed.
THE TEXT OF THE PROPOSITION.
Whereas, it is believed by the Genera
Assembly that the rate of interest hereto
fore agreed to be paid b, the State on the
public debt is greater than can be borne
without destroying the industrial interests
of the State; and whereas the Council of
Foreign Bondholders of London, England,
and the Funding Association Of the Uni
ted States of America, limited, have, in
view of this belief, expressed their willing
ness jointly to endeavor to obtain the con-
sent Of the creditors to an abatement in
the rate of interest, and whereas, it is
highly expedlent, in the best interest of
the State, to secure an amicable settle
ment with the creditors, by which the
credit of the State may be restored and en-
HANGED, and the aggregate amount of in
Gerest payable by the State reduced within
limits which will be not too onerous to
her population; therefore,
THE REDUCTION OF INTEREST.
l. Be it enacted by the general assembly
Of Virginia, That to provide for funding
the debt of the State, the Governor is here
by authorized to create bonds of the State.
registered and coupon, dated the first day
Of January, 1879, the principal payable
forty years thereafter. bearing interest at
the rate Of three per centum per annum
for ten years, and at the rate of four per
centum per annum for twenty years, and
at the rate Of five per centum per annum
for ten years, payable in the cities of Rich
mond, New York or London, as hereinaf-
ter provided, On the first days of July and
January of each year until the principal
is redeemed.
TILE CHARACTER OF THE BONDS AND
WHEN THEY MAY BE REDEEMED.
The State shall have the option Of redeem
ing any or all of said bonds by the payment
Of principal and accrued interest at any
time after the expiration Of ten years from
tie first day of January, eighteen hundred
and seventy-nine, on public notice to the
holders Of its purpose to make such re-
demption.
THE COUPONS RECEIVABLE FOR
TAXES.
The coupons on said bonds shall be receiv-
able at and after maturity for all taxes.
debts, dues, and demands due the State,
and this shall be expressed On their face.
The holder of any registered bond shall be
entitled to receive from the treasurer OF
the State a certificate for any interest
thereon, due and unpaid, and such certifi,
cate shall be receivable for all taxes, debts.
dues, and demands due the State, and this
shall be expressed on the face of the regis
tered bonds and on the face of such Ger
tifcate.
NOT TAXABLE.
All obligations created under this act shall
be forever exempt from all taxation, di-
rect or indirect, by the State, or by any
county Or corporation therein, and this
shall be expressed on the face of the bonds.
The said bonds shall be of the denomina-
lions of one hundred dollars, five hundred
dollars and one thousand dollars. at the
option of the creditors respectively, and
he bonds as well as their coupons shall be
payable at Richmond and New York, Or
if desired, may be made payable in sterling
at London at the fixed rate Of exchange OF
one pound sterling for five dollars. The
bends hereby authorized shall be issued
only in exchange for the outstanding debt
of the State, as hereinafter provided.
THE DEBT CLASSIFIED.
2. For purposes OF desi nation. the out
standing Indebtedness of the State is di-
vided into two ella. ses as follows, to wit:
LASS [, which shall lie taken'to include
all tax-receivable coupon bonus, and al
which are convertible, under the act ap
proved March 30th, 1871, into such tax
receivable coupon bonds.
Glass Ii, which shall be taken to include
all bonds funded under the act approved
March 30th, 1871, as amended by the act
approved March 18th, 1872; and also two
thirds of the face value, with two-thirds
of the unpaid accrued interest up to the
LIST of July, 1871, on all unfunded bonds,
including sterling bonds.
HOW THE BONDS ARE TO BE EXCHANGED.
3. The outstanding Indebtedness of the
State shall be funded in the new bonds, to
be issued under this act, as follows: Bonds
of Glass shall be presented for exchange
with all unmatured coupons attached; and
bonds of Class II shall be presented with
all coupons attached maturing after Jan
uary l, 1879; and these obligations shall
be exchanged at the face value OF said
bonds, dollar for dollar, for the new bonds.
provided that the proportion of Glass II
refunded shall never exceed III amount
one-third 81 of the total amount refunded