Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1879-03-12
The Public Debt.


with the citizens OF The State. The
Legislature having failed TO pass the
bill under consideration before the ex-
piration of the session, the Governor
convened that body IN extra session IN
order that the adjustment might be con-
summsted. We have given urreaders
the views of Gen. Malone in opposition
to the bill, and the address Of the con-
vcntion of readiusters. We propose to
review the question as now presented
to the Legislature. In reply to re-
quest from the Legislature for pro-
position from the bond-holders, by
which The debt might be adjusted. the
bill under consideration was proposed
by parties propos ING to fund the debt
As the debt now stands, there are
$40, O0e, 900 of funded bonds. with cou-
pons attached, bearing 6 per cent in
.srest, and upon which interest has
beeu regularly paid, amounting annually
10 81, 200, 900, with the exception Of ain
accumulation of about 100000, which
ha. not vet been paid. On the mons
consol bonds, commonly called peeler
bonds. no interest has been paid
for number of years and upon which
there is to-day large amount ofunpaid
interest. BY the compromise proposed
the funded 6 per cent bonds and the
accumulated interest are to be refunded
ia new bonds bearing 3 per cent in
terest for ten years, 4per cent for TWEEN
ty years and FIVE per cent for ten years,
and the uniunded or peelcr bonds to be
funded at the same rate, but the I'M
paid interest upon the peeler bonds
amounting now to q sum between four
and five million dollars, is to be funded
in the same bonds al fifty cents in the
dollar. 1t is thus seen that while the
con.el bonds now bear and are receiving
6 per cert interest, they will under the
new bill receive for the first ten years
but 5 per cent, difference Of 100000
Der wear in favor of the State. and the
peeler bonds which are nOm;nally at b
Der cent buth been receiving moth
ing, will receive per cent. We have
been paying sl.2Oo,00O per year on
twenty million csuSol bonds, and moth
ing on the peeler. AS the entire State
debt is about s32. 900 QUO, we can pay
interest under the new bill upon the
entire debt for the first ten years, with
$40. 900 per year less than we are new
paying on part Of the debt, while the
interest on the peeler debt is accumu-
lating every year. An objection Is
offered that for the first two years while
tie debt is being funded, we will be
compelled to pay three per cent on
part Of the debt and 6 per cent on part.
1t is certainly better than paying 6 per
cent en- all oflt,as we are now eudeavOr-
inc to do. and it can only effect US un-
til the debt is funded, when we shall
pay but per cent, instead Of 6, on the
entire debt.
The objection that the State becomes
responsible for the West Virginia por
ten Of the debt falls to the ground, the
Senate having so amended the bill as
10 declare that Virginia shall not be
responsible for the West Virginia por-
ten.
Another objection is the coupon fea-
ture. AS an original proposition, we
would oppose it, but it is now the Sc
curity which the bOndholders hold Unde.
the compromise proposed, Virginia will
save s26, 100000 in the forty years in
terest. Arc we to expect under COM
promise, that the holders Of the bonds
will give up the t26, 900, 600 interest and
then give up the security which they
now have, and which has withstOod
every attack made upon it:
Under all the circumstances we are
constrained 10 believe that 1t is TO the
interest Of the people that this question
be settled speedily and finally. Every
day, we are losing by the az tation of
it, and the people, we have every reason
to believe, want the Legislature 10 settle
it upon the best terms they can.
at the September court, 1877, the
people Of Shenandoah adopted series
ofresolntions, one Of which is as fol-
lows: Sd. That they recognize as the
just debt Of the present Safe Of Virgin
"a, twO-thirdS Of the debt as il was at
the time OF secession" THIS resolution
was re-adopted, in public meeting, at
the February court. 1873.
At the date OF secession, the debt
proper, amounted to over $50. 900. 600.
OCdl Bli Ntlts iulflCSl. therefore
the debt recognized as the just debt of
the present State of Virginia must.
DO something over 100000. 600.
at per cent. interest. This cal
culation, it will be seen, eliminates en-
tlrely war and reconstruction interest.
snd the West Virginia portion of the
debt. The interest upon it would be
more than 1920, 900, per year.
Under the proposed adjustment, the
interest would be for the first ten years.
emitting the 6 per cent. interest while
the bonds are being funded, $500, 900.
per year, saving each year, of oyer
s240,00o. In consideration of these
facts we think it is the duty of the Leg
islature 10 pass the bill, aud to make
the necessary arrangements 10 meet Its
reOuirements.