Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1879-04-08
The Debt Bill.

The following is the bill to provide a
plan of settlement of the public debt
which was recently passed by the Leg
islature, and, having received the sig
nature of the Governor, is now law =
Whereas it is believed by the general
assembly that the rate efintsrsst hereto
fore agreed to be paid by the state on
the public debt il greater than caa be
borne without destroying the industrial
interests of the state; and whereas the
council of foreign bondholders of Lon
don, England, and the funding associa-
tiOn Of the United States of America,
limited, have, in view Of this belief, sx-
pressed their willingness to jointly en-
dsavor to obtain the consent of the cred
itOrs to an abatement in ths rate of in
tersst and whereas it il highly expe-
dent, in the best interest of the state. to
secure an amicabls settlement with the
creditors, by which tho credit of the
state may be restored and enhanced, and
the aggregate amount Of interest paya-
BILE by the state reduced within limits
which will not be too onerous to the
population therefore,
Be it enacted by the general assembly
of Virginia, That to provide for fund
ing the debt of the state, the governor is
hereby authorized to create bonds of the
state, registered and coupon, dated the
first day of January, eighteen hundred
and seventynine. tho principal payable
forty years thereafter, bsaring interest
at the rate of three per csntum per an
mum for ten years, and at the rate Of
four per centum per aRnum for twenty
years, and at the rate Of five per centum
per annum for ten years, payable In the
cities of Richmond, New York or Lon.
don, az hereinafter provided, on the first
days of July and January Of each year,
until the principal is redeemed. The
state shall have tho option of redeeming
any or all of said bonds by the payment
of principal and accured interest nc any
time after the expiration Of ten years
from the first day Of January, eighteen
hundred and seventy nine, ON public
notice to the holders Of its purpose to
make such redemption. The coupons
on said bonds shall be receivable 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 bend shall be
entitled to receive from the treasurer of
the state certificate for any interest
thereon due and unpaid and such csrti-
ficates shall be receivable for all
taxes, debts, dues and demands due
the state, and this shall be express
ed on the face of the registered bonds
and on the face of such certificate. 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 express ed on the face of the
bonds. The said bonds shall be Of the
denominations of one hundred dollars,
five hundred dollars, and one thousand
dollars, at the option of the creditors
respectively, and the bonds, as we'll as
their coupons, shall be payable at Rich.
mond and New York, or if desired, may
be made payable in sterling ut London.
at the fixed rate Of exchange Of one
pound sterling for five dollars. The
bonds hereby authorized shall be issued
only in exchange for the outstanding
debt of the state, a. hereinafter provid-
ed.
2. For purpose Of designation, the
outstanding indebtedness Of the state is
divided into two classes as follows, to-
wit:
Glass I, which shall be taken to in
clude all tax-receivabls coupon bonds,
and fractional certificates which are
under the act approved
March thirtieth. eighteen hundred and
seventy one, into such tax-receivable
coupon bonds.
Glass II, which shall be taken to in
clude all bonds funded under the act ap-
proved March thirtieth, eightes hundred
and sevsnty-two; and also two-thirds
of the face value, with two. thirds of the
unpaid accrude interest up to the first of
July, eighteen hundred and seventy
one, en- all anfundsd bonds, including
sterling bonds.
8. The outstanding Indebtedness of the
state shall be funded in the new bonds,
to be issued under this act, a. follows:
Bonds shall be presented for exchange
with all coupons attached maturing af-
ter the dato of presentation, and shall be
exchanged at the face value Of said
bonds, dollar for dollar, for the new
bonds, with all coupons attached matur-
ing after the date of such presentation !:
provided that the proportion Of Glass Ii
refunded shall never exceed in amount
one-third (s of the total amount refund
ed until eighteen million dollars Of Glass
I have been retired.
The new bends to be issued may be
COuPOA VI ACSiSteIco, dI GHo VptiOA VI
the holders, and at the like option cou.
pom bonds may at any time be convert
ed into registered bonds.
4. All due and unpaid interest may
be funded under the provisions of this
act, at the rate of fifty cents on the dol
lar, and shall be fundabIa 1T that rate
under the tSird section of this act. and
taken under the provisions of said sec
fiOn in lien 0f hond af Clan RI
5. lion or before the first day of May,