The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1879-02-06
from the Richmond Dispatch. Feb 3d.
The State Debt.

| 40C 0tdlC 0CUts
PROPOSITION OF THE TWO FUNDING ASSOCIATIONS
| OFFER TO FUND THE DEBT IN NoN-TAxABLE BoNp
BEARING THREE PER CENT INTEREST FOR F1y
YEARS, FOUR FOR TWENTY-FIVE, AND FIVE Fo
TEN-coUPoNs TO BE RECEIVABLE FOR TAXES.
The subcommittee of the joint committee
FINANCE met Saturday morning at the Exchang
HOTEL AS soon as the financial visitors mad
thelr appearance, Senator Grimsley, the chair
man, stated that it was the desire OF the commit
tee that the meeting be conducted privately, an
requested all parties not members of the commit
tee' members OF the General Assembly, or bond
noioers' 10 re'ire. The reporters present. upo
hearing this, retired
Subsequently the subcommittee yo]untariall
furnished the Press with the following letter an
proposition from the representatives of the tw
| funding associations
| Hon. d. 4. Grtmsley, Chairman.
| SR-Submitted herewith is the draft OF a hi,
EMPLOYING the conclusions Of the representative
| OF the State debt of Virginia, prepared at Won
| request. 1t is proper to say that its provision
diner IN seve raj respects from those original
| Four per cent. interest is the lowest basis of
settlement which has heretofore been entertain
ed; careful study OF the condition of the debt
potn as regards the State and her creditors, LEI
10 tne conviction that per cent. was the line up
on which the parties should meet
OF the State to pay-not without effort of course
Ior deDts are never paid without effort-and i
was KNOWN tnat the concession so demanded from
tne credltors was fully up to, If not beyond theil
estimate Of: the value ofthe added security which
settlement would give to their bonds But t.
compromise means to adjust by mutual conces.
sion, and conference would be of LITTLE worth i
tnose VINO compose it did not hold themselves
am ne to reason and to evidence.
The presentation of the case by the committee
mas been forcible. Their representations have
Deen nstened to with interest, the arguments
with the result which you have now before Won.
we nave the honor to be, very respectfully
your obedient servants,
President of the Funding Association Of the
United States of America Gimitea?
don.
Richmond, Va, Feby l, 1879.
PRoPosITIoN-AN ACT, ETC. 0fJ .
Whereas; it is believed by. the General Assem-
to be paid by the State on the public debt lis
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
OF this belief expressed their willingness Jointly
TO endeavor to obtain the consent OF the credit
ors to an abatement in the rate of interest and
whereas it is highly expedient in the best inter
est OF the State, to procure amcable settlement
with the creditors, by which the credit of the
gregate amount OF interest payable by the state
reduced within limits which will be net too oner-
GUS to her population /; therefore
THE NEW BONDS
Be 1t enacted by the General Assemblu of Viroinio
That to provide for funding the debt OF the State
the Governor is hereby authorized to create bonds
Of the State registered and coupons dated the ist
DAY OF January, 1879, the principal payable forty
years thereafter, bearing interest at the rate OF
three per centum per annum for five years, and at
ty-fve years, and at the rate Of five per centum
per annum Tor ten years. payable in the cities of
Richmond, New York or London as hereinafter
provided, on the 1st day Of July and January OF
each year until the principal is redeemed.
The State shall have the option OF redeeming
principal and interest .as after OF
the expiration OF ten years from the 1st day 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
ed on their face.
The holder OF any registered bond shall be en-
a certificate for any interest thereon. due and nm
paid, and such certificate shall be receivable for
al taxes, debts dues, and demands due the State;
and This shall be expressed the face of the reg
lstered bonds. and on the face Of such certificate
UNDER THIS ACT FREE FROM TAXATION.
All obligations created under this act shall be
forever exempt from all taxation, direct or ndi-
rect BY the State, or by any county corporation
therein, and this shall be expressed the face of
81 BE BE the
the creditors respectively, and the bonds, as we'll
IS their coupons, shall be payable in dollars at
made payable in sterling at London at the liked
rate OF exchange OF one pound sterling for five |
dollars. The bonds hereby authorized shall be
issued only in exchange for the outstandin debt
u the state, as hereinafter provided.
CLASSIFICATION OF OLD BONDS.
.. For the purposes of designation the out |
standing indebtedness Of the State is divided into
wo classes as fonows-to wit:
Class l., which shall be taken to include all tax
'eceiyabie coupon bonds, and all registered bonds
lnder the act approved March soth. isSf' MOS
coupon bonds
bonds funded under the act approved March sOth |
S11' as amended by the act approved March It'll, |
s7s and also two thirds of the face value, with
he 1st July, 1871. on all unfunded bonds inc lud-
ng sterling bonds.
EXCHANGE OF BONDS.
8. The outstanding Indebtedness of the State
mall De funded In the new bonds to be issued un-
Ter this act as follows Bonds of Glass l. shall be
presented for exchange with all unmatured cou-
presented with all coupons attached maturinn az
er January 1st., 1879 and these obligations shall
'e exchanged at the face-value OF said bonds, dol
OF Glass II. refunded shall never exo
iced in amount one-third (1s) of the total amount
,eianaed until eighteen million dollars OF Glass
The new bonds to be issued may be coupon or
eglstered at the option OF the holders, and at the
Ike option coupon bonds may at any time be con-
'erted into registered bonds.
PAsT-DUE INTEREST.
4. All due and unpaid interest up to and inclu-
ing January !. ls7s, may be funded under the
he dollar, and shall be fundable at that rate under
ne third section OF this act and taken, under the
provisions OF said section in lieu of bonds of Class
THE CONTRACT.
5. II on or before the LIST day OF April, 1879, the
;ouncil OF Foreign Bondholders and the Funding
OF the United States OF America afore
w fhn nNvr %Ioy.-. +
nd accordance Of the terms Of this act, the same
nan be taken to be contract between the State
orthwith provide for the preparation of the bonds
rovided for by this act,
THE FUNDING.
The said cor porations may present for funding
nd In the proportions hereinbefore provided at
bligations Of the State, on or before the ist daS
f-1879, And during each period of six months
resent an additional amount of at least saey may
lillions OF dollars. until the whole debt is funded
az any excess over - millions Of dollars
ds may be estimated in the requirement for the
sig months. &
IF funding the obligations Aforesaid in the
mounts and in the periods aforesaid, they shall
ave the exclusive privilege Of funding the out
But II the said corporations shall fail to file
18th the Governor their assent and agreement as
Ill to present for funding the outstanding bonds
4 the proportions and amounts and during the
er1ods here1nbefore specified, then the Govern
may IN his discretion make like contract with
esponsibe parties for the funding OF the debt Ct
he State under this act.
RULEs-PRINrING OF BONDS. /,
8. The rules prescribed under the act approved
larch 80, 1871, in respect to preparing signing |
nd issuing the new bonds and coupons reguia- |
ng the same, and in taking in, cancelling. and
sgistering the old bonds, shall be observed bv
ne officers OF the Treasury in the execution Of I.
his act, except SO far as the same be modified by
ne provisions of this act, provided that ali bonds
nd certificates which may be necessary to he
rinted shall be printed from plate which shall
9 the property OF the Commonwealth and shall
emaln IN the keeping, OF under the control, of ,
10 Second Auditor.
WEST VIRGINIAS THIRD. S
Z. The owners Of all classes OF bonds mentioned
] this act who shall exchange their securities for
le bonds created under this act, and who shall :
OF have yet received certificates representing |
ne remaining one third of their principal and in.
crest due and payable by the State of West Vir. |
lnia, shall receive certificates OF like Character
, those issued under the act OF March 80. 1871
hen they make such exchange; and the State OF
1rgin1a Will negotiate aid the creditors hold
lg all OF such certificates issued under this act
Z previous act, in negotiating with the State OF
Vest virginia for an amicable settlement of the
irginia w.
INTEREsE-sINKING FUND, SC.
g. The cSanaraI ~. |