Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1879-01-10

8TAU VA.
FRIDAY MORNING. JAN. 10. 1879,
AS THE QUESTION NOW
STANDS.
The discussion Of the State debt cues
ton which will commence in the legisla-
ture next week, the occasion being the re-
port Of the Finance Committee. will be
undertaken under circumstances very diff
ferent from those which surrounded it a
year ago, the question then being could we
settle, while it now is will we settle. That
our readers may more readily comprehend
the moves which will be made by their rep
resentatives, we shall endeavor to place
before them in as condensed a form as
possible, precisely the situation at the
point at which the legislature now begins
its consideration. The figures we use are
mostly official and wholly reliable. those
relating to the State being from Auditor
Taylor's report for the fiscal year ending
Sept. 3Oth, 1873, and those relating to the
bondholders' propositions being taken from
those documents themselves.
The bonded Indebtedness of the State
consists of a2O, 224,51s funded under the
funding bill of 1870 with about 100000
OF defaulted interest due on it, and %. 1885,
3OS which the holders did not fund (''peel-
ers'') and on which nearly 100000 in
terest il due, making the whole bonded
debt proper of the State, OF which the de-
faulted interest is no part, s2s. $50 1926, the
interest on which at six per cent, the rate
contracted for, would be 81. 1895.
The resources which the State had by
the assessment of 1877 to pay this were
$246, 391. 1873 Of real estate from which, at
so cents in the 500, she got $1,231 1855;
478, 17s, 43S of personal property from
which, at SO cents lin the 800, she got
1880. 1892; capitation tax $2s5. SIS; license tax
$500, 900; taxes OF banks, railroads, &c.,
100000; from incomes $34,557 and from
other regular sources $4,000, making in
all $2,739, 4sO which sum. less $1S9, $40 com.
missions for collecting it and $135,789 for
insolyent and delinquent taxes was received
into the Treasury last year-the nett
receipts being s2.414,O2O. OF this sum
$1.215,67S reached the treasury in the form
OF receivable coupons and the rest in
money.
Out Of this s., 414 900 the State under
took to pay 81 100000 to run the govern
ment, $441 1857 to run the public schools.
4S4, 349 interest on bonds held by the Lit
erary Fund and 81. JAP, 1856 interest to the
creditors-a total of So 1858. 971. And her
deficit for the year ending September 30th
was $S54,952.:: And now if by any
means, by lowering of the interest, or by
an increase. of taxation, or by both this de-
felt could be wiped out, Virginia would
stand fair and square with the world as
far as her bonded debt is concerned.
The propositions Of the creditors lookin 6
to tho accomplishment of this desirable OBJ
ject are three in number. First, the Coun-
Gil of Foreign Bondholders of London
propose to fund the whole principal with
the overdue interest lone third of the peel
or debt being taken OFT making about
$50, zoo, 900, into new 4per cent. gold bonds
which would make the annual interest 81
zoe, 900, gain to the State Of abou $780,
600 per annum. Second, the Barring
Brothers Of London propose to accept 4
per cent. bonds for their tax receivable
bonds and 81 per cent. bonds for their
peeler bonds, which would make the an.
nual interest 81, 115.O00. Third, the Anne
rican Funding Association at the head o.
which il ex-Secretary McCulloch. proposes
to fund the whole debt at per cent. with
tax receivable coupons and for the accrued
interest to accept certificates bearing pei
cent. interest. To pay this inter
est on bonds and certificates the State
shall annually after giving public notice
sell tax receivable scrip at the market rates
the proceeds to be applied to the payment
Of the interest. II this plan were carried
out the annual interest on the debt would
be reducedlfrom 81 ZAP, 1855 to 81 ,28l ,01O, a
saving to the State of $4SO.955.
With any of these plans the State would
have to raise more revenue, and we pre-
sumo that the way adopted would be an
increase Of the present taxes. The value
Of real estate. assessed tor 1878. showed a
decrease, as compared with the assessment
Of 1877. of 81, 6ss. 500, and the value of
personal property decreased 1851, 7S4, SC
the State has So, $40, 474 less values to tax
in any arrangement she may make than
she bad in 1877, the total Of both real and
personal property now being &3le, 1885 1872
Taking this sum as the basis. we find that
if we accept the proposition of the Council
of Foreign Bondholders the tax will yet
have to be raised ten cents ia the 500, by
which property owner worth $4,000
would only haYe his tax increased from $50
to$55; to accept the Barring Bros offer the
tax would have to be raised about the
same amount, and that of the American
Funding Association about the same.
If none of these propositio ms from the
creditors are accepted, then the tax must
be raised twenty-five cents in the 800, I'm.
less we expect to let the debt 60 On accu
mulating, with the illusion Of some day
breaking out Of it,. There is no hope in
side or outside of the State for any settle
ment the creditors do not agree to. The
plan Of constitutional convention is the
widest folly. A case in point has just
been decided by the United States Su-
preme Court, that of Keator Us. Clarke.
collector, from Tennessee. The legisla-
ture of Tennessee had made the bills Of
the State Bank of Tennessee receivable
for taxes. A constitutional convention
declared that they should not be received
The q. S. Supreme Court decides that the