The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1879-04-03

Between the LIST of July 1881, an the 1st O.
January, 1882, all the old coupon bonds will BE-
taken in, if the funding is accomplished as pro
S1,269,94 will be needed to meet the Interest OF
me new bonds and the coup ons falling due or
the old bonds from LIST July 1879 to 1st July, 1880
aud That afterwards the annual amounts needed
will be much less, while the State expenses will
also become less. The Second Auditor reports
Inat on sota SeRtember 1873 s954,446 Of coupons
years. These will come into the Treasury very
slowly, Judging by the past. for in no one year,
except the last have as many coupons been pre-
sented as fell due within the year. Still, it is
possible that these past due coupons may be hur-
rled n and that the funding may be more rapid
tingency an amendment was put upon the bill
which is known as the ALLEN amendment by
row the amound necessary to pay promptly the
interest on the new bonds and in case = cannot
borrow, then to sell tax-receivable certificates,
distributing them throughout the State, at a
price to be fixed by the Commissioners OF the
Sinking Fund, but not to be less than seventy
five cents ON the dollar. the proceeds to be ap-
pied solely so the payment of the interest on the
new bonds. These certificates to be for sums of
one dollar and multipes thereof.
This amendment was intended to put bayond
question the payment Of the interest on the new
bonds, and thus secure the refunding of the debt
IL mas been called by some force measure upon
the idea that it will flood the State with tax-re-
ceivable script. which will depreciate the old
coupon bonds. and thus force their surrender
interest on ths new bonds a6 every dollar OF the
raised by the sale of these certificates the amount
OF certificates issued could not exceed the old cou
pons retired by the issue of the new bonds Take
as an illustration the first issue: The semi-annu-
al interest on the $S 100000 will be $l2OOoO. No
more than 100000 OF certificates could be sold to
raise this sum at the minimum price fixed But
in the issue of the $1,000 900 of new bonds S.
335,23 or coupon bonds must be retired-the semi.
annual coupons on which amount to $3.50. 600
1t is thus demonstrated that no more tax-re-
ceivable script can be issued than is now falling
due, and none whatever except to take the place
md thnp
holder can say that his coupons will be deprecia-
ted by their issue. AS the minimum price fxed,
however, is much less than the market price OF
coupons and the certificate must be sold for the
best price which can be obtained, it is certain
that even if all the interest on the new bonds
should have to be met in this way, the volume of
script will be less than that of the retired cou-
pons. Nor is there any force in the objection
raised that the Auditor may be compelled by a
to issue certificates Were sucf a
thing possible, as the Commissioners of the Sink
ing Fund must fix the price, they could protect
the State.
We have seen that our present revenues are
ample to meet our liabilities for interest during
can IN fiscal year Fortunately for US it happens
that June and December are the months in which
the largest amounts of revenue are paid in. In
December 1877, S813 46 was paid into the Treas
ury OF which $540,O36 II was in coupons and S373-
47455 IN currency. In June, 1878, $527 1885, 66 was
received, OF which $l66355. 81 was in coupons and
sa6l; oilas IN currency The months showing the
next heaviest receipts are May and November
November 1877, showing sos 37l.72, Of which 49,
a lla wa IN coupons; and May, 1873, showing
treasury will therefore undoubtedly have the
money Tor the January and July interest, unless
the past-due coupons come in like flood and in
that event they will be absorbed at once and the
IN revenue will not happen again by
reason OF them.
AS to the public schools. the act passed last
session known as the Henkel bill gives them per.
!ecG protection FOR three-fourths of their gross
[und from which, when you deduct the expenses
d assessment and collection and the insolvents,
It will appear that the net sum coming to them
IS nearly all secured in currency.
II there be falling off in values of one-fourth
by the next assessment OF land, as is predicted by
'ome sui our revenues will even then meet the
u terest on the new bonds: The net reduction of
'evenue OF the revenue will not exceed $3.50 OOO of
which one-ffth s5O0OO) will be lost to the schools
IND the remainder (S2OO00W to the general reye-
lue. As we have shown that there will be sur
'lus OF S3OOOO0 after paying interest on the new
,onds there Will still remain sur lus OF 500 0OO
or any possible falling off from land.
II, on the other hand, we keep up our present !
eVenue, we shall soon be able to pay all arrears |
o the public schools; and we might even accu-
nuiate large sinking fund with which we might |
o reduce our debt that when the per cent in |
crest snail commence our aggregate interest will |
oG exceed what we shall have to pay at first at 3
er cent. ' - "'o
II our entire debt is not funded under the pres
Ut act stlll we shall be benefited, as every new
'ond issued is made up of two consols and one |
eeler and reduces the interest collectable in cou.
ons by one-fourth, besides stopping the interest
Il the peeler, so long as we pay 8 per cent.