The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1879-02-06


GINA bonds to the representatives Of
the State in the conference recently held
in Richmond. 1t will be seen that it
provides for forty years bond, to bear
three per cent. interest for five years
four per cent, interest for twenty-five years,
and five per cent. interest for ten years.
The coupons are to be receivable for taxes
and all dues to the State, as now, and the
bonds to be non taxable in the State.
We should have preferred that the coupon
feature should have been stricken off, and
that the bonds should bear three per cent.
interest for ten years, four per cent. for
twenty years, and five per cent. for ten
years, averaging four per cent, and giving
us ten years to accumulate taxable resources
to meet the four per cent. interest. The OBJ.
lection to The coupon is not practical for if
we undertake to pay the interest as stipu-
lated the money will be in the Treasury to
satisfy the coupons. In that event there
could be no speculation. The general prop
osition, however, is for the State to accept
an offer which substitutes four per cent.
coupon bond, substantially, for six per
cent. coupon bond-an exchange by which
we certainly can lose nothing, and which
any ore oppressed with debt, would regard
as very liberal on the part of his creditor.
1t will save, upon the scale OF interest pro-
posed, 100000 each year for the first five
years 5000, 900 per annum for next twenty
five years. and $500, 900 year for the sue.
ceeding ten years. There is also abate /,
by the proposition. 100000 Of accrued
interest. Under the stimulus of an adjust.
ment consummated upon such basis, we
may reasonably calculate upon a sure and
steady increase OF taxable resources, so that
at the expiration of the first five years the
augmentation of taxable values will be suf-
ficient to meet the four per cent. interest
without any increase OF the rate of taxation.
At the expiration of the next twenty-five
years, or the thirty years from the date
o: the bonds, we believe the State will have
so advanced in wealth, that with the sur
plus In the Treasury each year; and the OPP
Grafton of the sinking fund provided for in
the proposition. the entire debt can be liquf-
dated, in advance of the operation Of the
five per cent. interest clause. 1t should be
borne liz mind that State loans rarely run
longer than thirty years, and If within that
time the legislative and executive authori-
ties Of Virginia shall practice rigid econo-
my, all unnecessary expenses be Topped off,
equal and exact assessments be demanded,
and firm purpose dominates to wipe out
the whole Indebtedness, it can be done at
the expiration of the term for the payment
of the four per cent. interest, for there is
provision in the proposition for anticipating
payment Of the principal after ten years
time from the date OF the bonds. Ger
tainly within that time, State credit can
be so enhanced, such confidence inspired in
the honorable intention of the Common.
wealth, and such security offered for in
vestments in our wonderful material re-
sources, as to make it much easier burden
to endure to pay five per cent. then, than it
is to pay three per cent. now.
While we do not like the tax-receivable
coupon feature, and think it would have
been better to have scaled the interest as
we have above suggested, yet we confess
that the proposition is more liberal than we
expected. and believe it should be accepted.
By doing SO the first CLEANS Of daylight will
have dawned upon the State, by which we
| may discern the way out of our complica-
tions, cease the harmful agitation of the
debt question, and turn our attention to q
determined effort to surmount all difficult
ties and lift the Commonwealth out of the
environments which have almost pressed her
down to ruin.
Had proposition of this nature been pre-
sented by the Re-adiusters twelve months
ago it would have been denounced as ssre-
pudiation.' The arguments they adduced
and the facts they presented, however, have
had their effect. and their motives and sa-
gacity have been indicated not only by the
bondholders themselves, but by the strait
laced champions of the Funding Bill. The
logical result of the controversy which has
people, and arrayed faction against faction,
irrespective of old party ties, has been to
yindicate the position of those who were
termed ''repudiators, for that which they
substantially commended for has been con-
ceded, and the terms of the proposition we
this morning publish, forming the common
ground for all to stand upon to work out the
redemption of the State, is essentially the
platform of the original Re-adjusters. Its
terms comprise method of settlement that
will at no time necessitate an increase Of
the rate of taxation-brings the obligations
and the resources to balance, at least for
the first five years, and gives that period to
recuperate and develop the capacities Of the
State, to confront the additional one per
cent. at the end of that time.
The time is propitious for the consumma-
ton of an adjustment. All over the Union,
from one extreme to the other, feeling of
confidence is taking root in business circles !;
capital is seeking investments in stocks in
dustries are beginning to stir and move !;
public improvements, looking to the devel-
ment of new wealth, are being inaugurated,
and in every form the energies ofthe people
are being stimulated to industrial and bu-
siness endeavors. 1t is fortunate that Vir-
ginia is presented an opportunity to partici-
pate in this general revival, and to offer her
rich fields and affiuent mines, to the con-
tact Of enterprise and capital, to work out
individual and State affiuence. The very
thought OF an assured settlement OF the
''vexed and vexing" debt question will en-
able the people to breathe freer and hope
more ardently, for they have become wor-
ried and disheartened with tho constant ag-
itation, and no result in prospect. We have
the assurance, in the settlement proposed,
that the taxes paid into the Treasury will
accomplish something-that the debt will
not increase yearly-that the interest stipu-
lated will be promptly paid-the principal
be gradually assailed by the sinking fund
the credit of the State be restored-conf-
dence inspired-emigration seek our borders,
and new era of prosperity dawn upon the