Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1879-02-15
s.ate Debt and the Public Schools

isto the liability 0! the State for the payment
Of Tic oue third SET apart IS tho share properly
to be assigned to WIS: Virginia. sets forth hat
before The dale Of the iundipg ILL The cFcGi!o:
dclier Of the boGds, H., tt The State, bad
recourse for The whole debt es against either
Virginia or West Firsinia, as no might choose
10 elect; tu: The person Tho accepted the pro-
visions of the funding act gave up bis cid bond
and received in lieu thereof another for two
thirds of tho face value thereof and two thirds
of accrued interest, which new bond set forth
the promise and obligation Of the State tf Vir:
giaia 10 pay to The holder the amount specified
on lis face, and fer the redemption thereof
sinking fund IVES provided. The old bond, for
two thirds Of which the lew bond was Given,
vas cancelled, and held by the State, as trustee
Of the creditor, as the evidence Ct her ndebt
cdoess on which the one third set apart as West
ViTgiuia's third rested. The holder Of the
bord Of firgicla, issued prior to the dsnem-
bcrneut, upon his surreuderlng the ol1, and
the acceptance OF the nt1O bond for two thirds
OF The amount due, WAS entitled to receive flr
the other one third Ct the amount duo upon
the old boId certificate baafog the same date
as the new band, setting forth The amount oi
| the bond which is not funded, aud that "the
payment Of the same aoiU be prOutded for IN
accordance 1ciA such settlement as shalt hre
after be had Jetueen tic States Of West FIR
giuia and Virginia IN regard to the public debt
Of tie State Of Virginia er,stla0at the
| time Of ITS GiSmemGermeat. ond that the
State # Virginia holds ssid BONDS 50 far as
unfunied, 10 trust for thu holder or bis aS.lg
uees' The eviderc, OF the Indebtedness OF
Virginia WIS her bouds. Alter her Gismcn-
| blrmcnt Firginia offers 10 iiyo new bond 10
| her creditor tor two thirds OF the face value OF
| the OLD bouG; which, being accepted, the
cid bond is cancelled, and the only plea fer
liability On the part OF Virginia to pay the third
of the debt assigned as the share OF West VIZ
| GINA is to be found 10 The words that payment
Of said amount Zone tbirdl, with interest there
on at Tic te prescribed 10 The band surrendered,
will be prorided ror;' Which undertaking, tho
committee insist, is limited aud controlled By
the words following: IN accordance gith such
settlement as shall hereafter be hat betWcen the
States Of Virginia and Vest Virginia an
regard 10 the public deJt Of Virginia criStmq
at the time Of its dtsmembermeat. Ii The
| State ct pirgitiI was not dsc laIged from her
original obligation as 10 the one thlid rot tuoded
and the creditors held her bound therefor, how
was it that the d:bor was charged with tie
custody of the evidence Of debt? How could
she, as debtor, bol1 it as trustee: Her otllea-
ton as to the Whols sum had been cancelled,
and new Obligation for TWO thirds Of that sum
| been issued aud accepted By inc creditor, who,
at The same time. takes a certificate CT the
5neuDt OF onslhird and q promise 90 The part
| CT Virginia that the payment thereof W!lI 20! he
matc, tu. be provided for. How? 10 accord
acc, with such sati!$mant as might &c had be
4 IVA Ctoy,, hcruJ,>
! The committee cite 10 tie farther tu'tenanoe
Of their concu:i3n that 10 the section OF the
fuadi1g acs providing for sinking lu1d pro
vision is made for tho retirement aud payment
| of The G0nds ct maturity which we're Issued 10
! pursuance OF the oct, whereas there Is no men
ton oor provision made Tor the Yves! Nirgltia
certificates, which would not have beca the cIso
! bad it been within the purpose Ct the act OF
tie expectation OF the creditor who sc,ep:ed Us
| provision that Firgilia was to be liable lcr abp
part OF TIE Yves! Virginia certificates beyond
| what may be received from Wtss Virginia 90
| the settlement With her. Therefore the House
| is advised to adopt the resolution thet Virginia
! il no, Iigble for The paymeat Of the ooc !'Iirt
debt assumed 10 be tic 2orii2D CT West VII
gina.
| The following i; thu reply Of The Mea;ls
Carrogton to the request Of thst Ct The Jo!1t
| Flnerc, Committee of the Legislature to coD
| fer with the associations WHICH theg represent
| with view to secure such mool!i;atlons oil
| their propositions as 10 exempt if5D tax re
ccvable coupons ten cents OF the rate CT ttXi'
| ton on the properly Of the Commonwealth for
The support ofthe tree schools OF the State.
RICHMOND, Va, Feb'y. "A, 1870.
! Hon Daniel 4. Grtnls'ey, Chairman JOINT
Committee on Finance:
DEAR SIR:-We beg to acknowledge your
| communication enclosing the reso'u'iJu adept.
/ I'd b; the j3iot Committee on the l2.h inst.
10 response, We beg lea7a to say that The
Communication hes baen lorTlrd;d to cur
| principals, estho resolution rtq1cs!s; but We
| conceive it to be our duy to stste that this
poiot has already bad their Affection, having
come to tbem as u suggestion from 7ariCur
sourofs; Hnt, after riul consideration, the
coz c'usl01 was reCGhed that it could not be o.
TRAINED,
The curncst purpose Of HI; c,rporalioos VIC
| represent il to effect compromise WEloh will
enable tho Stale 10 meet al! her obligations,
irc!uji5g the mainte1auce Ct her institutions,
but neither they nor the State 4 .sirc The adop.
ton Of plan which will not tIf.ct the great
oil ,et in vew-vZ /, the rcfloGlaR ofihe debt.
The features Of the proposed bill have been
graveiy considered, and il is believed that they
arc now as moderate ~ they can be made, aud
at the sams time b, acceptable to the bond
holders.
The whole scheme is based upou The beIiei that
the iutertss on the new bones will BE- promptly
paid. II this be done. the public schools will
be 10 10 peril. for the tax receivable coupons
will GOT come upon the market. Moreover by
ust so much as the present volume Of tax re
caivable coupons is decreased by this bill will
the possible peril to the school iuod be tiuG-
iabed. In this view Of the case, the concession
is not orc Of very great moment to lie State,
but, so far as il goes, it RUGS counter TO fun.
damenal business principle, for i: involves an
impairment o! security in addition to tho re-
ducion CT interest obligations ADD it would
show, also. that which never should appear
W.. that The contingency of dcfau!. was COD
te:1plated when The bill Eas framed. The ef'
iccS of this would be to strengthen sny hesia
tioo which The creditors might feel 10 accepting
tbs pew bonds, and this, t)o without any o,m
peDsstirc benefits.