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

The Debt Bill has passed both houses of |
the Legislature, received the signature of |
the Governor and is now a law. We pub
lish it elsewhere to-day. and also carefully |
prepared statement from the Dispatch, |
showing the amount Of revenue necessary |
for the purposes of Government, including |
the interest on the debt and the support of |
the public schools. 1t will be seen, by care
fully examining the bill. and the estimates |
alluded to, that the revenues derived from |
the present rate of taxation will be amply |
sufficient to meet all the demands, and that
all reasonable men, who really desire to see
this ''veXed and yeXing question" settled,
the popular mind relieved of its constant
agitation, and all the interests of the State
come under the influence of business meth
DDS and legitimate enterprises, ought to
give it their earnest, cordial support In all
OF its details the act Of settlement may not
be precisely that which some may think
ought to have been formulated but the CEN
tral and controlling fact, that the plan
brings the obligations and revenues of the
State to a balance. OF if there is an excess
OF balance, it is in favor of the State, should
remove objections to sentimental or imma-
terial parts, and command approval.
The bill provides for refunding or read
iusting the debt by issuing registered and
coupon bonds dated January l, 1879, the
principal payable in 1919, with interest at
three per cent. for ten years, four per cent.
Tor the next twenty years, and five per
cent. for the succeeding ten years. payable
at Richmond, New York or London. on
january and July l, in each year, until the
principal is redeemed. The State has the
option to redeem any or all the bonds bv
paying the principal and accrued interest at
any time after the expiration of ten wears
from January l, 1879. The coupons will
be receivable at maturity for all taxes, dues
and demands of the State. The holders of
registered bonds will be entitled to receive
certificate for interest, and this certificate
will be good for taxes or other demands
upon the State. The bonds, coupons and
certificates are non-taXable. The law will
be binding if, on or before May l, 1879, the
Council of Foreign Bondholders and the
Funding Association file their assent with
the Governor; and they may present for
funding at least sS,000,000 of the orltstand-
ing obligations of the State on or before
January l, 1880. Every six months there
after they may fund 5000, 900, until the
whole debt of s32, O0O, OO0-which includes
the funding of the accrued interest Oh
s9,OOO,OOO peeler bonds at fifty cents on the
dollar-ls funded. In the year 1885, and
annually thereafter until all the new bonds
are issued, there will be collected tax of
two cents on the 500 of the assessed valua-
ton OF all property for sinking fund. The
acceptance of the West Virginia certificates,
provided for i'll this act, by the creditors, is
to operate as release of Virginia for all re-
sponsibility for West Yirginia's one-third.
1t does not require any great labor to
show that the operation of the law will re-
lieye the State Of an annual default in i'll
terest, and with the revenues derived from
the present rate of taxation, give the peo-
pie the assurance that the debt is under
control, and in the line of payment. With
the principal of the debt. funded as pro-
vided in the bill, s32. 100000, the annual in
terest will be 100000. We are now paying
81, 100000 in taX-receivable coupons, on the
s2O,OOO,OoO funded under the law of 1871,
leaving the interest on s1O,0OO,OOO peelers,
entirely unprovided for. To fully meet the
interest on the whole debt as it now stands,
would require 81 100000. Under this bill,
we discharge the interest on the entire debt,
consol and peeler, including 100000 of
past due interest funded at fifty cents on
the dollar, with 5000, 1000, OF $780, less
than it would take to meet full interest I'M
der the law of 1871. The annual revenues,
under the operation Of existing laws, as we
are assured by the most reliable authority
we have,is s2,500,000. The expenses of the
State Government, with the economies eff
fected in the past two years, and to be eff
fected by biennial sessions, will not ex-
eeed 100000, and with 100000 for the pub
lie schools-we will have an expendi-
rure for interest on the entire debt, at three
per cent, $960,0 expense of Government
100000 and public schools 100000, aggre-
eating s2,l60,00O, which taken from the
s2,500,0O0 of revenues, will leave balance
OF s240.000. This we would have to meet
the past due coupons outstanding, which it
Is not believed will be presented in greater
numbers than this sum would satisfy. 1T is
thus made plain that under this bill, we will
have the entire debt under control. and
what this means every intelligent business
stands. One of the most depressing and
dlscouraging facts connected with the debt |
question has heretofore been the certainty
OF an increase of the obligations of the |
State OF over half a million dollars each |
year In defaulted interest. 1t was not so |
much the difficulty of raising the taxes an
nually levied that disheartened the people, |
but the contemplation of the ugly exhibit |
we were compelled to face each year of an
increase of the debt, Notwithstanding the
hardship the taxes imposed. Could the ass,ur-
ance have been given that the interest was be-
ing promptly met, and the principal assaulted
BY well devised and managed sink king
fund, there would have been no dispositi ion
20 complain, nor unusual dissatisfaction
manifested among the people. They rGal-
zed the fact. however, that they were pay
ng as much as they could, and yet it did
lot meet the demands upon the State II
They knew that an increase of taxation SUI
icient to meet the extravagant expenses. of
government and the interest on the $780,
OO, 900 of debt at six per cent, and supp ort
he public schools, would be tantamount to
onfscation, and that not to do it would
ertainly invoke reputation. They were
onfronted on either side by almost certain
llin, and knew that without a re-adjust-
lent they would be forced to accept eitl Ter -
he one or the other of the dilemmas. The
resent bill solves the difficulty, relieves aIp-
rehension, and with existing revenrles
leets all demands. This paramount fact =
the one to be considered, and not the
lere sentimental and non-essential OBJ