The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1879-01-03
between Richmond and Louisville. fay
me not bespeak d palr of slirf,efs In the
eouricr Journal sanetullN
The Virginia Debt.

he following article, or the main POINTS
| OF Is, appeared In the leading New York e orb
Inapers on haa1stu al. sTa.aaass. e-eopgat
| Tor What t is worth b, knowing nothing be-
sonh what appears. upon Ills faee. Fhe
lspIan outisned here purp to be projected
IN q The Funding Ass Iasion 81 the Uniled y
States of America. with Mr.. McGUraouH
at its head. Itappears that the Association
| proposes to guarantee Virginia against any
failure oil the proposed plan By offering to
ifnnd given amount Of bonds II the de- de-
sired legislation is bad:
syIRGISrAss DEBT-AFuNB PLANwHIcH
RI rs CLaIhED5H THE "A PPR0SAJ1f OF THE
LEGISLATURES AND THE BeSpHoLDERs.- The
bonded debt OF che State OF Virginia is
S29, 800, 82G.3S, divided into tax.receiyab!e
consolidated bonds, the coupons OF which
are receivable as maturity Tor taxes, aud
what are known Us g feelerV bonds. In
terest on both is at the rate OF six per cent.
per ann una sum that the State feels itself
unable to pay. The interest on the consodl-
dated ibonds, is In default about 81, 000, 900,
and that on the reeier bonds very nearly
$4,000. GOO. The last message CT the Gov
ernor contained allusions TO a proposition
from the Council OF Foreign B0ndholders
ri London to fund the debt and overdue
Interest into new four.pe cent. gold bonds,
and q nearly similar suggestion from eer-
tain large bondholders in this city: The
Legislature is almost to- 8 man nnfayorabIe
to either proposition, because they include
the overdue interest, and because no, pro-
vision is made for any distinction between
the two classes Of bonds. The consolidated
bonds, because OF the tax-receiyabie pro-
perties OF their coupons, sell on the market
at from Sc to go per cent, and thess peel
ers y at from 38 to 40 per cent. 1t is,there-
fore, not considered probable that either
plan will be accepted, though the Legisia-
ture. has invited the bondholders to con-
ference. to be held In January next. The
Funding Association OF the United States
OF America, formed in this city about
wear ago by ex-Secretary-of.the-Tr Treasury
Hugh McCulloch, the officers OF the
First National Bank, and Others, have
devised plan for the funding Of Virginia's
debt, which they claim has been privately
submitted to promininent members Of the
Legislature OF that State, and has received
thclc unanimous approval. They also assert
that President Fry, Of the Bank OF New
York; Drexel, Morgan & Co.; L. Won
Hoffman q Co., and several other large rep
resentatives of bondhclders in this city,
favor the plan, and that the London news
papers unanimously indorSe it. It pro-
poses the issue OF new four-per-cent inter-
changeable coupons or registered bonds
equal in amount to the principal OF the debt
as recognized by the act Of March IA, 1878.
The bonds to be dated July |, 1879, and to
run forty.five years, but redeemable after
ten years in The order of issue. Both prin-.
cipal and interest to be exempt from TAXA
ton and the coupons to be made receivable
at or after maturity for all taxes, debts,
dues, or demands due to the State. Certif-
Gates, bearing two per cent. interest, to be
issued for the amount OF accrued and un-
paid interest on all classes Of bonds up to
July l, 1879, except on bonds funded up-
der the acts approved March 80, 1871, and
March 7, 1872. These to receive certificates
calculated on the basis of but two thirds OF
the interest. A sinking fund to be eSta6-
lished, which shall secure annually an
amount equal TO one half OF one per cent.
OF the principal of the debt. This and the
interest on the new bonds and. certificates
to be provided for by the issuance and sale
of taX-receyable scrip.
The Association proposes to guarantee
the State against any failure OF the plan by
offering to fund a given amount OF bonds
il the desired legislation is had. The hold
ers OF the two classes OF bonds arc left to
settle the difference in the respective values
OF their securities between themselves
New YOrkc Times.