Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1879-11-21
Views OF MIR. asugh REce'u7loeh


10 an interview with in American Exch2nso
reporter recently, Mr.. Hugh McCuiloch gave
his vo9a OF tic condition CT rtfu1ding opera
iona 10 Virginia. tho r7ospa:t Of Tho new Leg,
lslatufc attempting to &c! Hsidi tho last sotilo.
mont, and Tho feet which The s,;c.si Of tho
r2adust Teu!a haze upnG the prosperity Of
tho &Ga.n.
"Hhat IL the plca;Ht ca%Jitloa ni the d.bt
0! Virginia and ih0 B,ato of !hc lciIcdng opc-
ra!lnnS q r?6a iI:si ashod.
"ihu Present rCGaGnH Il debt Ct tho STATE. 4"
flc. McUui!crh sad, ii ABOUT $50, GUD,0UO
Al the close Of h: vsf :hc ;!a;t was urG:ar.l Of
$ln,ujn, 600, On which a S;:ato und0itt0k 20
Ray he la;Grcs, tul ~ lie people Tcro unable
Il bear 80 large 3 i,ar,tcU, tho STATE nCon dc
aa!EcG IN thG IaY!a&n! OF tho lrtcreEt oil har
bnnda. la 1871 tie i4agi4ia!urc passed d law
authorizing tho isGuo ni new bonds Tor Two
thirds ni TIC principal act: iGtcrtat Of The cut-
standing h2uGs. and certificates Tor the other
ono thEd, wi;iall W:rn intended to represent tho
amount 0i The debt which tho rCnplc CT VIZ
gnia 'hnnght shnull 10 assumed by tho State
Of West Virginia, Tic latter StniD having been
n part ct Nireiui, when tho dcbt wag can
tnCsGd.
"Iaa bJa'll bill hjT%aa To b. issued under
tins act were 10 brar G per cout. inturcst-thc
sane rate IA the Oil bonis--and tho c)upops
Wcrc made rfcelvabl, Tor itXe1 and other Siata
revenues. uhdtr thia All nbont 100000 600
bonds had been iundnd when the Legislature
repealed tho provision which mado The
coupons rccevahln for taxes, and tho
rcooEn!Z2l debt atojd ct tho time
OF this repeal at $20,001,000 Of iuodcd
bonds. Tie coupons OF which wpro receivable
Tor taxes aud other States duca AID $40 DOC, 900
unluudod bonds. Soma of these uniundcd
bonds we're from Time to time exchanged for 6
per cert bonds. tho coupons Of which were not
receivable for taycs, and certificates for tho part
WE'ct Wa5 10 DO charged against West Virginia,
that Is two thirds IN now bonds and ono third
in tho West Virginia certificates. Some of
these unlurdCd bonds were not thus exchanged
ind considerable amount is still outstaadiog.
at tho commencement Of tho last session of
tho Legislature tho deb. stood substantially at
S2O,OOo,OO0 OF consols, with tax receivable
coupons, and $1,000. coo of what are know rs
.oeelcfs and unlunced bonds-tbo ptclers be-.
log TIC bonds which woro fuaded after tho 70.
peal OF Tho prOvsJn authorizing the issue of
ponds With their coupons receivable for taxes.
'Oo tho bonds which wore funded under tho
ac. OF 1871, after the repeal Of tho provision
!eisiieo W. dou W llU u0luOQC1 D0nCS no
iatcrest hos baen paid. After tho repeal of tho
provision making tho coupons of the new bonds
receivable Tor tsx:s. rovcruo officers wero in.
sttuo;cd not to r-cuivo 10 payment of taxes or
osbor public dues tho coupons which upon their
tsc, Were made receivable for them; but the |
Supreme Court Of Virgioia. 10 test case, de-
cldcd thst the lew under which tho bonds wero
issued was contr;ei which could not bo an
nulled By tho State, and the. tLcso coupons |
must DO received for taxes and other public |
dues. Sroh was tie condition of tho debt when |
tho Legislature took up tho consideration of it |
last winter. Ga two thirds of tho debt the
Stale was paying, 10 receiving the coupons for
taxes end Other public dues, per oert. inter
es'; on the other one third nothing. Tho hold.
crs of tho tax receivable coupons had not, unless
they were tax payers, been receiving the full G |
per c?nt.; Tor a tic coupons wero only avail
able 10 the hands Of tex pagers their market
prics raiey cEc ,eGei 6 per cont.
1T was under these circumstances that The
interests OF tho State. Is we'll as these of the
oendholders, required settlement of tho ca.
!lFo debt Oh basis which tho State would be
able to sustaic, and which should be as cuuit.
able to the two classics of bondhoIders ss their
.eatlens to each other would admit. Such
'ettlemolt in the interest CT tho State and of
her creditors the Funding Association of Nsw