The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1879-01-30

UEIWEENt nOLpEhS Ut flflSISiA bOiSOS |
AND THE TWO FINANCE COMMITTEES
THE PROSPECTS OF A COMPROMISE
THOUGHT TO BE GooD-soME OF THE
PLANS sUGGEsTED-PERsoNAL.
In accordance with the resolutions of the
General Assembly and the invitation ex-
tended Hereunder by Governor Holiday, a
conference Of the creditors OF the Common |
wealth, or their representatives, and the
Committees on Finance Of the two houses,
will be held to-day. The General Assem-
bly,, in providing for this conference, said
that 1t was ssanxious to do all consistent
with what is believed to be the interest OF
the State and her creditors to adjust, il pos
sibIe, the differences existing between the
proposition made by the General Assembly
at its last session and the. several PROPOSE
tions now before US relating to q settlement
OF the public debt.
The bondholders, actuated by the same
purposes, have sent here Hon. Hugh Nc;
Culloct, Samuel 6. Ward, and G.. NJ. Fry,
Of New York; F. A. Colston, OF Baltimore,
and number OF other gentlemen. to. pre-
sent their views and to confer withtbe GEN
eral Assembly as to the best means OF set
thing the debt question. Major Isaac H.
Carrington, OF this city, is authorized to
speak for the Council Ut Foreign Bondhold-
ers, aud other citizens Of Richmond will rep
resent resident and nonresident bondhold-
ers who are not parties either to the scheme
Of Mr.. McCulloch and associates or to that OF
the Council OF Foreign Bondhoders. Thus
while the attendance will not be great
speaking as to numbers-it is pretty certain
that the bulk OF the debt will be repre-
sented; and it is confidently believed that
| II these gentlemen and the spokesmen OF
the General Assembly can agree upon a
plan, it will have the concurrence Of all in
terested.
The prospects are encouraging. What
the creditors have heretofore suggested Is 4
compromise on the basis OF new per cent.
| bonds. A number OF readiuSters who
| have been regarded as extreme favor forty
| five:year bonds, bearing interest at three
per cent. for the first fifteen years, four for
| the second. and five for the third-an ave-
rage of four per cent. This is, to say the
least. great advance on the provisions OF
the Barbour bill. Members OF the General
Assembly seem really in earnest now about
settlement, and with the kindly DISPOSE
tions manifested by the creditors it will be
strange indeed if satisfactory conclusion
| is not reached.
/ The conference will take place in the Office
of the Auditor Of Public Accounts, Capitol
building, commencing at II O'Clock this
morning. The probability is that that room
will prove to be too small for the accommo-
dation OF all those who desire to hear the
discussion, but no better one at the Capitol
could be obtained. The committees have
authority to sit during the sessions OF the
two houses. '~..
".#%' ii@tT THE M'cULLocH PLAN.
The plan OF settlement to be proposed by
Mr.. McCulloch is said to have received the
approval Of large number OF British and
northern bondholders. The following cir
cuiar will, in addition to what we have al
ready published. give light on the subject:
10 the Holders of Virginia Bonds: ~
uPhe State debt OF Virginia is represented
by two classes of bonds, one OF which is
worth 30 per cent. more in the market than
the other. The one has the security OF tax
receivable coupons, and now realizes an In
come OF 4s per cent. or more; the other
has no security but the faith and honor OF
the State, and gets nothing. Yet both are
Legitimate in their birth, and have the same
moral right to protection. The State can
not. with propriety, discriminate between
them. nor do aught to perpetuate the differ
ence; neither is it in her power, unaided, to
oblterate it, except by making the coupons
of the "peeers " taX-receivable, thus rails
ing them and degrading the others to COM
mon level OF depreciation. The nominal
rate OF interest on the whole debt is 6 per
cent, aud the 45 per cent. realized on the
tax-receivables is secured by selling these
G per cent. coupons at discount OF from
90 to 25 per cent. That is TO say, there
is margin OF from $250,000 to 100000
per annum between the amount paid BY the
State and that actually received by the cred.
itors, which is absorbed by brokers and
taxpayers. A settlement will stop this Sc
rious and wasteful leak, aud it is possible
to make one which will greatly improve the
condition Of all the bonds without material
ly increasing in amount the demands now
met by the State. That there cannot be an
increase, an examination OF recent official
reports will plainly show; and it only re-
mains TO administer the revenue so that the
entire portion available for interest purposes
shall reach the creditors. There may tEen
he refunding O; taX-receiyablc bonds,
which will give them an income equal TO
that now received, secure due payment OF
principal, and, at the time, make rea-
sonable provision for proportionate
amount of "peelers," the aggregate OF the
| latter class being, fortunately, only half that
OF the former.
| Under this proposition it will only be ne
cessary to combine the two classes OF bonds
). in their outstanding proportions of say two
"taX-recelvables and one "peeler,' and
convert them into new As. These new
bonds are to be secured by tax-receivable
Z, coupons, and by sinking fund, the opera
tious of which will pay the debt; interest
payable on sterling bonds in London; on
dollar bonds in New York or Richmond !;
both principal and interest to be exempt
from taxation; and bond to be made law
full investment for executors, administrators,
and trustees. Concerning overdue interest,
it should be said that the arrearage OF tax
receivable coupons, being already detached
from the bonds and scattered IN the hands OF
brokers and taxpayers, must needs be ab,
sorbed By the Treasury on account OF
taxes. Provision for the accumulated
interest on peelers is matter for negotla-
tion. A strong objection exists in Vir-
ginia to compounding interest again. 1t
has been proposed to issue per cent. GER
tj6cate, redeemable at the pleasure OF the
State, or that payment might be made Dy
iustaIments of per cent. each, beginning
i two years heiice and running twenty years.
There Is little difference to the creditors 10
these modes. Either would be worth at
least fifty cents on the dollar as compared
with the new fours, and 1t is believed that
something Of this sort can be obtained.
Tue distribution or division OF the agSre-
gate amount OF new bonds received is LETT
1, TO be arranged by the boudholders them
4 selves upon such terms as SHALL 10 tnem
Iseem equitable. This may be done ~ by
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