The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1879-02-03
DOLLARS AND SENSE.
Proposition OF the Two Funding Assoc
Citations. ;.;.s3..5

fE0pOasSlOn OEtEHe Two uMuiuR ASSVes
Citations. 4. Z,
OFFER TO FUND; THE DEBT: In MONTANA
BILE BONDS. BEARING THREE PER GENT.
INTEREST FOE FIVE YEARS, -FOUR FOR
TWENTY-FIVE, AND FIVE FOR TEN-COU-,
PoNs TO BE RECEIVABLE FOR TAXES.
The subcommittee OF the joint Commit
tee OF Finance met Saturday morning at the,
Exchange Hotel. AS soon as the financial.
visitors made their appearance, Senator
Grimsley, the chairman, stated that it was
the desire OF the committee that the meeting.
| be conducted privately, and requested all
parties not members Of the committee, mem-.
bers OF the General Assembly, or bondhold-.
ers, to retire. The reporters present, upon,
hearing this, retired.
subsequently the subcommittee, volun-'
tarily furnished the Press with the follow
ing letter and proposition from the repre-
fsentatiyes OF the two funding associations
Hon. d. d. Grimstey, Chairman 5,.g t.,.si
Sir,-Submitted herewith is the draft Of
la bill embodying the conclusions. Of the re-
presentatiyes Of the bondholIiers as to the
tterms OF settlement OF the State debt OF.
Virginia, prepared at your request. 1t Is
proper TO say that its provisions differ in
several respects from those originally in
tended.
Four per cent. interest is the lowest basis
| OF settlement which has heretofore been
entertained. A careful study of the condi-
tion of the debt, both rs regards the State
and her creditors, led to the conviction that
per cent. was the line upon which the
parties should meet.
1t was believed that rate was within the
ability Of the State TO pay-not without eff
fort, OF course, for debts are never paid
without eh'ort-and it was known that the
concession so demanded from the creditors
was fully up to, il not beyond, their es-
innate Of the value Of the added security
which settlement would give to their
bonds. But to compromise means to adjust
| by mutual concession and q conference
would be Of little worth il those who COM
pose it did not hold themselves amenable to
reason and to evidence.
The presentation OF the case by the COM
mittee has been forcible. Their represent
ations have been listened to with interest,
the arguments carefully weighed. and the
| facts duly considered, with the result which
you have now before you.
We have the honor to be, very respect
fully, your obedient servants,
HUGH MCCULLoCH,
President Of the Funding Association Of the
! United States of America Uimited;
ISAAC II. CARRTNGToN,
For the Council OF Foreign Bondholders,
| London. .. -.
RICHMOND, VA, February 1, 1879.
Propes esition.
An Act, etc.
Whereas it is believed by the General AS
sembly that the rate of interest heretofore
agreed to be paid by the State on the public
debt is greater than can be borne without
destroying the Industrial interests OF the
State; and whereas THE COUNCIL OF
FOREIGN BONDHOLDERS OF LON
ASSO CATION OF THE UNITED
STATES OF AMERICA. LIMITED, have,
in view OF this belief, expressed their will
ingness Jointly to endeayor to obtain the
consent OF the creditors to an abatement in
the rate OF interest; and whereas it is highly
eypedent, in the best interest OF the State,
to secure an amicable settlement with the
creditors. by which the credit Of the State
NAV be restored and enhanced, and the 0g-
gregate amount of interest payable by the
State reduced within limits which will be
not too onerous to her population: there
fore
THE NEW BONDS.
1. Be it enacted by the General Assembly
of Virginia, That to provide for funding
the debt of the State the Governor is hereby
authorized to create bonds OF the State, re.
gistered and coupon, dated the 1st day
OF January, 1879, the principal payable
forty years thereafter, bearing interest at
the rate of three per centum per annum fol
, ,, five years, and at the rate OF four pei
centum per annum for twenty-fv years,
and at the rate of five per centum per an
mum for ten years, payable in the cities o.
Richmond, New York, or London, as here
matter provided, on the 1st days Of July
and January Of each year until the princi
pal is redeemed.
. The State shall have the option OF redeem
ing any or all OF said bonds by the paymen
OF principal and accrued interest at any timt
after the expiration Of ten years from th'
1st day of January, 1879, on public notice K
the holders of its purpose to make suct
redemption.
The coupons on said bonds shall be re
4 ceivable at and after maturity for all taxes
debts, dues, and demands due the State
and this shall be expressed on their face.
The holder Of any registered bond shall
. be entitled 10 receive from the Treasurer o
Z the State a certificate for any Interest there
: on, due and unpaid, and such certifcat
t shall be receivable for all taxes, debts, dues
I aad demands due the State; and this 81 al
be expressed on the face OF the registered
bonds, and on the face OF such certificate.
OBLIGATIONS UNDER THIS ACT FREE FRol
l TAXATION. .3-..
e All obligations created under this act shal
: be forever exempt from all taxation, direc
S or indirect, by the State, or by any count.
: or corporation therein, and this shall be eX
: pressed on the face Of the bonds. The sal
e bonds shall be Of the denominations OF $l0O
G $500, and 1,00e, at the option OF the credi
!. tors respectively, and the bonds, rs well
their coupons, shall he payable in dollars
). Richmond and New York; or, il desired
4 NAV be made payable in sterling at Londo1
: at the fixed rate of exchange OF one poun'
sterling for five dollars. The bonds hereb
Y authorized shall be issued only in eXchang
: for the outstanding debt OF the State, q
e hereinafter provided.
CLASSIFICATION OF OLD BONDS.
9. For purposes of designation the out
standing indebtedness Of the State is dlVlde'
into two classes as follows-to wit:
Glass l., which shall be taken to lnclud
all tax-receiyable coupon bonds, and all re
, gistered bonds and fractional certificate
!, which are convertible, under the act ap
! proved March Both, 1871, into such taX-re
: ceivable coupon bonds.
Glass H., which shall be taken to includ
all bonds funded under the act approved
March Both, 1871, as amended by the act ap
nrnuad March 7fhs 1870. and also two third