Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1879-04-04
THE DEBT BILL.

piece of legislation that has engaged the
attention of our lawmakers for many
years. By the courtesy of Gen. Echols we
were furnished with copy OF the bill last
week, but pressure of matters OF local in
terest, prevented its publication in that
issue:
Whereas it is believed by the general
assembly thai the rate OF interest," hereto
lore agreed to be paid by the State on the
public o.bt is greater than can be borne
without destroying the industrial interests
of the State; and whereas the council of
foreign tondholders Of London, England.
and the funding association OF tue United
States OF America, limited, have. IN view
of this b. lief, Expressed their Willingness
to jointly endeavor to obtain the consent
of the creditors to AN abatement In the
rate eff interest; aud whereas 1t Is highly
expedlenl, in me best Interest OF Tie state,
10 SECURE All amicablt settlement with the
creditors. by which the credit OF the state
may be stored and enhanced, and the ag-
gregate i; noun. If interest payable by the
state rec uced WItltin limits Which Will moi
be too Generous t., the population: there
fore.
1. BE 1t enacted py the general assembly
of Virginia, That To provide for funding
The debt # the STATE, the governor Is here
10y aulhO lied to create bonds OF The state
Registered, and coupon, daLed the hrSt day
OF January, eighteen hundred and seventy
nine, the principal p. yable forty years
thereafter, bearing interest at the rate OF
three per centum per annum for ten years,
and at the rate of four per centum per an
| mum for twenty years, and at the rate OF
| five per centum per annum Tor ten years,
| payable in the cities of Richmond, Nev
| York or London, as hereinafter provided,
| ON the first days of July and January OF
each year, until the principal is redeemed
| Tho state shall have the option of redeem
| ing any or all of said bonds by the pay
ment of principal and accrued interest at
any time after the expiration Of ten years
from the first day of January, eighteen
hundred and seventy nine, on public no.
| tice to the holders of it's purpose to make
such redemption. The coupons on said
bonds shall be receivable at and after ma
turity for all taxes, debts, dues and de-
mands on the state, and this shall be ex-
pressed on their face. The holder of any
registered bond shall be entitled to re-
| ceive from the treasurer of the state GER
tificate for any interest thereon, due and
unpaid. and such certificate shall be re-
celvable for all taxes. debts, dues and de-
| mands due tie state, and this shall be eX-
1
and on Il g face Of such certificate. All
obligations created under this act shall
be- forever exempt from all taxation, di-
rect or indirect, by the state, OF by auy
county or corporation therein, and this
shall be expressed Oh the face of the bonds.
The said bonds shall he of the denomina-
ton If one hundred dollars, five hundred
dollars, and one thousand dollars, at the
option of the creditors respectively, and
the bonds, as we'll as their coupons, shall
be- payable at Richmond and New York,
or if desired, may be made payable in
sterling at London, at the fixed rate of ex-
change of one pound sterling for five dol
lars. The bonds hereby authorized shall
be issued only in exchange for the out
standing debt of the state, as hereinafter
provided.
2 FOR purposes of designation the out
standing indebtedness OF the state is di-
vided into two classes as follows, to-wit:
Glass 1, which shall be taken to include
all tax receivable coupon bonds, and all
registered bonds and fractional certificates
which are convertible under the act ap
proved March thirtieth, eighteen hundred
and seventy one, into such tax-recelyable
coupon bonds.
Glass II, which shall be taken toinclude
all bonds funded under the act approved
March thirlieth, eighteen hundred and
seventy .one, as amended by the act ap-
proved March seventh. eighteen hundred
and seventy-two; and also two thirds Of
The face value. with two-thirds of the un-
paid accrued interest up to the first of
July, eighteen hundred and Seventy-one,
on all un1unded bonds, including sterling
bonds.
2. The outstanding Indebtedness OF the
state shall be funded in the new bonds, to
DO issued under this act, as follows:
Bonds shall be presented for exchange
with all coupons attached, maturing after
the date of presentation, and shall be ex-
changed at the face value of said honda,
dollar for dollar, for the new bonds, with
all coupons attached maturing after the
date of such presentations: provided that
the proportion of Class II refunded shall
never exceed in amount one-third ~ of
the total amount refunded until eighteen
millions of Glass have been retired.
The new bonds to be issued may be cou-
} pom or registered, at the option of the h0l-
ders, and at the like option coupon bonds
may at any time be converted into regis
tered bonds.
4 All due and unpaid interest may be
} funded under the provisions OF this act.
at the rate of fifty cents on the dollar, and
shall be fundable at that rate under the
third section of this act, and taken under
|
bonds of Glass II.
!, 4. If on or before the first day of May,
eighteen hundred and seventy-nine, the
council of foreign bondholders and the
funding association of the United States
of America aforesaid, shall file with the
governor their assent to and acceptance
of the terms of this act, the same shall be
taken to be contract between the state
and the said corporations, and the COVER
nor shall forthwith provide for the prepa.
ration OF the bonds provided for by this
act.
The said corporations may present for
funding, and in the proportions hereinbe
fore provided, at least eight million of dol
lars of the outst anding obligations of the
state prior to the first day of January.
eighteen hundred and eighty. And our
ing each period of six months, from and
after the thirty-frst December, eighteen
hundre and seventy niBe. they may pre-
sent an additional amount of at least five
million dollars, until the whole debt is
funded; but any excess over said amounts.
periods, may be estimated in requirement
for the succeeding six months.
So long as the said corporations shall
present for funding the obligations afore-
said, in the amounts and in the periods
aforesaid, they shall have the exclusive
privilege of funding the outstanding debt.
under the provisions Of this act: provided
that the said corporations shall arrange to
receive the outstanding bonds at the city
of Richmond when tie holders thereof
shall so desire.
But if the said corporations shall fail to
file with the governor their assent and
agreement as aforesaid, by the first day of
May, eighteen hundred and seventy nj. e..
or shall fail to present for funding the ont
standing bonds in the proportions and
amounts and during the periods hereinbe-
fore specified. then the governor may in his
discretion, make like contract with re-
sponsible parties for the funding of the
debt of the state under this act.
6. The rules prescribed under the act
approved March thirtieth. eighteen hundred