Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1879-04-02

SENATE BILL 80. IA BILL TO PRO-
VIDE A PLAN OF SETTLEMENT OF
THE PUBLIC DEBT.


SENATE BILL 40. IA BILL TO PRO.
vIDEA PLAN OF SETTLEMENT OF
THE PUBLIC DEBT.
Whereas it is believed By the General
Assembly 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 in
dustrial interests Of the State; AND
whereas the Council of Foreign Bond
holders of London, England, and the
Funding Association of the United
States of America (limited) have, il
view of this belief, expressed thei
willingness to jointly endeavor to OBJ
tain the consent Of the creditors to al
abtement in the rate of interest; anC
whereas 1t is highly expedient, In the
best interest of the State, to secure al
amicable settlement with the creditors
by which the credit OF the State may b'
restored and enhanced. and the aggre
gate amount of interest payable by tb'
State reduced within limits which vii
not be too onerous to the population
therefore
/. BE IL enacted by the General As
sembv of Virginia, That to provide fol
funding the debt Of the State, the
Governor is hereby authorized to create
bonds of the State, registered and cou.
pom, dated the LIST day of January. 1875
the principal payable forty years there
after, bearing interest at the rate OF ]
per centum per annum for ten years,
and at the rate of per ceDtum pei
annum for twenty years, and at the
rate OF per centum per annum for ten
years. payable in the cities of Richmond,
New York, or London, as hereinafter
provided, ON the lst days OF July and
January of each year, until the principal
is redeemed. The State shall have
the option Of redeemins any or all OF
said bonds by the payment OF principal
and accrued interest at any time after the
expiration Of ten years from the lst day
of January, 1879, on public notice to
the holders offs purpose to make such
redemption. The coupons on said
bonds shall be receivable at and after
maturity for all taxes, debts, dues, aud
demands due the state, and this shall
be expressed on their face. The holder
of any registered bond shall be entitled
to receive from the Treasurer OF the
State a certificate for any interest there
on due and unpaid. and such certificate
shall be receivable for all taxes, debts,
dues. and demands due the State, and
this shall be expressed on the face of
such certificate. All obligation created
under this act shall be forever exempt
from all taxation, direct or indirect, by
the State, or by any county or corpora.
ton therein, and this shall be expressed
on the face OF the bonds. The said
bonds shall be of the denominations Of
500, $500 and $1,000. 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 pay
bic in sterling at London at the fixed
rate OF exchange of one pound sterling
Tor five dollars. Tie bonds hereby
authorized shall be issued only in eX
change for the outstanding debt Of the
State, as hereinafter provided.
2. For Purposes OF designation the
outstanding Indebtedness OF the State
Is divided into two classes, as follows
-to-wit:
Glass l., which shall be taken to
include all tax receivable coupon bonds
and all registered bonds and fractional
certificates which are convertible under
The act approved March 80, ISL, into
such tax receivable coupon bonds.
Glass H., which shall be taken to
include all bonds funded under the act
approved March 80. 1871, as amended
by the act approved March !, lSTH-,, AMI
also two-thirds OF the lfSccc5 value, with
two thirds of tic unpaid accrued in
terest 40 to the lst of July, 1871. on all
unfunded bonds, including sterling
bonds.
q. The outstanding Indebtedness of
the State shall be funded in the new
bonds to be 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 exchanged at the face value Of said
bonds dollar for dollar, for the new
bonds, with all coupons attached ma
turing after date OF such presentations;
provided that the proportion of Glass
il. refunded shall never exceed IN
amount one-third Of the total amount
refunded until eighteen million dollars
of Glass | have been retired.
The new bonds 10 be Used may be |
coupon or registered, at the option Of
the holders, and at the like option cou-
pom bonds may at any time be conver-
ted into registered bonds.
4. All due and unpaid interest may |
be funded under the provisions OF this
act at the rate OF fifty cents on the dol |
lar, and shall be fundable at that rate |
under the third section OF this act, and
taken under the provisions OF said Sec
ton in lieu of bonds Of Class ii.
5. If OH or before the lst day of May,
1879. the Council Of Foreign Bond
holders and the Funding Association OF
the United States Of America aforesaid
snail uIe WIN tlt UONCluNs IhNh oooS"e
to and acceptance OF the terms of this
act. the same shall be taken to be a |
contract between the State and the said |
corporations, and the Governor shall
Forthwith provide Tor the preparation of
the bonds provided for by this act.
The said corporations may present
for funding. aud in the proportions
herein before PROVIDED, al least $4,000
700 of the outstanding obligations OF
the State prior to the LIST day OF January |
1880. And during each period Of six
months from and after the 3lst Of
December, 1879, they may pr~seLt an
additional amount Of at least S., 0oe. 900
until the whole debt is funded but auN
excess over said amounts which may
be presented during any ofSaid periods
may be estimated in requirement for h.
succeeding SIX months,
So long as the said corporations
shall present foI funding the obligation,
In the amounts and in the
periods aforesaid, they shall have the
exclusive privilege oftundng the out
standing debt under the provisions 81
this act; prouided, that tho said corpora
tons shall arrange TO receive the out
linz, bonds of tho o,fv nf picbu,npA