New-York tribune., 1879-01-01
FUNDING yIRGLNlAS DEBT.

PLAN OF THE FUNDING ASSOCIATION OF TIE DNilhp
sTATES-CoNDrIoNs SAID TO BE ACCEPTABLE
EVEN TO THE gEADJCsIoRs.
The propositions for the settlement OF the
state debt Virginia, winch, originating with the cred
itors were submitted to the General Assembly by Gov
cruor Holiday with his said not TO he fc-
ceptablc and the bondholdcrs have been invited TO a
conference with the representatives OF the state al
Richmond mex, week That these plans have not been
favoraby received" said member OF the Funding Assoc
ciatI0n Yesterday, "is probably due 10 a failure
on part o, those who framed them To include all the
factors in the question The assumptions upon WEl;h
compromise must ne based are substantially
as follows: To provide for the interest on S2022i1ls
OF c0nsOls per cent il not the extreme limit OF the
states ability 10 piy, is at least nearly or quite AZ
large n burden as the people will voluntarily as
sumo. The obligation OF these taXreceivable c0u'
pons must be net. only be cvaded by measures
which would be more damaging than payment.
The holders OF taXrcccivable consOs will not part win
Them except for bonds equally well secured and yield
ing an income nearly large. The concession viii, IN
event be greater than the creditors estimate ot te
money value of reducing to order the disturbed finances
of the State The inducement the cOnsolholder must
be continuous, and not one that steadily weak
ems "a funding goes The State should reap
the benefits of the concessions made They
must not go reward 10 the creditor WHO
persists refusing the relief that i asked The con-
soils and peclcrs equally binding on the state
and rs the difference the result of legislation, the
State itself cannot discriminate or III any way perpet-
uate existing differences .ti it would not do to adopt
plan that tempts peeers alone, as the latter end OF
such settlement would be worse than the first There
is an actual difference in the value OF the two classes
now held and plan will succeed which does not recOg
niZe this fact.
ITO combine these somewhat conflicting elements
into symmetrical and practicable proposition ls n
d,icult hut not impossible task, and the Funding
Association Of the United states OF America OImiedl.
OF which exS cretary McCnlloch Is president mas ma
The case This plan provides that the state shall honor
ali ofts obligations to the fun extent OF its ability
cent bonds with taxreceiyable coupons, both prIn-
viii provIsion for a sufficient sinking fund. These
bonds ore he issued in exchange for the wO classes OF
fondng in the existing proportions OF say two taA-rc-
ceiyablps and 'pecltr. Tic total amount OF new
themselves upon the basis OF the relative value Of their
original holdings whchmay. and very likely viii, vary
cn,mmended in London IT has the approval of many
influential members OF the Nireiana Legislature and 1t
standing delay In the settlement OF this debt
Will prcudlcial TO the interests OF all The conf
deuce whlch OF the holders Of ftaNreceivables
TO nave in q let alone policy is mistaken one"
od sTGSd m b tSI ys ss sesG 10, funding
unaccepta table. The Barring Brothers, Of London OK
pressed Willingness TO accept new bonds at per cent
interest taXeceiyable cOnsols, and 32 per cent
,s s NJ london agrc 10 the issue OF new per
cent bond for both classes OF bonds principal
ad accrued interest The Funding Association II said
t nearly sc 600 900 OF the entire 13O 900
of Vrgla's debt-rOm ODc-haf 10 Onr-hird being hcd
abroad The plan or the Funding Association has bscn
suUnltted members OF the Virginia Legislature and
it is said that many of the rcadjuStOrs favor
in aud viii vote Tor II. gentleman. who has
been at Richmond during most Of The present
session OF the Legislature, said yesterday that
I'M culrylng ont the Funding ASSOCIATION plan
wnud he. presented to the Virginia Legislature next
werk and he iet confident that IL would become laN.
Jhe II provides tna certificates shall be issued for the
amount accrued aud unpaid interest on all classes OF
bonds up to July !, 1879 provided tnat III calculating
overdue interest bUuns not iuHded under the acts Of
March 80 1871 and March 7, 1872 only twOthlrGs Of
tne interest Shall De included IDesc certificates
bear interest at the rate OF cent 10 DE pad Janu
ry and July i, at the State treasury the same the
new ours." The certificates To be dated July
1879 and redcoublc at the pleasure OF the General
Assembly.
POyision is 10 he made for sinking fund. which will
secure annually an amount equal 10 Onchalf per
cent the principal OF the debt recognized. that s
on 500 $50 s26 81 the management Oi the tlnd is
be with the Commissioners of the sinking Fund.
TO provide for the interest upon the new "fOurs "
and the certificates and for the required for
the sinking fund the Treasurer or such other officer
officers ~ the General Assembly may designate. will be
authorized issue, annually, In the form and of the de-
nominations which the General Assembly decides 10 he
the interests OF the taxpayers OF the State
tax-receivablc scrip for the amount OF the annua
tcl est on the fouIs and certificates issued
gud for tho provision for the sinking fund ana
he il TO be authurized 10 sell the sane after
uubIc at market rates The proceeds of the sala
viii be held spec al fund TO pay interest for the
and the remainder Will be paid to the Commission
eTs Of the Sinking Fnnd TO be invested III The new
fours to lie purchased upon tenders), or III due
time, 10 be applied TO their redemption.