The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1880-12-05
The State Debf-NO. 3.

McCulloch bill was accepted, there was q
concession of an average OF thirty-three and
one-tbird per cent. in the rate or Interest.
When the so.caled ROss-Hamilton bill was
| introduced into the House OF Delegates last
winter 1t was stated upon the authority OF
| those claiming TO know that the creditors
would accept the provisions OF that bill.
| IL so, a further reduction in The rate OF in
| terest would be conceded. | think, there
| fore, am warranted in the belief that the
creditors will in The future make, what they
| have indicated in the past, reasonable con-
| cessions for the purpose OF making firm and
stable the basis upon which their securities
rest. Then what concessions should they
make!
1st. There should be conceded on their
| pant q lower rate OF interest on all classes OF
the debt. The holders Of the peeer bonds
and all uniunded certificates OF debt will
not hesitate to make the concession. But
the holders Of the funded coupon bonds
should also make il. Money in the public
stocks is not now worth more than to 4
per cent. Ii the credit OF the State was
fully reGstablshed she could put upon the
market a per cent. bond, and very soon
retire every bond now outstanding. This
is one OF the most potent reasons not only
why the creditor should cOncedc The ie-
duced rate OF interest, but why the state
and the people should secure satisfactory
settlement. With a credit ree,tabli>hed and
State bonds at par, IL will be within the
power of the State in few years 10 retire
its present Indebtedness bv new loan for
the purpose, thereby getting rid forever-of
the complications Of taX-receivable coupons.
This concession should also be made by
-, lHolf lnr his Ict, a
repre- sents capitalized interest TO the extent
of about one third of the bond, thereby in
creasing the Understanding fund TO that
extent, and while legally the creditor is en-
titled to the interest upon the enlarged
amount, yet when proposition for final
adjustment Is made the fact that his inter.
est was capitalized is strong equitable
consideration for a reduced rate. 1t should
be granted for the further consideration
that when the final settlement is msde the
value OF the bond is greatly enhanced, and
its ready cOnyertibiity into money at about
par will be secured. As a basis also for
securing temporary loans the bonds would
become much more valuable, 80 that the
amount the creditor abates in the rate OF
interest will be more than made up 10 him
I'm the increased value Of the bond.
I'd. There should be conceded on the part
of the creditor the right OF the State TO eX-
Tempt from the operation of the coupons 50
much OF the State revenue as is necessary
land declared by the Legislature so 10 be) TO
defray the expenses OF the State govern
ment economically administered, and so
much OF the State revenue as has been by
the Constitution set apart for public schools.
This concession should be made because
il is right in itself. Governor Holiday, in
yetOing the Barbour bill, said the "rlght Of
the State to so much OF its revenues ~ are
nee ded for State expenses is a truism," or
words to this effect. As to the public-schoO
fund, the guarantees of the Constitution
are thrown around it. But the concession
should be made because the public senti-
ment OF the State demands ii, and, until
made, agitation and discussion 10 the pOitl-
cal arena, unfayorable TO the security, Will
be kept up. 1t should also be made because
the revenues OF the Stale, after the afOre.
said amounts are exempted, will leave an
amount more than sufficient to satisfy the
coupons upon the readiusted debt. This is
manifested as follows;
Debt........... .....................S 30,000.000
Coupon interest al per ceut........ 100000
STATE expenses ..........'.''......'..., 9OO0OO
Publ ScnOOls.................. 0UO.OOO
leaving annually for the redemption Of the
misunderstanding certificates 100000
think / have stated the State eXpense-ac-
count and the publc-sehool fund rather
higher than they really should be. The
business of the State is now improving and
lis population increasing, so that we may
reasonably hope in very few years for an
increase in the revenue of the State if the
ogn Of fox. i nt,tn
Sd. The right OF the State TO tax the
bonds held in the State, for State purposes
at the same rate and in the same mode as
other property is taxed, should be con-
coded.
The tax thus imposed would be very
small. At the present value OF the bonds
it would amount to about twenty-five cents
In the one hundred dollars. Less than one
third of the debt is held in Virginia, aud OF
the amount held in Virginia more than one
bali is Of the peeler or unfunded class. So
that this concession on The part Of the bond.
holders would be really small in amount,
while The advantage TO the 'curity, by stop
ping agitation and relieving it OF what is
called an oner0us exemption, will be very
great. OF course the State tax will be the
only one imposed upon the bonds.
Another concession 10 be made-I do not
know that it pertains particularly 10 the
bondhOlders-is the right OF tue people at
the polls TO ratify or reject the plan OF re-
adjustment proposed.
The people seem TO demand this. So
much has been said to them about the i'm
positions practiced upon them by the bills
heretofore adopted. that in order to make
the settlement satisfactory and final, and
carry with 1t the popular sanction and
pledge, let the vote be taken upon the bill.
The~people, in my opinion, can be trusted,
and will do justice.
IL Is charged that they are ripe for repu-
diaiion. The charge is worse than an in.
iustice-it is a SANDER. Politicians and
place-hunterS may preach reputation, but
their followers will be few, compared with
the great multitude OF honest yeomanry
who desire to know their duty in order
that they may do IL.
Then say to State, people, and creditor,
Come, let us "reason Iogether"-let us adj
Just and settle the debt, and thereby pro-
mote greatly the interest OF all.
The State, because she has no credit In
The money centres OF the world, is now in
great danger Of losing all her interest In a
line OF railway worth one third OF the whole
debt OF the State.
Were she In condition 10 negotiate TEN.
porary loan OF S3,000.0 900 she might save TO
herself and TO her people the Atlantic, Mis-
sissippi and Ohio railroad, destined TO be-
come one OF the most valuable lines of
transportation within the limits OF the State.
III SPACE permittpd yonid enIaroe unos,