The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1881-06-21

e 49, tf>' & n q. -. !.
rom r.l,roads. "a, and elsi ,o79.55 for ar
rcars o. interest due the literary fund TO
August 4, 1880, ~ per last report OF second
Auditor, and we have a sum less than ihe
ono mentioned above, but greater, am
sure. than what Is actually due. as Auditor
Massey gave confessedly an inaccurate Stale
ment. s
The amour, Of past.due coupons unpaid
II estimated by taking the sum OF e645, o64,
reported rs due LIST January, 1880 SENATE
Document No. 10Y, aud deducting, say,
$500. 900. which fell due on that dny, and
were absorbed In the taxes OF that year.
with an annual surplus OF revenue OF
5000. 900. which we may certainly count on,
these arrearages can be paid off In seven
wears. which will be before the per cent.
interest will commence 10 run on the bones
issued under the McCulloch bill.
We will thus be entirely able to pay the
interest we are now paying, and pay on
completely the balance due by the Stale on
what il known as arrearages without any
increase In the rate OF taxation, and all that
need be provided for Is what Is known as
the peeIer debt-to wit, that part OF Tue
state debt not funded In bonds with cou'
mons receivable for taxes. The following
statement will show that this part OF our
debt can also be easily managed without an
increase in taxation. The Second Auditor
states this part OF the debt, calculated win
west yirginia,s part taken of, ..t6,79el4o III
Deduct tee part held
by the colleges on
which interest
paid.... Tooi fc7 OF
Deduct The part held zoo ..e m
by The United States 539 436 w ION 90, "a
And we have to be provided for......so'ooozi 90
The amount held by the United States Is
In trust for Indian tribes; but as the United
States owes the State Of Virginia much
larger amount for money advanced III the
war Of 1912, (see Senate Document NO. 49,
1S77.'7S) which Is admitted by the Treasury
Depnr,ment, we can safely deduct the
amount OF bonds held by the United states
from our Indebtedness. -,
By the Constitution OF 1887, Article w.
sections 20 and 30, the stocks held by the
State were made sinking fund, TO be ap-
pIied TO the extinguishment OF the debt. by
The act OF March 80, 1871, (see Code OF 1873,
n. 4O5.) ali OF the debts due the State, in-
cludino her claim against the United States,
and whatever may be realized from the sale
OF any real estate belonging to the state,
were made part OF the sinking fund, ana
The commissioners OF the fund were re-
oujred to use it in the purchase and re-
demption OF the bonds issued under mat
act. These provisions attached 10 the
bonds OF the State issued under and before
the act of March 30, 1871, and require the
application OF the sinking fund now in eX.
istencc TO the purchase and redemption oil
the peeler debt Of the State. IL IS under
stood that the commissioners so eonstrue
the law, and are buying up the peeler deot'
The State holds OF good assets when sue
can apply to the purchase OF her peeier
debt
Debt against The A., NJ and o. r. II.
of $4,000 900, for which che Is. oooo On
ofered by the purchasers. ..........s OUU UUU w
Debt against the X. and ID. X. R., say. toO'VOV w
275 shares iu r., 4. AID L. X. H., ,e- ooo oo
STOCK in The Z. aud o. Il. W. Co-par
value sl'oz'zoo' "o." 52s67l 20
Over SS10ov woSb Si in Inc maIEet 10000 90
Public Warehouse. armory, ana ON on ooo 90
ar real estate, WORTH. ....'''..'''' oV'0oo W
Which add ~
and will extinguish $4,000, 900 OF the peeler
debt with accrued interest. THIS would
only leave 81. SOS, 219 SIS 10 be provided for;
and IL the United States would pay her adj
mjited balance there would be, after paying
the attorneys employed TO get it, about
$3.50, 200, which would be more than sum
Gent to purchase this balance.
II will be seen that il the debt due The
State by The Atlantic, Mississippi and ONO
railroad could be collected, 1t, with the
other assets of the State, would be more
than sufficient to take in the peeler DEBT.
There is an appeal pending in the Supreme
Cont of the United States for the purpose
of testing the constitutionality OF the act
disposing Of the stocks and bonds held by
the State in the Norfolk and Petersburg,
the Southside, and tue Virginia and Ten
ncssee railroads to the Atlantic, Mississippi
and Ohio Railroad Company, for which this
last company agreed to pay S4,O0O,OOO. II
that appeal is decided in favor OF the State
those stocks and bonds will be worth much
more than S4,000,000. The purchasers OF
the Atlantic, Mississippi and Ohio railroad
have offered 100000 TO compromise the
claim. No doubt they will give more.
III the assets of the State cannot be man
aged so as TO get in the peeler debt at or
about the present market value OF II, then
the balance left outstanding can be refund
ed with the accrued interest in new bonds
with low rate OF interest, and the assets
can be used in purchasing other debts due
by the State, and in no event need we add
to our burden Of animal interest more than
our revenue can easily pay.
By the eXtinguishment OF our peeler debt
aud the prompt payment OF the interest on
our funded debt we would soon rtestablish
our credit and be enabled TO issue per
cent. bonds and call in our per cent. debt,
as has been urged by the Hon. A. III. ii.
Stuart in late letter to your paper. But
whether we do this or not, the increasing
prosperity OF the State will enable Us TO lay
aside from our annual revenues sinking
fund which Will constantly reduce and
finally extinguish our entire Indebtedness.
The Readjuster party, organized IN 1879,
have done nothing towards settling our
debt. They have only proposed forclbly TO
cut it down and to avoid the payment oil
bonds that the Supreme Courts OF virginia
and of the United States have declared TO
be binding on the State. BY their success
at the polls in 1879 they defeated the com
plete refunding OF our debt at a lower rate
of interest under the McCullocb bill, and
so far from relieving the State from any
part of her burden, they actually fix that
burden upon her. The open platform ol
that party was upon the decisions OF the
highest State and United States courts
which fixed the funded debt OF th'
State upon her as binding under the
United States Constitution. The p.etex
| for that was the claim that the State
was unable to pay its debts. That pretexl
is now conspicuously false. The Mahon'
party, for such the Readjuster party really
| is, has already sought to ally itself to thu
National Republican party, OVERLAPPING 1t:
reputation principles with others agreea
bic to their new friends, and proiesset
sim My for that rpasnn Ii is time for The