The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1884-09-11

NOte.-This amount is exclusive of the item of
SS95,722 of tax receivable coupons outstanding
october l. 1881, to be paid as part of the floating
debt; and also of Slll7,724 tax receivable cou-
pons maturing January and July, 1889, the two
items aggregating $2,Ol3446.
These two tables show that the trainers
of the Riddleberger act did not contem-
plate OF intend that the new bonds which
should be given for tax-receivable coupons
were to constitute any part of the $21 ,000,-
600 OF new debt resulting from scaling the
other forms OF old Indebtedness and the
subsequent attempt to nullify the act in its
provisions for funding taX-receivable cou-
pons is mere bureau legislation
III was in this manner that the Riddle
berger act dealt with the greater portion of
the debt OF Virginia, as it estimated that
debt to be as Of the LIST of July, 1882. The
act avowedly left out of this scheme of seal
fsg tax-receivable coupons matured and
maturing up to July 1St, 1882. IteXpressly
provided that these coupons should be
funded in new bonds at the rate of dollar
for dollar. Nor did the scheme of scaliJaq
embrace the taX-receivable coupons which
should fall due after the 1st of July, 1882.
These coupons would undermine the reve-
nues and Cypress the Treasury just as Sc
riously as would those previously falling
due and the same reason which impelled
the exchange at par of new bonds for tax
receivable coupons matured by the LIST of
July, 1889. applied to those which should
mature after that date. The evil was the
same. The remedy provided was the
same. The act accordingly directed in
terms without discriminating between cou-
pons matured before and on July 1st, 1882
AMI those which would mature afterwards.
til It they should be exchanged for new
bonds, at the rate of dollar for dollar
C.tuse(d section five, after referring twice
to the date OF exchange of the old form
of Indebtedness for new bonds, provides
pointedly that ''for ana interest which may
be past due and unpai, upon the [consol
bonds, class A. funded bonds issued under
this act may be given. dollar for dollar.
Thus, according to the scheme of COM
promise embodied in the Riddleberger act.
the principal of the debt represented by
the new bonds. if all the Indebtedness CON
tenplated by the act should be funded.
would be as follows:
/. Amount shown by last table, =. s2l, G09 1862
2. Amount to be added for interest on
old bonds from preceding semi
annual period of maturity to the
date of exchange. Indefinite.
8. Amount of tax receivable coupons
matured up to July, 1882. ........... 2,OlS,444
4. Amount of like coupons maturing
after July, lSs2........ ............ Indefinite
The object of the Riddleberger act was
to induce the funding of the old indebted
II, IS at the scaled rates which it estab-
lished, and the funding of the tax-receiv-
able coupons, matured and to mature, at
the rate of dollar for dollar. in the new
bonds. think | may say, with truth.
that the trainers of the act were more So
lieitous to secure the funding of the tax
*Note My individual opinion was at the
time, always has been, and unalterably is.
that the Funding act of March 30, ISL
which created the consol bonds and cou-
pons, was fraudulent in the circumstances
of its passage, and ultra aues in the at
tempt by the Legislature to bind, by contract
affecting future annual revenues all succeed
ing Legislatures for a long period OF years. But
as to the frauds attending its passage. they do
not affect creditors who in good faith accepted
its terms. And az to the second objection, my
view is at variance with the rulings of the
courts. and cannot be acted upon iudcially.
Besides, the Legislature i'll its numerous sub
sequent funding acts has ratified the act of 1871
in all provisions for funding. These taX-receiv-
able coupons are. therefore, legal obligation
TO be Legally enforced.