Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1886-12-03
TAE PRESS ny TIE SIAIE DEBT.


fH iipNin.- mar there VIII De an
extra session OF the legislature TO
assemble about the first OF January.
Tens said 90 be dictated exclusive
lN TBS 'hrprcsent complicated siina.
iion of flee debt question, but thiy
have botchcd that question so bad.
Us heretofore that we still think
there should be no extra session
unless D. is called to accept at once
the late proposition of the bond
holders rs defined in the letter of
their American agent, William l..
Royal. which We publish IN anoth-
or column to-day. We shall dis.
cnss that proposition hereafter.
To state 1t briefly, this PROPOSE
iion OF the bondholders in an offer
t0 accept such rate OF interest on
ihc principal and overdue coupons
of the bonds in question, aggregat-
ing about S26, G32, 600, as can he
paid with the present surplus OF the
state treasury, after iull provisions
has been made for certain specific
objects, namely, the general ex-
penscs Of the government as now
apporiioned by law; the expenses
OF the free schools AZ now provided
for; the amount required to pay in
tcrest on The Riddlebergeract would
bee suspended, and new bonds with
ont taX-receivable coupons would be
issued, to ran forty years If the
state 50 desires, and to be redeem
able at the pleasure of the state
II is not designed, however, to sur
render the old bonds with their tax.
receivable coupons in exchange for
the new. The old bonds are to be
deposited with a trust company in
New York or Baltimore, and the
company, when "A halfycaI's inter
est on the new bonds shall have
been paid tot by the state, will
cut of the half-year's coupons from
the old bonds and deliver them to
The state. Should the state at any
time fail TO pay the interest fallen
due on The new bonds. the taX-re-
celvablc coupons could again be
brought into the field, as at present,
10 intercept the states revenues
For the state the advantages Of the
proposed arrangement would be the
cessation Of coupon suits so long as
the interest Of the S25,000,000 of
new bonds was promptly met, and
the certainty that there will here
after be no need TO increase taxa
ton TO meet interest on the state
debt. The principal of the debt
wonld, 10 Is true, from the readjus-
tcr's point Of view, be increased, as
the plan recognizes as valid the
gross amount of the consOl and Nc.
Culloch bonds, and imposes a fresh
obligation TO pay It, together with
interest on Sl,0O0.000 Of overdue
coupons, bnr the taxpayer is IN no
event 10 be called upon to pay ore
than = given sum annually in the
way of interest. Nor is he TO pay
less. i ;hc state sees fit to in
crease its expenditure for general
purposes Of government, or for the
public schools, it will have to in.
crease IFS rate Of taxation. The
amount 10 be paid semi.annually |
INTO the hands ofthe trust company /
.s fixed and invariable. What would /
1e The status ofthe new bonds when |
.hc old have maturcd and the tax /
receivable coupons have all been .
exhausted. is not stated. The offer
b the boudholdcrs look like n con.
'cs>iou. Their cOns0ls at present
lcar & per cent, their McCullCch /
per cent, but they are willing, 1t
may be inferred, TO accept little
oyer . percent. on their S2j, OO0,000
li claims. The annual surplus of
lr state. which is ut present de-
voted to the purchase Of Riddlebcr-
ger thrccs, if divided rs proposed
iuong the bOndholders, who give
hem. IL is estimated, about that
ate of interest. Whether the PEG.
bic of Virginia. after having de-
Jared through the platforms OF
10Th political parties that the Rid.
llcbcrgcr bill shall be the final set
iomcnt Of the debt question, will
cccire with Opcnncss of mind any
icw scheme, however attractive,
INVOLVING the recognition Of the
ability OF the total amount of the
'onSol and McCulloch bonds, is as
ct uncertain. y considerable mum.
icr OF Virginia papers of both par.
les receive thcprOpostiOn outlined
hove with favor their objections
% il, If any, applying to details
me voters may IN the end come :
ound to IL, but as the Baltimore
'HR well says, "they viii have Il !
lng way round to come
Paying in Coupons.
o. Agporliu In fho pollpptor of