Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1886-12-08
WEDNESDAY DECEMBER s, 1886.
A New Proposition.

Captain !. II. LARsw publishes in the
Pulaski People letter proposing an en-
tireiy new method Of dealing with the cut
worms OF the treasury, and the People
asks us what we think Of 1t. Captain La
REV says:
"On the side OF the bondholder and
coupop.bolder there Is organization. Citi'
zeus deal with them az mob deals with q
regular army, and with like result. The
bondbolder dictates the price OF his cou-
pons, and the tax payer II he desires to
take advantage Of payment in coupons
must pay Il. suppose the taxpayers we're
organized as the boDdholders nre, they
ould then deal on equal terms; and. as Is
proper and right, the purchaser would fix
The price OF coupons.
"Sucb an organization Is entirely prsctl'
cable. A meeting Of citizens In each coun-
~ should he called; treasurer and dele
gate TO o state convention elected.
The delegates from the several counties
could elect a State Board which might be
Incorporated as such md deal directly with
the bondbolder. Suppose the price fixed
by the Board should be 80 ger cent. OF the
face value OF the coupons-the offer would
cover the coupons 10 be used In the whole
10 take IL or payments In coupons would be
suspended"
We doubt whether this scheme would
work as Its propOupder expects 1t to
work. Certainly, II the taxpayers, one
and all, would agree to pay no more than
80 cents Of the face value for the
coupons, and would also agree to pay them
10 the Commonwealth at cost, II would
take only ssSO,OOo year to buy up all "a
million dollars) that mature annually.
This would require less msney every year
10 pay interest than would be needed, ~
all the bondholders would refund under
The RIDDLEBERoER bill.
But II Mr. LAREw's theory is good one,
he has not, We think, proposed TO carry
II into practice in the best way. III the
coupons are to be paid TO the State at 80
cents on the dollar. as we understand the
plan to be, she ought to buy them directly.
1t would benefit her some for her tsx.pay-
ers 10 buy them at 80 cents and pay them
to her at 100 cents Of their face value; for
the coupons would thus cost her a million
OF dollars yesr-iust as much as 1t would
cost her to redeem them at the treasury.
On the other hand, II she Is to receive them
at only what they cost the Taxpayers, 1t
would be better for her to buy them her
sell. For surely the bondholders would as
willingly sell their coupons en- bloc as to
peddle them out to the taxpayers at the
same price.
The trouble with either scheme is just
the same as 1t Is with the bondholders'
latest alleged offer Of compromise namely.
that the moment either scheme Is adopted,
the coupons might advance in price. Only
one million Ct dollars OF coupons mature
annually, and these will not pay twenty
seven hundred thousand dollars OF taxes.
Under Captain LAREw's scheme, all except
$3.50, 900 Of taxes would have to be paid In
money, aud II the State were to agree to re-
ceive coupons a. any price. the cupldity o!
too many men weuld, we fear, induce them
TO enter the market in competition with
the men who purpose to pay only 80
cents for coupons, or In compention Win
the Commonwealth II she should effer a
price for coupons.
Again: We suppose that the charge Of
"repudistion would be brought against
Mr.. LAREw's or any similar scheme, though
II would be only another node OF scaling
the coupon bonds, for the scaling OF which
the RIDDLEBERGEE bill already provides.
The fact Is, that the law already requires
the coupons which are forced into the
treasury to be charged up against the prin.
cipal. To buy the coupons from the bond.
holders at 80 cents would not be reputation
unless that Is reputation.
on the whole, therefore, the scheme does
not impress us Ms being practicable. We
submit 1t for public consideration. I'm
the multitude OF counsellors there Is wis
DOM" Somebody may improve upon Cap
tain LAREw's scheme.