Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1886-03-17
"A Member" Fully and Satisfactorily
Answered.

terday which | beg leave to correct, as
they are misleading:
0D The law directing the Commits
sioners of the Sinking Fund to invest
once a month not more than 100000
of any surplus that may be in the Trea-
surv, after making due allowance for
government and school expenses, in
Riddleberger 3's on sealed proposals
was not dictated by brokers and
speculators nor " cunningly devised
by them to draw out the last dollar
that may remain after paying the ex-
penses Of the government" &c.
The bill was introduced by the Hon.
Henry Il. Pollard, of King and Queen
county, all honest, patriotic, public
spirited, and clear-headed man, one Of
the very last to become the accOmplice
or dupe Of brokers and spectators.
| presume his object was to meet
certain alternative contingencies, as |
will endeavor to explain, thus:
II all the State debt was funded ac-
cording to the scheme Of the Riddle
berger bill into 3 per cent. bonds the
amount would be s2l048, 1913, say for
convenience, $20,000,000; the interest
on which would be 100000 per an.
mum. To meet this contingency Of
funding it was necessary to raise about
that amount Of money by taxation.
But if the debt should not be funded,
then there would be surplus Of $780,
600 in the Treasury. What should he
done with that accumulation Either
it must be spent by the Legislature in
extravagant enterprises, to which there
is always strong temptation; or it
must he invested in the States own
securities or the taxes must be re-
duced. But reduction Of the taxes
even "for one year, "as d" A Member "
suggests, he must know, would continue
for a much longer time, and put the
State in danger Of actual reputation
when it should become necessary to
pay interest upon the whole debt
funded under the Riddleberger act.
1t was, therefore, the measure, not
of brokers and spectators, but Of
a businessman and statesman, to
invest the surplus revenue in the new
3 per cent. bonds, especially at the
price at which they have been
| purchased by the Board of Sinking
/ Fund Commissioners. This the people
will readily admit when it is shown
to them that the State has not " been
/ in This way feeced, but that she is in a
condition to carry out to the letter the
offer she has made to the creditors, and
that she has done better with the sur
plus than if she had deposited it in the
banks; all of which is shown by the
following brief statement
Amount invested in new SIS.
1884 80. ...............-.....s 699.442 20
Amount invested in new 3's,
/ Iss5.......-.. ....................-. 4734Gj 46
Total.................. H. ,9O7 90
! Average. 0SO,403 IS
/ The average cost OF these
bonds was............................... SO "A
| The value this day s................ 81 %
| The gain this day is..........-...... 81
Equal in cash tO....................... 99,9iO 90
The statement Of the whole account
is as follows;
! Amount Of per cent. bonds
held by commissioners OF
sinking Fund, purchased
under Act Of March 4, lssi..s2 077743 60
| Cost OF above bonds in cash. l ,172 907 SO
Average cost ...................... SO "a
! Increase in value OF bonds. 81
/ Making actual gain in cash II
| bonds were sold at present
prices SCI. ............''~....... 9e.94O 90
| Amount of interest which has
| accrued on above bonds
since their purchase (Which
il equal 10 3 per centum
per annum on the amount
| invested; ON which amount
| the banks would have paid
| per centum per annum,
| and not per centum. as "a
! member states making 3
per cent. l................,...."..... l254l9 30
| Annual gain In interest.......... 80. 1895 92
This fully answers a Members"
sneer at the wisdom Of Mr.. Pollard's
policy as compared with his own.
(2) A Member" complains that the
bonds funded into new 3's are non-in-
tcrest bearing, which need not have
been funded, and thus burthen the State
unnecessarily. reply that the Riddle
berger act, on which all parties stand
or profess to stand, invites all creditors
to come forward and fund {; and that
by the schedule Of the act none of them
bear interest after July, 1882; so that
according to the logic of - A Member"
none ought to be funded. which lands
us at once in fiat reputation.
"A Member" says the bonds arc not
cancelled, but ere held against the
State. Correct. And they constitute
fund Of credit which may be of great
value to the State. When the Supreme
Court Of the United States decided the
case of Poindexter as. Greenhow against
the State, and it was feared coupons
would rush in overwhelmingly, the
most enlightened bank president OF this
city called and offered the State all the
money she might want upon the Sc
curity Of the new 3's she had, and
they are more now than they were then.
(9 "A Member " prefers to the Pol
lard policy the deposit of the States
money at 4 per cent. in responsible
banks. In the first place, the law only
allows 2 per cent, and in the next
place, it is hard to find a responsible
bank when smash comes if you have
only personal security. have seen it.
"A Member" seems to think that
the purchase by the Sinking Fund Com
missioners of the new 3's puts up the
price of those bonds for the benefit Of
1.-THE brokers and those in cahoot with
them whoever they may be. But
the last purchase made by the Board of
Sinking Fund Commissioners was Oc-
tober 81, 1885, when they bought $751;
s0050 bonds and paid for them Co.
420.52. The market price that day was
500. Since that time they have pur-
chased nothing, and yet the price has
steadily risen until it is to-day Gil.
Rating the interest due on the sale at
each period, the advance is ~ per cent.