Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1888-03-04
COMMONWEALTH OF VIRGINIA, J
SECOSD AUDITOR's OFFICE, ;
KICHMOND, March 3. 1888.

Hon. R. II. 7Jicr, House Of Delcgates:
Dear SRI have Just received your
letter, and reply as follows, in part re-
peating the official information l gave
you during the last campaign:
IN the first place there has never been
ct any time since the passage OF the Rid
dlo0erger bill February II, 1882, any
defalcation of interest. 1t has all been
paid when demanded. In the second
place, if there had been such defalcation
'last summer as Speaker CardWcll al
leees, 1t could not have been due to the
purchase of BidGlehcrger5 under the
law, as he says For the interest fell
due, as all know, on the LIST day of July,
1857. But the first and only c1peudi-
tire for the purchase Of bonds in the
last fiscal year vas S2j,O6I70, trans
action which occurred on the Doth day
Of August, 1851, one month and twenty
days after the interest became due, and
was paid. The following figures show
the effect of this expenditure of S2j,-
OG1. 20 "in draining tho Treasury so that
interest could not be paid at the next
period, January |, 1855:
Interest due January, slO967i IS
that's
10 sinking fund............t24,9l9 Is
TO literary fund ............ 1856 ~
IT, Board OF Public WORKS.. 2lf3 20
slO9,S7l IS
IsS,................... .............' t5gqM OF
Excess over amount necessary 10
pay Interest. OBSERVATION-DISCLOSURES. sf42,oj9 ~
The constitutional objection to the
purchase OF bonds in such cases by the
Board of Commissioners of the Sinking
Fund ia disposed of in this way:
The Constitution of the State article
Y, section y says: "No debt shall be
contracted by this State except to meet
casual deficits in the revenue, TO redeem
q previous liability" &c. Code 1873,
p. 90 Under that authority the law
acts lsS3-'84) directs the Commissioners
Of the Sinking Fund 20 convert into reg
isterod bonds their purchases made under
the act of March -, 1884, and in Its
second section gives them authority to
ieconvert such bonds into coupon bonds
and sell them, if they deem 1t best for
tie interest of the Commonwealth. And
the act Of March H. 1884, section 4, p.
J39, Acts 1888 -, authorizes the resale,
and provides that "Said commissioners
may, in their discretion, from time TO
time, when money is required to pay the
interest upon tho debt aforesaid. borrow
money upon temporary loans for such
purpose and deposit such bonds as they
may have acquired under this act as col
literal security for such temporary
loan"
It nav not he amiss to add case in
point On April 20. 1889, the case Of
Poindexter Is. GrccnhOw WAS decided
against the State by the Supreme Court
of the United States In a very few
DAYS afterwards Mr.. Isaac Davenport,
president of the First National Bank,
then apparently as anxious TO fund the
State debt into Riddlebergers as he is
now apparently TO obstruct that opera
ton, called upon me, and, expressing an
apprehension that the decision might
embarrass the State, offered to advance,
through the Commissioners of the Sink /.
ing Fund, whatever might be needed to I.
tide over the difficulty, upon the de- /.
post Of as many OF our registered bonds /
rs might be required TO raise the money /.
needed. At that time the Sinking-Fund /
Commissioners held of registered Rid |
dlebergers $l,697, 0i3. 10. To-day they
hold $3.50, 6l3 50. With this showing
/ think we can tide over any deficit /
likely to occur this year, though it /
should he 5000, 600, rs predicted the other /
day in the Senate by General Wickham.
Very respectfully
Your obcdient servant,
i. q. RUBIN.