Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1889-12-06
GOV. LEES MESSAGE.

HIS IDEA OF A SETTLEMENT OF THE
DEBT.
The Legislature of Virginia met on We'd
nesday last-tile House re-electing Speaker
Cardwell and all of its old officers, and the
Senate re-electing all it's old officers with
Lt.-Gov. Massey, presiding.
THE GOVERNORS MESSAGE.
The Governors message, which was sent
in on that day, is lengthy and largely de-
voted to the debt question. He points out
the fact that while the cities have increased
and new towns been built, this prosperity
in the State does not extend to much of it's
farming territory, and we cannot estimate
increased values Of the whole State without
taking this discrepancy in it's prosperity
into account.
THE DEBT UNDER THE RIDDLEBERGER
BILL,
Were the Riddleberger bill of 1882 ac-
guessed in by the creditors and the bonds
funded under it, the bonded debt to-day
would be SIG, 779, 639.74, which at per cent
would call for an annual interest payment
Of 1903 1922. This total excerpts the bonds
held by the institutions of learning. As the
States appropriations for schools, asy-
lums, pensions, &C., now stand, and sup
posing them not reduced, there is left to the
State out OF her revenue, only $3.50, 260.0S
to pay over $780, 900 of interest with. 1t
would not, the Governor thinks, be a sound
proposition to entertain a settlement car
rying larger interest than this amount. If
the debt settlement could be recast so as
the interest would come within this limit
which IS the measure of the States ability
to pay, he would unhesitatingly recommend
its acceptance by the State. The State is
not able to make as good an offer to the
creditors now as it did in 1887. Of this the
Governor says:
The offer of the joint committee In 1887 to
the creditors was to fund the consols at Is and
pay lier cent interest on same: to fund 1910
at IS and pay 2% per cent. interest on same
and to fund tax coupons at 90 and pay 5 pei
cent. interest on same, and, in addition to pay
the bondhOlderS 80 per cent. III cash for 81 '
100000 coupons. The State could not renew
this offer now, and it is reasonable to assume
that the bondholders, in the light of the ex-
perlence OF the past two years, might expect a
somewhat lower rate of funding, For the
past two years, ending September a0th, 1889,
it has been shown that S237, 600 year has been
forced into the Treasury on judgments fol-
taxes, while the tax coupons maturing amount
to 81 ,00S, 800 per annum
While the forced receipt of these coupons,
instead of money, for the taxes of the State
has been source of great annoyance to the
| officers charged with the collection of her
revenues, it has in some measure diminished
| hi r,Nffl C@,+o4 L.,
same creditors, and has resulted in no imme-
date benefit to them, because the net sum
realised from the sale of these coupons to tax
payers, after deducting the cost of litigation
to them, IS almost nothing. The act of 1882
requires cOnsols to be funded at So 1O-40's to
be funded at 60, and all old unfunded peelers
and so Oh at &c., The equity of these rates of
! funding is net clearly seen. The holders OF
| the old unfunded debt have refused for seven
teen, years to fund, while many Of the peelers
| the present contest with the bondholders The
| bonds that are now pressing for settlement
held by the public, are in round numbers:
So, 600 OF consols with tax coupons; &c..
600, 600 OF 1040'S with tax coupons, and the
s., 500, 900 of tax coupons inclusive of those to
mature on the LIST of January, 1890.
| THE GOVERNORS IDEA OF A FEASIBLE
SETTLEMENT.
Let us suppose, by way Of illustration, that
the oOnSGlS We're funded at 70 centS-eQual to
SIS, O3O, 600
Ten-forty's were funded at 60 cents-equal
to $1,000, 900, S. 800, 600 of tax coupons, up to
LIST of January, 1890. at 40 cents, s., 320, 900,
making total of S14, 10000,
Three per cent, interest Oh same would be
S44S, 800.
In other words, if this proposition was &C
cepted by the bondholders, who hold the above
classes Of bonds, it would undoubtedly settle
the debt. as the litigation has been for them
and them alone,
We have seen that the State has had to pay
1921, 900 per annum for the past two years for
coupons forced into the treasury on judy
ments, so that this matter might be narrowed
to the simple proposition, whether it would
not be wiser, if the opportunity offered, for
the State to pay S163 600 year more than we
defendants in litigation that promises to out
live the present generation. 1t will be for
the legislature to determine what new reve-
nue. can be counted on to produce this Sl63000
per annun. +'fa
STATE TROOPS.
After enumerating the strength of the mill
tia of the State, showing an enrolment of
2, 1856 volunteers, he says all the troops now in
the service are effectively armed and hand
somely uniformed The assistance given to
the volunteers Of the State for the past five
years amounted to $40, 130a3.
THE INSANE,
AUnder this caption the Governor says
THE three asylumS for white lunatics and
the asylum for colored lunatics are all filled
to their utmost oapacitys and 200 white and
100 cOlOred lunaticS are outside OF the walls
OF these asylums, watched, guarded and cared
awaiting admission to them" He then recon-
mRndS soma cha puas in thp care of the insane