Clinch Valley news. [volume] (Jeffersonville, Va.) 18??-2019, 1890-06-20
THE PROPOSED VIRGINIA
DEBT SETTI ,EMENT.

toi MY years aG ID per cent.
THE PROPOSED VIRGINIA
DEBT SETTLEMENT.
The New York parties who enter
ain the purpose of effecting n settle
uent of the Virginia debt question
IN terms satisfactory alike to the
state and to the creditors will re.
'eive general communication if they
ucceed. Their task is large and
complicated one. The debt of the
tate may be divided into two parts,
oae of which consists of bonds, the
Int rest coupons of which are receiv-
'lole for taxes, and the other Of bonds
he coupons of which possess no such
xccptionnl quality. The bonds bear
ng tax receivable coupons are the
mes that have given occasion for all
he litigation with which the Virginia
courts and the Supreme Court of the
United States have been yexed for So
many years, the States agreement
Iii the face OF tho coupons to receive
hem in payment of taxes having
'een adjudged contract between
he State and tho holder of the cou-
pons. Such bonds are of two classes
the 6 per cent. "consols" and the 4
Der cent. ten fortics. OF the former
S14,152,269 we're outstanding on
January l, 1890, and of the latter
S6,O96,50o. The aggregate annual
interest charge upon tho the two
classes Of bonds if paid. would take
from the State treasury about ST.
100000 year. AS the States in
come for the year ended October l,
1889, was but $2,Gl2,522, it will be
seen that the consols and ten forties
make considerable annual demand
upon the States revenues. This is
increased by the Riddleberger three
por cents, of which S4,3SS,125 wero
IN the hands Of the public January /,
1890, and by tho S2.375, OGS of bonds
held by colleges and other institu.
lions of learning in the State. These
securities held by institutions of
learning pay for the most part 6 per
cent. The entire annual Interest
charge, were the whole of it paid.
would thus exceed $1,360,OOO, leav-
ing some S1,250,00O to meet the ex.
penses of the State government,
courts, schools, charitable institu-
tons, &c. The present assessed val
nation of real and personal property
in the State is S345, 663, $50, and the
tax rate 40 cents on tho 500. AS
the farmers of the State believe the
present tax rate to be excessive, the
increased income with which to meet
the present annual expenses of ST.
100000, and pay an increased inter.
est charge besides, must be looked
for i'll nm increased assessment dur
ing the present year. This assess
ment, if properly taken, will show, it
is said, Increased values of over $50
100000, which would mean, ut the
existing rate OF taxation, an increased
revenue of about 100000.
The State, for various reasons, at
present receives the so called tax.re
ceivable coupons in payment of taxes
only to such an extent as it is COM
PEELED by decisions of the federal
courts. Its policy is to force holders
of consols and ten-forties to fund
their bonds in Riddleberger threes.
If all outstanding obligations were
funded in Riddleberger threes the
State would DO able to pay the re-
duced interest charge in addition to
the necessary expenses of the State
government. 1t is unable, it is claim.
ed, to do more with its present re-
sources. The New York parties are,
perhaps, looking to the $500. 900 of
new revenue to come from the new
assessment. Upon that as basis
they probably expect to found set
Element more favorable to the States
creditors than the Riddleberger act
offers. The margin for successful
negotiation is, it must be confessed,
a tritle narrow, but it is to be hoped
that it will be found broad enough
tor practical purposes
Sun.