The Roanoke times. [volume] (Roanoke, Va.) 1890-1895, 1890-06-11
THE DEBT SETTLEMENT.
1t Will be Most Difficult Matter to
the ArbitratOrs.

The New York parties who enter
tain the purpose off effecting settle
ment of the Virginia debt question
on terms satisfactory alike to the
State and to the creditors will receive
general commentator if they sue
coed. Their task is large and com
plicated one The debt OF the State
may be divided into two parts, one of
which consists of bonds the interest
coupons of which are receivable for
taxes, and the other of bonds the cou-
pOns of which possess no such excep-
tional quality. The bonds bearing
taX-receivable coupons are the ones
that have given occasion for all the
litigation with which the Virginia
courts and the Supreme court of the
United States have been vexed for so
many years. the States agreement on
the face Of the coupons to receive
them in payment of taxes having
been adjudged u contract between the
State and the holder of the coupons.
such bonds are of two classes-the 6
per cent. 'consolsn and the 4 per cent.
ten forties. OF the former $14, 152, 1863
were outstanding on January 1, 1890,
and OF the latter $5,097, 800. The ag.
gregate annual interest charge upon
the two classes of bonds, if paid, would
take from the State treasury about
81, 100000 year. AS the States in
come for the year ended October /,
1889, was but 81, G12, 522, it will be seen
that the consols and tenfOrties make
q considerable annual demand upon
the States revenues. This is increased
by the Riddleberger three per cents,
of which 81, 3S9, 1875 were in the hands
of the public January 1, 1890, and by
the $2,37j, 06S of bonds held by col
leges and other institutions 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
81, $50, 900, leaving some $1,250,OOo to
meet the expenses of the State gov
eminent, courts, schools, charitable
institutions, sc. The present assessed
valuation of real and personal prop
erty in the State is $345, 1858, 900, and
the tax rate 40 cents on the 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 s., $780,
600, and pay an increased interest
charge besides, must be looked for in
an increased assessment, if properly
taken, will show, it is said, increased
values of over $50,000,00O which
would mean, at the existing rate
of taxation, an increased revenue
of about 100000
The State, for various reasons at
present receives 1.-The so-called tax.
receivable coupons in payment of
taxes only to such an extent as it is
compelled 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 be able to pay the re-
duced interest charge in addition to
the necessary expenses of the State
government. 1t is unable, it is
claimed, to do more with its present
resources. The New York parties are,
perhaps, looking to the 5000, GOO OF
new revenue to come from the new
assessment. Upon that as a basis
they probably expect to found a
settlement more favorable to the
States creditors than the Riddle
berger act offers. The margin for a
successful negotiation is, it must be
confessed, IA trife narrow, but it is to
be hoped that it will be found broad
enough for practical purposes.