The times. [volume] (Richmond, Va.) 1890-1903, 1890-06-12
CREAM OF THE PRESS.
One View of the Latest Debt PROPOSE
tion-Other Opinions.
baltimore SUM

The New York parties who entertain the
purpose of eflecting a settlement of the y IT.
ginia debt question on terms satisfactory
alike TO the state aud TO the creditors will
receive general cOmmendatiOn If they sue
coed. Their task is large and complicated
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 coupons Of which possess no such eX-
ceptional 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 re-
ceive them in payment OF taxes having been
adjudged contract between the state
and the holder Of the coupons. such bonds
are Of two classes-the & per cent. "consOls'
and the 4 per cent. ten-fOrties. OF the
former, Sl4, l52, 300 were outstanding on Jan
uary |, 1890, and of the latter 5000, 300. The
aggregate annual interest charge upon the
two classes Of bonds, if paid, would take
from the state Treasury about $l,l0O,OW Il
year. AS the States income for the year
ended October |. 1889, was but $2,6l2. j22. it
will be seen that the cOnsOls and ten-fOrties
make considerable annual demand upon
the states revenues. This is increased by
the Kiddleberger 3 per cents. OF which ST.
3sS 10 were in the hands OF the public Jan
uary /, 1890. and by the $3.50, 06S of bonds
held by colleges and other institutions OF
learning an the state. These securities, held
by institutions Of learning, pay, for the most
mart. 4 per cent The entire annual
interest charge. were the whole Of ii paid.
would thus exceed Sl,3J0,On, leaving
some 81, 10000 to meet the expenses of The
State gOyoTnmant. courts, schools, chart
table institutions &c. The present assessed
valuation of real and personal property in
the State is $40 500, 900, and the tax rate 10
cents on the 500. As the farmers of the
State believe the present tax rate TO be cX-
cessiye, the increased income with which to
meet present annual expenses of S2,GOO,OOO,
and pay an increased interest charge besides
must be looked for in an increased ASSESS
ment, during the present year. This assess
ment, il properly taken, will show. il is said
increased values OF over 1880, 100000. which
would mean, al the existing rate Of taxa
ton, afsincreased revenue of about 5000
The state, for various reasons, at present
receives the sO-called taN-receiyable cOu-
pOns in payment Of taxes only 10 such an
extent as il is compelled by decisions of the
Federal Courts. Its policy is 10 force hold
ers Of consols and ten-foriies TO fund their
bonds In Riddleberger thrces. II all out
standing obligations were funded in Rid
dieberger thrces the State would be able
10 pay the reduced interest charge in addi-
ton 10 the necessary expenses Of the
State government. II is unable, IL is claim
ed, ~ do more with its present resources.
The New York parties are, perhaps, looking |
TO the S20o,O00 Of new revenue to come from |
the new assessment. Upon that as a basis |
they probably expect TO found Il settlement |
more favorable 10 the states creditors than |
the Riddleberger act offers. The margin for |
q successful negotiation is, il must he COR
fcsscd triie narrow, but IL is 10 be hoped |
that II will be found broad enough for prac-
teal purposes.