Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1890-06-23
The State Debt.


The New York Herald of Sunday in an
article on the State debt says:
Every citizen OF Virginia recognizes the
necessity of restoring the State credit. but
in view OF past experience Virginians have
refused to consider any proposition looking
to modification of the existing laws uDiess
accompanied by an absolute guaranty that
if accepted by the State it will be binding
upon all the bondholders. commission,
of which the Governor is chairman and the
Speakers of the House and Senate members,
was appointed by the last Legislature in
March of this year to agree with creditors
on terms for funding the debt.
William L. Bull, ex-president OF the New
York; Stock Exchange, went TO London
holders committee composed of Frederick
P. Olcott, president of the Central Trust
Company of this city; Henry Bulge, of the
German banking house of Hallgarten & Co.,
Charles D. Dickey. jr.. of Brown Brothers,
and Hugh R. Garden, a lawyer, president of
the Mercantile Trust and Deposit Company,
of Baltimore, who in turn acted for the
American holders of the Virginia bonds.
The Council of Foreign Bondholders
agreed to act With the American bondhold.
els In treating with the State of Virginia,
and 10 deposit their bonds in such banking
houses and trust companies es should he
designated.
In order to facilitate matters and a5
means of settling all questions in relation to
the bonds that might cause trouble, an ad
visory committee, consisting of ex-ple5ident
Grover Cleveland, Edward ]. Phelps, ex
Minister to England ex Secretary OF State
Thos F. Bayard. Geo. S. Coe, preslden. Of
the American Exchange National Bank,
and George G.. Williams, president OF the
Chemical National Bank, was app lnted
AID consented to serve.
For the past three weeks the hondholders'
committee have been holding daily meetings
and have been in constant commuEi-
cation with the foreign bCndholders. they
have al last secured the deposit OF all the
old bonds with either tho Central Trust
Company, of New York Brown Shipley
e. Co, of London; the Mercantile Trust and
d post Company, of Baltimore, or the
Planters National Bank of Richmond, pend
| irg the plan OF settlement to be submitted
| TO and decided On by the advisory board.
Alter the proposed plan OF settlement bas
| been decided upon and recommended by
! the advisory board 1t Ia to be advertised for
sixty days 10 London, New York, Baltimore
and Richmond and submitted to depositing
creditors for their acceptance.
AS soon as the creditors can act az unit
| in the matter, Virginia will be called upon
| to consumete ID. It seems at last ne If the
troubles of Virginia are 10 be removed, and
her bonds will soon once more be quoted on
the stock exchanges as first class investment
securities.
Ia their advertisement the committe who
have undertaken to facilitate en- adjustment
of the Virginia debt on terms satisfactory
to all the parties concerned, invite hoiC
ers OF various issues of Virginia bonds with
coupons to deposit them with certain speci-
| fed banks and Trust companies with view
to getting into position to open negot.-
atoms with the Legislature of Virginia.
When ell or nearly all the bonds shall bave
been deposited, the advisory board, consist
ing of ex-President Cleveland and other
prominent gentlemen, will put forth q plan
of settlement which will be laid before the
owners of Virginia bonds for their approval
Iftne bopdholders accept the plan it will
then be laid before the Virginia Legislature
for it's consideration. The gentlemen of the
bondhoders' committee are evidently 10
earnest, and are going about their task Ia
sensible aud business-ike manner. Inc
amount involved In this proposed settle
ment is about S27 500. 600 of which $50. 600
600 Is principal and $4,000 900 is interest.
Foreign holders of Virginia bonds have ex-
pressed their int eption to CO. operate wish the
committee and deposit their bonds.
a special dispatch from Richmond says :;
ut is thought probable that the new plan
will contemplate liberal construction OF
| the terms Of the Rddleberger bill. especial
ly for the period since iss enactment. Ua-
der the provisions of that law the principal
of the debt was placed OF S22 100000. at
the extra session Of the Legislature 10
1854 en- act known as the Wickham amend
ment was passed, which in funding practi-
cally eliminated sll coupons from July, 1885
to The time the tender OF such WAS made.
1t is estimated that the coupons excluded
by that smendstory act amount TO some
thing like Sc .000 900, which, under the orig
inai Law, were to be funded at City CENTS on
tbs original dollar. 1t ia thcught that the
Olcctt plan will ask that, in arriving ct the
principal of thu debt, these coupons shall be
included.