The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1891-07-02
THE VIRGINIA DEBT.
An Intelligent CONNIE tary Upon
the Present Situation.
1m the Baltimore Sun.

From the Baltimore Sun
The conferences between the commission APP
pointed by the State of Virginia to receive pro
posals for funding the debt of the State and the
bondholders' committee, aided by the advisory
board for the creditors have not as yet, it APP
pears, produced positive results, but there is
reason ecoush in the present situation of both
parties in interest why settlement ought to be
earnestly sought after and effected. Both par
ties to this protracted controversy are tired OF
it. AS respects the State its credit Is materially
affected among the money lenders of the Old
World. AS respects the bondholders they have
not achieved through legal proceedings the full
quantum of Their hopes On the one side. fund
ing under the existing law has practically
ceased the bonds authorized ~ the existing
law sell at but two-thirds of their face value.
unpaid interest consols and ten-forties is
accommodating at the rate Of over $l.000,000
year. On the other hand, the present value of
the 1928 eco claim of the bondholders is under
5000 co., and, though an average of $l09,440 of
tax receivable coupons was forced into the
State treasury annually during the last eight
years. still the boDdholders, it is believed, real
lied not over 45 cents on the dollar of coupons
thus paid Moreover, the popular feeling which
leads the people of Virginia to abstain from the
use of coupons in payment of taxes is increasing
rather than diminishing, that compromise
becomes year by year more difficult. Add to
this that the legislation adverse to the creditor
to which this feeling gives rise increases very
materially the complexities of the debt question
and it viii be clear that alfull settlement ought
not to be longer delayed.
The debt Of Virginia at the date of the passage
of the Riddleberger funding act of 1882 was $50
090270 That aep provided an average funding
rate of 81 cents on the dollar, making the
amount of Riddleberger bonds issuable ST.
| IA 56l. The States creditors not asserting
generally to the terms of the settlement then
/ proposed, but $S,a73.ol2 of Riddleberger bonds
have been issued A large part of the issue is
held in various State funds. so that at present
there are but 81 53S a0i Riddles in the hands Of
the public There remains unpaid of the debt
fundable at the date of the Riddleberger act
about $,S000,G0G, of which about S20,000,000 is
| principal and SsOOO0G0 is interest A great part
of the S2O,000 000-by legislation since 1SS2-has
| been made unfundahla andof the Interest great
nart has been forfeited Some $6,500,G00 of bonds
bearing the stax-receivable" coupons I'M
/ fundable under law that requires each bond
/ presented for funding to be accompanied by
| all of it's coupons maturing after January LIST.
| 1885 or by coupons of like character. Some s.,
2a2 900 of the coupons are unfundable under
another law. which forfeits all interest accru-
| ing after January lst, 1885, on bonds other than
riddles" AS a result, therefore, of the Riddle
berger act, fortified by subsequent acts, the
$27 800 600 OF debt outstanding in 1890 would, If
now funded. be represented by but $S,9l6500
! Of new bonds. With riddles at 66 cents on the
/ dollar the holders would have in sight but &c.
600 eco OF money in return for $2 900 of claims.
The acts subsequent to the original Rddleberger
act modify the operation OF that act, it is clear
I in very formidable manner AS, however,
these acts intended to force compliance
with the Riddleberger act, they can hardly be
considered permanent obstacles to a settlement
The commission appointed by the State of
4 Virginia in March, 1870, ''to receive proposals
for funding the whole debt was instructed to
take the act Of 1882 as basis The agreement
| of May 18th, $780, between the bondholders and
| the bondholders' committee, under which the
bonds are deposited, recognizes says the New
! York Financial Chronicle this proposition ON the
bart of the State The negotiations have &C
| cordingly it is believed, been proceeding sub
stantially on the basis of the Riddleberger act
beyond which the people of Virginia are not dis
posed to go. 1t is to be hoped that both parties
will understand the necessity of treating the
matter in business-like way. Politics has
nothing to do with it. Says the Chronicle 1.-The
State and the bondholders committee are botl
pledged to settle the debt on the principles OF
the Riddleberger bill Make your computations