Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1891-11-27

A New Proposition from thGStatG
Creditors.
1t is now just twenty-one years since the
debt question came up for discussion. In
that time four propositions have been made
to settle it. One was the famous Funding
Bill of 1871, which came from the creditors;
another, the McCulloch bill in 1878, also re-
garded as coming from the creditors;
another, the Riddleberger bill, the product
Of political revolution, and which finally
received the support of both great political
parties; and fourthly a new proposition
made by the creditors last week. Of the
four. the Funding Bill was repealed by the
legislature, the McCullocb bill was repudi-
ated 10y the people; the Riddleberger bill
was repudiated by the creditors, and the
fourth proposition is yet to undergo the i'll
spection of the Virginia legislature.
THE --LATEST PROPOSITION OF THE
CREDITORS.
When the last legislature Of Virginia adj
journed it appointed what was called q
Debt Commission. 1t was composed OF z.
W. Mckinney, Governor; J. Hoge Tyler,
1t. Governor; Taylor Berry, Senator from
Amherst; H. T. Wickham, Senator frem
Caroline and Hanover; r. III. Cardwell,
Speaker Of the House Of Delegates, and w.
D. Dabney and r. H. Tyler, members of
the House OF Delegates. Their duty was
to be to receive any communication from
the foreign OF other bondholders Of the
State debt of Virginia and report it to the
next meeting of the legislature. They had
no power in the premises save this. Last
May, a committee of financierS of New
York, called the Olcott Committee from the
fact that Fred. P. Olcott, President Of the
Central Trust Co. Of New Y ork, was it's
President, was formed, whose business was
to 60 between the creditors and the State
and get a plan, ON which both could agree.
Such plan as might he agl eed on was to be
submitted by the Virginia Debt Commits
sion to the legislature, and by the Olcott
Committee to an Advisory Board - for the
creditors composed of Grover Cleveland,
| Ed. j. Phelps, Thomas f. Bayard, Geo. s.
Coe and Geo. q. Williams, the first three
statesmen. and the last two bank presidents.
The Virginia Debt Commission aud the
Olcott Committee met in Richmond last
week in several conferences, and the follow
ing is the final result:
THE COMMISSIONS LETTER.
The letter from the commission is as
follows:
RICHMOND, VA, Nov. IS, 1891.
To Frederick P. Olcott, William L. Bull,
Charles d. Dickey, Jr.. Henry Bulge,
John Gill, Hugh r. Garden, Committee:
Gentlemen.-On yesterday you submitted
to the Virginia Commission proposition
| to sell the obligations of Virginia mention
Ell in the Riddeberger bill mot heretofore
| funded under that bill, and now outStand-'
ing in the hands of the public, but not in
Guiding bonds held by schools and college5)
on one OF the two following baseS-viz., all
issue OF S1S, 100000 of bonds as one alterna-
tive, and of $l9 900, 900 as the other in lieu
of the outstanding obligations aforesaid.
Y our proposition was that the $1S,O00,O 900
| of bonds, it issued, should run for one hun
dred years, bearing 3 per cent. the entire
period, and that the $l9, 0O0,0O0of bonds, if
| issued, should run for one hundred years,
bearing per cent. for five years, p for five
| years and 3 per cent. for the remaining
ninety years, You further suggested that
the proposed new bonds and the interest OBJ
| ligatious on them should in either case con-
| form in their general character to those is
sued under the Riddleberger bill.
| We have carefully considered your pro-
| nd ctrain tn
apart from other objections thereto which
occur to some OF all of lis we fear that the
! State would be financially unable to meet a
| settlement in accordance with either OF
them. 1t is of course conceded on all hands
| that a settlement which cannot be met
would be worse than no settlement at all.
| Upon reflection, however. the Virginia
Commission has come to the conclusion
that there are certain sources OF revenue
which the State may avail herself OF with
out increasing taxes. The additional in
come to be derived from these sources will
perhaps not amount 10 very much, but tue
! Virginia Commission hope they may be
utilized for the purpose OF accomplishing
| final settlement of this much vexed queS-
tion
| 1t is a well recognized fact, too, that the
| large business interests OF the State, among
which may be mentioned the railroad CON-
| Dal1eS, Ill CuclI dllAlcGy IOl o llilel ocUGlc-
lnent and looking to the general increase of
credit and prosperity to result therefrom,
have evinced q willingness to respond to
such public demands as may Ialrly he made
nm, hem for the attainment Of The object
in view.
Tnls commission will therefore make to
tue Legislature Il favorable report upon the
81 ,O00, 900 proposition if the same lie mod
| flied as follows-that is to say: We will
recommend proposition to issue maxi
mum amount of sis, 900 of bonds to be
exchanged for the outstanding obligations
of the State mentioned in the Riddleberger
act (other than those held by schools and
colleges) now in the hands OF the public,
but not including bonds already funded UNI
der this act, such new bonds to run for one
hundred years and to bear 2per cent. inter
est for ten years and 3 per cent, for ninety
years. The bonds and interest obligations
Shall be of the same general character as
those provided by the Riddleberger bill, and
it is distinctly understood that the coupons.
or other interest obligations are not to be
recel vable for taxes. The proposed new
bonds shall be exchangable for the out
standing obligations aforesaid, in the pro-