Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1891-12-02
Advisory Board Approves the Virginia
Debt Settlement.
A STRONG STATEMENT IN ITS FAVOR

A STRONG STATEMENT IN ITS FAVOR.
EX-PREsIDENT CLEVELAND AND Ex-sECRE-
TARY BAYARD AMONG THE s1aNERs.
Last Wednesday, Nov. 25th, in New
York city, the Virginia Bondholders' Com
mittee (F. P. Olcott chairmsn) submitted
their report through Hugh P. Garden to
the advisory board (Hon. Grover Cleveland
chairmaD). The advisory board-all the
members being present, namely: Messrs.
Grover Cleveland, Thomas F. Bayard,
Edward J. Phelps, George G. Williams and
George s. Coe-after having been in session
two days, and after due consideration of all
the facts rendered the following opinion -
THE PLAN APPROVED.
In the matter of the settlement of the
debt of the State of Virginia
Whereas, the undersigned, under and in
pursuance of q certain agreement dated
May ~, 1890, between Frederick P. Olcott
and others therein styled the bondholders'
committee and certain creditors of the State
of Virginia, were constituted an advisory
board for said creditors to examine such
plans or propositions for the adjustment of
the debt of the State of Virginia as might
be formulated, and to state their approval
and Recommendation or the contrary; and
whereas we have been fully advised Of the
progress and conclusion of the negotiations
between the State Commission and the said
bondholders' committee, and have carefully
az kto hsotn Of "a nd kha
condition to which it has been subjected
and the result attained as presented by the
report of said bondholders' committee,
now, therefore, we as such advisory board
do hereby approve and recommend the
plan of settlement Of said debt as the same
is embodied in the report Of said hond=
holders committee, as follows
The State of Virginia in settlement and
cancellation Of twenty-eipht millions of
such indebtedness shall execute and deliver
its bonds for the sum Of nineteen millions
of dollars, or in that proportion, for the
amount of indebtedness which shall be
surrendered. Said bonds shall be payable
| in one hundred years after their dato and
draw int, est from the LIST day of July,
1891, at the rate of per cent. for the first
ten years, after that date, 8 per cent. for
the remaining ninety years, and until the
maturity Of said bonds.
WARNING TO BoNDHoLDERs.
In thus approving tie Plan presented to
us, we deem it proper to say that We should
consider it unfortunate for the creditors
and all concerned if the subject of this in
debtedness and its settlement should be al
lowed to again fall into the vortex of politi-
cal discussion and dispute. In view of the
| xnh hou Y1r0r
the divergence Of opinion which has been
overcome and the sentiment favorable to
adjustment which has been aroused among
the people of the State by patient negotia-
ton and conciliatory argument, we are de-
eided in our judgment that If the terms Of
settlement now proposed are rejected the
prospects Of an advantageous agreement in
the future is far from encouraging. The
end sought is the settlement of an indebted
ness, the character of which has not In all
respects been universally conceded, and the
| lust amount of which has been earnestly
disputed. In this condition of affairs it
seems to US that if settlement is promised
which, on the whole, appears to be expedi-.
emit, no slight variance in terms should be
allowed to defeat the plan.
A COMPROMISE.
We do not think the adjustment now
proposed should be at all regarded in-the
same light as scheme to float new securi-
ties of the State of Virginia for the purpose
of raising money to meet immediate ext
gencies, but rather as q compromise of a
debt by the creation and delivery of valid
and intrinsically valuable public obliga-
tions, which, though not perhaps of the
character most favorable for speculative
purposes, must be regarded in the hands of
permanent owners as securities deriving
absolute safety and value from the pledge
of the faith of sovereign State combined
with the willingness and ability of the State
to make prompt payment. The extended
period which the proposed bonds are to
run should not be disregarded in consider
ing their desirability.
ACCEPTANCE URGED.
These suggestions are made not without
the hope that they may in some degree aid
the hearty acceptance of an adjustment
which impresses US as contamination
which should be a cause of satisfaction to
the bondholders and congratulation to the
people of the State of Virginia.
[Signedl GROVER CLEVELAND,
THOMAS F. BAYARD,
E. J. PHELPS,
GEORGE s. Coz,
G. J. WILLIAMS.
Dated November rs, 1891.