Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-09-04
TIE DEBT PROPOSITION.
Card from second-Audftor FranA w.
Ruffin.

| respectfully submit that tho afticie on
the debt settlement which you extract in.o
| Wednesday mornings DISPATCH from ano
Norfolk landmark is misleading. IL shys'
1.-THE bonded debt isin round num sSs 600 ooc,'
must gpeak IN round numoe,s-szcfoUV,vou.
| Tine New York committee have bad depositeu in
n trust company under Tho conditions OF ~ pr,
| poe,tion 10 promote a settlement S~5'oVo'VVo''
| bonds. p,.s-.o,a nd offer
al 20 settje for these deposors upon the p's,o o
slO O0O 900 NJ per cent Tor the seo,V ~
assuming tina. the remaining so.Voo,voo LII" "vn
| finally come In. II not, then Tn that pr9por,ipn
| for the S23, 900, 900 already depo-iteu. ihe
| ginia Commission declined this and shower .iin'
the State could no. accept such ,o nnn
Subsequently The committee pfoposeu sic.vu,o,,
| ooo which was declined with the intinafion
| mat tho state Commission would be Wiling 70
recommend settlement atsl fOOOooo. VOW s'lo
New York committee IN putsuaheo ~ ~ vt,
| OF mediator is trying 70 secure enc, We lninA
will secure from the bonih)lde!sa proposition W
| sottle at Sfs,000,0 600.
"Tbis would leave between the State and Its
creditors n difference IN tho princpa, Oh one
million dollars and M annual sum OF interest OF
| thirty thousand dollars. That Is to say: After
| getting the u!timatum from the bondhoiier3
there Ia still one milton In principal and thirty
thousand dollars In annual interest more IMAM
the State Commission has signined Its willing
moss 10 pay.
"Reitccd 10 the form Of en- inquiry VIC have
this: Can Virginia pay thirty thousand dollars
revenues now, in tho opinion OF her safe OIL
ciai, warrant2
In this view Of tho situation, suppcsing our
information 10 be accurate and that TN offer TO
accent sls,OOO,O0O or s2S,000,O00 Is made,
should the virg MIA Commission accept II 80 TAR
as 1t he's authority and recommend II for &c
ceptance 70 the General Assembly,
ave do not hesitate to say Is and we be-
| ueye Il will Tho General Assembly can make
provision for such q settlement ana the people
will applaud It,"
According to the report of the Second
Auditor for September 30, 1890 the latest
official aut hority, it is estimated that IL all
the outstanding bonds OF the State were
funded INTO Riddlebereer 8 per cents the
amount would be................ Sl3,42f,l74 10
so that il tho Landmark has
boon credbly informed this
ofor Of the New York syndl-
cate Oh. ..........:.....; ;...;. T~V'VVoooo w
would show that they claimed,
In principal, au excess over
the kiddieberger bill of...... 6,57o,S25 "a
and, at what he says they now
mean 10 offer, and wo think
the State should acccpt-...... S1S,OOO,OOO 90
an excess of................s 4,575,s25 "a
over the sum that will be due under the
Rddleberger bill as amended.
know not what was proposed on either
side in the late conference, for the pro-
ceedings were secret and have not been
promulgated. But / cannot suppose the
Joint committee ever offered the bond
| holders as much as S17,00O.000, which
| would have been Oil excess of more than
| SO, 500, 900 over the Riddleberger bill as
| amended.
As to interest. without bothering the
general reader with a detailed financial
statement let it suffice to say that tho in
terest on the entire debt, if all odtstand-
| ing obligations were funded.
would be. ACKNOWLEDGEMENTS. OF Oh
| OF which there Is only available
from present taxes aud revenues, sol PA 20
A deficit Of. 1902 SO
OF this IL Is estimated that there
| are Of several items that need not
| be provided for the sum of........S 41,413 Is
| Still deficit. ACKNOWLEDGEMENTS 35,s59 II
| To this add per cent. on s4,575.-o
| S25.34, the additional sum the s1a7 o7a ~
Landmark mentions, and there
| will be a
total deficit. .............-....S173,l 64 as
or more than five times as much as the
Landmark estimates the State will have to
pay.
The following facts may show how the
| Landmark has been misled. In their an
nual report for this last year the Council
| of Foreign Bondholders, who are the con-
| trolling party IN the debt negotiation, put
the debt as OF January 1. 1891. mot at $685.
900, 900 butt at SIS, 734, 90i. OF this S6,6S7.-
S72 was tax-receiyable coupons. The same
authority says (l!) there has been de
posted under the proposed plan of settle
ment" $2l .59l, G74.26 of which 1888, 63l. 81
was tax-receivable coupons.
These figures show the offer to fund
upon the basis of SIS. ,90i at 8 per
cent. for $50. 900 600" to be really another
attempt on the part of the Council of
Foreign Bondholders TO embrace these tax
receivable coupons in the settlement. But
these coupons. now increased in amount
by last July's interest, have been decisvely
and finally outlawed by the Wickham
amendment. And as the Legislative Joint
Committee not only knows that fact, but
had before them al the figures which
have referred to, and more besides. and
which prove the inability of the State to
pay one cent more than the Riddleberger
bill without increasing the taxes, cannot
suppose that they have looked or ever will
look with favor upon any such terms as
the Landmark suggests.
FRANK G.. RuFFIN.