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

CHARGES WILL BE UNDER THE
NEW PLAN.
[From the Richmond Timesl
The report of the Second Auditor for the
year ending September 80, 1891, gives the
outstanding Indebtedness of the State as
1872, O64, 594 Of this amount 1892, 1910
consists OF Riddleberger bonds, leaving of
old bonds, consols, peelers and ten-forties
the sum OF $23 ,45l ,S74.l0. Of this indebt-
edness 80 .440, 255.85 is held by schools and
colleges, and $5S1 800 by the United States
Government, against which the State claims
an offset. This would leave the total
amount of the defaulted debt in the hands
of the public $40, 429 ,S19.05, in addition to
which there is outstanding about IS, 600
of past due interest, SO that by this settle
ment the State will practically retire the
whole of it's defaulted debt for an annual in
terest charge of $3.50, 900, and any lost bonds
OIL coupons will reduce this charge.
This proposed settlement does not inter
fere with the bonds held by schools and col
leges, nor with the outstanding Riddleber-
ger bonds, except that the $2,357 $1,000 of
Riddleberger bonds held by the sinking fund
are cancelled by the terms of this settlement.
The total interest charge of the State
under this settlement of ali the outstanding
defaulted Indebtedness as surrendered will
be $50 100000, at 2 per cent. 1880, 900; Rid
dlebergers in the hands of the public, as
shown by the Second Auditor report, 81,
900, at 3 per cent. $132, 800; total inter
est to the public creditors, $512.S00; Rid
dlebergers held by literary fund, 1,320,-
.2S at per cent, 500 ,624; total interest
charges, 1852, 424.
Under the Riddleberger bill, funded to
January, 1885, the interest charges would
l. hoo,,
mission on the part Of the State has seen
it's way clear to provide from current reve-
nues and without increase of taxation the
amount necessary to meet these charges.
From the Richmond Dispatch.l
AS previously stated in the Dispatch the
Olcott people represent in round figures
$23 .000, 600 of the $2S, 100000 OF obligations
outstanding and in default. They will get
1928 of the $4,000, 600 and the remainder
will be held to be exchanged for the balance
of the securities should they come in. MI.
Olcott said Thursday to a Dispatch repor-
ter that he believed the amount of the out
standing obligations his people controlled
was practically all that would ever be heard
from.
The maximum amount of annual inter
est charge that the Commonwealth can he
called upon to meet, even should all the Sc
CuTIUltS UC pICotulCu Luz 0AClltIlSG, ID lQI
the first ten years as follows
$4,000 600 Riddlebergers at 8 per
cent..... ...............Slo0.OO 0
1000, 900 new bonds at 2per cent. 100000
Total per annum. ...."$ 560.O 600
And for the ninety years succeeding
$6,000,OO0 Riddlebergers at 3 per
cent........ SlSO ,OUU
$40 900, 900 new bonds at per ct... $4,000
Total per annum ST. sc, 900
HELD BY COLLEGES.
This calculation does not include the
$l42, 900 per annum interest on bonds held
by schools and colleges, but this is regard
ed more in the light OF an annuity than an
interest charge on the public debt, and is
with other expenses provided for in the gen
eral revenues of the Commonwealth as dis
t1nct from the revenue applicable to inter-
est. In other words, the way is clear I'M
der the settlement to meet the interest on
the Riddleberger and the new bonds with
out increasing taxation OIL interfering with
school and college securities OF the proper
conduct of the government.
THE ADVISORY BOARD ENDORSE IT.
The creditors Advisory Board-Grover
Cleveland, T. F. Bayard, E. J. Phelps, G.
S. Coe and G. G. Williams met in New
Y ork on Wednesday and after carefully
going over the details resolved to recon-
mend it's acceptance by the creditors.
Their report adds:
In thus approving the 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 it's settlement should be al
lowed to again fall into the vortex of pop
ular political discussion and dispute. In
view of the differences which have been
compromised, the divergence of opinion
which has been overcome and the senti-
ment favorable to adjustment wnich has
been aroused among the people of the State
by patient negotiation and conciliatory ar
gument, we are decided in our Judgment
that if the terms of settlement now pro-
posed are rejected, the prospect of an adj
vantageOuS agreement in the future is far
from encouraging.
The proposed settlement will now be sub
mitted to the London advisers of the cred
itors-Sir Joha Lubbock, VIM. Lidderdale
and j. II. Daniel.