Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-03-29
THE COUNCIL OF eoNDHoLDsRs.
Some of Its Proceedings with Reference
TO the Virginia Debt.

Some OF Its Proceedings with hc'erohoo
to the Virginia Debt.
To ne Editor of The Dispatch:
The recent expression OF opinion by
prominent Virglnians IN the DISPATCH TO
the effect that the State should not treat
with the Council of Foreign Bondholders
NAV lead TO disclosures that will teach the
creditors that the council, and not the
State, is responsible for their !nisfortunes.
WHAT FACTS TEACH.
II has been Indignantly denied thai. tho
council seeks to make money. but facts
speak louder than words.
A gentleman in Richmond has the TWO
contracts under which the council tried ana
failed TO hive the bonds. The hrst con,
tract, dated December, 1886, provided
THAT depositors should pay 20 the coun-
Gil contribution Of $40 on each Sl.OOO,-
600 deposited IN addition TO previous as
sessment of like amount" o
The second contract, dated March, 1888,
provided in substance that the Councii
should retain whatever it realized by sell
ing coupons above fifty cents on the dollar.
This scheme to sell coupons to taxpayers
was exceedingly plausible and would have
been very lucrative If our people had con-
sented to tender coupons as freely as they
did ten years ago.
THE SCHEME.
The Council was to pay the bondhoiders
fifty cents and was TO cell the coupons Tor
eighty cents. If our people bad used . wv.
600 Of coupons as they did IN 1887 and 1879
the Council would have received S3O0, 0Oo
year without any investment or risK ana
this would have been In addition 70 the
two assessments OF $40 on the sl.ooo oe-
posted.
The creditors were told that forcing cou-
pons into the Treasury would induce the
State to Offer better terms. But IL TINS
had been the object and not proht coupons
would have been offered to tax-pay ers AZ q
price without any margin for pioat- Non
fundable coupons were then selling at rom
Is to 20 cents. BY promising to realize Tor
the bondholder 80 cents or 70 return nis
coupons they were induced 10 dsposle-
The bondholders were NOS tola ina. us.acn ns
ing coupons destroyed the fundabiiity OK
their bonds.
0The total amount deposited under both
OF the contracts above referred TO was less
than $4,000, 900, and sub q small deposit
indicates that the bondholders do not place
much faith in the Council.
THE DISTINGUISHED rISAscrERs-
II NAV be some eminent London fnan-
ciers are members of the Council. but IL py
no means follows that they are parties 70
the money-making schemes of its inside
management. On the contrary. the distin-
guished fnaneiers referred to probably
give the affairs of the Council no PERSONA
attention, and when informed OF It's trans
actions in the Virginia debt will promptly
disconnect their names from 1t.
SUPPRESSED FIGURES.
The gentleman in this city referred 20
also mas the Councils report for lsSl' ~
gives an elaborate discussion of our reve-
nues and expenditures, and carefully sup
pressing many material facts makes sucn
poet ct least one third more than We can
possibly offer. There Is no rsference IN
thu Councils 10 the figures furnished oy
Auditor Harye 70 Governos Les and on
which his last message was based, because,
8 Es believe. those d&eres would ave