Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-02-16
Mr.. Munford and the Debt Bill.

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Mr. Munford and the Debt Bill.
Mr.. Is. b. MuxroBD. chairman OF the FL
nance Committee of the House OF Dele
gates. Yesterday opened the discussion on
the bill TO fund the outstanding Obligations
Of Virginia (the RDDLrDEEGER bonds ex-
cepted) into hundred-year bonds, IN ac-
cordance with the agreement made by the
Virginia Debt Commission with the OLcorT
committee.
The DISPATCH has already published the
full report of the Debt Commission. the
special message Of Governor MckISEEr on
the same subject, and the bill proposed TO
be passed in furtherance OF the settlement
and now we complete the history OF the
case to date by giving the statement OF
Chairman MUyroBD, who answers in al
vArce dozens Of questions which might be
asked.
There are two points which be discusses
TO which we wish to draw the attention OF
all Of our people. One is with reference
to the funding Of the unpooled bonds;
the other is as 10 the exemption OF the
new bonds from taxation.
II was tho desire Of the OLcoT1 commit
tee that all the old bonds should be made
to come through their hands to be funded.
They claimed that Inasmurh aS they hao
put themselves to great cost ana LABOR 10
originate, advertise, and push this scheme
and TO bring il to the present stage OF sue
cess. II would he unfair to them to al
low the unpooled bonds TO be funded with
out any cost while the bonds in the pool
were subjected to a charge OF 81 per cent.
Further force was given to their claim by
the undoubted fact that many of the
bondholders who are ont OF the pool
are kickers" and have done all
that they could do 20 defeat this settle
ment. But notwithstanding all OF these
arguments the commission and the Finance
Committee were OF the opinion that the
State of Virginia ought not to give any set
Of men the monopoly Of the funding. And
yet they conceded that 1t would be grossly
unjust to permit the kickers" to fund
their bonds free Of cost, while those who
had labored in behalf of tho scheme ana
borns all Of its expenses were SUBJECTED
TO the 81 per cent. charge which 1t Is
agreed shall be put upon those who went
into the pool. A thorough and exhaustive
discussion, lasting days and days, resulted
in the adoption of plan to let. the IN
pooled bonds be funded through the Com
missioners of the Sinking Fund. and hold
ers are required to pay the State the same
percentage that the pooled bonds
pay the OLCoTT committee.
With many members of the General
Assembly there is a determined opposition
to exempting any sort of property from
taxation, but IN this case it is clear that it
should be done. unless we wish to prevent
Vircinians from becoming holders OF the
bundred-year bonds. Most of the bonds
of this character are held in cities. In
Richmond the rate of taxation is $40 on
tbs 800. and the State rate is 40 cents on
the 500, making a total of sl.s0.
The effect of this rate on 2 per
cent. bond valued in the market at
eG2S say.) would be to appropriate
about two-thirds Of the interest for
taxes and leave the other third to
the bondholder. When the bond comes 10
the per cent. period (after ten years. it
will be worth from 30 to 95 cents, and the
confscation Will be almost as much then
as while in the 2per cent. period.
SO it becomes indispensable to exempt
the bonds from taxation, unless it is our
purpose to expel them from Virginia.
Mr.. MUyFoRD treats all of these matters
with that force and lucidity which ID his
characteristic, and which makes him al
exceedingly valuable legislator. He also
compares this settlement with the RIDDLE
BERGER settlement" and establishes the
fact that it is vastly to the advantage of
the Commonwealth to have an end to all
strife, and to strike hands with our credi-
tors.
From every corner of the Commonwealth
the settlement is approved. We hear no
dIscordant voice. In the two houses there
will no doubt be contention on matters OF
detail, but on the cardinal points the men,
bers are well-nigh unit-a unit in favor OF
peace and the restoration of our financial
credit