Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-02-16

Il 4 70 meet this enormous edount Of
Indebtedness, over e7.o00.og o. vaica y
Ii the shape Of past-due tax-Iece1v
coupons, and threatening ct every moment
10 shsofb the whole revenues o. tnS psetes
ths4 "a Are called upon to provide.
The %, O8l. 2l2 of RiddlebefRef oonas re-
ouire. OF course, no legislation 1t our
hands. but It Is to provide for the paes 9
tax-receivsble coupons and to substitute
for bond bearing per cent: new oono
ct lower rate Of interest and reduce tne
amount OF principal 30 g 70 9nng tno
whole within the ability OF the Common.
wealth under her present revenues 70 m ~
the accruing interest and eventueny US
charge the principal that TINS Dill nAs ooen
provided.
TIE BASIS OF SETTLEMENT.
The principal OF our indebtedness other
than the Riddleberger bonds amounts 70
go, 033, 794. 81. with past due interees snere-
on aggregating about Ss,000.0O0 more. py
the bill under consideration. wn'cn ~ sno
result of an amicable adjustment between
= committee representing FIVE sixths in
Amounts of our Indebtedness, and the
State. Il Is proposed to substitute for al
OF the Indebtedness of the State: principal
and interest, other than the Riddieoerger
bonds. obligations of the State aggre::
eating SIs, OOO, 900, payable hundred
wears after date, bearing per cent. inte-
rest for the first ten and 8 per cent. 'nte-
rest for the remaining ninety years. ine
transcendant advantages ol sucn
settlement must IN i'll lis ~ ' she most most
skeptical. With the adjustment OF our
Indebtedness under the provisions OF TINS
bill its principal will be largely reduced. the
rate of interest lessened. the tax-receiSa-
HE coupons now past due and menacing
the Treasury provided for with BOND
payable a century hence, and obiigations'
which by reason of the tax-receivaole cou-
pons attached thereto constitute mort
gage upon tina revenues OF the otate, re,
tired with bond having no such lien ana
depending alone for its payment T Upon r .ns
faith of the Commonwealth. Inc new
principal of the deot, combining the
bonds thus issued and the Rlddlebergers
outstanding, will be about S25, 0oo,0O0.
CHARGES UNDER THE RIppLEBERoER BILL.
Continuing, Mr.. Munford said desire
now to address myself to the relative
merits so far az the interests OF the State
are concerned between the settlement pro-
posed under the Riddleberger act and that
provided for in the bill now under consid-
Grafton.
BY the Riddleberger act the prin-
cipal Of the debt was nxed as , ~. m
Of LIST OF July, 1882, at...... wi, Noo.oof oo
Tho annual interest charge upon on
this Indebtedness was.........1 ooo,ooo 90
do not here include the sinking
fund provided for In that act,
which was fixed at 24 per cent.
per annum, and which, II add
cd, would make an annual
charge under Its provisions III .oo 40. m
addition oil. .................... 4oo'3~1 90
Or total Of. .....................s l,l44,313 IL
II was the intention of the trainers
of the Riddleberger bill to compel
the creditors to accept its provisions
and to promptly paw as OK toe LIST OF
July, 1882, the interest upon TINS new
principal whenever the bonds should be
actually funded. Had all of the SAID bonds
been funded as of the LIST of July, 1882.
there would have accrued on such new,
principal between that date and the LIST of
July. 1891. the date fixed in the present
hill the sum of.............eo, 1884, 800 AZ
As a matter of fact all the bonds
we're not funded, and thus the
amount actually paid on account
OF interest between the above
mentioned dates was.............. 2,lOO,l4S 90
Balance unpaid. ...........s3.0'4'oo VI
Thus leaving the sum of over $500, 900 OF
interest. which would have accrued and
been paid by the State on the Riddle
berger bonds during the nine years above
indicated, still in the State Treasury or
used for the purposes of the government
or retained in the pockets of the people,
which even under the Riddleberger settle
ment the creditors had the right to collect
of the State. If to this amount OF inte-
rest-provided for in the bull but never
collected by the creditors-we add the
principal fixed by that act. it makes the
gross amount Of the Indebtedness as OF
the 1st of July. 1891, on the part of the
State. S25 All 1921, or sum slightly IN
excess of the aggregate principal provided
for in the present bill.
INTEREST CHARGES COMPARED.
Let us consider for moment or two the
relative advantages as to the annual inte-
rest charge against the State under the
two bills.
Under the Riddleberger act, 3 per
cent. upon Ell, 796, 304.30 made
an annual interest charge Of. .s653,6SS SO
Under the present bill Ter cent.
on the outstanding Rddleberger
bonds, amounting to 96.OS1, 242,
makes an annual interest chrrRe
OF ....................S1S ,437 ~
And 2 per cent on
S19,000,000 OF new
bonds. 100000 90