The times. [volume] (Richmond, Va.) 1890-1903, 1892-01-15


message of the Governor 70 the Legislature
OF the State debt settlement
GoyrRNoRs OfucF, NcHMoSD. Va,
January IL, 1892.
To the General Assembly:
In my regular message I made no mention
IF the sett emeut OF tue pubic debt agreed
npOn by your commission with the committee
homecoming the LOulhOldere on the 18TH OF
November. 1891. At the time the Legislature
assembel the bOnduolders had not hold their
meeting to consider the settlement which had
Ieen made W tn the Virginia commission. and
what their action would be was Il matter on
conjecture. The newspapers asserted that
there was serious oppositi u u the settlement.
and that some OF the b0ndhOiders would en-
deavor to withdraw their bonds from the pos
session of the committee and Op Ose
the proposed ratification, AMI II was
reported also as showing their hos
tihty that TomarHs were made by some OF
the hOndhO ders IN 70 harsh than polite
against the State of Virginia. when tho head
and the front OF her offending was that her
commission had accepted the proposition OF
settlement made by agents of their own Sc
lection not "A member of whom was chosen
by any sue estIOn OF hers. and were strangers
to her and her people. ! therefore thought
IL best TO reserve for the time being what
had to say on the subject, as well az tue re
port of your commission, until something
more definite was received. ON the eth day of
january. 1892, ! WAS officially informed that
the plan of settlementr agreed upon on the
18th of November. l.a1, had been approved
by the advisory board for the creditors by
the London adg sers and by the bOndh ,lders,
and now make haste TO submit or your
consider Alton this special message, with the
acc6npauying documents, which contain all
the correspondence and the various PROPOSE
tions Tor settlement resulting nnally IN the
agreement herewith submitted for your rati-
hcatlOn.
THE PUBLIC DEBT.
Since Virginia resumed her position in the
Union there has been no question of such
grave impOrtonce II Ter people IA the just
aud honorable settlement of her public debt.
She has never been tOr9e tiul of her former
credit and Il has always been the desire OF
majority OF her citizens 20 settle upon a far
and honorable lasls all Just Liabilities he'd
against her and liluidate the same rs speed
~ as possible, having proper regard TO The
ability of her peOl le to pay such reasonable
taxes as are necessary for the purpose.
AS evidence Of these facts We give bret
summary of her legislation on the subject.
THE FUNDING BILL
On the 3Oth Of March. 1871, the first session
of the General Assembly after recOnstruc-
ition. an act was passed to provide for fund
ing AMI paving the pubic debt ms unior-
tuuHte ami remarkable bill was rushed
through the Leg stature without that cOnsld-
GRAFTON which It's peculiar provisions and It's
great importance demanded. IL was the
origin and the cause OF ali our subsequent
unfortunate legislation on the subject OF the
public deut. II as umed on the part OF the
State the payment of So. 3yi 80 90 OF pr-ncl-
pal which required annually the sum OF
81. 500 450. 80 for interest. an amount of prin-
cipal and a rate # interest which her re-
sou ces were inadequate 10 meet without I'M
posing such enormous taxation that the people
I..,4 fffart La
10 bear 10 was unjust and inecuitable be-
cause IL assumed the payment OF the whole
deDt with accumulated interest during the
war and the years OF TecOnstIucuOn, com
pounded less One-third for West irgnla's
portion she having agreed al the organiza-
ton OF her state government 70 assume and
pay an equitable proportion Il tho debt of
the CommonTeal of Virginia" This set
Element did not receive the approval of the
people.
THE MCCULLOUGH BILL.
On the 2sth Of March. 1879. another act
was passed popularity known as the bic
Cul'Oush bill its pro essed object being 20
provide a now plan for the settlement of tile
public delt by which the credit of the State
might be restored and the aggregate amount
of iutc, est payable reduced within limits
which would not be too burdensOme 10 the
population"
New bonds were proposed, payable IN
forty years. bearing interest al the rate OF
per cent for ten years, 4 per cent. fOr
twenty years and per cent. for ten years,
until the principal WAS redeemed The c0u-
pons attached % said bonds were 20 be re-
ceiyable iOr all taxes. debts and demands due
the State and this was - be expressed on
their face.
This new proposition was not more favor
able 10 the State than that of ISL save in
the rate Of interest. The new bond had the
Objectionable tax receivable coupon feature.
Under tins bill the average annual amount OF
interest 10 be paid was sl,2l90,345. Like the
other funding billit WAS not approved by the
pc pie. 10 soon became evident that LARGE
portion Of the taxes would be paid IN
coupons and not IN money that the govern
Ment could not DO maintained unless there
was such au increase in tie rate of taxation
that the people could not pay IT, Several
Efforts were made TO induce the bondholders
20 retire their tax receivable coupons aud
consent 20 Il settlement which would bring
the annual amount Of interest within the
resources Of the State all OF which proved
kbOrtiye.
TIKI EIDuLEHfRGER BILL.
Still desuous Of satisfying the creditors IL
i could e done without imposing an insuf
fera le burden upon the tax-payers. on the
lith Of February lss2, the Legislature passed
what is known as the hlddlouereer bill. Ii
iestated the public debt. eliminating such
items as had been improperly admitted
thereby largely decreasing the principal
claimed TO be due. and new londs were or
dered to be issued, payable ia fifty years at 8