Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-01-15
TEXT OF THE REPORT

Tho special message Ex-Governor Mckin-
ROY an the debt settlement and the report
,fthe STATE Debt Commission were lad
tef,r. tle General Assembly yesterday
uoIrrr.
rnt.e SENATE Nj Jones offered Joint
....fr..oa. which under n suspension OF
,.a ryfos was taken up and agreed 10, pro-
v.to,tlet the report Of the commission,
together with the accompanying t1ecu-
nv. message. be- referred % special JOINT
,..r tee composed of the Finance Com
,.,.t.es Of the two houses. the Lieutenant
Governor. and the Speaker Of the House,
v,.h Instructions to report by bill or
o,hefvise.
Ibercs1'uf.on was Immediately commu-
r,rsf.l 20 the House aud concurred IN by
that body.
both houses also adopted a Senate JOINT
r..ointon introduced by Mr.. Berry, in
s.,nclnc the Superintendent Of Public
Trauug 90 have fifteen hundred copies OF
tte message aud report printed for the
use AZ the members Of the Legislature.
Text of the Message.
The Governors message Is rs follows;
GOvrRNoB's OFFICE.
NcBwoSD, Va. January II, 1892
Ton.. Generai Assemb'g:
ln my regular m assage | made no men
fiDr u tine settlement Of the public debt
a.re.i upon by your commission with the
committee representing the bondholders
Ou tfr 18th of November, 1871. Al the
TINE tte Legislature assembled the boud-
holders bad not held then meeting 20 con
adai the settlement which had been made
with the Virginia commission, and what
fna.f action would be was a matter OF con-
isrtura The newspapers asserted that
there was serious opposition TO the settle
ueDt. and that some q the bondhOlders
would endeayOr 20 withdraw their bonds
from the possession of the committee and
Drpa.e the proposed ratification. and Il was
reported alsO as showing their hostility
that remarks were maize 10y some OF the
h.ulh0liers more haI b than polite
against the state OF Virginia. when the
head and front Of her offending was that
bog COMMITS on had accepted the PROPOSE
ton of settlement lie by agents of their
,ar selection, not q member OF whom was
chosen hv any sugces ION OF hers and were
STRANGERS 90 her and her people. there
fore thought n best 10 reserve for the
time beng what | had 20 say on the
subject. as we'll as the report OF
volr commission, until something more
definite was received. On the 7th day
oi January, 1892, | was officially informed
thqt the plan 81 settlement agreed upon on
tt-lth Of November. 1891, had been ap-
proved hv the Advisory Board for tho
creditors bv the London advisers and by
tnc h0ndholders, aud now make haste 20
submit for your consideration this speclal
message with the accompanying docu-
menis. which contain all the correspond
cuce and the various propositions iof
settlement, resulting finally IN the agree-
mont herewith submitted for your ratih-
cation.
THE PUBLIC DKBT.
Since Virginia resumed her position in
che Mon there has been no question of
such grave importance 10 her people az
tle Just and honorable settlement OF her
public debt. She has never been forgetiul
II her former credit. and II has always
leou the desire Of majority of her citi-
zeus to settle upon fair and honorable
basic al rust Liabilities held against her
and iQuidate the same as speedily as pos
STOLE, having proper regard 70 the AGILITY
- her people 90 pay such reasonable taxes
a. are necessary for the purpose.
AZ evidence Of these facts we give brief
summary OF her legislation on the subject.
rHE FUNDING BILL.
On tho SOth Of March, 1871, the first ses-
SOU of the General Assembly after recon-
f'rlction. al act was passed TO provide
~ funding and paving the puollc debt.
This unfortunate ana remarkable bill was
rushed through the Legislature without
that consideration which its peculiar pro-
VISION and Us great importance demanded.
j. was the origin and the cause of all our
slhsequent unfortunate legislation on the
subject Of the public debt 1t assumed
20 the part OF the State the payment of
sl5H, 1905 Of principal. which required
annually the sum of Sl.S65. 5000 for
interest An amount of principal
All rate Of interest which her
resources were inadequate TO meet with
out imposing such enormous taxation that
TIE people N their impoverished condi-
ton we're unable 10 bear. IL was unjust
and negotiable. because IL assumed the
PAYMENT Of the whole debt. with acoumu-
lated interest during the war. and the
years OF reconStruction compounded, less
one third for West Nirginias portion.
SIC having agreed at the organization OF
hei State Government TO assume anc pay
o. equitable proportion OF the debt Of the
Commonwealth OF Virginia" This settle
ment did not receive the approval OF the
people.
TUE M'crLLocH BILL.
On the 2Sth Of March. 1879, another act
vas passed. pOpuiarly known as the Me
Cll.och bill. its pfofessed object being
l. provide new plan for the settlement
o. the public debt by which 1.-THE credit
o. the State might be restored and tho
aggregate amount of interest payable re-
ouced within limits which would not be
TOO ourdensome 10 the population.
New bonds were proposed, payable in
forty years. bearing an interest az ;ne 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
coupons attached 20 said bonds were TO
oe receivable for all tsxes. debts. aud de-
hancs due the State. and this was 10 be
EXPRESSED on their face"
This new proposition was not more ia
Nofable 70 the State than tina; OF 1871, save
10 the rate Of interest. The new bonds
lad the Objectionable tax-reeeiyable cou-
pom feature. Under this bill the average
srnual amount of interest 10 be paid was
cl.H9,0s3s5. Like the other funding Jill.
Was not approved by the people. II
Soon became evident that so large por-
uon OF the taxes would be paid IN cou.
pons. and not in money. that the Govern.
nent could not be maintained unless there
Was such en- increase in the rate OF taxa
,on that the people could not pay T.
SsNeral efforts were maze TO induce the
bondholdefs 70 retire their taLreceivsbls
coupons ard consent TO u settlement,
when would bring the annual amount Of
interest within the resources OF the State
al OF which proved abortiye.
TIE EIDpLxsxHarH ELL.
q s,'li dssisous Of satisfying the creditor