Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-01-15
Report of Tho Debt Commission.

Report of the Debt Commission
Governor McKIsSEr yesterday sent TO
The two houses of the General Assembly
special message, enclosing the report OF
the Virginia Debt Commission.
Thus all the facts relating to the recent
agreement for the adjustment OF the old
debt OF this Commonwealth are now in
shape for legislative action. and the great
majority Of bondholders having approved
the plan, it only remains for Virginia to
do likewise. when all of our old bonds held
by the general public will be funded into
hundred year bonds, bearing per cent.
interest for ten years and per cent. TOR
ninety.
This is q charming prospect which is
opening up to Virginia. 1t Is bargain
which will remove all stain of what our
enemies have very wrongfully, but very
pertinaciously. called "repudiation." II
will wipe out oil old scores. and be the be-
ginning of q new reckoning, which is not
likely ever to be called into question, and
which will free us from litigation and po-
litieal turmoil on this account and give
to our creditors q security which. being un-
impeachable and within the ability OF the
Commonwealth to pay. will steadily rise in
value. In brief, 1t Is the beginning OF
new era in our history, and it IS full OF
promise and gladness-
Rarely has q more tangled skein of con-
troversy been unravelled. The difficulties
were enormous. The practical questions
seemed impossible of solution. and they
were made all the more perplsxing by rea-
son of the angry feelings that had arisen
on both sides In tae course OF the long
litigation. Out Of this network of trouble
the OLcorr plan Of settlement comes Of
fering peace TO the people and to the credi-
tors and Justice TO both, and affording a
GROWING triumph to the administration OF
Governor MCKINNEY. To him and to the
other confcrreos Virginia owes great
debt of gratitude, which We wish to see
recognized in the best possible way
by the prompt ratification of the plan
of settlement and by the passage of all
bills and resolutions necessary to carry 1t
into forcs and effect. Later on we may
review the inside history OF the settle
ment and attempt to award each gentle
man the honor that is due him. but at
present our chief duty is to show the peo-
pie that the settlement is Just one; that
il is one which our revenues applicable to
this purpose will enable US to carry out
without difficulty, and that, all things con-
sidered, it is as good an adjustment as the
RrppLFBKRarR bill would have afforded US
had tho debt been funded under it. All
these things the message and the report,
considered together, firmly establish.
The new bonds are to run one hundred
wears from July !, 1891, and the principal
agreed upon as of TINT date, ii all out
standing bonds be produced and funded,
is SIS, 0oO, 900. The principal on list July,
1891, of 8 per cent. bonds now in the hands
of the public and literary fund was S6,0S1,-
242,5O. Total principal under the plan.
&25, 0sl ,242.50 exclusive Of bonds hold by
collsges).
The total annual interest due by the
State under tho settlement, including in
terest on RrppLEBxRoEa 8 per cent. bonds
held by the literary fund and IN the hands
of the public on October 1, 1891, will be
So62, as7. 81, an annual saving of interest
for ten years to the State over a settlement
under the RIDDLEDERGKa bill OF $9l, 45l.56.
The Auditor OF Public Accounts reports
as applicable to the payment OF interest
ON the public debt from the revenues of
the Stats Qnoluding taxes on railroad
property about $49o. 30z2s.
The Second Auditor reports annual
dividends on the State stock In the Rich
mond, Fredericksburg and Potomac Rail-
road Company, $s2,74e.
So the amount OF revenue available for
the payment of interest on the public debt
is S52s .06s.29, amount annually required,
1861, 437.27; amount to be provided, $780,
Ss3. SO. il all the bonds are exchanged at
once, which IL scarcely probable.
The State has saved In interest, in conse-
quence of bondholders failing to fund un-
der the RIppLEBERaEH bill, 1854, 8509l.
This has enabled her to spend 81. SS5. 0s5, SO
in the purchase of $2.S57, 576.60 of her own
bonds, thereby reducing her debt to that
extent. She has also paid 81. 900, 900 arrear-
ages due to the public schools, and es79, 900
of interest due the literary fund, and she
has appropriated 100000 to her disabled
soldiers. and spent over sl.OO0.0o0 in en-
larging and sustaining her eleemosynary
institutions. This indispensable work
could not have been done with our present
rate of taxation had the whole debt been
funded in lss2.n Money which would
have been paid to satisfy the interest
(the creditors refusing TO fund.- we
have used in part for the purposes above
indicated. and have compromised the
amount by adding to the principal due in
1899 to DO paid hundred wears hence"
The Governor and the commission think
and say that our taxable values have In
creased to such an extent that we can
meet all necessary demands from our reve-
nue.. BY the low rate Of 2 per cent. interest
for ten years we will save $9l ,45l. As
each year. with this sum judiciously
invested We may DO able so to reduce the
principal of our debt that when VIC are
compelled to pay tho per cent rate of in
terest the annual amount due will be
within our present. revenues, even though
there should srN increase IN our taxable
values, which 40 scarcely possible"
II 10 shown by our commissioners that
now outstanding is about s7,027,022. THIS.
added 10 the principal Of the bonos siin out
standing bearing ssx-reeivable coupons, makes
an aggregate Of about e25, 607, 022. Tho maxi
mum amount Of al unsettled obligations out
standing against the etats. which there Is sny
probability Of her hsving 70 provide for. Ia
pisced By the Bondholders' Committee, at ABOUT
o2s.00o,000.
OF shs outstanding unsettled obligations Of
the State, the Bcndholdery' Committee, with
whom our negotiations have bean held. have IN
their actual posseeslcn about $4,000, 900, OF
WHICH sbous eel, 600 consists Of psstdus
sss-psyins coupons and bonds bearing suoh
coupons.
The Governor advises that the General
Assembly psss . resolution satifyine and
confirming tho agresmsut entered into By
the commission with the Otco9r commit
tss. end ''thst the sgrssmsut b rsssrrsd 70
A appropriate committee 10 prepare bill
10 carry II into s6eet"
The report Of the commission = i!om
the hands Of Nh. W. D. DAnu1E, Of AIDA
mssls. and Il sbly psssss IN sevlsw some