The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-03-24
FRIDAY, I MARCH. q. 1905
The State Debt.

1t will probably be surprising 70 H 1'alts
Of our readers to know that since me
war the state Of Virginia has paid on
accom-. OF the state debt the snug sum
Of sI4 OooGp! OF this sum, sS4ooo,pn was vas
an account Of interest and slo.0o0G0o, IN
round numbers, was paid on the prlncipa
4 Recently the Board of Sinking Fund
Commissioners cancelled bonds amounting
4 to q, 3l3, oco. thus reducing the outstanding
debt including the bonds held by State
4, institutions, to theround sum OF so 0oo, 600.
Tho debt will never be larger than u
now is, and it Is being reduced s "a pldly
as possible, the present laws There
Z is no provision rs vet for sinking fund
Is although the revenue derived from The
dividend on 4,67o shares OF Richmond
Fredericksburg and Potomac Railroad:
stock owned by the State Is regularly
applied to5bthe liquidation OF the DEBT.
Under the century act OF 1892 between,
the years 1910 and 1899 a sinking fund
{ c,lual 20 one-half OF / per cent. of the
gross revenues of the state from, gear to
year win be created. After 1880 per
y cent. Inc
lie paid into the sinking fund.
Under e former act OF Legislature it
s was provided that e sum not exceeding
s1Ut Geo per month might be taken out OF
any. surplus in the State treasury for the
purpose of purchasing bonds. and the
plan was working admirably until the
meeting OF the Constitutional Conven-
1ion But on account OF the eStraordi-
nary expense OF that body and of the
several sessions OF the Legislature which
followed. as we'll as on account OF liberal
appropriations made in various direc-
& tons. .he surplus was largely absorbed
and there was little left to be applied
& TO the State debt. At that time bonds,
purchased we're taken over by the Board
OF Sinking Fund Commissioners. but not
cancelled, and at the suggestion Of Sec.
ond Auditor Dew. the Legislature enacted
law providing for the cancellation Of
all bonds purchased by the commission
ers. This act went into effect on March
g. 1904, and under 1t sl.3l3,0D of bonds
were cancelled on Wednesday last. This
is wise provision, and the State would
have been better off II such an act had
been in force from the start. 1t was also
provided In the original draft of the
bill that ashounts..not exceeding 60 per
cent. of the surplus revenues OF the. State
might be applied from year to year to
the purchase OF bonds. but by some over
sight this clause was omitted, and there
is now no provision OF law to use sur
plus revenues for this purpose.
However. Judge Dew Will request the
Legislature to amend in this particular
thinks 1t safe to say that lie will be able
to retire at least $4,000 OF State bonds
per annum until 1910, when the sinking
fund provision goes into effect. and that
after that time the debt will be lquidated
at even a greater rate.
This exhibit is not as good as could
be desired. But when it is remembered
that Virginia came out of the war over
whelmed with debt, and that for long
time she was not able to meet the in
terest upon It, that her credit was ruined,
and that the agitation Of the debt aues-
ton was almost equal to a revolution,
there is reason TO feel proud and graft
fled that tho debt Is no longer a source
of political trouble; that II Is no longer
an embarrassing burden that IL is being
gradually paid off. and that the bonds
Of the State although bearing a very
II low rate of interest, are selling nearly at
par. there Is cause of congralulation
and pride. Old Virginia forever.
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