The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-12-02
VIRGINIA VI SHOULD
PURCHASE BONDS
Second Auditor Dew Thinks
Riddlebcrger Issue Ought 4
to Be Retired.
HIGH STANDING OF DEBT
Sinking Fund Has Cancelled
$4,000 During Past
Fiscal Year.

Acquisition by the State of por-
ton of the Riddleberger bonds in an
tlciDation Of their maturity is earn
esuy recommended by Second Auditor
John G. Dew in his annual report is
sued yesterday. The time of matu-
rty on these bonds is July /. 1882. Az
that period approaches. says the re-
port. the bonds Will enhance In value.
and Will be withheld from the market
awaiting the time when the outstand-
eng portion of the issue must be re-
deemed by the Commonwealth at par.
In View of this fact the Board of
Commissioners of the Sinking Fund
urges upon the General Assembly to
be authorized to trade any century
bonds purchased by the commissioners
for the sinking fund. for like amount
OF RiddleberEer bonds. 1t is further
recommended that 1T would be we'll
to allow all holders of Riddieberger
bonds TO surrender the same In OK
change for nequal number of CEN
tury bonds. Thus the difficulty sug-
gestcd would be avoided. and tho
whole Nebt of Virginia would be
merged into one class of bonds, which
should be satisfactory to the creditors
and would simplify the records per-
tanning to the same
NirEfnia'n Standing.
Every citizen of Virginia" COM
mcnts Judge Dew, must contemplate
with patriotic pride the present high
standard of Virginla's credit that her
bonded debt is no longer a political
issue dividing her people into bitter
factions. but has been, practically all
funded upon a basis mutually salts
factory to both debtor and creditors.
The bonds of the State of Virginia
are highly regarded in the markets OF
the country, and are eagerly sought
after by prudent Investors VINO look
rather to the safety of the security
than to the annual dividend to be de-
rived therefrom."
Attention Is called to the fact that
the non taxable feature of Virginia
bonds makes them the more attractive
in the money markets. as does the
further fact that by act OF the General
Assembly all fduciaries are author
lied TO make investments OF their trust
funds In these bonds, as safe and legal
and sufficiently protective OF the trusts
committed TO thoir charge. by this
enactment the State holds harmless all
fiduciarles who invest In her securities.
This policy has tended to centre the
bonds In the hands OF Nirginians. re-
tanning In circulation within the state
the interest paid on them. 1t is csti-
State debt Is held in Virginia.
a noticeable feature In connection
with the bonds is the fact that they
are being distributed more largely, for
the number of individual accounts with
holders has Increased within q few
years from 900 to LOO.
Handles Large Funds.
The several funds embraced In the
jurisdiction of the Second Auditor of
fr1i ~ = . q z
elusive Of the balance TO the credit of
current account, constituting large
and important fiduciary trust. In its
administration. and In the details in
cident thereto, the annual disburse-
ment of the funds through the office
amounts 10 100000.
The Second Auditor has supervision
of all matters pertaining to the public
debt. the sinking fund. and all re-
cords Of both; has the management
as accountant of the literary fund and
Its various branches with the custody
of it's securities; has the same juris-
diction of the retired teachers fund
and the entire management OF the
Miller fund.
During the past fiscal year the com
missioncrs of the sinking fund have
purchased sS010o Riddleberger and
$l40.600 century bonds. making with
Otner purchases and cancellations
total of Sll.63l,S9l.49. In addition to
these Cancelled bonds, the sinking fund
holds West Virginia certificates to the
amount of s2.745,46211, of which s71s.-
022.62 is the literary funds share.
West Virginia Unresponsive.
Commenting on the decree OF the
Supreme Court of the United States on
the State debt question. Judge Dew
SAYS: "Nor has West Virginia shown
any disposition TO adopt the sugges
ton of the court that the matter OF
interest should be adjusted between
the parties litigant."
The entire outstanding debt of Vir-
GINA on October l. 1911. was S25,159,-
1852. which includes s467.1lo.A2 OF
the old unfunded debt. The latter
amount is We fundablc under the act
of February 20, 1892.
State bonds held by the literary fund
amount to si.I62.S27.2S. The balance
of the retired teachers fund on Octo-
Der |. was s66.369.SS. The Miller
funds balance was s1s,245.s7 1t is
noted that the original gift OF Samuel
Miller. of sI,000,00o or less. has been
managed 50 that to-day the property
OF the school. with Its complete outfit
is worth sl.0o0.o00, with a safe en-
dowment fund of sl.44G,S6s.49. yield
ing an annual income of s7a.492.iS.