Chap. 245.—An ACT to provide for the consolidation of the public
debt, and the payment of an uniform rate of interest thereupon.

Approved March 14, 1878.

Whereas this general assembly has expressed the belief
that the present rate of taxation is as high as can be borne
without destroying, or at least greatly impairing, the indus-
trial interests and recuperative power of the state; and
whereas the present general assembly was elected with
especial reference to a readjustment of the public debt of
the state, so that the interest may be punctually paid alike
on all classes of it without an increaso of the rate or aggre-
gate of taxation, so that said readjustment may be satisfac-
tory and final, and public agitation of the subject may cease;
and whereas the general assembly, recognizing its duty first
to preserve and ensure the continued existence of the state,
including the public free school system, is willing and anxious
to restore the former equality of all of the public creditors by
distributing, rateably, among them the entire excess of the
public revenues derived from the present rate of taxation,
after the most economical administration of the, state goy-
ernment consistent with the efficiency of the public service;
therefore,

1. Be it enacted by the general assembly of Virginia, That
the governor is hereby authorized to cause to be exchanged.
dollar for dollar, for the principal of each outstanding bond
of the state, issued under the acts approved March thirtieth,
eighteen hundred and seventy-one, and March seventh, eigh-
teen hundred and seventy-two, a registered bond, bearing
interest at the rate of three per centum per annum, for
eighteen years, and four per centum per annum for thirty-
two years, until paid, and exempt, both principal and inter.
est, from taxation by the state, or by any county or corpora-
tion therein, which shall be expressed on the face of the
bond; the interest payable semi-annually, on the first day of
January and July of each year, at the treasury, said bonds
to be dated on the first day of July, eighteen hundred and
seventy-eight, to be due and payable fifty years after date,
but redeemable after ten years, at the pleasure of the general
assembly: provided that no exchange of bonds, as herein
provided for, shall be made until the holders of not less than
fifteen millions of the tax-receivable coupon bonds of the
state shall have satisfied a board, consisting of the commis-
sioners of the sinking fund, together with the attorney-
general, of their readiness to make said exchange, and that,
for the purpose of said exchange, they bave deposited said
bonds with such agent or agents as may be satisfactory to
said board above named.

2. The owners of any other interest-bearing bonds of the
state, which are recognized by the constitution and laws as
legal, and which have not been funded under the aforemen-
tioned acts, may fund two-thirds of the amount thereof,
together with two-thirds of the unpaid interest accrued
thereon up to the first day of July, eighteen hundred and
seventy-one, in the bonds described in the first section of this
act; and the said owners may receive for the remaining one-
third of the principal ‘and interest, a certificate that said
amount is due and payable by the state of West Virginia,
and that payment cf the same bas been apportioned to the
said state of West Virginiain part settlement of the liability
of said state for the debt of the commonwealth of Virginia,
as it was at the time of the contracting of the said debt:
provided that no such bonds and no such certificates shall be
issued, as in this section provided, except and until the owner
or owners, or his or their authorized agent, shall enter in a
book to be kept tor that purpose, and acknowledge before
the second auditor that he or they do release, and forever
quit claim and discharge the commonwealth of Virginia from
all liability for said remaining one-third, and it shall be the
duty of the second auditor to countersign and preserve such
entry and acknowledgment.

3. The treasurer shall issue and register non- interest-bear-
ing certificates for the amount of the accrued and unpaid
interest up to July first, eighteen hundred and seventy-eight,
upen all classes of the debt exchanged under this act, to the
parties entitled thereto, which shall be redeemable at the
pleasure of the general assembly, and to be so expressed on
the face of the certificate: and provided further, in regard
to the bonds allowed to be funded under the second section
of this act, that such non-interest-bearing certificates shall
Be issued tor two-thirds only of the unpaid interest accrued
thereupon between the first day of July, eighteen hundred
and seventy-one, and the first day of July, eighteen hundred
and seventy-cight, and for the remaining one-third a certifi-
cate may be issued apportionirg said amounts to the state of
West Virginia, as in said second section is provided.

4. The rules prescribed in the act approved March thir-
tieth, eighteen bundred and seventy-one, in respect to pre-
paring, signing, and issuing the new bonds and certificates,
regulating the same, and in taking in, cancelling, and regis-
tering the old bonds, shall be observed by the officers of the
treasury in the execution of this act, except so far as the
same be modified by the provisions of this act: provided
that all parts of such bonds and certificates as may be neces-
sary to be printed, shall be printed from a plate which shall
be the property of the commonwealth, and shall remain in
the keeping or under the control of the second auditor: and
provided further, that the whole amount of bonds so printed,
or in any manner prepared, shall in no case exceed the
amount of twenty-nine millions three hundred and fifty
thousand and twenty-six dollars and thirty-eight cents, and
also one million four hundred and twenty-eight thouxand
two hundred and forty-five dollars and twenty-five cents, due
to the literary fund—a total of thirty millions seven bundred
and seventy-nine thousand and seventy-one dollars and sixty-
three cents: provided that in the distribution of the twenty-
nine millions three hundred and fifty thousand eight bun-
dred and twenty-six dollars and thirty-eight cents among the
holders of the evidences of the public debt of the state, the
said board shall be careful to have restored the original
equality of all the public creditors.

5. Executors, administrators, or others acting in a fiduciary
capacity, may make the exchange of bonds herein author-
ized, and the same shall be deemed a lawfut investment.

6. The treasurer shal], upon the first days of January and
July, eighteen hundred and seventy-nine, and upon the same
days in ‘each year thereafter, pay to the holders thereof the
semi-annual interest then due upon each of the bonds of the
commonwealth authorized to be issued by this act.

7. All bonds retired or redeemed under this act, shall be
cancelled by perforating and mutilating, and by the written
cancellation of the second auditor across the face of the
same, in the presence of the commissioners of the sinking
tund, who shall cause the bonds so cancelled, to be filed by
the treasurer in a suitable depository, and shall record their
proceedings in a book showing the number and amount
thereof.

8. The governor shall, by proclamation, give notice of the
provisions of this act, inviting all the holders of Virginia
securities to make the exchange herein provided.

9. This act shall be in force from its passage.