The Sun.
London, England, 1867-04-23 00:00:00

VIRGINIA STATE DEBT.

We regret to find that the complete settlement of this
debt seems to be still in abeyance. There appears to be
every desire on the part of the Legislature and the people
generally to submit to almost any sacrifice rather than
lay themselves open to a charge of even partial repudia-
tion. The chief obstacle now seems to be the unwilling-
ness of Western Virginia to assume any portion of the
liability. What may be their reasons for declining to do
so we aro unable to say, but it certainly appears to us to
be unjust, that the old State should lose half its territory,
inhabited by one-third of the entire population, owning
25 per cent. in value of its real estate, and yet be burdened
with the whole debt. West Virginia was invited to
appoint commissioners to examine into the debt, and make
a fair appointment to each section, but hitherto, as far as
we can learn, they have either declined or omitted to do
so. Under these circumstances, the State Legislature
has passed the following Act to provide for payment of a
portion of the interest on the debt.

Whereas from the universal loss of property sustained
by the State in the late war, it is found impossible, under
present circumstances, to pay full interest' on the public
debt ; and whereas it is the' desire and purpose of the
General Assembly to make provision for paying the same
as fully as the resources of the State will warrant, there-
fore

Be it enacted by the General Assembly, that the ac-
counting officers of the Treasury pay, on the Ist day of
July, 1867, and January, 1868, 2 per cent. interest upon
the principal of the public debt of the State, excluding
therefrom the bonds given for interest on said debt under
the act of the General Assembly passed March 2d, 1866,
that being the interest which this State feels obliged to
Pay until there is a settlement of accounts between this
State and West Virginia.
2. Nothing in this act shall be construed as intending
to affect the constitutional .requirement providing for an
adjustment with the State of West Virginia of the propor-
tion of the public debt of Virginia proper to be borne by
the States of Virginia and West Virginia.
3. All necessary expenses incurred in carrying out the
provisions of this act shall be paid upon the warrant of
the auditor of public accounts drawn upon the public
Treasury, out of any money therein not otherwise appro-
priated.
4. This act shall be in force from its passage.

By this it will be seen that repudiation, as generally
understood, cannot with justice be chargeable on the
eastern portion of the State ; they are assuming their fair
proportion of the indebtedness, and as soon as West Vir-
ginia is willing to take the responsibility of their propor-
tion, we have little doubt the whole can and will be satis-
factorily arranged.
It appears to us, that not only principle, but policy,
dictates a speedy and entire settlement of the whole ques-
tion, as there can be little doubt that, for both State pur-
poses and private enterprise, large sums will be required,
which must be drawn either from New York or Europe,
and which would be obtained on much more favourable
terms if the old creditors' claims were previously ar-
ranged.
In January last a proposition was made by the auditor
of the State to resume payment of interest on a graduated
ri§ing wale, commencing at 3 per cent. and riOlig at speci-

fled intervals to 9 per cent., the whole payments averag-
big 7 per cent. for the thirty years for which the new
bonds would run. This scheme, however., was rejected.
Under all the circumstances of the case, we incline to
the opinion that English holders would not be in a worse
position by waiting the course of events for the next few
months, as neither the new interest bonds, nor the old
bonds, ex over-due coupons, are at present marketable
here.

The market in London for American securities since
our last of this day week has been firm in character, par-
ticipating only slightly in the disturbing influences which
have affected home securities. United States Six per
Cent. 5.20 Bonds are being steadily absorbed in moderate
amounts, the regular payment of each succeeding coupon,
and the flourishing state of the United States Govern-
ment exchequer tending to increase the popularity of these
bonds for investment ; they close at 711 to ex coupon.
Massachusetts Sterling Five per Cent. are rather firmer,
some considerable purchases having been made in view
of securing the May coupon just accruing.
The market for Erie shares has been very strong, large
purchases being made at about 38 ; they close slightly
easier at 374 to I. Illinois have remained steady from
76 to 77.

In Atlantic and Great Western Sectional Bonds there
is little or nothing doing, but transactions daily take place
in Consolidated Bonds—they have somewhat improved
during the week, closing at 22 to

7HE UNION PACIFIC RAILWAY.

(From the Anglo-American Times.)

On the 29th of last October General Palmer,
with a party of ten gentlemen, left Philadelphia for
the western end of the Union Pacific Railway, which
had then reached Fort Riley. The account of this
journey is given by one of the party in a series of
letters which were published by the American
newspaper press, and have now assumed the form
of a pamphet. There are two striking points of
interest about the journey, which extended, from
first to last, 3,000 miles. First, that it was per-
formed in the same car, which we believe to be the
greatest journey ever made in one railway carriage ;
second, that it carried the party to a prairie post
which but a short time before was known as a
mere. Indian fort —more suggestive, as Mr. Leland
says, of scalps and treaties than, of cheerful
jaunts- and treats—while this point is but a station
on what will soon be, par excellence, the high-
way of the world. From Philadelphia the party
proceeded to Pittsburg, by the splendid line of the
Central Pennsylvania, a distance of 355 miles ; to
Chicago, 468 ; to Quincy. (Illinois), 265 ; to St.
Joseph (Missouri), 208 ; to Western, 37 ; to Lea-
venworth, 6 ; to Lawrence, 30 ; to Fort Riley, 100.
This was the direct railway portion, making up
1,469 miles, without including a divergence from
Leavenworth to Kansas city, a distance of 87 miles,
or the onward progress to Fort Ellesworth, tra-
versed in ambulances or on horseback. In running
this car over so many lines one difficulty had to be
overcome ; the gauges of the different tracks are
not uniform. Both the Union Pacific Railway and
the Union Pacific Railroad, the Northern and
Southern lines from the Missouri to Denver, have
the same gauge of 4 feet 81 inches; as likewise the
Pennsylvania Central, and all the connecting roads
between Pittsburgh and Omaha. But the Pacific
Railroad of Missouri, being an erratic flight of
genius like the Great Western of England, has the
remarkable gauge of 5 feet 6 inches. Experienced
engineers believe that the 4 feet 81 inch gauge will
be that generally adopted by all railroads through-
out America. The Missouri line will be compelled
to lay down a third rail in the general gauge, pre-
cisely as the Great Western has done. There are
two other differences of gauge on the intermediate
and connecting roads which necessitate the running
of cars with the broad tread wheels, and by the use of
these wheels the party was enabled to get on without
change of car. Mr. Leland likens the railroad scheme
intended to connect San Francisco with the Mis-
souri, which means, to the Pacific States, the whole
Eastern World, for our West is their East, and our
East their West—to a pitchfork, of which the por-
tion west of the Rocky Mountains, the California
branch, forms the handle, and the other roads the
tines. The lines already in active course of forma-
tion are from Omaha westward, forming the Union
Pacific Railroad, and from Wyandotte westward,
forming the Union Pacific Railway (Eastern Divi-
sion), of which the former has made most progress ;
and, as we learn from a late statement in Congress,
is moving on at the rate of two miles a day. This
line is principally owned in New York and New
England, the other, in Pennsylvania and the ad-
jacent States. The President of the former was
General Dix, the Minister at Paris. The routes
East of the Missouri, with which the Omaha road
is in connection, are five.-1. The Cedar Rapids
and the Missouri River. 2. The Mississippi and
Missouri Railroad, which is the lowa arm of the
Chicago and Rock Island Railroad. 3. The
Burlington and Missouri River Railroad, which
is the lowa arm of Chicago, Burlington and
Quincy Railroad. 4. The Council Bluffs
and St. Joseph Railroad, connecting with the
Hannibal and St. Joseph, and Northern Mis-
souri from St. Louis. 5. The Dubuqne and
Sioux City Railroad, which is pointing that
way. Two of these connnections will probably be
made during the course of next summer. In addition
the American Central Railway has been projected,
which is to run on an air-line from Fort. Wayne to
Omaha. This is the Northern line, which will pro-
bably be in some slight degree impeded by the more
eevere climate during the winter months. The
Union Pacific Railway, although starting from
Wyandotte, has its real terminus in St. Louis, which
is now connected with Wyandotte, by the Pacific
Railroad of Missouri, built by a State organisation,
and which will, we believe, be transferred to the
company forming the Union Pacific Railway. That
line is complete and open to Fort Riley, and the
rails laid fur 30 mils west. Fifty miles were to
have been completed by the close of last year, but
though only 30 were actually finished, 60 miles
further, bad been graded. The road was workirg for
a distance of 172 miles, extending to Junction City,
three miles west of Fort Riley. Messrs. Shoemaker,
Miller, and Co., have contracted to finish 250 miles
by the 31st December next, which will leave less
than 200 miles to finish the line to Denver. The
following are the distances of the Eastern Divi-
sion. From Wyandotte to Lawrence, forty miles ;
Lawrence to Topeka, twenty-seven ; Topeka to
Manhattan, 51.; Manhattan to Junction City, 20;
Junction City to Denver, 463. When thispampblet
was printed last January, the railway had, as before
observed, been opened for 30 miles beyond Junction
City, which would leave 433, to complete the Eastern
division ; and if the contractors can accomplish the
undertaking in the time to which they have bound
themselves, more than half of the remaining dis-
tance will be finished, by.the end of the year. The
country over which this line will pass, is a bald
prairie, unlike- the level lands of Missouri, Illinois,
and other Central States. The latter are generally
level, while the country through which the
engineers are now penetrating, consists of gently
swelling lowlands, gradually rising in many places
to a high expanse called a divide, which again
settles down into numerous waves of small bills.
The sides of these hills have in many places been
washed away, forming ravines called capons, where
pools or streams are found. As the Smoky Hill
Fork is neared, patches of the crisp, moss-like grass
become frequent, on which the buffalo loves to feed.
The quantity of this grass in the neighbourhood
of the Smoky Hill has made that district the
best hunting-ground of the Indiana, and the
Cheyennes and the Kiowas are believed to
be banding with other tribes, to prevent the forma-
tion of this line. The greatest activity, enterprise,
and energy are developed as the line progresses.
Those who are forming the road have not to wait to
see the substantial results of the capital embarked.
Already, the Eastern Division, from Leavenworth
and Wyandotte to Fort Riley, is unable to supply
the demand for freight and passage. Every person
settled along the proposed route believes that the
line will be the making of his fortune. As it moves
on towns and ranches spring up by its side,
giving the best guarantee to the proprietors
of their own gain in the work. This is
the mere local traffic, as yet unconnected
with the magnificent commerce destined to glide
over this highway. The intense activity and inte-
rest excited by the formation of this line, springs
from a deeper source, than any mere local causes.
Both the people forming it, and the people settling
they are grouping
along -the route, believe, that