The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1870-06-17
State Credit.

. ~. n the very excellent recommends.
49,. ~ ~ Governor w AIxEa in the financial
nsrt Of his message was the making OF ths
n,nds Of the State uniform in style, anu III
.sa manner Of representing and collecting
,n,erest rpon them. He favored the co'l'
non bond, and justly commended thas .he
uniform coupon bond would not only DC a a
100. convenience to the holder, but wouid
he beneficial to the credit OF the sta.s'
A bin, IL not fully carrying out tne uo.
v.,nor,s recommendation, at least going I'M
towards Il. has been pending In the Les's'
,s,nre for a long time. 1t permits those
who hold registered bonds 60 convert them
into coupon bonds upon the payment oil
nominal tax, intended to detray tine eA.
nense Of the transmutation. Why shouio
On reasonable bill as this be retarded III It's
nassase through the LEGISLATURE IL Cal,
40 No harm. and must do great deal o.
GOOD. including that Of enhancing the cfeoi'
Of the State.
The quotation Of the old coupon bonds o.
VIRGINIA is $50, while the old registered
stands at S:,2. The difference in value Il
chiefly due to the difference in form OF the
two bonds. The coupons are convenient
They may be sold and passed from band te
hand, and may be used as collateral Tor loans
in any city in the Union. The registered
stock Is burthened with difficulties, so tina
the holder can do nothing promptly VIII
it. No man will buy the registered stocf
when he can get the coupon bond and I'M
buyer will readily pay the higher price foI
the coupon, which he can use with 1aclnty
rather than cumber himself with the regis
tered bond, which he can do little with save
10 hide it away in the iron chest, drawing
his semi-annual interest, when he can &c
SO, under the annoyance OF the careful
forms provided by law.
Now, should two creditors be made 10 oc'
cupy this distinct relation TO the Govern
mentp The State has had from each say
a hundred dollars. 1t compels one to hold
a form of security which is about twenty
three per cent. less valuable than that held
by another. Is that just? If the State en-
tered the market to borrow money now
would she attempt to borrow it upon the
registered bondY BY no means. what
sort of reason Is there, then, In booming a
creditor to the injustice OF holding bona
which she would not now issue on her own
account None whatever.
The registered bond is cancer upon the
public credit, and the quotation OF its daily
sale an injury to the good name of the
State. The wronged holders of the regis
tered stock have been anNiously waiting
for the passage of the bill to which we al
lude, and yet they are still waiting at near
the close of the session-the sufferers from
a partial and absurd policy which does no
good and seriously Injuries the State itself.
The holders of the registered bonds, who
seek the permission to convert their bonds
into the coupons, think hard Of it, and may
well suspect, as some of them do, that spec
ulators are helping to obstruct the passage
of the bill granting this permission. The
suspicion is rational enough when we see
how much might be made by buying upthe
registered bonds, and then by securing the
passage of the bin make as profit the differ.
ence in the value between the bonds they
have purchased and the coupons. Whether
such an influence has caused the delay or
not, it cannot be denied that the State
policy which suggests the making of money
through this great wrong to one class of
public creditors is grave offence against
morality and honor.