The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1871-12-09
yyr.tnia's Debt ana Our Relations
To IL.

We print this morning another interest
ing letter from our correspondent "C." on
the subject of the Virginia debt. The obl-
CATION assumed by Virgins to the creditors
in the "funding BILL" and the .grievous
burden 1t imposes on Virginia in her pres.
ent condition, are explained in very for
chile and perSpicuous way, that would be
even more interesting to Virginia readers
than to our own. In regard TO West Nir-
Virginia, we do not see them in quite the
same light as "C.," if we understand his
suggestions on that point. He says "The
new contract superseded the old one, and
thereby released West Virginia from liabll-
ity. Virginia in binding herself has re-
leased us as TO all her debt save this defer
red one.third." Our understanding Of the
case is this: that the new contract, as Mr..
&C." states it, has superseded the old one;
but that the new CONTRACT embraces The
whole debt. Virginia took upon herself
settlement of the whole. For two-thirds
of it she gives new bonds for the other
third she gives q certificate Of indebted
ness, which she buds herself to replace
with bond when settlement between
herself and West Virginia has been effect
ed. The creditors surrender the old bonds
and accept instead these new bonds and
certificates. They accept Virgtnlas obl-
cations for the whole, two-thirds being, as
we may say, present, and one'thlrd de-
terred obligation. Thus, taking Virginia
alone for the entire debt, the creditors give
no their right to look to West Virginia for
any part of it. The only relation West
Virginia now has to them IS that the time
when they will get Nirgnia's bonds for
their deferred one-third will depend on
when We settle with Virginia.
But there has been no change In the OBJ
legation of this State to Virginia. We are
exactly as much bound as before to settle
with her for our equitable proportion OF
the debt whenever she Is ready to settle.
Her action in funding the interest that
accrued during the war, and thus swelling
the debt some eleven millions above what
it was in 1850, may complicate that settle
ment. 1t Is held by some that interest on
public debt, under the common law of
nations, cannot be claimed for the time the
debtor was engaged in war; but to release
Us from our part of that interest 1t will
have TO be shown that State in Insured.
| tion Is such party to war as Is contem-
plated by that rule. We do not believe 1t
can be shown. But whatever may be the
! details or difficulties of our settlement with
Virginia, that settlement must be maze
| whenever she demands it, and in that set
| tlement we must account to her for an
| equitable share Of the debt, for the whole
| of which she has bound herself to the
creditors.
II Virginia does not choose to ask us for
a settlement, we have no interest In forcing
one on her unless we think there would be
| Il balancc in our favor. She may not choose
to * for one. She may lind (and certainly
| wilD that what she would get from us would
not be composition for funding the remaln
| ing one-third, and she may choose to post
pone funding it indefinitely by deferring hel
settlement with West Virginia. This view
OF the case mas apparently presented itsel
to the present authorities Of Virginia, auG
that may explain their Indifference about
responding to the action of this State in ap
pointing commissioners. For the future We
should not be surprised If Virginla's policy
| in reference to n settlement with us would
be one of mastery inactivity. 1t will b