The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1872-12-16

The following docutheHt HIS HeNeI ap
,osrcd in print in this city, and in justice to
,,c holders of Virginia bonds in England
v,o give il place. II Is ali address prepared
=, committee and approved by the coun-
ri # Virginia houdhoIdcrs in their meeting
in palmcrston Buildings. London;
VIRGINIA BONDS,
Tho action ut the state Of Nirsinia III, re-
cSra "a the StAtt, creditors has been OF so
Ns,!aordiparv character, and bears with
<uch hardship upon the hondhcldcrs nj the
slmo time that il cannot fail to act preudi-
c.tliy upon the reputation and rreat St ~"
State Itself from the feeling K naturally en-
,4ndtrs In the minds Of European capitalists
~ want OF good faith on the part OF
sovereign State that ii would appear desira.
hge 70 placc upon record certaiu facsS IN eou
ucciion with tn" assurances Of the last two
,.,a--s - illustrative Of the disastrous results
10 the bondholders Of the most recent icglS-
niivc proceedings in this matter. and tc sub
nit the same tor the consideration Of the
council Of foreign hondho'dcrs in the hope
that they may see ut to intervene on behalf
ui the Nirginian hondholdrrS and bring
their influential aud powerful organization to
nrar upon the morale OF the question. or III
any other way that may TO them seem proper
towards influencing the Ntiie OF Virginia III
,joif.inL 4 more honorable and just course in
her dealings with the public creditor.
In illustration Of the hopeless condition Of
'lc bondhoGcrS M this tim" the following
rssi,,?{ oil wcii.knowu facts Is submitted:
After three years default in the payment
., interest on ihr bonds the Legislature
1t = I, ~ ..,,,.. az
i decided upon re>uminG payment and
!. - upon funding the arrears of interest
and adding 1t 10 the amount ot Indebtedness.
T. was however. at the same time deter
mind 70 reduce the amount Of each bond by
one-lhrd under the plausible pretcXt that
West Virginia should adopt, and would
ID -. their proportion of the state debt,
tl, this arrangement has resulted in both
sections of the State nov equally ignoring
al. liability therefor, while the unfortunate
pudhoider is lett without any apparent
mems OF redress against either party.
1t was enacted in the session Of lST0-'7l {:
First, That the aIrcar> II interest be funded
aud added 10 the amount OF the bonds.
second. That the amount of CJSh bond
h" reduced by onc-third.
Third, That six per cent. pcr annum be
mcncng from the lSt Of January, 1872.
Fourth, That the coupons be received in
g.yMcnt Of State taxes, dues, sc.
Fifth, That certificate be granted for the
cne-ihir6 of the debt which had been de-
Quoted, and upon which interest vas to be
deferred pending lis adoption by West Vir-
-1u!a.
Ibis arrangement was made without the
,.,, # tho hnnthAllers having hoo N
4,kcd or obtained. but it may be considered
= aCquic>ccd IN gcucrally, under the I'M
weston that it was perhaps the only feast
tie way Of obtaining any return for their
m9ncy. Nevertheless, the settlement of the
debit upon the basis could not he regarded
~ satisfactory 10 the State creditor, although
under tn" circumstances, where Virginia
v..> known to be but slowly recovering from
~" ruinous effects OF the civil war, ii was
.r>Ied as evidence Of 4 disposition to Ito
-,uvthiuX towards recovering her obiga-
tons ana it WAS looked urou rs Il first ill.,
st.ii.iicnt toward, u better state OF thing.
rdL,r than IN the light OF a hlnalty, mas
much ~ tie hUudho!GerS could admit no set
i.Dcnt a. conclusive to which their colicuc.
r,.ncc had not been formerly invited and OBJ
tanned.
lie moment il vas for.shadowcd by the
Governors address 10 tie Legislature i'll
l>rC-'Il that Virginia would resume pay
urui OF the iitelc.. on the debt The public
Inrud 1T once felt satisfied tha' the State Of
Virginia would be true To her past policy
and honorable untcCcdcntS, and that her Gre
I'LL Would again place her in the van oi those
Intelligent and healthy States forming the
American Union whose influence for good
~ for bad is ii matter for worldwide interest.
The effect upon public opinion was such
thIt 10 the course oil 4 few days Virginia stock
Io>c in this market some 20 per cent.
Before the arrangement made by the Lee
-;,iatilrc Of lS70-'TI could well take effect,
,ac session of lSiI-'I2 saw the act of the
previous year aunuled, and the undoing OF
~ tia; had been accomplished towards keep
ia- faith with the bondholderS by the pass
ing OF All act over the Governors veto Which
WAS virtual Reputation Of the States Obli-
-itionS, and has lad the effect OF throwing
virginia bonds out Of the market as a value.
less and unsuitable security. 1t may not he
inopportune TO remark here upon the states.
naulke aud patriotic bearing Of the Gov.
eruor thoughout the iInpolitic proceedings OF
The Legislature Of 1S71-'I2. His conduct,
hayin" for object the maintenance Of the
honor and credit of Virginia, and the uphold
IN. Of the laws of the United States as they
appv to the States obligations towards hel
creditors, has not failed 10 elicit the most un
gaaIticd approval of all riyht-thinklng minds
aad il is to be hoped that some rthcrcNprcs'
.ipu Of the high appreciation entertained OIL
lli> consistent aud honorable action may be
cuuycvcd TO him from this country ut 4 lifting
time.
The effect upon the bondholders OF the pro-
rccojngs in the legislative session OF ISL
49, is H. follows:
l. TO reduce the interest on the two-thirds
amount of bond from per cent. TO 1 per
cent. per annuln.
,. 10 still further reduce this amount by
The imposition OF Il tax OF per cent. on the
market value Of the bond.
3. 70 prohibit the payment into the trea.
s,ry OF coupons for State taxes, dues, &c, and
.ai the same time leaving the one-thlrd OF
the debt (aS reduced by the previous Lcgs.
lature) in the unsatisfactory condition OF
Icing recognized by neither section Of the
tate.
lnc bondholderS bow find themselves in
lie following position:
Instead OF the State paying interest on the
dcht MS originally contracted with the pub
lie namely, & per cent. on the market yallle
oi the hond-she elects, simply on the princi-
PIE Of force mojcure, TO pay as folloWs-yiz,
!! pyr cent. on tWo.thirds OF the debt, retain
iEg per cent. OF the same as tax on the
lIai i;ci value Of the BONG, and handing over
10 tie bondholder per cent. per annum,
which reduces his receipts from 81 to
ly3-I0O OIL the original amount Of his bond.
Wien from this is taken The loss on CONVEX
son from currency into gold, the difference
o. exchange between Ancrica and England,