The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-03-03
RICHMOND, Va, March ., 1872.

RICHMOND, Va, March 2, 1872
Governor Walker to-day vetoed the act passed by
the General Assembly making gold and silver coin,
United States notes and notes OF the national banks
only receivable for taxes. He criticised the pro-
vision OF the act which legslates national bank
notes to the standard OF gold clothes them with
all the attributes OF legal tenders, and then puts
the question, mas the Legislature the power to re-
peal the provision of the Funding yet OF March,
1871, so as to affect the coupons already issueds
THIS ACT IS A COMPROMISE
with the creditors OF the State upon terms which
stipulated that Virginia should be held RESPONSE
BILE for one-third OF the debt except In accordance
with any settlement that might ne hereafter made
with West Virginia, and an extension OF
the time for the payment OF the other two
thirds to thlrty-four years, with interest PAYABLE
semiannually-the same rs the old bonds And as
an evidence OF their good faith, the State agreed
that the interest on the new bonds represented by
coupons should be receivable for taxes and after
maturity. The acceptance or this proposition OF the
State by the creditors completed a contract the
scope OF which was commensurate with the terms
proposed.
THE RECEIvABILITY OF THE COUPONS
Ior taxes was only ON those conditions. and
Tor IL Increased the certainly Of the prompt
payment OF the interest at maturity, and
constituted, therefore all additional nducement, Tor
tne creditor TO accept the compromise as sette-
ment proposed by the STATE. by making Tn
taxes the state not only offered an additional guar
antee OF the prompt payment thereof, but she IN
creased Its value In the hands OF the taxpayer TO
that or gold or legal tender notes. and removed 1t
beyond the
UNCERTAIN FLUCTUATIONS OF OUR CURRENCY.
While tins did not Increase her liability in the
slightest degree, 1t did materially enhance
the value OF her securities, and tended
10 strengthen her credit; and because
II added co the value OF the contract
u constitutes material portion thereof, and the
Legislature has no more power to repeal or nufy
IL IMAM any other part OF the obligation. The whole
proposition OF the state, Us embodied III the second
section or the acl or March, 1871, when accepted by
the creditor, constituted contract every provision
and element OF which, though varying In Importance
was nevertheless, In law, 0requa binding force and
validity, ana the least important provision can no
more be impaired by the Legislature tnan the
greatest. The Governor then reminds the Leglsla-
ture that the constitutional Inhibition against
THE VIOLATION Or CONTRACTS
originated under circumstances not diSslmllar from
these which now ObJain In this State, and says this
construction Of the constitution has been main
tanned ny long and unbroken line OF decisions,
applied to contracts both OF states and individuals.
After the reading OF the message In the House
vote to lay 1t on the table failed, and the law was
promptly passed over the veto by vote OF IS to D.
In the Senate the message was tabled, where II
Will probably remain TO the close OF the session.
The only hope OF settlement OF the debt question
now Is that both houses may agree Oh the pending
proposition to pay four per cent interest," In which
event the Senate Will sustain the repeal Of the cOu-
pom feature OF the Funding bill.