The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1872-01-02
One Republican Paper Denounces Re-
pudiaiion.
1r-a,,, tin I ,-r,cI,hnrn Press of Saturday.
STATE REPUTATION.

STATE REPUTATION.
The great question Of the day In Virginia
Is that Of Reputation. The Legislature has
embarked upon policy which, if not actual
repudiation, looks to that result. 1t IS a
question powerfully agitatiug the public
mind, and, towering above party issues, has
already split both parties in Virginia in twain.
While the funding act Of the last LeSisl&-
lure was measure open for discussion, we
stated and published the current objections
to it. 1t was, indeed, open to many o4Jec-
tions. When it was before the Legislature
the Republican members of that body voted
against each and every one Of its sections:
But they were in powerlcss minority, ana
they were bound, under the Constitution OF
the State, to vote for some measure in support
of the State credit. So, when the funding
bill was finally presented to them as shaped
by the majority Of the Legislature, having
been unable to procure such amendments as
they desired, they voted for it. .-..
During the late canvas before the NoVem-
her election the Republican party felt 1t was
legitimate to criticize this bill, and to avail
itself Of al the political capital which an eX-
position of its defects might bring them. But
since then the creditors Of the State to the
amount of thirty millions Of dollars have
complied with the terms of the funding act.
They have come in, surrendcring their orlgi-
nal bonds calling for dollar for dollar, ana
accepted the consolidated bonds of The state
for two-thirds Of their claims, receiving one
third il dead certificates, payable not until
settlement with West Virginia has been had.
The funding act has thus become con-
tract between the State and the holders OF
this thirty millions of bonds and certificates.
Being q contract, the Constitution OF the
United Statas puts it beyond the power of
the State to rescind it. Any bondhOldcr can
enforce the execution of the contract by the
State in the courts of the United States
against the States financial officers.
Besides being contract which the State
has no power to violate, the funding act
pledges the faith of the State to the bond
holders. This is a sacred pledge, which the
State would dishonor herself by repudiating.
She not only may be compelled to pay by
proceedings taken against her financial OIL
GERS, but she is bound to pay by her pliShtcd
word. NoJlcssc o6lige, honor compels more
cogcntly than the law. She cannot with
honor evaGe hcrjust obligations and lier writ
ten pledges.
The funding act, therefore, has become
identical with the good faith of the state: 1t
cannot be assailcd. 1t cannot be craded. 1t
is the law of Virginia. TO set it aside is to
repudate. That is the fact of the case.
Now, State credit is something more Than
an affair of the State in its public character.
| If the State rcpudiatcS her debt she not only
ruins her own credit, but she destroys that
of all her public and private corporations
and individual citizens III the money markets
abroad. Let the State refuse to comply WITH
! her promises to capitalists beyond her Dor
| h. ,,r;fnli.ts ,y-in 1ll
dealings with herself and with her people.
They will cease to touch anything, however
good and apparently safe, offered from those
States. Thus the public Of Virginia have Il
deep interest in the maintenance Of the State
credit.
We, therefore, feel bound to raise our voice
against reputation. 1t must not be. There
| is too much of character and too much pecunl-
arv interest involved in this duty ofupholdlng
the States good faith. We call upon the Re-
publican members of the Legislature to frown
down and oppose all measures looking to re-
pudiation. The Republican party of this ma
| ton cannot afford to tolerate reputation III
any form in any State. 1t is bond-paylns
party. 1t is u dcbt-payinS party. 1t is an
anti-repudiation party.
Much harm has been done by the action
already taken by the Legislature on this SUBJ
ject. Virginia bonds have fallen in the mar
kets nearly twenty percent. since the meeting
of the Legislature. The action Of that body
has deprecated the property of the State:
creditors from five to eight millions of dollars
This is wonton wrong. 1t is wrong which
no Virginia Legislature should have inflicted
on the class who have reposed faith in the
States sense Of honor. We trust that tho
wrong will be repaired as soon as possible
after the meeting OF the Legislature. There
is enough money in the Treasury to meet the
january interest due, and there will bt
enough, or nearly, to meet the July interest
Let the Legislature at once order the pay
ment of the January interest and pledge TIT
payment of the July.
Above ali, let the members set their face
against Reputation. Reputation is wrong
aud dishonorable; and though it may appa
renty suit the temper of the hour, it cannot
wear. Before very long the right will tri
umph; Reputation will itself be repudiated
and the men who eSpoused it will fall int
deserved disrepute. We call upon all goot
men in the State to set their faces against re
inhibition and reDudiatorS.