Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1874-11-27
SOUTHERN STATE DEBTS.
Che TnSifsIs PEorositioc-Saii
tory Results Reported.

tory Results ElcE:uEseG.
: Richmond correspondent tole-
graphs to the New York Her,td, under
date OF November 18th, the following
interesting communication:
Arrangements between the British
bondholders and tie Governor and
Treasurer Of Virginia, for tunGir- tIa
! present debt of this State, have ut i..sr
! been entered into with some s,.t;-fac-
tory results. The Legislature Of Tir-
! GINA, at its last session. appointed
| Governor kenper and III. T. II. T.
| Hunter, the Treasurer, commissioners
to confer with the cred tors Of Vir-
ginia to see if something could not be
| done to put her debt Oh g satisfactory
basis. Accordingly they Lad meet
| ing on the 10th instant, which result
ed in nothing. Since theD, and largely
owing to Governor kemper's cxertioDs,
al arrangement has been made hT the
| Virginia commissioners and the AmGri-
can Bond Funding and Banking 8sSo-
citation Limited, OF London, by which
the British association engages 10 Ie-
tire the present debt aad receive IN
lieu thereof bonds payable III thirty
years, with principal and interest pay
able IN London IN gold coin, the whole
to be secured by sinking fuod, and
the payment of interest, principal and
sinking fund to be taken out Of the
hands OF the Legislature and vested in
the Auditor, who can DO compelled to
levy and collect taxes to pay them bl
mapdamus in either State or Federav
Courts. The American Bond Fund
ing and Banking Association is backed
by the first capitalists OF Europe
Lord Northrook, chief Of the house Of
Barring Rothschild, Gilliat, Of Lon
don ; Hope, of Amsterdam, and S"lo-
mons, of London and New York. Il
has already made arrangements with
the Governors of Arkansas, MISSISSIPPI
pi, Alabama, South Caroline, North
Carolina and Virginia to accept its
proposition tc fund certain specified
portions of their public debt il bonds
payable IN London il gold coin, and
those Governors have undertaken to
recommend the measure TO their re
spective Legislatures.
The Governor OF Georges has reject
ed the proposition. and that State vii,
be left severely alone. In the opinion
of many the Legislature of North Car
O1lua Will uOI accept me terms pro
posed, because they will bind her to
pay, and put it IL the power OF the
bondholders. to collect their interest
and debt. Tie legislation provided to
secure the payment of the new bonds
has been prepared by counsel eminent
at the American ard English bar, and
is approved by Frederick Knapp, Ct
Berlin, who is the German authority
on American law, ard Mr.. Benjamin, OF
London. 1t is based on the decision
of the Supreme Court of tho Unite d
States in the case against the Western
cities and cJunties-Van Hoffman VS.
Quincy, Gepoke VS.. Dubuque-and
those adjudications which hold
that court has power to enforce the
collection of tax when the Leeisla-
ture has provided the necessary ma
chinery. The legislation by this assoc
citation docs provide necessary machin-
cry to secure the collection Of a tax.
whether a Legislature is willing or
not, and makes it contract, SO as TO
be irrepealable. Judge Thomas, Chair
nao of the Senate Committee GA FL
nance; Mr.. Coghill, Chairman Of the
Judiciary Committee; Judge Robert
Ould, of this city, and other leadi
members Of the Legislature, arc in
favor of the plan.