Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1874-12-10
considerably enhanced in market va

PatS PAoI'OrStA ny the COlrsCiVHeC lily
nature of a contract between the State
and the public creditors, or any large
portion Of them, then to the extent Of
such re-adjustmenls it will duly proper
ton our present liabilities to our press
ent resources; and it will postpone the
residue of unpaid interest until the in
creasing ability of the State shall be
sufficient to meet it, 1t is recommend
ed that effect be given to this plan by
appropriate enactment. to continue IN
operation unless, and until, it may be
superseded by any still better adjust
meBt.
! DECENTRALIZATION OF THIS DEBT.
A recent correspondence between
this Office and the accredited agent of
the American Bond Funding and Bank
ing Association, limited. of London, is
herewith communicated. 1t will be
seen that the association offer to retire
and recapitalize the newly assumed
debt proper in new uniform obligations,
payable in thirty years, and bearing an
annual interest of four per cen,um,
sterling. The details of the plan are
embodied in the draft of bill which
forms part of the. correspondence. They
| are stringent, and without doubt would
ensure punottal compliance with the
new obligations. OF course the bill
should be- amended in many minor
paticulars such as the one suhjectin.g
the State to suit in aeFederal court, and
others which might be mentioned
But its provisions, Being thus amended,
involve no Important stipulations, no
REIMBURSEMENT Of authority, no RENE
! dies against the State, for precedents
may not be found i'll the habi'ual leg
islation of the past.
| My own information is not such as
to warrant the expression of any posi-
tive opinion as to the nature and chars
acter Of this association, or as to its
ati!iiy to carry the proposed plan into
successful execution The plan itself is
in my Judgment, just and expedient,
and with proper amendments it ought
TO be adopted, provided its propounders
shall first clearly and conclusively show
that they are able to accomplish it and
ought to be entrusted with it.
1t is submitted that ii this particular
offer is not accepted, the Executive
should be clothed witt, authority to
contract with amy other parties, OF I'M
I doubted responsibility, for the retire
ment of the debt on terms not less fay
urable to the Commonwealth than those
now proposed. with the amendments
suggested. Reason exists for the hope
that such an adjustment Of the debt can
be effected.
If creditors surrender the bonds they
now hold on the terms proposed. they
would receive good aud valuable con
sideration for the surrender They
! would receive bonds with far better
security and greater market value than
those they now hold. They would
receive the full interest agreed on, With
certainty and punctuality; whereas they
now receive but part OF the agreed
| interest-With constant uncertainty and
ifregularily.
/ On the other hand, such an arrange
ment would ultimately and largely re-
| lieve the State Of hurthpns which are
greater than can be carried st this time
while it would subject the State to no
! greater Immediate bligstions than can
be met 10y the due exertion of its tax
able resources in conjunction with a
rigid economy of administration 1t is
il vain to argue that this arrangement
ties up our hands Our hands are
worse tied mp already. t unties and
relieves us of the most dis istrous en-
tanulements in which our finances were
ever involved 1t substitutes new Oh
legations which we can perform, for
existing obligations which We cannot
now perform.
In an important sense, the State has
now reached the crisis of its fortunes
We cannot longer postpone the iiievl
table task Of graphing decisively with
the financial problem. 1t must be mas
tered by a solution which will settle it
at once and forever No disposition of
the public indebiedn SIS, short of the
dreadful alternative Of reputation, can
well be worse Or more obnoxious 10
ali concerned that the present Enter
prlses OF great magnitude. capable OF
I developing dormant but vast resources
within the State, are now paralyZed by
such continued financial throes as alarm
capital. The tax receivable coupons.
while wholly unsatisfactory to creditors
! vho really holdsthe as an investment.
are fast becoming mere pabuum tor
| vieices speculation and stock iobhing
among oar owD people. They are be
ing bought up aud thrust upon the
treasury, in large amounts, at the most
/ inopportune periods Of each fiscal year
and thus they periodically threaten 10
suspend the operations Of the govern
ment; and their further effect is to
create. in our midst combinations III
terested in resisting any reimbursement
of the debt If we further postpone Il
| financial settlement, we engender such
internal difficulties and. agitations as
may be strong enough to tear the vitals
of The State Delay, in making an adj
r,stment, Of itself iaul,iplies obstacles
in the ways4 Of; the adjustment. a
promp. and decisive adjustment brings
order out Of chaos, epose out of strife,
! and Of its own.viaos enables the State
to fulfil the adjustment
When, at the beginning Of your
present biennial terln, you assumed tn.
aw making power, You f.und-t1r ths
first time i'll the history of the Common
wealth-its ability to MAINTAIN its ex
istepce imperiled; its finances in coniH
sion; its credit PROSTATE AT home and
abroad; its integrity aspersed; its bonds
d shonored in the markets of the world
A golden opportunity invites you 10
I,rir, III. paunanf IF the InIlilic dphf