The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1875-07-01
[From New York Tribune.
virginia Finances


THE STATE JUSTLY CHARGED WITH UN-
FAfTHFULNESS TO HER ENG AGEMENTS-
PARTIAL REPUTATION BY ALL THE
STATES EXCEPT MAssA CIusETTs AND
CALIFORNIA.
70 tie Editor Of the Tribune:
SIR-Prior to 1861 the credit OF no State in
the Union was better in England than that OF
Virginia. aud she had availed herself of that
credit to liberal extent, for the construction
OF works which she was unable to construct
without borrowing, and which were greatly
needed for the development OF her almost
boundless resources. Relations Of all espe-
cialiy cordial nature had always existed be-
tween the people of England and the people
Of Virginia. One part Of what subsequently
became the United States had been settled by
the Puritans, another by the Dutch, another
by the Quakers and Germans, here the SPAIN
ards, and there the French, had attempted to
colonize; Virginia alone vas settled by the
English, who named the colony in honor of
Engand's maiden Queen. Virginia was es-
pecially an English colony, and up to the Rev
olntion it was the pet celony' of the Eng
fish aristocracy. The Revolution, although it
severed the political ties, did not sever the So
cial ties, that bound her to the mother coun-
try. The people of Virginia, in their habits
and tastes, i'll their domestic economy. and
even in their forms of religious worship, were
pre-eminently English, and although none Of
the colonlsts were more outspoken and elo-
quent in their denuncfations of the aggressions
OF the Throne Than We're her fearless and elo-
quent sons, although no soldiers were Drawer
or more determined and persistent in their re-
sl5tance to British power than those whom she
sent to the field with Washington at their head,
there has always existed q stronger attach
ment on the part of the ruling classes in Eng
land to Virginia than to any other State.
1t was doubtless owing to this fact that
large amounts of Virginia bonds were pur-
chased by English investors. During the late
civil war, the payment Of interest on her
bonds was suspended, and, as she was known
! to have been the great battlefield of the war
and to have been terribly devastated by both
the Federal and Confederate armies, the Eng
fish holders of her bonds
MATTED PATIENTLY FOR NUMBER OF
YEARS
for the resumption OF interest payments
They knew that she was great State, lying
upon the ocean, penetrated by noble rivers,
with genial climate, and Astounding in natural
| resources, but they knew also that her means
had been wasted by the protracted war; and,
relying upon her recuperative power and her
faith, they hesitated for long period to urge
the payment of their claims. At length
when forbear;lnce seemed no longer a duty.
cooperating with other creditors, they asked
that payment should be no longer delayed,
and negotiations were entered into between
the representatives Of tine bond holders and
the representatives OF the State. which resal-
| ted in the passage by the General Assembly OF
what is known as the funding act. BY this
act The officers Of the State were authorized to
| issue new bonds, the interes. on which should
be receivable for taxes, for two-thrds of the
principal and accrued interest Of the old ones,
and certificates for the other third. These
certificates represented what was regarded by
the General Assembly as the part Of the State
debt which ought in justice to
BE ASSUMED BY WEST VIRGINIA.
which had been carved out Of the Old Domin-
ion soon after thc.commencement of the war,
but as the new State had declined to acknowl-
edge any obligation to assume the payment OF
any portion of the State debt, on the ground
that no part of the public works. for the con-
strllction of which the debt had been contr.c-
ted, was included within her boundaries these
certificates Wee considered by both Virginia
and the creditors who We're to receive them in
satisfaction Of one-t1ird part Of their claims,
as being of but little value.
This compromise. although not regarded
with favor by a .ajority of English creditors,
was nevertheless accepted by them as 4 def
mite settlement Of their claims, and one which,
under the circumstances, was not discredita-
Bile to the State. AS soon rs the provisions OF
! the act and the ways and means sof proceed
| ing under it were understood, thesWorl of for
warding their bonds for conversion, although
it was attended with considerable trouble and
| expense, was commenced and continued by
the holders until the next session OF the Gen
eral Assembly. when q considerable amount
| being in transitu, some tWo-thr(s only of the
bonds having been funGed, that part OF the
! Funding act which authorized the issue OF
bonds. the coupons OF which We're to be re-
celvable for taxes, was promptly repealed, and
funding was virtually suspended. At the
same fine, the officers Of the State were pro-
/ hib;ted from receiving in payment Of taxes the
coupons which upon their face were express
ly made receivable for taxes, nor were they sc
received until after the courts of the State had
decided that they were issued under contract
between the State and the bondhoders which
the Legislature had no right to rescind. The
result is that the State has two classes of cred
/ itor hondholders instead OF one, the larger
class holding bonds, the coupons of which are
receivable for taxes, but are not cashed at the
Treasury, the smaller class holding bonds, the
coupons of which are not receivable for taxes.
and ON which nothing is being paid. Oh
course
ALL PARTIES ARE DISSATISFIED.
| The State is dissatisfied because a part of ief
creditors stand on different footing from the
others. The holder OF the taX-receivable cou-
polls are dissatisfied because as the coupons
which they hold are only available to tax-pay-
ers, they are compelled to part with them at a
heavy discount. The holders of the bonds the
coupons Of which are not receivable for taxes
are not only dissatisfied, but they are indiy.
nant at the injustice to which they are being
subjected in receiving nothing, while othel
creditors, more active and vigiant, perhaps.
certainly more fortunate than themselves, are
being partially paid. Virginia is in many i'm
portant respects one of the most inviting States
in the Union to the better class Of English EN-,
igrants, but this class will be repealed from hel
| borders SO long as she fails to make q satisfac-
| tory arrangement with her dissatisfied credi-
tors. Looking only to the question in Il pecu.
MARY point CT view, aside entirely from the
moral obligations Which she is under to hel
creditors, Virginia is making a capital mis-
| take in permitting her former good name to bt
thus furnished in the house Of her frinds. Nc
State is in greater need OF emigration ant
capital, and these will go to her very slowly as
long as she can be justly charged with unfaith-
fitness to her engagements.
have spoken OF Indiana in my last letter
and of Virginia at this time, because the for
i mer is the only ore Of the Northern States. il
am not misinformed, whose matured obl9l
tions have not been redeemed in full, and be-
| cluse the latter is one OF the most prominent
OF the Southern States, and because her deal
inos with her creditors have, as has been sta
ted. created more distrust of American iegis-
lation and American credit than the course Of
any other single State. say this from no
UNFRTENDLY FEELING TOWARD VIRGINIA.
/ for have the sinceIeSt regard for her. Nc
American ever forgets that TO Virginia are the
United Sfatesintlebted for Patrick Henry fol
the Randolpls, the Lees. for jefferson and
Madison, and other illustrious names whicl
adorn the history Of the United States. Nc
reader Of history anywhere forgets that te