New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-06-23
VIRGINIA FINANCES.
SIXTH LETTER FROM Ex-sECRETARY
MCCULLOCH.

THE STATE JUSTLY CHARGED WITH UNYAfTHFULSHse
TO HER ESGAGEMESTs-PARTIAL REPUTATION
ny ALL THE STATES EXCEPT MASSACHUSETTS,
AND CALIFORNIA.
TO the Editor Of The Trfbhne'
SIR: Prior to 1861 tho credit OF no State In the
Union was better in In gland than that OF Virginia
and she had ayaed 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 al
most boundless resources. Relations of an especially
cordial nature had always existed between the peo-
ple of England and thu people of Virginia One part
of what subsequently became the United States had
heen settled by the Puritans, another by the Dutch.
another by the Quakers and Germans, here the Span
srds and there the French had attemptedto colonzo
virginia alono was settled by the English, who
named tho colony in honor OF Engiands maiden
Queen. Virginia especially an Engiish colony.
and IN to the Revolution it was the pet colony" OF
the English aristocracy. The Revolution, although
il severed the political ties did not sever the Social
ties. that bound her to tho Mother Country. Tho
people of Virginia, in their habits and tastes IN Their
domestic economy, and evenin their forms religious
Worship were prominently English, ana aithongh
none of the cOonists were moro outspoken and elo-
auent in their denunciations of tho aggressonso OF
the Throne than were her fearless and eloquent
SONS although no soldiers were Drawer or more do
tcrmined and persistent in their resistance To BRUSH
power than those which she sent to the field with
Washington at their head there has always existed
q stronger attachment on the part OF the ruling
classes in England, to Virginia, than to any other
State
1t was doubtless owing TO this fact that large
amounts of Virginia bonds were purchased oy
English investors. During the late civil war; the
payment of interest on her bonds was suspended
L.. t.h hoo la
field of tho war; and to have been terribly devastated
by both the Federal and Confederate armies, tho
English holders of her bonds waited patiently fora
number of years for the resumption OF interest pay
ments. They know that she was great state lying
upon the ocean, penetrated by noble rivers, WIN
genial climate, and Astounding natural resources.
but they knew also that her means had been wasted
by the protracted war; and relying upon her recu-
peratiye power and her faith, they heststed Tor .
long period to urge the payment OF their ciaims
At length, when fOrbearance seemed no longer
duty, cooperating with other creditors they asked
that payment should be no longer delayed, and
negotiations were entered into between the repro
sentatiyes of the bondholders and the representa-
tyes of the State which resulted in the passage by
the General Assembly of what is known as tho
Funding act BY this act the officers OF the state
were authorized to issue new bonds, tho interest on
which should be receivable for taxes for two-thirM
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 the part OF the state deos
which ought in justice to be assumed by Wost VIZ
| oinia. which had been carved out OF the Old Do
minion soon after the commencement OF the war;
| but as the new State'had declined to acknowledge
| any obligation to assume the payment OF any por-
ton of the State debt the ground that no part OF
the pubc works. for the construction of which tho
debt had been contracted, was included within her
boundaries these certificates were considered ooth
by gna and the creditors who were to receive
them in satisfaction of One-third part Of Their calma.
as being of but little value.
This compromise, although not regarded with
favor by a majority of English creditors, was
| nevertheless accepted by them as dehnito
settlement of their claims, and one when I'M
der the circumstances not discreditable TO
the State. AS soon the PROVISIONS OF tho
act and the ways and means of proceeding undert
were understood. tho work of forwarding their
bonds for conversion although it was attended with
considerable trouble and expense. was commenced
and continued by the holders until tho next session
| of the General Assembly, when a considerable
amount being in tran5itu, some two-thirds only OF
the bonds having been funded, that part of the Fund
| ing act which authorized the issue OF bonds tho
coupons of which to be receivable for taxes.
was promptly repealed, and funding was
virtually suspended At the same time, tho
| officers of the State were prohibited from
receiving in payment of taxes the coupons which
upon their face expressly made receivable for
taxes, nor were they received until after tho
coprts of the State had decided that they issued
| under n contract between the State and the bond
holders which the LEGISLATURE had no right to re-
scind The result is that tho State has two classes
of Observation-Disclosures instead of one, the larger
class holding bonds the coupons of which are rccciy-
able for taxes but are not cashed at the Treasury.
the smaller class holding bonds the coupons of which
| ne not receivable for taxes, and on which nothing
is being paid OF course al parties dissatisfied.
The State is dissatisfied because partOf her credit
| ors stand Oh u different footing from the Others
The holders OF the taXrccciyabe coupons are dssat-
istied because as the coupons which they hold arc
only available to Taxpayers, they arc compelled TO
part with them at a heavy discount. The holders OF
the bonds tho coupons of which are not receivable
for taxes not only dissatisfied but they are IN
dgnant at the Injustice to which they are being sub
jccted in receiving nothing, while other creditons
more active and vigilaut, perhaps, certainly moro
fortunate than themselves are being partially paid
| Virginia is in many important respects one Oh
the most inviting States in the Union TO the bet
ter class of English cmTants, but this class will be
repelcd from her borders so long she fails 10 make
q satisfactory arrangement with her dissatisfied
creditors. Looking only to the question IN pecu-
MARY point Of view, aside entirely nom the moral
obligations which she is under to her creditors, VIZ
gnia is making capital mistake in permitting hof
former good name TO be thus furnished in the house
of her friends No state is in greater need of cmi
grafton and capital. and these will go to her very
slowly long as she can be justly charged "ih un-
=. Il. hop attsotfa