Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1875-06-24
Virginia Finances.

The sixth letter from ex.Secretary McCul-
loeb, published 10 the New York Tribune, is
devoted to Virginia 6uancrs. After promising
that prior tn 1861 The credit Of 40 one State in
the Union was better iu England than that of
Virginia, and she had availed herself of that
credit to liberal extent for the construction of
public works, and after speaking Of the strong
attachment felt to Virginia by the ruling
classes 10 England, Mr.. McCuoch says that,
as she was known to have suffered severely by
the late civil war, the English bopdholders
waited patiently for nuuber of years for the
resumption of interest payments. He then
proceeds:
"At eugtb, when iorbearaucc seemed no
Logger duty, cooperating with oiher creditors,
they asked that payment should be no longer
DELAYED, and negotiations were entered into be-
tween the representatives OF the boudhulders
and the representatives of the State, which re-
suited 10 the passage by the General Assembly
OF what il known as the funding act. By this
act the officers of the State were authorized to
issue new bonds, the interest on which should
be receivable for taxes for two-thlrds OF the
principal and accrued interest OF the old ones,
and certificates for the other third. These GER
lifcatcs represented what WINS regarded by the
General Assembly as the part OF the State debt
which ought IN justice to be assumed by W est
Virginia, which had been carved out Of the
Cd Dominion 5000 after the commencement OF
| the war, but as the new State had declined to
acknowlcdgeany obligation to assume the pay
ueut of any portion of the State debt, on the
ground that no part of the public works, tor the
| construction Of which the debt had been con-
| traced was Included within her boundaries,
| these certificates were considered both by Elr-
| GINA and the creditors who were to receive
| them 10 satisfaction of one third part OF their
claims as being of but little value.
"rhis compromise, although not regarded
with favor by majority of English creditors,
| was nevertheless accepted by them az defiuite
| settlement Of their claims, and one which under
| the circumstances was not dlscrcdIlable to the
State. As soon as the provisions Of the act and
the Ways ADD means Of proceeding uuder 1t
| were understood, the work Of forwarding their
| bonds for conversion, although it was attended
| with considerable trouble and expense, was
commenced aud continued by the holders until
| the ucxt session of the General Assembly,
| when considerable amount being in transitu,
some twu-thirds ouly of the bonds having been
| funded, that part Of the funding act which
|
| which were to be receivable for taxes, was
promptly repealed, and funding was virtually
| suspended. At the same time the officers OF
the State were prohibited FROM receiving IN
payment Of taxes the. coupons which upon their
! face were expressly made receivable tor taxes,
nor were they so received until after the courts
Of the State decided that they we're issued un-
| der contract between the State aud the bond
| holders which the Legislature had 90 right TO
rescind. The result is that the State has TWO
classes OF creditor bondholders Instead OF one,
| the larger class holding bonds the coupons oil
| which are receivable for taxes, but are not
cashed at the treasury, the smaller class hold
| ing bonds the coupons Of which arc not rscclv-
| able for taxes and on which nothing Is being
paid Of course all parties are dissatisfied.
| The State is dissatisfied because part OF her
creditors stand on different footing from the
others. The holders Of the TAX receivable cou-
pons are dissatisfied because as the coupons
Which they hold are only available to taxpayers,
they are compelled TO part with them at a heavy
discount. The holders of the bonds the cou,
pons of which are DOL receivable for taxes are
not only dissatisfied, but they are Indignant at
the Injustice to which they are being sui jrcted
10 receiving nothing, willie other creditors,
more active and vlgllant, perhaps, certainly
more fortunate than themselves, are being par
italy paid Virginia is in many important re-
spects Que of the most inviting States III the
Union to the better class Of English emgrants,
but this class will be repealed FROM her olders
so long as she fails to make a satisfactory ar
rangemcnt with her dissatisfied creditors. Look,
ing ouly to the question in pecuulary point OF
view aside entirely from the moral obligations
which she is under to her creditors, Virginia is
making capital mistake in permitting her for
mcr good name 10 be thus tarushed in the
house of her friends. No State is 10 greater
need of emigration and capital, and these will
20 to her very slowly as long as she can be
Justly charged with unfathIulness to her Gu
pagemcDtS