Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1875-09-23
Thursday Morning, September, %, 1875.
VIRGINIA CREDIT.


communication to the London Mon es
-MarHet Reuieac of the 26th August.
Our readers viii be pleased to see how
Virginia credit has risen in that mark
ct The writer of the article in tho
Reuiew attributes it to the funding act
and the decision of the court of Ap
peals of Virginia. 1t is much more
dae to the soundness and integrity OF
Virginia public opinion and the noble
stand taken by Governor KEMFER. The
indications of a demoralized sentimen
anita gonlstic to the good reputation OF
Virginia has had feeble existence,
decaying from its own morbid and
often dishonest nature. AS the Lynch,
burg Republican says:
"Repudiation is SO completely dead
in Virginia it is hardly worth the
while to waste more time in this dis
cussion. From the character of the
men that are being nominated for the
next Legislature we are satisfied that
the honor and the integrity OF Virginia
will be safe in their hands"
The communication in the London
ReU5eso ia as follows:
VIRGINIA New FUNDED BoNDs.-To
the Editor Of the 6foaey Market Re
yieao. Sir Once again l direc. the
attention of your readers to this neg
lected security, which, though neglect
ed, is an investment Of the first class.
In June, 1874, you inserted letter
from me- The price was then $50 for
81 600 bond. The price is now fl09
an advance Of f26 in fourteen months;
and in the intermim three dividends
have been paid, amounting to fl3 per
$1,000 bond This advance has been
steady and continuous yet even now
the price is only one-half what it ought
to be. AS a security it is, if not better
than, tally equal to United States five,
twenties
1t is possible that the United States
Government may engage in war, or
that it may even repudlate its obliga'
tons. say this is possible, though
wholly improbable; but the Virginia
State has no power to repudiate. It
has made contract with its creditors,
and is bound by that contract. 1t
engaged to receive its coupons in pay
lnent of all taxes payable in the State,
and its Supreme Court. has decided
that it must fulfill that engagement,
and that, according to the Constitution,
it can neither rescind nor alter that
contract. Therefore, SO long as the
State exists as State, and levles taxes,
these coupons must be received in pay,
ment of taxes. l would marvel at the
low price of these bonds did | not
know that the Stock Exchange hardly
ever looks beyond the fortnightly set
Element, and did not recollect that
brokers looked coldly on United States
five-twenties when they were at 70.
though now at l08. L do not say a
word on the increasing prosperity of
Virginia, as, whether she be prosper
Gus or not, those coupons must be paid.
Doubtless the great increase of wealth
in that State must soon affect the price
of her other bonds, the old six per
cents, for instance, and, in sympathy
with these, the. ''consols" may also still
further advance. But what | wish to
impress on your readers is that the
"consols" stand apart from all other
securities, aud that their position is lms
pregnable. To this l may add that
the whole amount of the new>funded
eonsols is little over five millions
equal to about the yearly deficit of the
Turkish Government, They are being
rapidly absorbed by the knowing ones,
both in Virginia and here and any
man who desires a perfectly scfe INCEST
naent, which will pay him eight per
cent. interest, cannot 60 astray if he
purchases at once AT this time next
year the stock may be out of his
reach.
August IA, 1878. II.