The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-06-25
zT;ro;n;a Credit-The Bondholders.

,-..r;,;a credit-The Bondholders.
Mr. uceu McCuLlocB, the "e''.hno"a
.,or or London, formerly Secretary VI
w. T-easnry Of the United States' "fNes
NV $500, % the New York Tribune con-
,nc course OF Virginia with refer |
a anos 70 her public debt. We must
e,,f,ss that the spirit ard arguments
y, ,,,s letter are both generous aud JUST.
We cannot take exception to theaa' ms'
MccrILocH says fairly what he has sood rea'
son ~ sav. and be shows even more than
respectful feeling for Virginia.
10 commences by stating that no State IN
tho Union had, prior to 1851, setter credit in
england than Virsiuis, and tsat abe awaited
herself of her credit very literally In borrow
ING money for the construction OF wsrks OF
;mnrovement. And we insert here that !
che still has these srorsS. He says that
relations Of an especially cordial nature bad
ALWAYS existed between the people Of Eng
land and those OF Virginia. While other
States were settled by Germans, and Dutch,
and French, aud different religious denom'-
nuiops, "Virginia alone was settled bya4ns-
l;s,., Her society was English 10 taste,
habit. and feeling Even hcriorms OF rell-
pious worship were pree ainently Gugsh.
Aud now the tendency Of emigration IN Eng
land is towards Virginia
Mr.. McCUIlecH narrates the mssiortunes
of the war-how they fat us-apd how the
State failed to pay interest on her debt, ana
how the creditors Of the State finally ap-
reared 10 ask for an arrangement. How the
STATE then entered into negotiation with The
b,udhoiders, which resulted in the passageci
the funding act. This act, as our readers
know. provided for the issue OF coupon bonds
for two-thirds Of the debt leaving one.th.rd
as the amount :" Which ought In justice to be
assumed by West Virginia." But Mr. Nc
Cr,1ocH comedies that this third part " Is Of
little value"; aud from this we take It that
The leading boudhoIders consider thst the
State of Vi,y;aia is in fact no longer looked
to for more than tro+sheeds Of her debt This
Is made the more positive by the following
striking remarks of Mr.. McCULLocH:
9TH. conpromise, although not regarded
win EayOT Nv u VI co6'' oA ~AS~HS
ors. was nevertheless accepted by them as
definite settlement Of their claims, and one
which. under the circumstances, was not dis
credtabe to the State"
Mr.. McCULLoCH recites the subsequent
interchangeable repeal of the tax-receiva-
biity clause of the funding act-the attempt
to repudate that clause In regard to bonds
already issued, and the decision OF The Court
of Appeals binding the State officers to re-
ceive those coupons in payment OF taxes.
The attempts to impair the State obligation
under the act be deprecates, and he thus
speaks Of the result:
ssThe result is that the State has two
classes of creditor bondholders instead OF
one, the larger class holding bouds the cou'
mons of which are receivable for taxes but
are not casbed ut the Treasury, the smaller
class holding bonds the coupons OF which
are not receivable for tuXes, and on which
nothing Is being paid. Of course, all par.
ties are dissatisfied. The Safe is dissatis-
fed because part Of her creditors stand on
q different footing from The others. The
holders of the tax.receivab'e coupons are
dissatisfied because as the coupons which
they hold are only available to taxpayers
they are compelled to part With them at o
heavy discount. The holders of the bonds
the coupons Of which are not receivable for
taxes are not only dissatisfied, but they are
indignant at the Injustice 10 which they are
being subjected in receiving nothing, while
other creditors. more active and vigant,
perhaps, certainly more fortunate than them
selves, are being partially paid"
This is true. And Mr.. McCULLoCH thus
fairly represents the detriment Virginia is
suffering from the present condition of her
financial policy:
"Virginil is in many important respects
one of the most inviting States in the Union
to the better class Of English emgrants, but
this class will be repealed from her boz dels
so long as she fails TO make satisfactory ar
rangetDent with her dissatisfied creditors.
Looking only TO the question in pecunlaty
point OF view, aside entirely from the moral
obligations which she is under TO her cred.
itorS, Virginia is making capital mistake
in permittin. her former good name to be
thus furnished In the house Of her friends. |
No State is in greater need Of emigration and
capital, and these will 90 to her very slowly |
as long as she can be justly charged with
unfaithfulness TO her engagements"
Nor can we exclude from this analysis Of
Mr.. McCuLLocH's article the following earn.
est passage:
'"No American ever forgets that to Virgil.
mia are the United States indebted for Pat
rick Henry, for the Randolphs, the Lees, for
Jefferson and Madison, and other illustrious
names which adorn the history of the United
States. No reader OF history anywhere for:
gets that to Virginia is the world indebted
for Washington, he grandest character that
adorDs the worlds history She is still o
great State, with capabilities OF becoming
again one of the foremost 10 the u MON. The
first decided step for her to take in this di.
rection is the restoration of her credit by an
honorable settlement with her creditors.
This step, ] trust, she will speedily take"
TIE CaLos LINE.-H0ward University,
Washington, is fer negroes. Generkl y. 0.
HOWARD, late Of the Freedmen's Bureau,