The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-01-06
THE PUBL1C DEBr.
PAN or THE roRs1es BoXD8oLDERs.

IA
OF the House-Judge Crump in the chair.
badge Crnmp iutroddced General Richard
of Winchester, formerly OF Louisl-
ans.
General TAYLOR said that on q late visit to
Enr,and on purely personal business he had
been thrown with some of the holders OF
Virginia bonds, and that he had been able TO
relieve the State of some Of the unjust im.
mutations cast upon her faith, and had ex-
plained matters which were but little under
stood there. Upon returning to Virginia
and giving consideration and thought to the
debt question he had opened correspond
ence with members OF the Council OF Foreign
Bondholders, which resulted in the follow.
lug from the secretary OF the Council OF
Foreign Bondholders:
COUNCIL OF FOREIGN BoNDHsLDERs, 10
MooRGArE STREET, LONDON, +. c., Decem-
Der. 1915 General r. Taylor: Dear Sir
T am instructed 10 inform you that the com.
mi,,ec of Virginia bondholders bad much
pleasure In receiving from you letter under
date 2Sd November. in which, at their re-
nues,. YOU have laid before them your views
With regard to the settlement which might
be arrived at as to the public debt OF fir-
gina.
we understand you to propose that the
de BITS of Virginia should be, II possible, uni
fed: and 10 that end that al! unfunded secu.
rites and interest due, by which we under
stand are 10 be embraced fractional parts OF
coupons and certificates for interest due,
shall be funded in thirty years. cold oonds
to the extent Of two thirds OF salo securl-
ties. ard interest certificates for the remain
ING cue third for West Virginis, to be given
to its holders at time Of funding, as was done
under the act of 1871. For the first three
wears three per cent, for the next four years
four per cent, and then five per cent. until
maturity. -
The bonds. issued under act 1872 {" peel
crs ~ should be eXchangeable into the new
cold bonds, bond for bond, and additional
bonds given for the overdue interest. The
measure, you state, should be broad enough
TO induce holders Of six per. cent. ''taX-
receivable bonds as may desire to make the
exchange. To insure a result so desirable,
it is in the interest Of the people Of Virginia,
as we'll as an act Of common justice to all
her creditors, that Virginia should hold out
inducements for all creditors to adopt the
arrangement, and there is no more etfectual
jnducement than for the State to hedge
round these bonds with every possible Sc
curity for the regular and just payment Of
the interest and principal.
Every bond exchanged should be made
under a contract with the State, which it
would be the duty Of the State courts to en-
force and to award prompt payment and
costs, and such clauses in the act OF the Lee
cislature should be printed on the bond.
The State executive officer collecting revenue
should be charged by law with the duty of
carving out the provisions of the act under
which the proposed bonds are to be issued.
Creditors should be empowered to sue the
State in her own courts, and such suits should
be made preferred cases, in order to insure
speedy Justice to the public creditor.
In assigning one third OF her debt to West
Virginia and giving certificates therefor, Vir-
gjnia does not, as you say, escape her share
of responsibility, which remains just as it
was before part of her creditors accepted
the funding act of 1871 and in the event of
an arrangement as above suggested being car
ried through, it is % be expected her whole
influence can be relied on to assist creditors
in obtaining settlement with the latter State
at the earliest possible date, and that Vir-
ginia take action and secure the said settle
ment.
The committee have no authority to pledge
the bondholders without calling general
meeting, for which there is not sufficient
time; but having conferred with the princi.
pal bondholders in London, they feel able to
state that the proposition you have made
will be regarded. in the condition of Vir-
ginia as by you represented, with favor by
the holders of the unfunded bonds gen.
orally, and perhaps eventually by the hold
ers of the bonds the coupons Of which are
| s'receivable for taxes"
In conclusion, am instructed to report to
YOU what has been already verbally commu.
nicated, that the Council of Foreign Bond.
holders aud the. committee Of Virginia
bondholders desire to record their conf.
dence in you from the manly and honorable
way in which you have addressed them, and
they are always prepared to treat with the
most favorable consideration any proposal
from you on any measure which may give
effect to your patriotic exertions on behalf
of your fellow.citizens. -
am, dear sir, yours faithfully,
HYDE CLARKE, Secretary.
General Taylor expressed his willingness
| to answer any questions that might be asked
him concerning the details of the plan.
Ex-Governor Smith said that with two or
| three notifications he thought the plan
would do admirably. For one, he did not
believe in the insolvency of Virginia.
1t was agreed that the House and Senate
Committees on Finance should meet on Fri
day to examine the plan and to hear Gene.
raj Taylor's further views.
SUpREME COURT OF APPEALS, YESTERDAY