Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1877-10-26
THE ENGLISH PRECEDENT
ABOUT THE DEBT.

THE ENGLISH PRECEDENT
ABOUT THE DEBT.
The Adjusters tell us that Mr.. SEA-
WRIGHT, who is their candidate for the
Senate, has quietly acquired large fund
of information which, is to be now turned
to the use of the State. He has given lis
a sample of this in his late platform sub
mitted to the people of Augusta through
the columns of the Valley "Virginian."
In speaking of the effort in~Parliament to
brfak the charter of the East India Com
pany, he says:
ga bill was brought forward in Parlia-
ment to annihilate this company by taking
away its charter, and the same bill provl-
ded counter organization for the govern
ment OF the country. FoT and an n, rlt5 ., ana
Burke were conspicuous in the able debate
that followed. The bill passed the
House of Commons by vote of more than
two to one. It was defeated in the House
Of Lords by small majority. The oppo-
sition conceded that the Parliament pos
sessed the power to do what the bill pro-
posed, and it was opposed, not on the
ground of a want power, but on the ground
that the charges preferred were not sus-
tanned. and that the conditions did not eX-
list that would render the exercise of such
:, power, in the present case, necessary OF
proper; and on the further ground that
the counter scheme proposed trenched up
on the royal prerogatives. The doctrine
aras settled IN this case, that the Parliament
of Enqland could saveep aavay the most sacred
chartered Rights, when necessary for the
relief of the heather tribes under her do
minion, but the free and enlightened PEG
pie of Virginia can have nothing in the
way of relief when her very honor and well
being demand it.
We call especial attention to this logic.
Why tie doctrine settled as shown by the
facts. was that sacred chartered right Can
not under any circumstances be revoked,
ercept by the abuse and perversion OF them
by the holders themselves F.! The only pre-
tence set up by the opponents of the East
India Company was that it had by perver-
sion violated it's charter and that it was
the duty Of Parliament now to withdraw
from it's support the color of law, This
doctrine rules yesterday, to-day and forev-
er. 1t is in practice every day in the Uni
ted States, in Mr.. SEAwRIGHT's own State
and own county. The charter rights of so
small a thing as an insurance company are
irrevocabie save in the case Of the company
having violated its charter. A charter
right is right given in consideration OF
certain things and if the company does
not comply. it violates that charter and the
granting power revokes the law under
which it has been acting Have the cred
ltavs of Virginia violated any Of the terms
of their contract?
Another and equally useful piece Of in
formation is given by Mr.. SEAwRIGHT.
He says:
i.Another precedent bearing directly up
on the question of readjustment we have
from the same source. England, after an
exhausting war, found her finances in the
same crippled condition in which we did
ours, The Prime Minister MI. Pelham
proposed scheme for the reduction OF the
British debt. Due notice was given to
everybody. The scheme was simply to IS
sue new bonds. bearing three per cent. IN
terest. to be offered to the creditors IN ex-
change for the bonds they held, hearing
four ger cent. The creditors agreed readl-
Nv TO the terms offered, except the great
corporaJions-the Bank of England, East
India Company, and the South Sea- Com
Dany. Time WAS given them. Mr.. Pelham
i'll the meantime. had aseertalned that ne
could borrow money at three per cent
held CROUCH to pay off and redeem the debt
by those corporations. tie o1Lered 70 pa.
'theu, off. principal and interest, when they
too came into the scheme. There was no
talk of reputation then; on the contrary
slr Pelham's success. it was Sald. aston
is{led all Europe. and excited the admira-
GioR of all christendom, . :.
Nj. SEAwRIGIIT evidently does not know
tie terms on which the public debt OF
Great Britain exists. The government,
when it borrows money, reserves the right
TO pay it when it pleases. Ii it IS paying
five per cent, and the money market is
three per cent, it can borrow any amount
of money at that rate, and pay off as much
of its debt as it wishes, and it can accom-
plish its object often as speedily by mere
ly threatening 20 pay the principal II the
bondholders do saQt take lower rate OF
interest She has often made these threats,
ard sometimes carried them out, until the
Interest she pays is now three per cent
She has frequently, not as Mr.. SEAWRIGHi
tliir ks. s'astonisiled all Europe bot lril
sated her creditors by forcing them 10 re
diIce their rate Of interest or take their
rnoney back. II the credit of Virginia Was
AS good as that Of Great Britain, or the
United states which has just secomplis,.-
= ed reduction Of its interest, and tes ponds
were redeemable at will, she, too, could
reduce her interest at pleasure. But 1t
would not be il those who held money read
platforms of candidates for her Senate
saving that their first effort would be to
reye0t q contract. We commend to our
readers and particularly to Mr, SEA
WRIGHT, and those who pt.tany confidence
in his views, communication in the
Richmond Dispatch of the 18th inst.
from Ma. WM L. ROYAL on the subject
of Great Britalns debt, WHICH concludes
with a statement bearing especially on the
question of quarreling with CONTRACTS
which are hard, and then refusing to paya
bond Of 500 because the holder bought ii
for $40, In ALLIsoN's History of Modern
Europe, vol. IL, page 403, he shows that
Great Britaisi sold great quantity Of her
bonds {or annuSies, as they are called for
Ness than their face value, and that when
size pays off her public debt she will pay ST.
200, OOo,G0O more money than CHE received,
yet Great Britain pays the interest AS
psomptly and cheerfully ON what she did NOT
get as pom what she got. 1t is this sortof
thing that makes her credit impregnable.
She never has gotten rid Of debt by force
OIL artifee.