New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-08-02
VIRGINIA AND HER DEBTORS.

THE DEMOCRATIC STATE CONVENTION.
The DEBr-sevERAL CLASSES OF BoNDHoLDERs-A
LEADING CANDIDATE FOR GOVERNOR PROPOSES
THAT THE BONDHoLDERs BE COMPELLED TO
TAKE LESS.
fyRoM AN OCCASIONAL CORRESPONDENT OF TIE TRIBUNE
RICHMOND, July 31.-The exciting canvass
now going in Virginia is worthy Of the special aten-
ton people everywhere in this land and OF all STU
dents Of Republican Governments, inasmuch as the
question entering into is whether not the state debt
shall he repudatcd' readiusted" is the popular
term here. Ia 1871 Virginia found herself in debt to
the amount Of S45, 00OO 600 Funding Bill WAS drawn
m by GOV Walker and 2assedpassed, Ii IL charged,
though never proved by brbng the members OF the Leg
islature.
Bv II tie sum OF Sl5OO0.000 turned 10 West
Virginia fair proportion OF the old States burdens
which she should For this one-third Virginia
issued Deferred Certificates" payable after Virginia
should have a settlement with West Virginia This de-
bateable third has been solemny disowned by both
States and ID quoted in the markets OF Zig cents on
the dollar For the other twothrds Virginia agreed 10
issue six per cent bonds, payable In trtyfour years.
either registered coupon, and observation-disclosures
coupons to be received for all taxes debts dues ana
demands due the State" The "smart" bondhoders
funded at once Many refused to fund their bonds
because they did wish to give their Old bonds ana
nv so doing surrender one-third-the West Virginia
third-as the Funding Bill required In 1872,
900 had been funded in "consols' Then
1t was discovered that 10 carry out the provlsons
OF the Funding Bill would have 10 be raised Ihey
we're then and are so cents on the 500 value OF
real and personal property. and members OF the eea-
ture dared not vote the increase The funding in con-
soils" was then stopped S20OOOOOO had been FUNDED;
$4,000 900 were left out All interest paying was
some time afterwards suspended. and an effort was
made TO prevent the reception OF coupons for taxes but
the Supreme OF the state decided that the coupons
n,t ne received for taxes. The holders OF "cOnsos"
now sell their coupons brokers and taxpayers at from
so 10 50 cents the dollar and are subjected TO TAX
and the balance realized the interest upon their bonds
for those who did not fund they get interest at all
Their bonds e. peelers quoted at 40 cents on the
dollar; the consols at 63a Coupons to the amount OF
81 900 or 1000 find their way into the treasury
annually excluding that much cash, ana the currency
received is hardly enough TO support the Government
and public schools, and unpaid interest aecumuates
yearly to the amount of S750000 II allowed to 20 on
increasing the interest accumulation VIII hhaiy o'er
W helm the state. All confess that
There are but alternatvestO increase taxes orto
make a compromise with the creditors Oh the hVe
nroinent candidates for Governor advocates an
increase OF property when Is the ohy feasible
plan All Of them favor a readjustment but Gen. Ma
homes platform is TO demand adjustment Ills letter
does not say SO, but it is generally construed to mean
that he favors using eoercve measures with the bond
holders so ma to make them fund i'll or per cent bonds
or take nothing Gen Malone Is the leading condl-
date He may possibly be defeated in the Convention,
but he goes with delegates than any asprant
and unquestionaby his views are those OF majority OF
the pen OF TIE State il seems. 1t argued by
any thar This debt contracted before the war, be
fore the dismemberment OF the state that was based
ON slave property which destroyed 10y the General
(;overnm nt that virginia was conquered by The United
states and this is not the Virginia thar contracted
the dent etc All the is not denied that we AS
sumed twOtirds OF the debt In 67 ana again III ~,
when perfectly free 70 act FOR ourselves Nal
hn IL MHnOQp'S
opponent IN the Legislature voted against the
Funaing BILL hut is in favor Of Maintaining Nlrglnlas
credit and houor and repudiatng nothing Yet he Is
NOT ready 10 come and say ain III favor OF IN
creasing until enough revenue Is brought IN t. pay
certain defeat would him int face. Col +. W.
Holiday opposed To reputation; would nike 10 see IN
honorable adjustment land SO would every body nut II
that DC obtained wouldn increase the tax on lana
would seek subjects OF taxation Inc latter project
ls been tried ana found utterly imi racticabe. Gen.
w. b. Iaaferro says: I'D am opposed I" the repddlt-
ton state debt (2) am opposed to an Increase
of axes go am favor OF ALI adjustment OF the debt
with the creditOrs Gen TaaerrOs plan, III the event
Of failure OF REIMBURSEMENT Is TO reduce the expenses
nj the state Governmental thing Virginia
known 10 guilty Ofand 10 rely upon growing up with
the debt Gen Fz Lee is out and out against re.
pdiation hut offers solution of the problem. SO II
will that all the candidates Tor Governor OF Nr-
gua saying that they are IN favor OF raising taxes
ON property Taliaerro, Major Daniel Col. HOlli
ay and Gen. Ftz Lee scout the idea OF repudlating
dollar OF Yrgnias debt Gen Malone talks OF no such
thing more than TO suggest that We must demand
adilIstment" one thing seems certan-in no posi-
bic contingency will Virginia for the present, consent TO
her taxes for the purpose OF meeting er inter
eat Al best. Gen Malone Is defeated and there is
very formidable opposition 10 nina candidate Will be
chosen who WILL in him lies work for fair and
equitable reimbursement OF the debt on basis acceptable
alike all Interested parties ana II mat iall the peO
pe Will trust 10 future for way out Of the dii
Guilty The Conservative Convention meets August :. II
ZEN Malone not nominated, there Will DC an lnepen
dent (Kepudator) candidate In the field II he
mated there will DC great trouble The Conservative
party seems be i'll danger OF DIVISION but other
question but this debt matter dstuIDs them National
politics are involved The Republican party
existence in the state.
a l.