The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1877-03-01
.......-$1S,239,60O 90
but
Jle...... 1.997,415 so
Amount funded and uufunded In
bonds not convertible in coupon
bonds with receivable coupons. $ $50

Amount funded and uufunded In .u-... f,
| bonds not convertible in coupon
| bonds with receivable coupons. > 9:202,3lo 90
| How the debt has been reduced to these
figures is part OF Firginia's history to
which no Firginlan can ever recur who Is
proud of her ancient traditions and customs
and Jealous of her honor and good name
without at least fearing that some one may
feel justified in doubling the integrity OF
her course. I have stated how the Legisla-
ture by its act of March 7, 1872, attempted
to deprive the creditors OF the advantages
given by the act OF March 80. 1871, and
how far under the decisions Of the Court OF
Appeals that effort was declared unSuccess-
full, but have not mentioned, what IS
equally true, the efforts made to countcrYail
the effect of the decisions. Almost coIncl-
dent with the act of March 7, 1872, by an
act approved March 10, 1872, the Legisla-
ture, apparently assuming in advance OF
these decisions that they had successfully
accomplished the purpose OF the first
named act, seeminglNwith view OF making
such arrangements for the payment OF in
tcrest as would place all OF the bond
holders upon the. same footing with
the exception OF the sinking and lite
rary funds and the schools and COL
leges (about which more anon), and de
priving those who had promptly funded
their bonds OF all advantage therefrom, pro-
vided for the payment on the LIST OF January
and July, 1872, OF two per centum THAT Is,
four per cent. per annunl) upon two thirds
of all the six per cent. debt, one and two
thirds per cent. three aud one-third per
cent. per annum) upon oil OF the i've per
cent. debt. This act contained a further
provision that the receipt Of interest there
| c1o holl
auiescence upon the part Of the creditors in
the provisions OF an act referring to the net
OF March 7, 1872 declaring what should be
receivable in payment of public dues.
Some OF the creditors, not showing a
willingness to be dragooned into giving
up their rights after having once accepted
compromise by which they practically
lost one third OF their claims and relieved
Virginia Of one third of her Indebtedness
to them, having appealed successfully to
the courts to require the collecting officer to
receive their coupons at par, the Legisla-
ture, by act March 10, 1872, repealed all
provisions whatever for the payment of in
terest upon her debt except to the sinking
and literary funds, schools, and colleges;
and by another act of December II, 1872
'(the Court having before this time rendered
| its decisionl, prohibited, under heavy pen
alties, any collecting oflicerfrom dealing in
coupons of the State, and declared any
other person who bought or sold
coupons amenable to the heavy license
tax imposed upon brokers. Besides
the hostile legislation to which have al
luded, q tax was and continues to be i'm.
posed on the coupons equal to the half OF
one per cent. upon the principal OF the
bonds from which they are taken. Thus
by nominal tax the State reduces the in
terest which she has promised to pay. am
at loss to know by what rule OF ethics
State can borrow money and give an obi.
CATION to repay it with q certain rate OF an
i tereSt, upon the face OF which no right is
! reserved to the State to tax or otherwise
reduce the rate OF interest she covenants to
pay, and then when the creditor calls for
! his dues to decline to pay them upon
the ground that she has protected the
creditors money by borrowing it OF him;
and will therefore pay him less interest
than was agreed upon; but how much
worse is it when the State denies her ability
to return the principal or to pay full inter-
est, MS in the case of Virginia, that has repu-
| dioted one entire third Of her debt? A State
| is what her people made her; her morals
are their morals. II they are. honest and
true the State can never be false. The po-
llicy or impolicy which / have mentioned,
though in its worst effects somewhat n,odi-
fled BY the action OF the Court Of Appeals,
was productive of great evil, and that evil
was increased by the further; action OF the
State, If not worse than that which nave
mentioned certainly not better.
There are in Virginia the following
schools and colleges owning bonds OF the
Stato RI fba IN N, MT ~ al ()a4 19f 40, uDon