The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-12-18
The virsiEIn Debt Proposftion.--An
Interesting Letter from London.
LONDON November 30. 1871

LONDON, November ~, 1878.
Editors Dispatch: The Virginia State
debt has been the question in London fnan-
ciai circles during the past week. The
money articles OF the daily papers have been
full OF letters relating to the debt, the chief
ment put forward by Messrs. McCulloch d
Co. on behalf OF the Funding Association.
The explanation OF all this controversy
and excitement is found in the fact that
Governor Holidays message is expected
to contain suggestions for settlement,
based on his EXcellency's confidential COM
munications with Messrs. Barring Brothers
& Co. The Council of Foreign Bondhold-
ers, of which the Right Honorable E. P.
Bouyeric is president, and Mr.. Hyde Clarke
secretary, are informed as to the details OF
the Governors propositions, and I am
assured will unite with Messrs. Barring
in urging their acceptance on the bondhold-
ers. 1t Is, however, the opinion of both
Messrs. Barring and the Council Of Bond
holders that the Legislature must adopt the
scheme before it can be placed before the
bondholders at large for approval. For the
bondholders to sanction a scheme which
may never become law would, it is argued,
be equally foolish and useless.
The scheme OF Messrs. McCulloch is an
independent proposal, put forward by the
Funding Association, who desire to act as
Intermediates between the Commonwealth
and the bondhoders. 1t is most unques-
tionably very favorable scheme as regards
the State. 1t is plain and practical, and will,
I think, commend itself to the bondholders
il no better compromise is possible. 1t
should, however, be borne in mind by our
statesmen that whatever the Governor sugs
gests, being endorsed by Messrs. Barring and
the Bondholders' Council, is certain to be
accepted in England. II it were possible
to settle with the American bondholders
through Messrs. McCulloch and with the
English bondholders through Messrs. Bar
ing, possible solution might be found; but
that is OF course impracticable.
Immediately after the publication OF
Messrs. McCulloch's circular given in my
last letter, the Council OF Bondholders
issued the following notification:
"The Permanent Committee OF Virgin
ian Bondholders aud the Council OF For
eign Bondholders having noticed an adYer-
tisment to the holders Of the Virginia State
| bonds published in the London newspapers
| by the Funding Association OF the United
| States OF America inviting the cooperation
OF the English holders OF Virginia State
bonds in a plan for the readi OF the
4 QSUG Oh GtIL SLuLe, VI WHICH, Il ScuCluI OuI-
| line is set forth in such advertisement, give
notice that an independent and definite
scheme for such adjustment has been Off
cially agreed upoa, the terms of which can
not be made public, without danger to its
success, for few days."
The object OF this was to induce the
bondholders to delay action until the re-
commentators to be made by Governor
Holiday could be made, public.
Messrs. McCulloch & Co.. promptly pub
lished the following reply to the above:
GIVE observe that the Council OF Foreign
Bondholders counsels delay to the bond.
holders of Virginia. The Legislature Of
that State meets on Monday next, and it Is
unfortunate that the Council OF Foreign
/ Bondholders should have chosen this criti'
cal moment to press their usual policy. In
February lest we urged them to act on be.
half of the bondholders. They declined, and
! the Funding Association thereupon ma
| tured the. scheme now before the bond
! holders. At the eleventh hour the
Council OF Foreign Bondholders an
nounced q scheme which they say
has been Officially agreed upon bu1
which, they add, cannot be made public
for q few days., Will they state whether
that scheme does or does not obtain higher
payment from the State than that which III
i have advertised; and will they explain how
amy scheme can abe officially agreed upol