Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1878-12-11
The yIrglaIa Legislature.

houses ofthe General Assembly met to-
day at noon. In the Senate, immedl.
ately after roll call. information was rec
ccived from the house that that body
had organized and was ready Tor bust
ness. This brought on a discussion as
to whether Ike General Assembly hal
met in pursuance Of the act passed al
at the last session, fixing the present a;
the Biennial session, or under the Gov
ernor's proclamation, published thit
morning, calling the members Of the
General Assembly to meet at noon to.
day IN extra session, and setting forth
that he did so in consequence Of grave
doubts which had arisen as to the legal
ity of the meeting ofthe present Assem-
bly,. This was followed by the adop-
ton of a resolution appointing a join;
committee to inquire into the true stat
us of the present session rs to the au-
thority under which that body Is now
assembled and organized for business.
A resolution was adopted requesting
the Governor to communicate to the
Senate all tho information he has in re-
lation to the recent action OF Judge
Rives, Of the United States District
Court for The Western Dstrist Of Vir-
.inia, in removing from the custody OF
State officials certain persons held for
murder. and in now purp0stng to try
the said persons in the said federal
courts for the said crimes against
the State law, which proceeding is con-
sidcred an Infringement to police regula
tons and al assumption of the control
of the domestic affairs Of the State by
federal authority. The Govern or's
message was then read.
In the House. after organization, con
current action was taken in relation to
iuQuiring into the statue of the present
session, which was followed by the read
ing of the Governors message. That
document was almost entirely devoted
| toa discussion Of the State debt cues
ton. The Governor holds that it is the
question ofquestons for Virginia in
volving every other. When that is
settled honorably and finally she will
start upon a career That will not be un-
worthy Of her history. He advocates
the use of every honorable effort to-
harmonic views, and thus secure con-
cluslon which will establish credit and
prosperity. He says there is no man or
body of IN n c0nnec ed with the Stat.
government " are secretly Or openly
in favor Of reputation. No excuse for
the nom payment Of the debt can he
urged save inability. He shows that
from the auditors statement. the in
terest on the debt IS nearly sl,75O.OOO'
which, after deducting the net revenue
applicable to tho payment thereof. leave
deficit Of over $Sj0,000. He says
there are only two ways opon for
honorable settlement. and that is By an
increase Of taxation or fair and friendly
adjustment with creditors. Repudia-
ton or forclble road ustment would
bring ruin; but increased taxation.
though It might cause suffering and prl-
walton for a time, would ultimately BRING
prosperity and peace. To pay the large
deficit would require no less than an in
crease of 30 to 10 cents on the 500 OF
property. II the State Of Virginia IS no
able TO pay the debt or full interest
thereon. and ultimately the principal.
she ought 10 have recourse to the other
measure this side of tOrce-an honor
BILE and amlCable adjustment with her
creditors. In the extensive cOTespon-
dence he had with the States creditors
he had mol found them Shylocks, but
had found them willing to listen to
rrason and consider every statement
made them in good faith. The result o.
this correspondence is proposition
from a council Of foreign bondholders
in London for the payment OF four per
cent. in gold upon the whole debt
principal and interest funded, exempt
from taxes with coupons receivable Tor
taxes. sc. Also another proposition
from Barring Bros. s. Co.. Augustus
Belmont, the De Bothschllds, CT Lon
don and Paris, and others, recommend
ing four per cent. for consols and three
and fper cent. in gold fer all other
classes of bonds. principal and interest
funded, &c. The Governor says that
even such a settlement will demand an
increase OF taxation. He then suggests
various modes for increasing the reye-
nucs BY the better enforcement Of ex
isting laws. The remainder Of the
message is devoted to other State
matters Of no interest to the general
public.
The following is the communication
from the bondholders referred to by
Gov. Holiday
.Ner York. November ,, i878.-T"
his Excellency, F. W. NJ. Holiday,
Governor Of Virginia-Dear Sir: We
haye duly received your Exccllency'S
proclamation Of April 9th, communicate
ing the act Of the General Assembly OF
Virginia approved March l4tn, 1873,
providing for an exchange of the princi-
pal of the recognized debt of the Conn
monwealh into a bond bearing three
pei cent. interest Tor eighteen years and
four per cent. fer thirty-two years until
paid, with n new interest bearing GER