The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-12-11
m :. at. Andrew Interviews Some Eng
ssaI. Garsta1ssss ON she Debt of ske
q stntc OF Virginia.

mr.. st. Andrew IaservfeHs Some Eng
d sfsfa Capitalists ON She Debt OF ake
stntc OF Virginia. $3.50:
Correspondence OF the Richmond Dispatch.1
LONDON, November q, 1878.
Al circular referring to the State debt OF
yirgfnia, and dated November 2lst, was
published in tho money articles OF the Lon
don daily press Of Friday last, with the
signatrre of Messrs. M Cullsch IL Co., the
American bankers, OF Al Lombard street,
appended.
Association of the United States OF Ameri-
cav has instructed Messrs. McCulloch
Go. ssto invite the cooperation Of the Eng
Iish holders OF Virginia State bonds IN
plan for the resdjustment OF the debt OF that
State" the general outline OF which is as
follows:
.tThe State TO. pass an act creating one
general class OF bonds, into which those
outstanding are to be funded, payable for
ty-fiye years from date and redeemable after
ten years in the order OF issue by means OF
a sinking fund.
= "The coupons OF these new Donds TO De
receivable for taxes.
of the new bonds bear per cent. in
terest, 800 taX-receiyable bonds to receive
the equivalent in new bonds Of $3.50.
"One-hundred-d dollar speelers' to receive
the equivalent in new bonds of S61.66.
eff new bonds bear per cent. interest,
800 tax-receivabIe bonds to receive the
equivalent in new bonds Of Sl12.50, and
500 speelers to receive the equivalent IN
new bonds of So"
The officers Of the "Funding Associa-
ton OF the United States OF America y are
the following gentlemen:
President, the Hon. Hugh McCullocb.
Directors-J. PierDont Morgan, OF DTeX-
el, Morgan & Co., New York; Charles La
nier, Of Winslow, Lanier& Co., New York;
John w. Ellis, OF Winslow, Lanler Co.,
New York; Louis Won Hoffman. OF L. Won
Hoffman 81 Co., New York; William Mer-
tens, OF /. Won Hoffman Co., New York;
Francis 0. French, OF First National Bank,
New York.
In writing to the Farmvilc Mercury inn
mcdiateIy after reading this circular, /
showed that as far as l could interpret it
the result Of the operations recommended
would be to reduce the present funded debt
to eighteen and half millions, and TO fund
the outside debt, estimating it at nine mil
lions net, at about five and half millions.
This would make the State debt twenty
four millions, bearing five per cent. inter-
est The interest on the whole debt of
twenty.four millions at five per cent. would
then be about equal to the interest at six
per cent. on twenty millions OF funded
debt now paid, and which interest the SUI
rleme Court Of the Union will never allow
the Slate to evadc.
On Monday called on Messrs. McCulloch
& Co., and received very pleasant reccp-
Q I, acIio I,.iI1
(who, by the way, is younger son OF the
Earl OF Leven and Melville, large bond
holdcr), one OF the chief partners in the
hank. Mr.. Melville said my impromptu cal
culation was pretty nearly correct, but
might vary little by reason OF the conflict
ing statements issued as to the volume OF
the outside debt. The object Of the Fund
ing Association was to effect a just and
equitable settlement between the State and
her creditors, and he thought there ought
10 be no in>uperable difficulties in the way.
The Hon. Hugh McCulloch is now in Anne
RIGA, and will visit Virginia in the advocacy
OF this scheme. Mr.. Melville had every
hope of securing the cooperation OF the
great house OF Barring. I told Mr.. Melville
that we had had some curious experiences
with funding associations" IN the South,
and that the responsibility OF any set OF ne
gotiators would be the first consideration
with the General Assembly. [ was then
favored with list OF the officials OF the AS
ISOLATION as given above. These names are
certainly weighty in the banking world,
and ought to inspire confidence.
Next called on Hyde Clarke, Esq, the
secretary OF the Council of Foreign Bond
holders. Probably it may surprise some OF
those who regard bondholdcrs as pure and
unadulterated "Shylocks" to learn that
Mr.. Clarke is warm friend to Virginia.
He is deeply-read in the history OF the Colo
nv and Commonwealth. and has boundlcsS
faith in the future OF the State. One thing
he told me which was new to me-yiz., that
during the reign Of the Lord Protector,
Oliver Cromwell, seats were allocated in
the Imperial Parliament at Westminster to
representatives from the American planta-
tions. With regard to the proposed Nc
Culloch reconversion Of the State debt Mr..
Clarke stated thai the only organized body
of bondholdcrs had not been consultcdthe
on. 1t seems that the "Virginia Commit
tee" OF the Corporation Of Foreign Bond
holders consists OF the following gentlemen:
Right Hon. E.. Pleydell-Bouverie, +.
Alga, Esq, George Artingstall, Esq,
Lieutenant-C Colonel Aytoun, r. A., L. L.
Baker, Esq, James B. Barney, Esq, G. E.
Flower, Esq, John Ford, Esq, Commits
sarge encral r. NJ. Gardiner, Il. II. Glyn
Esq, E. J. Harris, Esq, Arthur Horrigan,
Esq, Il. Humphreys, Esq, Henry Joachim,
Esq, General Sir Arnold Kendall, Bart, X.
C. S. l., C. B., Arthur Kimber, Esq, Sill
vester L'Amy, Esq, Robert 2. Laurie, ESQ.,
Arthur Leared, Esq, NJ. D., G. |. Leon,
Esq, Morris Cantor, Esq, L. Charlton,
Esq, NJ. D., David Clark, Esq, Charles
Clark, Esq, John Dabbs Esq, Joseph Han
key Dobree, Esq, W. Duncan, Esq. Sam
ucl Montagu, Esq, j. l.. Melville, ESQ, u.
Oppenheimer, Esq, II. J. O'Shaughnessy,
ESQ, George Pension, Esq, Giuseppe 4.
Pugno. Esq, George Richardson, Ed,
w. r. Richardson, Esq, Captain W. w.
Ross, George T. Raft, Esq, C. satter-
thwaitc, Esq, w. Trotter, Esq, George
Yule, Esq: Secretary, Hyde Clarke, Esq.
This committee has also been considering
a plan OF settlement, particulars OF which
are kept secret at present, but which am
promised in detail il the committee take
any separate action. The committee will
meet in few days under the presidency OF
the Right Hon. Il. 2. Bouverie, and will
then consider the McCulloch scheme as we'll
as their own. Mr.. Clarke assured me that
the Earrings were in full accord with his
committee He also stated that the majority
OF the bonds held IN England had been held
for many years for bona .fde investment,
and that the English bondholders had been
in no way connected with the alleged specu-
lations at the time OF the passage OF the last
funding bill. All the English bondholders
had a kind feeling for Virginia-a Slate
which, he said, was peculiarly dear to edu-
Gated gishmen-and be thought that II
the State would meet the issue IN spirit OF
good temper and fairness final settlement
no,1Id he easily reached