Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1878-12-05

precious life for cause beloved to be true and in
value above price They cannot DOW barter it for the
sav;ng of a lito gold.
Seorntully denying such an imputation, it il said
that tho people CT rho State cannot bear any increased
taXation otherwise tie sources of the power of pay
ing anything arc destroyed, and the Comm onwealth
so crippled that It cannot endure tho burden, and
instead Of growing stronger will lapse into greater
| weakness. In other words they ground their non
payment inability. This is an argument that do
mands and is entitled to ell audience Not that even
inability gives State the right to rcpuGiate its lust
obgations certainly not for its own prcserya-
tion till it has made fair and honest effort to adj
just amcably With its creditors. l do not believe
| that State, any than an individual, by the
asserted exercise of what she peases to call her
sovereignty, afford, to override the fundamental
principles of justice and fair DEALING if she wishes to
preserve the respect Of her own citizens and her
place among the nations Of the EARTH Whilst it is
undoubtedly true that selfproscrvation is the first
Law of nations it is Of nature, by its very terms it
10 never to BIO appealed to in the last resort and
as means whom moral methods have failed.
II the State Of Virginia, then, is not able to pay
the debt Or tho full interest thereon, and ultimately
the principal sho ought to have to the other
measure this side of force to which have REFEREED
IN honorable and amicabo adjustment with her
creditors.
On the 18th day of March, 1878, the General Az
s1mbly passed bill, which became law, making g
proposition to the creditors, having in it principle
the terms Of that law, as the Executive, issued my
proclamation aad thereby announced its provisions.
published it in cadiog papers in this and other
cities, and sent it by mail to bondhoders and prom-
neIt men of business in this country and Europe,
urging consideration of its contents and response.
Of cGurse could not write to, or hope to REACH the
hundrsdS Of thousands of bondholders large and
small, scattered over the civilized globe. hoped to
reach rather those, who by virtue CT their standing
controlled in their others rights great amounts,
1 yrho md in nj
| known experience and wisdom centres of inau-
In this extensive correspondence, and in inter-
views have had have not found the States creditors
Ssh y,ockS," and men ilisd with cupdty and moan
ness and grasping cruelty as they SO crap hcay
r described by many who want to take away from
them their dues. I have found them gentlemen who
| are willing to listen to reason and consider and
weigh every statement made to them in good faith.
| The result OF this correspondence and intercourse
are recommendations from tho most powerful corpo-
ratons ard houses and tho most respectable and in
! lue5tial business men in the world. ihese now
, | lay Ecforo the General Assembly.
Tie first is from the Council OF Foreign Bordhod-
crs, London, England, presided over by the Right
Honorable Edward plsydell Bouvcrie and with
membership from among tao most prominent and
potential gentlemen, in social business, and financial
circles, in tho kingdom. This contains general
proposition of 4 per cent il gold upon tho whole
debt, principal ard interest funded, exempt from
taxes with coupons receivable for ali ta Xcs debts,
dues, and demands due tho State, with sinking fund,
the proaceaS Of thu per cent. to be distributed By
thc creditors among themselves, 20 make the
, law effective This proposition is fully set forth in
q copy OF an &c. with schedule annexed and returned
with this message, marked A.
y Tho sccoad proposition il from l.. g. Is &. G..
Ward, signing for Barring B:others Is Co.; August
GeInort signing for himBelt, and behalf of the
o MessrS. Do Rothschl Of London and Paris, Brown,
: Brothers &c Co., Richard Irwin Co., and Chas. NJ.
E.g, (prc$ideat Of the Bank Of New York; recon
Ipenins per ior the consol and g! il gold fur
al tie other classes Of bonds, principal and interest
g funded, with coupons to be received for taxes or
ether dues to the State with suitable sinking fund
This IS set forth in appendix to this message
marked Z.
. conceive of only four cbjections if may so
call them, tha: be urged against these liberal
Recommendations, by which, in elect, one-thrd of
the aanuaI interest Of the debt is surrendered ny the
. creditors.
y l: may bc Insists that distinction is drawn be-
= tween the holders Of con:O5 with axreceivablo
coupons, and tho other classes Of creditors [ sup
pose would not prefer that they should be put
r upon The same footing, IS their claims have equal
equity Eut whilst tho creditors ask Us to pay only
tive thirds Of the PROMISE il surely cannot be urged
a. any Injustice h3 part Of tho State, when for
G The purpose Of rerfeeRg the distribution, those
" creditors suggest hO6 the common fund shall be d.
vi>Icd anong themselves They, representing every
class Of Indebtedness and considering the respective
rights and equities CT tic parties fox and in behalf of
: waotn they speak, male the recommendation. The
objection to !:5 acceptance does not lilo with the State,
4 which would, il possible, divide equally.
Another objection will probably DO to the ta1-rc
cc7ab &c coupon feature in those recommendations.
s hope the General Assembly will view this matter
TO- and consider how utterly unimportant it is
when there arc sufficient revenues to meet them.-
rhe trouble that has arisen from the funding bill is
not because thc coupons receivable for taxes but
/ because the not sufficient to discharge
l. them We're they sufficient the coupons Instead Of
clcggiUg thn wheels OF government, would aid bus-
) ness ~ constituting . circulating medium. They
are the common mode that enlightened nations have
! adopted Cf announcing their confidence in them
. selves, thereby strengthening their credit abroad
Who ever hears Of any objection urged against their
being ;ssuc1 hy the United States and the English
Governments, and their operations being hampeTed
thereby? BE suro TO make tho revenues largeenough,
sGd i.TGr will soon attsch to the coupons, and in
3 stead .. their being odious, they will become tho
pledge that the Commonwealth respects hcr fa: as
J.: $ho values her life.
seine may geek objections to tnc funding Of the in
0 tcrc;t. No denies that owe the interest and
am quite that no reasonable man ought to OBJ
jcct that, when those who receive the benefit Of it,
in the act give up one.thlrd of their whole &C.
cruing intcras. upon the entire debt.
! Another, and the most important Inquiry il, will
this settlcmeut demand an increase of taxation? I
answer, it will. I answer thus decidedly because
want hallway unfinished settlsment.-
Whatever conclusion is reached, let it be final so
that any future issue this dread question will
noyer lift its head to disturb tho peace ana i'm
peGc tho growth and prosperity of tho Common
wealth.
) The deficit under these recommendations would be
about as follows:
Tho amount Of interest to be raised
, on whole debt funded, principal and
/ interest at per cent........". 1871 1858 %
| The amount from revenues as they
NOW stand to be applied to pay
| ment OF interest as per report of
I Auditor. ...... .......... 972,2Ge 49