The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-12-05

and, instead OF growing stronger, Will
llapse into greater weakness. Id other
words, they ground their nou-p payment on
Inability. This is an argument that de-
mands and IS entitled TO an audience. Not
that even inability gives State the right TO
repudiate It's just obligations; certainly
not, even for It's own preservation, nii IL
| has made fair and honest effort TO adjust
amicably with its creditors. do not be-
lieye that a State, any more than an indi-
yidUaI, by the mere asserted exercise OK
what she pleases to call her sovereignty can
atford to override the fundamental prtGci.
Piles Of Justice and fair dealing IL 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
self preservation Is the first law OF nations,
as it is OF nature, by its very terms 1t Is
never to be appealed to save In the last resort,
and as means when moral methods have
failed.
II the State OF Virginia, then, is not able
to pay the debt or the full interest thereon,
and ultimately the principal, she ought TO
bave recourse to the other measure this side
OF force to which have reIerred-an hon
orable and
AaICABLE ADJUSTMENT WITH HER CREDITORS.
On the 14th day OF March, 1878. the Gem
erat Assembly OF Virginia passed bill,
which became 4 law, making a proposition
to the creditors, having in 1t no principle OF
force, but q simple proposal OF settlement.
BY the terms OF that law, aS the Executive,
issued my proclamation, and thereby an
nounced its provisions. published 1t in
leading papers in this and other cities, and
sent it by mai to bondhoIders and promi-
nent men OF business in this country and
Europe, urging q consideration OF its con-
tents and response. OF course could
not write to or hope to reach the hundreds
| Of thousands OF bondhotders, large and
| small, scattered over the civilized globe.
| hoped to reach rather those, who. by virtue
of their standing controlled in their own
or others right. great amounts, or who
| independently, in consideration OF their
known experience and wisdom. were GEN.
tres of influence. In this extensive corre-
spondence, and in intervieTs1 have had.
have not found the States creditors I" Shy
| locks" and men filled with cupidity and
meanness and grasping cruelty, rs they are
so graphically described by many who want
to take away from them their dues. ! 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 In
tercourse are recommendations from The
most powerful corporations and houses, and
the most respectable and influential busl-
ncss-men i'll the world. These I now lay
before the General Assembly.
The first is from the council OF foreign
bondholders, LONDON, England, presided
over by lac Right Hon. Edward Plcydel
Bouyeric, and with a membership from
among the most prominent and po-
tcntiaI gentlemen in social, business, and
financial circles in the kingdom. This con-
tains general proposition OF four per cent.
in gold upon the whole debt, principal and
interest funded, exempt from taxes, with
coupons receivable for all taxes, debts,
dues, and demands due the State, with
sinking fund, the proceeds OF the four per
cent. TO be distributed By the creditors
among themselves, so as to make the law
effective. This proposition is fully set forth
in copy OF IN act with schedule annexed
and returned with this message, marked A.
The second proposition is from L. e. 81
e. c. Ward, signing for Barring Brothers Is
Co.; August Belmont, signing for himself
and on behalf OF the McssrS. De Rothschild,
OF London and Paris; Brown Brothers IL
Co., Richard Irwin & Co., and Charles N.
Fry president OF the Bank OF New York;.
recommending per cent. for the console and
81 in gold for I'LL the other classes OF bonds,
principal and interest funded, with coupons,
TO be received for taxes or other dues to the
State, with suitable sinking fund. This Is
set forth in appendix to this message,
! marked E.
CAN CONCEIVE OF ONLY FOUR DIRECTIONS,
il I may so call them, that can be urged
against these liberal recommendations, by
) which. in effect. one third OF the annual in
terest OF the debt Is surrendered by the Gre
ditors.
1t may be insisted that 4 distinction Is
drawn between the holders Of cQnsols. with
ffraysreeefvufj1ef COUPONS and The other classes
Of creditors. | suppose no one would not
prefer that they should be put upon the
same footing, az their claims have equal
> equity. But whilst the creditors ask us to
nav only two thirds OF the promise. 1t surely
cannot be urged us any injustice on the part
of the State when for the purpose OF per-
} fectine the distribution those creditors suG-
rest how the common fund shall be divided
among themselves. They, representing
every class OF Indebtedness, and consider
ing tho respective rights and equities OF the
parties for and in behalf Of whom they
sneak. make the recommendation. The Oh
lection to its acceptance does not lie with the
State, which would, il possible, divide
equally.
Another objection will probably be to the
tay-reccivable- feature In these re-
concentrations. / hope the General AS
sembIy will view this matter as do, and
consider how utterly unmportant it is
when there are sufficient revenues to meet
them. The trouble that has arisen from the
funding bill is not because the coupons are
r receivable for taxes, but because the reve-
pues are not sufficient to discharge them.
Were they sufficient, the coupons. instead
OF cLogging the wheels OF government,
would aid business by constituting circu-
ating medium. They are the common
mode that enlightened nations have adopted
OF announcing their confidence IN them
selves, thereby strengthening their credit
abroad. Who ever hears OF any oplection
urged against their being issued by the
United States and the English Govern.
ments, and their operations being ham,
pered thereby? Be sure to make the reVc'
Enucs large enough, and favor will soon Of
tach to the coupons, and instead OF thelF
. Icing odious, they will become the pledge
that the Commonwealth respects her faith
as she values her life.
Some may seek objection to The 1undlng
OF the interest. No one denies that we o"
the interest, and am quite sure that no
reasonable man ought 10 object 10 that'
when those who receive the benefit OF IL III
the same act give up one third OF their
whole accrung interest upon the entire
debt.
Another, and the most important, H.
ouiry is, Will this settlement demand an
increase OF taxation? l answer. 1t WIN. L
answer thus decidedly, because want now
no halfway or IN finished settlement. w nat-
ever conclusion Is reached, let IL be hnal !;
so that any future issue on TINS areao
rla hAnd