The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-12-18

when the Legislature, which has to decide
the point. has not yet assembled Ou l
prnposision IS put forssard ia order 10 give
the bondhoIders an oppoFt unaty oil strength
ening the hands Of that section OF the VIZ
ginia legislature which is IN faYof Oh q SET
Element. -
Not content with this brief rejoinder,
Messrs. NcCuIloch foIlowedsi t with another
longer and more energetic, which give IN
egte7zso
The subject of the Virginia, debt,
amounting 10 $50 ,000, 900 labont E6, 900, 000)
IL OF such importance, and the position oil
affairs SO critical, that we hope you viii
find space. for the following facts, which
will explain as sufficiently as IS compatible
with breyIty the bondbolders' position to-
day. The bondhoiders may be divided IN.
to- two casses-Class J., bondholders Of
about $40, $1,000 OF bonds. OF which the
coupons are receivable for State taxes. and
therefore always marketable; Glass 9, bond.
holders of about $i0,000,000 OF bonds, OF
which the coupons are not receivable
for taxes. In consequence OF this
distinction, Glass (Which includes
sterling, unfunded, and the 'peeler
bonds) is receiving no interest, though
they have no less right to it than Class L
The State OF Virginia was gricYously Grip.
pled by being the battlefield during the
war: she has not recovered its effects, and
on her part maintains her inability to raise
more than she already pays for the tax.
receivable coupons (about S1,200,0O0 pei
annum). The support OF all classes Of
bondhol1ers is. necessary to carry any
scheme, and it is obvious that no plan will
be accountable to Class which does not give
them at least as much as they now receive.
Various attempts have from time to time been
made to effect some arrangement accepta-
bile, to all these conflicting interests. lhey
have all ended in failure. Parties in Vlrglnli
are VIGOROUSLY divided on the question OF tine
debt One section is in favor OF paying
what is possible; others, to Judge from the
newspapers, advocate a very dlnerent
course. Under the circumstances the FUND
ing Association have worked out Scheme,
based upon the obvious principle or giving
to Glass /, under the new arrangement. an
interest ct least equal to that which they
now receive, plus some advantages IN otDcT
ways, the balance to be given to Class z,
who at present receive nothing. Sucn Il
scheme. though far from actual justice, APP
pears the nearest approach to equity posi-
BILE under the circumstances: The know
ledge that the scheme would be acceptable
TO bondholders here, and that, II passed, 1t
will not be flung back in the face OF It's
advocates, would add strength to that
party IN Virginia who are in favor OF set
Element. The idea that any disSenslon eX-
lists among the bondholdcrs would have the
contrary effect. We therefore deprecate the
action OF the Council Of Foreign Bondlold-
ers in announcing that they will propose
another scheme; for if second scheme be
brought before the public it is obvious thc
sun total to be divided being the same) that
each class of bondhoders will support that
which Is most favorable to himself, and thus
complete disunion will be created where a
continuation of all interests is essential for
success"
The Council OF Foreign Bondholders
could not be expected to remain silent un-
der these and other attacks, and here is the
reply OF the Right Hon. E. 2. Bouvcric,
who is chairman Of the Permanent Com
mittcc OF Virginia Bondhoders," list OF
whom l gave in my last letter:
"AIv attention has been called to letter
of Mcssrs. McCulloch Il Co., in reference TO
the Virginia State debt, and to an adver-
tisemcnt which has been issued from here
requesting the bondholders to withhold
maturely advertised by AIessrs. McCulloch
& Co. for an arran cement OF that debt. This
advertisement from here was sanctioned and
issued at the request OF large representa-
tive committee OF the bondholders, to whom
a scheme was communicated, which, from
the arrangement made, they have every rea-
SON to believe will become law during the
impendlng session OF the Legislature; and
49,
of what is best for the interest OF them
selves and their Observation-Disclosures in this
country. that no premature approval should
be hastily given to another scheme, which
is not submitted to them, and which, as far
as they know, Is entirely without authority,
and which, from the Imperfect know
ledge they have OF it, appears to them to be
impracticablc."
While this pleasant little controversy has
been going on between N1eSsr>. McCulloch
& Co. and the Council OF BondhoderS, there
has been 4 good deal OF outside cross-hrlng
in the press between bondholders who ap-
prove and others who condemn Alessrs.
McCulloch's scheme.
"a Loag.Suffering Bondholder writes
rather severely regarding the policy OF the
Council of Bondholdcrs. He says:
"The appeal OF the Council Of Foreign
Bondholders 10 the holders OF Virginia State
bonds to withhold their hands from CO.
operating with the Funding Association OF
the United States is characteristic. 'The
Permanent Virginia Committee has been
celebrating for some years; it has put for
ward nothing practicable on behalf OF the
bondholders; its policy is one OF 'maSterly
lnactiou.' If the Council OF Foreign Bond
holders has any plan to propose that is bet
ter than that in which we are invited to CO.
operate by the Funding Association OF the
United States, let us know what it Is. To re-
serve our assent to q scheme which appears
practicable, and for no apparent reason eX-
cept that it is not put forward by the Coun'
Gil Of Foreign BondholdPrs, would be to
support the continuance OF do-nothlng
and say-nothing policy that l for one nave
had enough Of"
GA General Holder" on the other hand,
is down on Messrs. McCulloch:
.Irecret 10 see that at moment when
the Vir~inian bondholders OF. this country,
acting with the Council Of Foreign Bond
holders, have officially agreed upon good
and practical scheme for the arrangement OF
the Virginia debt, MesSrs. McCulloch are
doing ali they can towards spelling the Du-
siness. They Messrs. McCulloch) have no
standing in the matter in this country; they
have no support from bondholders; and
they suddenly pat forward scheme which
cannot be acceptable to the bondholders,
and cannot be carried through the LegIsla-
ture against scheme which has been de-
liberateiy and carefully drawn up with a
view to fair and equitable adjustment for
the bondholders and the practical accept,
ance OF the Legislature. II is to be hoped
that Mcssis. McCulloch will withdraw their
so-callcd scheme as hastily is it has been put
forward, and will announce lis withdrawal
without delay"