Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1878-12-10


pied that itsscannot endure the burden, and
instead OF growing will stronger, lapse int
greater weakness. In other words, the,
ground their non-payment or Inability. Thi
Is an argument that demands and is entitle,
to an audience. Not that even inability give
State the right to repudiate its just obligs
tions; certainly not. even for its own pres
ervatton, till 1t has made Il fair and homes
effort to adjust amicably with its creditors
do not believe that q State. any more thar
an individual, BY the mere asserted exercise
OF what she pleases to call her sovereignty
can afford to override the fundamental prin
ciples OF justice and fair dealing, il she wishes
to preserve the respect of her own citizeni
and her place among the nations OF the earth
Whilst 1t is undoubtedly true that self.pres.
ervatiOn is the first law Of nations as 1t IS oil
nature, by its very terms it is never to be 20.
pealed 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 have
recourse to the other measure this side oil
force to which l have reierred-an honorable
and amicable adjustment with her creditors
On the l4ttl day Of March, 1873, the General
Assembly pass d bill, which became law,
making proposition to t. creditors. having
in it no principle Of force, but simple pro-
posal OF settlement. By the terms OF that
law, as the Executive, L issued NV procla-
nation and thereby announced its provis-
ions. published Il in leading papers in this
and other cities, and sent it BY mail to bond
holders AMI prominent men OF business in
this country and Europe, urging consider
alton OF its contents and a response. or
course, could not write to, or hope to
reach the hundreds OF thousands Of
bondholders, large and small, scattered over
the civilized globe. hoped to reach rather
those, who by virtue Of their standing, con-
trolled in their own or Others right, great
amounts,o or who Independently in eonsidera
ton of their known experience and wisdom,
were centres OF influence. In this extensive
correspondence, and in interviews | have
had have not found the States creditors
'.!Shylocks, and men filed with cupidity
and meanness and grasping cruelty. as 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 trom the
most powerful corporations and houses, and
the most respectable and Influential business
men in the world. These now lay before
the General Assembly.
The firstis from the Council Of Foseiun
Bondholders, London. England. presided
oyer by the hight Honorable Edward Pley-
dell Bouverie, and with membership from
among the most prominent and potential
gentlemen, in social, business, and financia.
circles, in the Kingdom. This contains .
general propnsitian of per cent. in gold
upon the whole debt, principal and interest
funded, exempt from taxes, debts, dues, aud
demands due the State, with sinking fund,
the proceeds OF the 4 per cent. to be distsi-
buted by the creditors among themselves. SO
"a to make the Jaw effective. This PROPOSE.
tion is fully set forth in a copy OF an act will,
schedule annexed, and returned with this
message, marked A.
The second proposition is from 7, G. Il
G. c. Ward, signing for RaFring Il Co.; Au
gust Belmont signing for himself, and on be-
half OF the Messrs. De Rothschild OF London
and Paris, Brown, Brothers & Co., Richard
Irwin s. Co., and Chas. NJ. Fry president 81
the Bank Of New York, commenaipg per
cent, for the e9ns0i and AZ In gold for all the
funded, with coupons, to be RECEIVED for
taxes or other dues to the State with suitable
slnking fund. rhis Is set forth in appendix
to this message, marked B.
can conceive Of only four objections, II
may SO call them, that can b. uiaad against
these liberal FepaMMe ndations, BY which, In
effect, one third ofthe annual interest Of tho
debt is surrendered by the creditors.
1t may be insisted that distinction Is
drawn between the holders of conso}s Wish
tax-receiyable coup9rs, and the other classes
pf creditors, suppose no one would not pre-.
fer that they should be put upon the same
footing, as their claims have equal equity.
But whilst the creditors ask US to pay only
two-thlrds ofthe pronise,it surely cannot be
urged as any injustice on the part OF tho siAie.
when for the purpose ct perieetlng the dis
tribptilp, these creditors suggest how the
common fund Shall be divided among them
selves. They, representing every class III
Indebtedness, and consideriGg the respective
rights and eaIitiea al tho parties for and in
behalf Of Wh6M they speak, make the reesm-
meudatinn. The objection to Its acceptance
does not lie with tho State, which would, il
possible, divide equally.
Another objection will probably be to the
tax-iecelvable coupon feature in these recopa-
mendations. Hope the General Assembly
will view this matter as ! 10, and consider
how utterly Spimportant it is when there are
sufficient geYenpesto meet them. The trouble
that has arisen from tho funding bill ia not
because the coupons are receivable Tor taxes.
but because the revenues are net sufficient to
discharge them; We're they sufficient, the
coupons. Instead Of c!ogging the wheels of
government, would aid business by constitu-
ting a circulating medium. They are the
common mode that enlighten ned nations have
adopted Of announcing their confidence IN
themselves, thereby strengthening their cred
it abroad. WHO ever hears OF any objection
urged against thel: being issued by the
Quilted States and the English Governments
AMI their operations being hampered there's
by: Be sure to make the revenues large