The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1878-04-04
Reuorted Action Of Bondholders.

nm bOndhOlderS naQ nelu d neeIinS III Ne"
Fork and resolved not co accept the condi-
ions Of the new Funding bill passed by the
Virginia Legislature at its recent session.
rhey claim that it would not be wise to sur-'
ender the present bonds bearing six per
,ent, interest, with tax-paying coupons at
ached, for a registered bond bearing 3 and4
,er cent. with no coupons. We have seen no |
notice of such a meeting in the New York
papers, but it might have escaped our at
tention, Most of the creditors, we suspect,
became such by the purchase OF the bonds
at the average price of SO cents on the dol
lar. and were influential either directly or
in having the Funding bill passed.
When the nature of that transaction and the
condition of the State are consldere d, we
think their conclusion is not the perfection
OF wisdom. We may safely say that no bet
ter terms will ever be offered, and that the
next session of the Legislature will deal with
the question with good deal of directness,
II satisfactory assurances are not at that time
given that the pending offer will be accepted.
No people have ever been so wronged and
outraged as the people of Virginia have been
by the Funding bill enactment. 1t was
based upon estimates that experience has
proven represented the resources OF the
State at double what they really were. 1t
funded into six per cent. bonds nearly ten
millions of interest accrued during the five
years of war and the period of reconstruc-
ton, when the people had no control over
the results of their labor or tlieir resources,
and after they had lost property to the esti-
mated value of four hundred and sixty mil
lions of dollars. 1t was passed, too, at
time when the original bondholders were
willing to take a three per cent. bond Tor
the whole of the debt, or six per cent.
bond for the half of the original amount,
In consideration of the devastation which
had swept oyer the State. Instead OF this,
however, spectators bought up about one
half of the debt, at the average cost OF ~
cents on the dollar, formed a ring, lobbied
the Funding bill through, by means Of
doubtful propriety to say the least, and fas-
tened the outrage upon the people without
their knowledge or consent, by which the
sources of State existence are absorbed, and
to-day the machinery Of government is en-
tirely paralyzed, because Of an empty Treas
ury, while overdue obligations incurred for
current expenses are pressing, and no means
to meet them.
II The party in power in the State resolved
with singular unanimity in the State Con-
vention that the people could bear no higher
rate OF taxation than that now called for.
The Legislature, elected to reflect the will
of the people, by an almost unanimous vote,
resolved at it's recen. session that there
should be no increase of the taxes. The
reople themselves, who are the supreme
authority as to what they are able to pay,
have said that they cannot stand an in
creased rate of taxation and that they are
now called upon for more than they can
pay.
With these stern, practical facts to deal
With-with this condition of the resources
and temper of the people, it seems to us that
che reported determination of the bond
holders at meeting in New York is f1aunt-
ing a challenge in the face of the people of
the State that bodies no good.
It should be remembered that there has
been no proposition or suggestion of a prop.
osition to modify the principal of the debt
recognized as the portion the present Vir-
ginia is justly chargeable with. 1t is sub
stantially proposed that the s20,0OO,OOO of
principal shall continue to bear the rate Of
six per cent. interest, and that the 10,OOO,-
600 accumulated interest, during the war
and reconstruction, shall be recognized by
non.interest bearing certificates. This is
not the form of the proposition, but we put it
thus to bring the substance of the offer more
clearly before the reader. When the los
SEES OF the State are considered, the cause of
these losses, the heavy private Indebtedness
based upon property involved in these losses,
with which the people have had 10 struggle,
and the utter failure of the Funding bill ar
rangement, as evidenced in the present con-
dition of the State, fair minded men can ar
rive at no other conclusion than that the
present proposition is equitable and just and
should be received as such by the creditors.
We read the signs of popular sentiment to
no purpose, if they do not indicate a fixed
determination on the part of the people to
rid themselves Of the degrading conditions
Of the Funding bill. Self-respect and State
dignity demand that the Commonwealth
shall resume control and give direction to
the revenues which sustain State life. 1t is
monstrous to think that few stock jobbers,
cognizant of the devastated condition of the
State and the waste that was inflicted upon
private fortunes, should take advantage OF
this distress, drive a severe bargain to get
In their hands the obligations of the Com
monwealtE, at little over one-third OF their
face value, and then deliberately conspire to
rob the people of their sovereignty by tam
pering with the Legislature in order to Sc
cure the enactment of law that wrested
from them and placed in the hands OF these
SPECTATORS the control of the tax-paying
and misunderstanding power of the State. No
such outrage has ever before been inflicted
upon people protesting to be free, and no
people capable of being stirred by a senti-
ment Of self-respect or moved by the inspira-
ton of freedom, can long tolerate the heart
less and humiliating wrong.
II the creditors Of the State will fairly and
impartially consider the equities of the case
-judiciously weigh both sides of the ques-
tion-the methods by which the tax-paying
coupons were created, without the knowledge
or consent of the people, and the devastated
of the State, we cannCt see how
they can reject proposition that offers as
fair conditions as the new Funding bill.
Their final rejection of that enactment will
throw the responsibility upon themselves.
and what the result will be time alone can
but one thing. is certain, it will eni-
Grace an utter and practical reputation OF
the old Funding bill monstrosity.
Moffstt Register.
Both branches of the Legislature of Louis
lana have passed the bill authorizing the
Mofett Register in that State. Its adoption