The New York herald., 1878-12-05
[BY TELEGRAPH TO THE HERALD

TANcE.
[BY TELEGRAPH TO THE HERALD
RICHMOND Dec. 4, 1873.
The portion Of Governor Holidays message to-day
communicating to the General Assembly the propo,
sition OF the banking houses OF Barring Brothers.
tho Rothschilds and other leading English and
American bankers for the settlement of the debt
of Virginia by funding the in four per cent
bonds has created profound impression and has
evidently causcd uneasy feeling among the
..forchla rca.ljuAcrs Of the Legislature These
adjustcrs do not desire any settlement of the debt
at this time but prefer to keep the matter open to be
used Us in future elections, and, if possible
to elect adjuster to the Office of United States
Senator to succeed Senator withers. The re-
adjusters will. doubtless. oppose any proposition
which might be acceptable to the bondholders, and
their leading will bitterly assail the proposed ad
justment In the opinion of old politicians.
however, the readjusters will be unable this
year to command the strength they ex-
hibited last winter. The indications from
various portions Of the State notably in the Con-
sressional elections, that the people will favor
some such adjustment as that now proposed The
debt paying sentiment in the Legislature is stronger
and more pronounced than it has been for years.
INTELLIGENT MKN WANT HONEST SETTLEMENT.
There is sangune feeling that if this debt is not
ipsfsetory to the creditors, as represented by
the fnsnciers above named. an appeal will be
made At the next general election. in 1879:
to the honest sentiment OF the State. which will
ndorse proposition of the Barings. The intelligent
people OF the State are becoming thoroughly con-
few days since by. published address signed
by number Of the heaviest taxpayers,
leaders in commerce and distinguished diyines.
grace of repudiston. The contest il important
also from national point of view. Virginia
il considered the most conservative OF the
southern States. If she should rcpudiate
her obligations it might well be feared that all the
southern States would follow her lead in this as
they have in times past followed her example
in other important matters. The whole country
Ia therefore Interested to some extent in the struggle
MANY believe there il reasonable prospect Of i'm
mediate of the scheme laid down by Governor
Holiday even with this Legislature.
THE GovERSogs VIEWS.
The Governor. in his message holds that it Is the
question Of questions for Virginia, involving
every other. When that is settled honorably
that will not be unworthy Of her history
He advocates the of every honor
able effort TO harmonize views. and thus
secure conclusion which will establish credit and
prosperity. He says there is no man body of men
connected with the State government who is secretly
or openly in favor of reputation. No for
the nonpayment of the debt be
urged, save inability. He shows that from the
81 T5O O00 which. after deducting the net revenue
applicable to the payment thereof leaves deficit Of
open for honorable settlement-that is. by an
increase Of taxation or fair aud friendly
adjustment with creditors Reputation forcibe
readjustment would bring ruin; but increased taxa
tion though might suffering and privalon for
u time, would ultimately bring prosperity and peace.
To pay the large deficit would require na less than
an increase OF thirty to forty cents the 800 Of
property IL the State of Virginia Is not able to pay
the debt full interest thereon. and ultimately the
principal. she ought to have recourse to the other
measure this side of forcean honorable and amicable
adjustment with her creditors.
In tho extensive correspondence he had with the
State creditors he had not found them Shylocks,
but had found them willing to listen reason and
consider every statement made them in good faith The
result Of this correspondence Ia proposition from
council of foreign bondholders In London for
the pay of four per cent in gold upon the whole
debt. principal and interest funded, exempt from
taxes with coupons receivable for all taxes all dues
&c. also another proposition recommending four
per cent for the consos and three and half per
cent in gold for all other classes of bonds principal
and interest funded, &c. The Governor says that
such settlement Will demand an increase OF
axaton.