The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1879-07-25
wnat, ws,l Aso,tation sayesf


S 4 rs friends 81 The MocuLiocH oi'lf,ads I
syocatcd ia passage hY The Lsgis AZURE las.
SvInferI not only because they considered
.sha terms proposed by it honorable 70 the
s.a,a and itbcrnI on the part OF her credte
,nrs. mt because they INDUCED the hope
that tAe people Of Virginia would thereby
be relieved Of source Of trouble and tnrs
MOL For years the yoters bad been bonn
bartied in season and ont Of season With
speeches tsspioring the poverty Of the peo-s
pie, denounctug thee outrageous wrong COM (
mit,ed upon them In the passage OF the
funding bill Of 1871, and calling for q !" re-
ADJUSTMENT Of the public debt, Inc
McCuLIocH bill provides for !" read
instment0 Ii acknowledges the poy-
erty Of the people, and reduces the rate
OF interest for the first ten years OF its
operation by one hali-reduces lit from 8
per cent. I'd 8 per cent. reduces the total
annual interest from 81 300, 900 TO s99o, 900
I'VE use round numbers, the 100000 being
The amount Of interest upon the unpaid IN.
tere.t which had accumulated upon the old
debt). II this law be allowed to operate as
IL was intended by It's advocates to ope-
rate-that Is, IL the entire debt be refunded
under it--Yirginia will have to pay only
s9e0, 900 OF interest for the irst ten years
saw until The year lS8S---,whereas II 1t could
be defeated. the State would have to.con-
tinue TO pay at least S1,200,0O0 OF interest
annually in the shape Of coupons, and be-
come liable annually for 100000 more OF
interest due upon her bonds other snan
those whose coupons are receivable TOT
taxes.
Isn't it amazing that any body should OPP
pose settlement OF this sort? Can any
such opponent be anything but repu'
dia,or? Ask yourself the question Sc
riously, Does any man who knows the Tea
lures Of this bill honestly oppose it as un-
inst to the Commonwealth What sort OF
resdiustmento would these grumblers
and .growlers favor? Could any plan OF
settlement be agreed upon by the State and
her creditors to which they would not take
exception? Would such malcontents ac-
quiesce in promise to pay two per cent.
No. They would not. But who would
have the impudence to ask the creditors OF
Virginia to accept less than three per cent.
per annum upon debt contracted for the
purpose Of constructing the railroads upon
which her people are now daily riding, and
which they are daily using to transport
their crops to market? II the use OF money
isn't worth three per cent. per annum, 1t
isn't worth anything.
But the new bonds are not to be taxable
OF course not. In reducing the interest
from six to three per cent. the creditors
paid all the taxes upon their bonds in adj
vance. They surrender 100000 OF inter-
est for S75, 900 Of exemption. The State tax
is only fifty cents upon hundred dollars.
worth OF property, real or personal. a
bond for 800 drawing an annual interest OF
only three per cent. Is worth In the market
not over fifty dollars unless the maker OF the
bond has much better credit and a much
higher reputation for honesty than has
the State OF Virginia. The bonds held
outside OF the State cannot rightfully be
taxed within the State. So that they may
be left out of the calculation. 1t would be
extravagant to estimate that there are
S1O,00O,0 600 OF the bonds held by Virgin
ians. Nevertheless, let us concede that
such is the fact, and see what the people
lose by the non-taxability OF those bonds.
sr;hos entire YIo, GOO, GOO cannot be valued ae
more than $5,0cO,O0o, this sum being as
much as they would sell for. The tax on
S5,000,0O0 at the present rate OF State
taxation is s25,000l Twenty-Five thou
sand dollars is the sum for which the
malcontents would keep the people OF
Virginia In state OF trouble and turmoil.
And inasmuch as the assessed value OF the
property upon which taxes is paid in the
State is 1920, 100000, it follows that tax OF
LESS THAN ONE CENT on a hundred
dollars worth Of property would more than
pay the whole amount gained by the Vlr-
ginian bopdholders in the way OF exemption
from taxation Or tax OF Twenty-Five cents
on thousand dollars worth OF property
would pay the whole sum which is exempt
ed to all the bondholders under the MCCUL-
LocH bill, including all the bondholders in
England and everywhere else!
We again ask, would the soreheads acqui-
esce In the settlement under the MGCUL-
LoCH bill IL they could get rid OF this ex-
emption featuref OF course not. They
can bring no real argument to bear against
this bill. They are not seeking to defeat
that bill because it is oppressive upon
the people, but because they hope
to benefit themselves by deceiying
the voters. No better settlement can
ever be agreed upon. No better terms
can possibly be hoped for. 1t is foolish to
expect better. 1t Is dishonest to pretend to
expect better. The agitators know perfectly
we'll that IL the McCULLoCH bill be defeated
the funding act Of 1871 will continue in
force, and that nothing short OF downright
reputation could, then rid Us Of the old
funding act, as nobody will pretend that
our creditors will ever accept any harder
terms than those imposed upon them BY the
MCCuLLoCH bill.
But the point we made, and which the
Dispatch evades in Its reply to u.s., is that
the redistricting Of the States, which will
be necessity Of the new apportionment, is
the duty OF the State Legislatures, and that,
after all, this Is the important part OF the
work.--StGte. 81, sIsS4 f
Well, that's cool. We have not said
word about redistrlcting the States. We
have never written an article on that sub
iect. It has nothing whatever to do with