The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1879-06-06
virginia and Her Creditors.

The creditors of the State Of Virginia
have now before them the proposals OF that
Commonwealth for an adjustment OF their
claims. The offer of the State falls much
below the actual and rightful demands OF
the bondholders, and in that sense 1t cannot
be anything short Of a DISAPPOINTMENT 70
them. The case. however, is one in when
the creditor must consult MS !hterests
rather than his rights. Virginia Is Dahk-
rupt, and the question for the creditors 10
consider is, What can she reasonably DE eN-
pected to pay, and what, under all the cir
cumstances, may she be trusted to pay
The financial reputation OF the State has
always stood exceptionally high. If an
honorable regard for legations was ex-
nected anyw here, it was in Virginia.; for
She has always been too proud and too pru-
dent 10 let her name 60 needlessly to pro-
test. And although, within late years, po-
litical changes may have somewhat impaired
this regard for financial integrity. yet there
is perhaps to-day no State in the Union that
is more disposed to honor its engagements
to the extent Of its ability. In the case Of
Virginia, however, there is unquestionably
a limit to the ability to pay; and her cred
itors can only iniure their prospects by re-
fusing to duly recognize this fact. The
wealth-producing power OF the State has
vastly shrunk within the last seventeen
years. She not only suffered ruiuous de-
struction Of property through the war, but
she has recovered only very partially. The
lands once so productive are now exhaust
ed /; those who hold them have scant means
for cultiyating them, and the whole farming
interest is suffering the blight OF heavy
mortgages. Her farmers have to compete
with those of the West, with their special
advantages OF cheap land and cheaper
transportation. Her manufactures are at
best stationary, and her future cannot by
any means be said to be assured. 1t is Diff
ticult to find any interest or Interests that
afford basis Of prosperity sufficient to
guarantee the maintenance of Virginia's.
present industrial status andito prevent the
migration Of her citizens to more attractive
sections Of the country.
Under all the circumstances, it must ap-
pear to disinterested observers that the
question is much less whether Virginia Of.
fers to her creditors all she is able TO per-
form than whether she will be ableto per-
form all she offers. Certainly the last thing
that can be charged against her is desire
to get the better Of her creditors. Ii there
| Is room for suspicion in any direction, it
| ia as TO whether she has not oyertaXed
her means to satisfy her pride. Virginia
| stands ina wholly different category from
such States as Tennessee, which care not
| what becomes OF their credit or honor so
long SIS they can make sharp bargain with
their creditors. A majority OF those who
direct the policy OF TIE State may be trusted
to favor the best settlement the actual re-
sources OF the Commonwealth admit Of !;
and we have no hesitation in expressing
the opinion that the otfernoW made to the
creditors il the offspring OF such a feeling.
AT the same time it IL not TO be 'coneealed
that the pressure Of taxation upon the Inn
lpoyerished resources OF the people acts as
q strong temptation to yield honor to In.
lterest. When it becomes choice between
tsilrrendering The homestead and honor
ing the claims oil the bondholder, it Is
easy TO- see which way average hnnias,
nature will incline, Politicians have not