New-York tribune., 1879-09-16

charge Amounted to abont 81 ,750O 900, and that tie
deficit was about Ts5O,OO0 year He could s'e ''t
two ways open for an honorable settlement; taxes
must bc increased or friendly adjustment maze
with creditors. Repudaiion or iorcioie reanJ"sl-
mont vould hiring ruin. he said but increased tax
ation though it might SUFFERING and p1yatlon
.ior n time. would ultimately bring prosperity ana
peace To pay the yearly interest Gchrt would re-
onire an increase If three or four mills in the rate
Of taxation The Governor reported that aiter eN-
tcrsivc corrcspcnlence with the bondholders ne iet
warranted in saying that LARGE majority oi th'il
were willing to surrender their per cent bonHS
aud receive IN exchange per cent gold Dohus ~
the amount of the principal and interest oi te "l'
bonds or to receive per cent scld-oc'f'n2 ooh
for the principal and accrued interest 90 thc cons ~
and 3lo per cnt for all other evidences OF inde't-
odness.
These concessions were wrung from tie hona-
holders bv the fear that if troy were not yielded
the reputation party in Virginia would be aoie ~
carry through stu greater reduction, If not to re-
nudio,n the whole debt. Besides. on several mill
ION dolllls of tho bonds interest had p''h
raid for years aud the sentiment OF the Democratic
party in Virginia as formulated IN IFS politcal pia
forms. was fcrcrly hostile 70 any increase Oh t'o
rate of taxation. The same consderatl"l-,ea1 Vi
something worse-forced the hondholdrrs 10 haStoh
to accept the Fgnding Act of Maich, 1873, ana to
inslre the surrender OF enough bonds before Jann-
arv l. 1850, to establish contract rights under TIE
law.
The new Funding Act repudiates one-hal: the past
duo interest outright. This amounted January !.
1879. when the at took effect to ss.2J2,2i9. The
actual and immediate rcpudia'ion therefore
amounts to 50 1876 12i. Tie principal of tie debt
a. "readiustcd" VIII amount 70 S3l.35O3!S, ana
on this the boudholders are compelled 10 stand a.
average loss of interest Of two per cent year dur
ing the forty years before the now bonds become
due. his loss Will amouut % S23.0So.2'S' 'naA-
ing the total loss 70 the bondholdcrs T21.2164"2-
Besides the debt above stated there are about
SIS O0O. 900 of bonds and deferred certificates on
which no interest has been raid since the var
Virginia declare thlt tbs is the proportion of the
old deht whirh West Nrrinla ought 20 pay an"
West Virginia disputes the Justice oi the c!aim'
How long hi. controversy Will contiue 40 one c.n
foresce. Tn holders oi tbs lid 'tedn',s Law
already suffered q loss o.. Interest estimated 3,
$4,000. .uOO or n,orr DIAN ,br rI.ac.pal it,eif. L
i.u-.tty certain tAat until Tie Democrats loss cole
frol OF West Virninla. OIL b,clme more honest with
rnhic crc,lifors. thr holders O.. these obiira' oas
will not reco Sc any part OF the money 'ne th'r
The Constitution of We, V-,ril. .ra'n,I b. 81
Constitutional Convention composed "t lrer
majority of Ncprn'i s. aad lat'aoa in l~'j D., 81"
oycrviclm'ur maj iity of Republican votes con-
tanned ih, ioI'Ni's -''''''' .,...,,...,,.
, tl ,t.",''' ,t,''. i,,i nra- p, t.,r nisr day of
J,raIy. ID fn~ r.a- 1851 a.aii '' assumed ', 81"
,Ialri .h" ii' d. ...o,t", .oe...-
t' n...... I.ya -,.l- 'uaa -.I...' Co. .a, th, a-
c.air- '.'.isr ait fe't'i -" "''"' '''''
-. ,. .,o D..,,.r... ..,.r.., control of f..p
state uI-1l. ttcv ,ei'eda con.titrti.nh conFcr-
tom ami frawcd now constitution. which w
adopted ir iS-2. They were cuc,ui c, omit O..
rn''" ''' .,..-...... ..~i.l
.",
a.. Observation-Disclosures. ,ctorr--o zo.r4c1.t
4. ",..n.l ,i..rI.- lru., f. ~ ,..l r.,.. 4.