The New York herald., 1879-10-28
VIRGIN MAS DEBT.
Interview with Secretary Elan, Of the
ReadjuSierS' Committee.
MCULLOCHS PLAN DENOUNCED
Population Preferable to the
Scheme Of the Brokers.
RICHMOND, Oct. 25. 1879.

RICHMOND Oct. 25. 1879.
have succeeded in obtaining view Of the cam
pagn aud the issues involved in it from the stand
point of the readjusters. General Malone. who ID
the head and front of the debt agitation and Messrs
Paul Massie Colonel Cameron and other leaders
are so constantly on the wing without definite ap-
pointments that it found impossible to inter-
view them. Secretary W. C. Elan. of the readJust-
ers' Executive Committee. who manages their cam
pagn and has the most thorough knowledge OF their
plans and operations. found At the office OF the
Richmond Wing (readjusters' headquarters) busiiy
engaged examining piles Of correspondence and CIV
ing directions replies appointments and the
exisencies of the campaign.
.'why do the readjusters oppose the McCulloch
bill. when it seems to embody tue CONCESSIONS SUD-
stantially which they demanded when fighting the
Funding bill of 1917" asked.
SECRETARY ELAMs STATEMENT.
Because there really no concessions in this
measure which actually embraces all the objection
able features of the Funding bill with worse ones of
its own The funders and brokers seek to impose
1t upon the people three per cent settlement.
and never tire urging it decreasing the burdens
of the Funding bill by one-halt; yet all the bonds
issued under 1t commence running January l. 1879,
and from that date there is q nominal rate Of in
terest of three per cent for ten years. until 1885,
to be followed by u nominal rate OF four per cent
FOR twenty years and nominal rate OF Ave per cent
for ten years. 1 say nominal rate, because under
This bill the debt which contracted in current
Virginia money is made payable. principal and in
terest. in gold its equivalent. sterling money;
and the bonds and coupons are exempt from all
taxation. State municipal. county and district
making the actual rate OF interest for the whole
period of forty years than equivalent to
the six per cent of the Funding bill. In New York
four per cent bond. exempt from taxation. is
sidered Of equal value to six per cent bond not
exempt; and in Virginia the exemption is worth
nearly quite much. besides being in direct con-
hict with constitution. Under the bill. too the
whole control OF the funding Is conveyed to the
tracing syndicates, without whose consent, upon
terms to be dictated by themselves, not single
bond be funded by either the State her cred
TORS; and these syndicates allowed until 1888
complete the funding. till when and until the fund
ing be completed. IL ever) we are to be under the
JOINT per of the Funding bill of 1871 and
three per Of tho Brokers' bill, leaving US at
best but six years Of the nominal three per cent.
The principal OF the debt already enlarged by about
S100000O0 Of capitalized interest and interest
terest. is to be further increased by the amount
several millions by capitalizng not only interest
and interest interest but interest the interest
OF interest! We have the tax-receivabe coupon
continued. and in much form, Tor.
whereas the coupon OF the bill of 1871 is
only an intercepter OF taxes, the Brokers
bill coupon is not only armed with that
power but with the power to go to the Treasury
aud demand all cash receipts. II needed tor its salts
faction for forty aud. in OF deficiency,
compel temporary loans or the hypothecation or
sale OF xrecevaple certificates ut rs the
dollar thus adding ut 33 13 per cent to all de-
hciencies. Thus. supposing the annual deficiency
to meet interest be only S5O,0OO, certificates to
the amount OF SG6,G66 would have to be sold TO sup
ply it; and these certificates would go in
OF taxes, or course the deficiency in cash revenue
to meet interest the second year would be SOC 666
plus s5o.OOO to be met by an issue and sale OF tax
certificates to the amount OF S155,554. And on,
with an annually accruing deficiency Of $4,000, The
sale of tax certificates would be Sa74o72 the
third year. S432096 the fourth year. $G42. .79l
the NTH year. $923.725 the sixth year,
Sl.29S,3Oo the seventh year. sl.797.733 the
eighth year, s2,4G3644 the ninth year and
Sa35l 525 the tenth year-which com petes the nom.
inal three per cent interest period Was a
ruinous system devised? Should any State submit
to it, unless she be Egypt. under the guns OF for
eign Powersg But would weary you to recite all
the iniquitous features OF this McCulloch bill Its
but its conditions degrading to the State and dis
graceful to our people"
A FAIR SETTLEMENT POSSIBLE.
But what do you propose to do about it. and how
can you do it, II the McCullocl bill be already an
executed contract. Us allegedy'
well, there Is great deal of humbug in the talk
OF the pArtisans of the bill about impairng the
obligation OF contracts their irrepealabity the de-
CT ,ions of the courts and the like. There is no
real difficulty in the way of a fair settle
melt except the funder factonists them
selves. But for them the Funding bill OF 1871
would have been repealed long ago and the whole
matter adjusted satisfactorily. No actual creditor
OF the State has ever contested the will of the State
in the courts about the debt will do 80. 1t
is politicians. and not our creditors, who make
the trouble. Even the politicians. however. when
falsely appealing to the courts in the
creditors, could make nothing by their motion II it
were not for the tax coupon; and they have taught
Us how to disarm that and the whole al-potent
tract by their McCuiloch bill. Not to mention
other modes las that of the Barbour BILL vetoed by
Governor Holiday J. can model our bill on McCul
lochs invention. make the rate straight three per
cent tor forty or fortyhyo years. put all the crod-
itors on an equal footing. without the exemption
from taxation any OF tho other Objectionable
features OF the McCulloch bill, and ask the
OF the creditors TO this arrangement. We know very
well how quickly and gladly the "peeler' bond-
holders would accept tho bargain, and IL the tax
coupon bondhoiders under bill should still hold
OIL relying their coupons intercept and control
revenues. selfdeience, either in the bill in
dicated ia a separate one, could raise the
OF taxation. nominally, from fifty cents on the 800
to 81 on the 1000 apd then issue tax certificates.
receivable only tor taxes in denominations to suit
all grades OF taxpayers. to be sold at fifty cents
all tax collectors To still further protect this
nue.. after collection, could specifically arpropri-
ate 80 much OF 1T tor expenses of government 80
much for schools and much for interest the
dcbt placing ii all tor absolute protection in the
hands OF officers in accord with the Legislature.
The Funding bill and the McCuilcch bill both bar
objection to this method of procedure, to it's main
feature that of the ssuo OF taxrccevabe certificates
and these certificates would ut once supersede the
coupons OF both bills prevent the sale OF tax certf
cafes at seventv-hve cents on the dollar and
give the State and people once more
their righful mastery of the situation. We believe
however. that there would be no necessity for ex-
treine measures. As soon rs the brokers should
discover that the funders finally beaten US a
faction they would withdraw themselves and the
sinews of war. ana the fight would end. Tho cred
itors, in fact, have never been in IL at ALL"
NO ABSOLUTE RErUDhTroN.
"What Is there in the charge that the readjusters
will repudiate and what is 1t likely they will re-
pudiateY
"kepudiateI Yes. we are going to repudiate the
rule Of brokers aud funders and all the infamses,
follcs. injustices and impossibilies OF their two
funding bills. OF the debt shall repudiate moth
inr. although many millions of 1t consist OF i'm
properly capitalized and compounded interest. We
only ask that the rate OF interest be placed within
our capacity 10 pay That is ALL The funders, how
ever. are sure to entail reputation upon in
evitabc resort II their schemes permitted to 20
into full effect. That they do not scrupc
to rcpudiate In abundantly shown by their
praetica repudiaton of the sinkina fund the liter.