The New York herald., 1879-12-26

West Virginia to settle her portion and for the pur-
pose restoring the credit OF Virginia by providing
Tor the prompt and certain payment OF the interest
on her proportion Of the debt a. it should become
due. Virginia proposed to the common creditors:-.
81 That they should surrender ther Old bonds to
~ That they should receive from her. in exchange
for these. bonds for two-thirds OF the debt and in
terest due on them, payable in thirty-four years
from July l. 1871. and the interest coupons on them
should be receivable after maturity in payment of
"a That they should at he same time receive cert
fcates for tho other third setting forth that pay
men of said third with interest thereon at the rate
prescribed in the bond surrendered, will be pro-
vided for in accordance with such settlement shall
hereafter be had between the States OF Virginia and
West Virginia In regard to the public debt, and that
Virginia holds said bonds. SO far as unfunded. in
trust for the helder or his assgnees."
ssVirgnia" continue the debt payers s'by that act
said:-I am bound to you for your whole bond,
but in justice and equity ought only to pay
~ arn with sue sstam Uf ,ne
have with Western Virginia This proposition was
accepted by over two-thirds OF the creditors. and
would probably have been accepted by the rest II
the next Legislature had not withdrawn it and re-
fused allow any more OF the creditors to come in
share Of tho debt. twenty of the remaining thirty
millions of 1t were funded in bonds running thirty
or forty At six cent ntses
tached which are receivable for taxes.
The remaining ten millions of debt bonds,
bearing interest, known as the 'peeer
bonds to this day. This name given them be-
cause their holders got peeled by the Legislature
of 1878. which declined to fund them. In that
Legislature Mahohe's 'resdjusters fairly appeared
IN a successful campaign IN opposition to the
'funders They had behind them widespread
homes influence. that the State too poor to
afford the risk Of paying its honest obligations.
THE M'CULLOCH BILL
elm time. though. the injustice to holders OF the
non interest paying bonds became, owing to per-
at .eo ssr as 'ss
compromise was Effected with the creditors in the
form Of what is known as the McCulloch
bill. Hugh McCulloch formerly Secretary Of
the Treasury and other gentlemen representing
syndicate in the interest Of the creditors. came
down to Richmond met with joint Legislative
finance committee and agreed upon bill refund
ing the whole debt The bill provided that the old
bonds bearing six per cent should be called in and
a new bond issued. payable in forty years. bearing
three per cent interest for ten years. four per cent
interest for twenty years and five per cent interest
for ten years. During the hrst ten years are to
pay only three per cent interest yet the readjusters
headed by Malone. are not satisfied. They have in
at ss BACK Of o tho debt to on the
basis of three per cent interest for all the time the
bonds have to runl Observe
'sFirst-That they propose to repudiate the future
McCulloch settlement, and.
"ISecond-That for political purposes they throw
the whole State into confusion by insisting the
repeal now ten years in advance Of the time r889)
.The plea upon which General Malone and his
coadjutors operating is that Virginia bankrupt
and needs financial rest. That is their apology for
raising controversy ut this time which has shaken
the credit OF tho State endangers the public school
system and enabled them to secure . majority
joint ballot in the Legislature the debt payers
opposition. But what are the facts7 OF the money
borrowed by Virginia forming. with the interest
It, her debit much the greater part has been devoted
to administer to the comfort and convenience of the
people and maintain values throughout the Common
wealth. In fact, 1t would be easy prove that the
inhabitants Of Virginia have value four or Ave fold
OF the publi debt created for these improvements.
Here are facts and propositions relating the
condition the State culled from Senator Bradley
I. Johnscn's recent report on the public debit
The Distress prevailing in Virginia during tho last
BY Ss ns Of IT,
trlbuton of property.
rh. abolition Of slavery did no. destroy s4 o,
i asd'd r.. that S s
Sf
Is sSsSsSs
.s In % to s has s s s
S
the which the most years OF cotton
to 62io, with discounts Of over S25 100000 The
statement includes the business Of West Virsins In
H. s ss ssaae ss's yns s'a
been earned saved by people 1865, aud
repair
The returns tho the consumption Of liquor
indicated by the Mofett register claimed In
tho Of tho Auditor of Public Accounts the
House Of Delegates January 49, 1873 that this tax will
yield least $5OO,OOO per snnnm to tho State.
OF S7,00O0Oo But only liquor solo In barrooms or in
quantities less than five gallons taxed by this law und
It is known that large portion that ought
ssy only shows half Of aaar
Virginia annumthat Is that $14 O0OOO annually
expended for indulgences and uxures people Who II
Is claimed too poor pay an additional tax OF $2OOO
to o0 60 their honest creditors for their
just debts IL 1t ~ said that this Is paid by ignorant and
unhappy people, then those who are solvent must be able
to pay moro.
Tho burden of tho public debt of Virgins Is neither
great Her assessed values of property this
In 1879 $32O00OOO, her population is l5OOOOO and
her debt $50 that is hor debt IL per
tion The total raised BY taxation and expended
in the OF government for schools and education
for interest state city and county debts for roads and
county and city Is So that is the annual
the labor and production Of Virginia $ 33
caput her population. But tho debt Of Baltimore Is
$33 O0U0 00O her population 30ouOO; her debt Is SlO
$i6o oO6 600 and population OOo0o her debt is
$3.50 capu while the annual tax paid for all
of including interest her debt $Y per
and the pauposm there Is ten times greater than
IL Is in Virginia.
GENERAL MAHoN's AIMS.
$50 much for the claim of the roadjusters ~ to
virginia's alleged bankruptcy, which might bo
further disproved by wearisome citations"
THE OTHER SIDE.
So much for the debt payers. side OF the matter.
General Malone, on the other hand, said much to
me in the interview heretofore alluded to that re-
another letter his explanation and defence
OF the policy now triumphant in the State.