The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1880-02-25
Sa,tre and Sinking Funds.

The Legislature OF Virginia Is apparently
bent on rvaIling Mr.. MicIwber in lis deal
ings with creditors. The Senate has passed
debt bill Gy strict party yote, reducing
the debt TO about twenty millions. and The
interest TO per cent. The House, under ii
resolution OF the caucus. will amend the
senate bill so as to prohibit any provision
Of revenue to pay the interest and eXtin-
guish the principal. II the creditors get
their interest, they will have to come upon
the Treasury ut some time wnen it contains
money not otherwise appropriated. An
other feature OF this bill makes the bonds
taxable, and prohibits the receipt OF inter-
est coupons for the taxes. With this pre-
cious scheme OF reputation on the boards,
the bigh-tOGed VuginIa gentleman indig-
nanfIy rcsen's any imputatiOn upon the in
tegrity OF his State. OF course lhe Gov
ernor may veto the bill. but it viii probably
become law, and IN that case every gOOdV Ir-
gInian will answer for i;s justice and equity
with his life. In some States rIe prevails
making an honest debt lien upon assets
and income. II this scheme goes into effect
~ Virginia its creditors will have as security
for prip ciphi auu interest such pleclrfOns
balance as may remain in the Treasury over
and above the appropriations for ordinary
lien upon nothing is so evident that no COM
mentary is needed.
Ii would have been far more manly and
honorable had the Legislature vii ed OUT
the debt by single repudiating act. But
it seems beyond that people to do anything
in straightforward manner. Nobody will
pretend that either law or equity makes a
debtor sole Judge Of the matter at issue be-
tween himself and his creditor. So far is
this from being the clSe that courts are
established for the purpose OF arbitrating
between such parties and to secure each In
his rights. 4 debtor NAV claim reduction
OF the principal OF a debt, bHt toy his own act
he cannot compel the creditor TO accept the
adjustment. The courts only can do that.
Virginia takes advantage OF the fact that
State cannot be arraiyued and dealt with as
an individual. Ii stands upon its legal priyi-
legc, and says to its creditors. take what
offer, or nothing" In refusing TO make
provision for the payment OF interest and
principal by taxation, il practically repudi-
ates both, for ii has no other reSOurces out Of
which provision can be made. In providing
for the taxation OF its bonds il provides
for taxing them out OF existence, which
is roundabout way Of reputation.
In refusing 10 accept interest-coupOns
in payment Of taxes it simply repu-
dates the interest charge. Where, in
all the history Of States, can any
thing to parallel the infamy Of this be
found? Too crooked and cOwardly TO
wipe out the debt by single act, the Legis-
laiure OF State makes a specionS show OF
readi usting lis relations with lis creditors,
and at the same time refuses 10 make any
provision for the payment Of the debt It ac-
knowledges refuses TO receive interest
coupons in payment Of taxes, and announces
It's Intention 10 tax its own evidences OF
debt TO help to deiray the ordinary expenses
Of The State government ! Philadeiphid
North American.