The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1880-12-04
The Gfnfe Dehf=N0. =.


To Ire Editors of the Dispatch:
In my communication OF the 1st instant
stated that readjnstment and final settle
ment OF the State debt was political ant
financial NJ eessity, and tina. the good PEG
pie OF the State have resolved TO devise ant
execute, during the present year and within
their party organization, just settlement
Of this vexed question.
| undertook to show that the Barbour
bill of 1873, as tie initial step towards ~
honorable rtadjusment, was wise an(
comprehensive measure; to be followed
however, in order to secure equality anC
ratification among the several classes 81
State creditors by a proper REIMBURSEMENT oil
refundng bill In this communication
propose 10 outline such a radiustmen
bill as, in my opinion, would be honorable
to the State and just TO the creditors. and
which, believe, would, as it should, re-
ceive The popular approval of The first and
the cheerful acceptance OF the last; thus
removing forever the State debt from the
political arena, and RENTING 1t 10 the fnan-
cial and sto IL boards, where it pr operly be-
longs.
Now, then, as to the bill.
II should recognize the whole debt OF
| the Stale, excluding the one third set apart,
1t should make fundlble under lis prOv-
sions The present principal of the debt, as
recognized time and again by the legisll-
tive department Of the present State gov
ernment.
| Ii should provide that noa-interest-bear-
| ing certificates should be given for all in-
tercst in arrear; these certificates to be re-
| deemable at the pleasure OF the State, and
payable pro rata out OF any money in the
Treasury not otneI wise appropriated.
1t should provide for coupon bonds, tax
| receivable except as TO so much OF the public
revenue as The Legislature shall declare IS
needed for State expenses, and so much as
the Constitution has dedicated to public
school purposes, the bonds and coupons to
be noD.taXable by counties and corpora
lions, and only by the State at the rate and
in the mode prescribed for taxing real and
personal estate in the State.
The rate OF interest should be not less
than nor more than per cent, payable
semi.annualy at the Treasury Of the State,
IN Richmond. Individually, prefer that
the rate CT interest should be per cent. for
the first half Of the time the bonds snail
run, and per cent. for the residue. This
would make an average rate OF interest Of
81 per cent.
The bonds should run for thirty or forty
years, redeemabie at the pleasure OF the
State after fifteen years.
The bill to be submitted to the people for
their approval and ratification.
When ratified, TO become the law OF the
State, with the faith Of the people pledged
by The act OF ratification TO the prompt dis
charge OF all its Obligations.
This is the skeleton OF the bill, and, as q
c1- oil "a, mat IN Ix have FRIGHT.
ful features. But you will remember that
in my first communication l stated that, IN
order to secure proper, just, and abiding
settlement, concessions would have 10 be
made by both debtor and creditor This
bill calls for those concessions. Now. first
for the concessions on the part OF the State.
LIST. The present principal Of the debt,
recognized time and again by our present
State government, must be treated as the
true principal. No population or etimind-
ton OF one third, or of any other part OF
SAID principal, is practicable, even ii it were
just. The portion sought to be eliminated
is claimed to be "war interest" Suppose |
1t to be so; are we not bound to recognize |
the principles OF international law, by which |
and under which States and nations always |
pay war interest on their debts! AT one |
time the payment OF such interest, as to Cit |
liens or subjects OF the hostile States or
nations, was suspended during hostillties. |
But in the present DAY civilization has so !
far advanced as not to permit hostile States
or nations to suspend, even inter arnld, the |
payment OF interest on their public debt. IL
England and the United States were now at |
war, each would see TO it that interest due
on their public debt to citizens or subjects
OF the other was promptly paid. The rea.
s01 for this Is that the credit of the sove-
reign is so valuable and necessary that his
p'edge or promise must be so sacred as TO
3e beyond The vicissiudes OF peace or war.
Virginia as a State contracted the debt, Viz
gina as State made war, and Virginia as
State, after the war was over, recog-
nized this war intetest; and what she did
not pay OF it she capitalized, thereby giving
her consent 10 the above principle, recog-
nlzed by all publicists and practiced by all
nations. But even IL this interest was not
properly payable by the State, vet its eimi-
nation Is now impractieable, because il is
now lathe shape OF coupon bonds, taX-re.
seiyab'e. and in the hands OF bona.fde
holders ,foT value, who will not consent TO
.he so.called elimination.
I'd. The coupon bond, tax-reciyabIe,
nust also be conceded by the State. To do
70 Will not cost the State one additional
adj. The same number OF dollars and ,
'ents will pay the interest OH the coupon
ax-receivable bond as upon the ordinary
registered bond without coupons. III the
lett Is $50, 90) 900, then, at 8 per cent, ,
300, 100 will pay the interest, no matter 4
What mag be thescharacter OF the bond or ,
oupon. d the State pays the iatsresi at the ,
treasury according to the tenor OF the bend, I
% coupon will ever intervene between the
treasury aud its revenues. Not to eoneede
ne receivabiikT OF the bonds and coupons,
) the creditors now hold such, would be TO !
rouse some suspicion as to the good faith
The State rad prompt payment OF the 2
atfrest. II q rexdjusfment Is effected, the q
tate means 10 sad will pay the interest.
therefore, every assurance she gives Of this &
MI enhance the market val3e OF her bonds 81
nd enure greatly TO her benefit by re- 4
her. credit. The concession J
lould be made because thereby the cred
or Is greatly benefited by the enhanced te
aine OF the security, and the STATE il Ger. u
taly not Injured. II will not do 10 b
y non that coupons deprive the State h.
that Just control which she should nj. N
avs have over her taxes, and shonId moi in
allowed. But they have already been ID
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